KPI stands for – Key Performance Indicator. It is a measurable value that demonstrates how effectively an organization is achieving key objectives. This objectives can business or health and safety objectives.
Our concern will be on the health and safety objectives.
Organizations use KPI (Key Performance Indicators) to evaluate their success by comparing their results to the set objectives.
Understanding what KPI stands for is very important, since it sets the basis for measuring performance.
At the end of this article, you will understand:
- Key performance indicators (KPI) definition.
- Key performance indicators examples.
- KPI template
- How to measure KPI
We have already talked about what KPI stands for. Let’s now see the key performance indicators examples.
Key performance indicators examples
The key performance indicators can be divided into two (2) –
1. The leading indicators:
A leading indicator is a predictive measurement. It is a proactive indicator which predicts the direction before it actually happens. For example; the percentage of people wearing hard hats on a building site is a leading safety indicator; this may be showing a drop in HSE compliance and a possibility of a serious accident occurring soon.
2. The lagging indicators
A lagging indicator is an output measurement. This is a negative indicator, because it is established after something bad might have happen. For example; the number of accidents on a building site is a lagging safety indicator.
We will give examples of the KPI indicators by dividing them into their different areas – Leading indicators and Lagging indicators.
Examples of leading indicators
- The percentage of managers with adequate health and safety training;
- Percentage of HSE workers with adequate health and safety training;
- Percentage of management meetings wherein health and safety issues are addressed;
- Percentage of management-worker meetings wherein health and safety is addressed;
- Number of workplace inspections or scores of workplace inspection systems such as ELMERI or TR Observation;
- Frequency of site monitoring to observed unsafe behaviour;
- Number of OSH audits performed;
- Percentage of OSH suggestions or complaints where feedback is given to those reporting within two weeks;
- Level of HSE compliance
Examples of lagging indicators
- Injuries and work-related ill-health in terms of LTIs, Lost Time Incident Frequency (Rate) (= number of lost-time injuries x 1,000,000 divided by total hours worked in the accounting period);
- Production days lost through sickness absence (% of total work days lost by sickness absence; this can also be specified further, e.g. for short-term sickness and long-term sickness absence);
- Incidents or near misses (including those with the potential to cause injury, ill-health, or loss);
- Complaints about work that is carried out in unsafe or unhealthy conditions;
- Number of early retirements, etc.
KPI Graph Report Templates
Three MS Excel format fully editable and customisable Key Performance Indicator Graphs (KPI Graphs).
How To Measure KPI
Measuring KPI is all about comparing the chosen KPI’s to the set organizational objectives. The chosen KPI’s should best suit the organization. Which KPI’s are best for a particular organization depends on several factors:
- Where is the organization today with respect to health and safety performance?
- Where does the organization want to be tomorrow?
- Who receives the KPI data and what do they do with it?
- How are KPI’s and the conclusions that are drawn from the KPI’s communicated to others?, etc.
After the important KPI’s has been chosen, the next thing is to compare the results of the KPI’s to the set objectives.
The results of the comparison will portray the success level of the organization in achieving it’s set objectives.
Lets recap – From our topic “What KPI stands for”, I believe you have learnt something.
I also believe that all the learning objectives has been met.
If you still have questions from the topic “What KPI stands for” please you can ask your question via the comment box. Your questions will be attended to.
Additional Resource – https://www.kumospace.com/blog/virtual-event-success-metrics
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