Practices on KPIs

In 2011, the European Process Safety Centre invited its members to share details on leading indicators that each has introduced for process safety. Seven companies provided this information. A general finding was that no company uses more than six indicators, and one company uses a single indicator as suggested by Table 8.4. The average from this survey was about three (3). 

The table illustrates other indicators used that proved to be of value for specific companies in their specific situations. When process safety risks are found throughout the operations, leading indicators typically are linked to measuring the functioning of critical safety systans or procedures, such as Management of Change, Risk Assessments, Permit to Work, Mechanical Integrity, etc. It is important to note that quality of indicators, not quantity, is more likely to deliver success. 

Major companies that have introduced and are using process safety KPIs have reported the following insights for the benefit of other companies. 

Leading indicators are often expressed as a percentage or ratio and not an absolute value. They should be expressed positively (100% desired instead of 0%, this is in contrast to lagging indicators). They should promote an informed discussion on where to invest resources (money, effort). 

Use of leading indicators that demonstrates compliance should be avoided, if possible. Any outcome other than 100% compliance is unacceptable and therefore the indicator is not helpful for process safety steering efforts. 

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