Performance Management in relation to Fire Safety

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1 Performance Management in relation to Fire Safety Prof. dr. ir. G. Reniers Delft University of Technology Challenge the future Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety

2 Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety 3 23 Prof. dr. ir. Genserik Reniers MSc. in Chemical engineering Ph.D. in Applied Economic Sciences Full professor at TUDelft & UAntwerpen (Chair on Safety of hazardous materials) Fields of research: - Domino effects in the Process Industries - Cluster safety and security culture - Safety and security collaboration - Uncertainty analyses and game-theory - Systemic risks in the process industries - Safety and security prevention and economics - Leadership and Performance Management Science Performance Management: in relation to Fire Safety

3 Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety 5 23 The brain of the manager and the position of PM Performance Management: in relation to Fire Safety

4 How to develop/design adequate PM for (fire) safety in an organization? E.g. use the Balanced Scorecard for fire safety! - BSC is well-known at corporate level to implement PM in organizations - BSC for fire safety may use four perspectives: Final results, Internal customers (employees and contractors) and External customers (e.g. surrounding companies and communities, inspection), Learning and Growth, fire safety processes Performance Management: in relation to Fire Safety 7 23 Difference between indicators? Management indicator (pro-active or leading ): - tells you what to do to increase performance dramatically - answers the question with what means? - indicates whether the conditions are present to achieve certain goals Process indicator (pro-active or leading ): - tells you what to do - answers the question How? - indicates whether a predefined goal is achievable, and whether the efforts to this end, are carried out according to plan Result indicator (re-active or lagging ): - tells you how you have done in a perspective - answers the question What? - indicates what was achieved and whether a predefined target/goal was reached Performance Management: in relation to Fire Safety

5 Some examples Management (Respect) indicator: - % of turnover used for fire safety - % of company strategic goals related to fire safety - % of Service Level Agreements following fire safety requirements - # mgt reviews carried out / # mgt reviews planned Process (Risk) indicator: - # fire incident analyses / # fire incidents - # implemented improvement suggestions / year - % processes audited externally - % examinations carried out according to plan (time schedule) - number of safety speeches about fire prevention per year Result indicator: - number of fires - Number of employees suffering from a fire per year - number of first aids of contractors due to fires - yearly insurance premium for damages due to fire Performance Management: in relation to Fire Safety 9 23 Think before inventing/determining indicators! What is the perspective? (Final result, Internal customers, etc.) Frame the indicator. Formulate a Key Performance Question. Answer the question why this particular indicator is important. Formulate indicators SMART : Specific, Measurable, Achievable, Realistic, Timely. Performance Management: in relation to Fire Safety

6 Formulate indicators SMART Specific: make the indicator as concrete as possible Measurable: make sure the indicator can be evaluated Attributable: make sure the indicator can be attributed e.g., who is/are in control of the indicator? Realistic: make the goals achievable (in time, in a financial perspective, in a practical way, etc.) Timely: make a timing, for measurements, communication, actions, etc. See also information required per indicator! Performance Management: in relation to Fire Safety Basic questions for every indicator Why do I want to measure with this indicator? What is the purpose of measuring it (perspective)? Is it important? Do I have a benchmark for this indicator? What would be the objective for the indicator? Is it realistic? How do I measure this indicator best: qualitative or quantitative? Why? Do I have a clear view of the indicator type? Can I gather all the data relatively easily? Can I process the data easily/adequately? Is the indicator Specific? Is the indicator Measurable? Is the indicator Achievable? Is the indicator Realistic? Is the indicator Timely? Is the indicator linked to another indicator? If yes, is it still relevant? How will I present/display this indicator? How will I explain/ sell this indicator to mgt/workforce? Performance Management: in relation to Fire Safety

7 Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety PM visualisation (i) Performance Management: in relation to Fire Safety

8 3. PM visualisation (ii) Performance Management: in relation to Fire Safety Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety

9 4. Required information per indicator (i) General information Short name Long name Description and purpose Source References Nature Risk domains covered Unique codified name of indicator. Detailed name of indicator. The indicator measures what, and what doesn t it measure (what would there possibly be confusion about)? Who issued this indicator? Available reference document(s) concerning the indicator. Qualitative, semi-quantitative, or quantitative. Depending on the needs and the management systems implemented, a myriad of risk domains can be covered. For example, environment risks, health and safety risks, security risks, operational risks, process risks, occupational risks, quality risks, ethical risks, etc., or any combinations thereof. Remark that a unique indicator may be more or less relevant for several domains. Performance Management: in relation to Fire Safety Required information per indicator (ii) Formula and unit Target value Minimal and maximal values Input data required Frequency of measurement Related indicators Technical information With what formula was the indicator value calculated (if applicable)? Target value (to reach a predefined performance). Describe the minima land maximal limit values within which the indicator value may be considered as acceptable. If the indicator value is out of these limit values, actions need to be taken. Information required to implement the formula described above (that led to the calculation of the indicator). What is the frequency with which this indicator should be measured (the periodicity of monitoring will influence on the level of resources required)? Indicators are part of a network of indicators monitoring different system components. The relationship(s) between the indicators should be mapped and a list of additional indicators providing extra information on the indicator under consideration should be drafted. Performance Management: in relation to Fire Safety

10 4. Required information per indicator (iii) Indicator reference person or owner Data provider(s) or registrator(s) Interpretation procedure Communication procedure Relevance assessment procedure Software availability Adequacy with existing/local information system Organizational information A reference person in the organization should be affected to each indicator. This person will be responsible for the quality of the whole process from data and information collection to interpretation and communication of the results. Person(s) need to be appointed to collect and deliver the required data/information (necessary input data). Person(s) need to be identified who are capable of, and who have the competence and the authority to, correctly interpreting the measured indicator value, and to translate this value into knowledge and insights. Person(s) within and outside the organization that should be informed about the indicator results, are to be identified. The method of communicating the results, is to be determined. The relevance of any indicator should be questioned at regular time intervals and according to a pre-defined procedure. IT-information Existing software that improves the use of the indicator or that makes it more easy, is listed. The configuration of existing software may facilitate the input of collected data, or it may complicate this process. This fact should be taken into account beforehand. Performance Management: in relation to Fire Safety Presentation outline 3. PM visualisation 4. Required information per indicator 5. Conclusions and recommendations Performance Management: in relation to Fire Safety

11 5. Conclusions and recommendations (i) Short-term PIs should be treated differently from long-term PIs, and you need both ST and LT indicators! There should be PIs for the different types of fire risks small fires as well as large-scale fires and explosions etc. There should be PIs on an individual level and on an organisational level There should be mgt. ind., process ind., and result ind. Performance Management: in relation to Fire Safety Conclusions and recommendations (ii) PIs for fire safety can be developed within all egg-domains and within all industries PIs can be expressed quantitative as well as qualitative, both are important - collect as much info as needed, but as few as possible PIs results cannot be presented on one single figure; several figures are needed and should be made and interpreted trial-and-error: PM needs time! (story of chickens) Performance Management: in relation to Fire Safety

12 Performance Management: An absolute MUST to achieve and continuously improve fire safety! Performance Management: in relation to Fire Safety

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