Balanced Score CArd Approach

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Balanced Score Card Approach?
Nah, Use This System!

By Barbara Semeniuk

Have you ever been reading something – like stuff about Balanced Score Cards – and then a paragraph or two in, you realize your mind is wandering? You can’t remember what you’ve just read?

Now be honest here – when you read the previous article about Balanced Score Cards were you curious what else that system comprised? Or did you think, too complicated?

The truth is, between that article and this one, I attended a conference in Los Angeles about this very topic. And I have some great news for you.

Before I share what Safety experts are heralding as one of the easiest and effective systems available today that helps you identify and solve issues in your corporation, let’s review what the Balanced Score Card was about.

The Balanced Score Card, an internal business monitoring system, uses your own company’s internal measurements to determine what goals you wish to achieve.  You examine your metrics in four areas:  innovation, resources such as people, processes (production, quality, safety) and customer service (what the customer thinks of you). 

Currently 52% of the major corporations in the USA are using this system. What that means is these companies measure productivity in more ways that the standard financial tests of the past. In 1992, two Harvard professors proved that by using this system, companies could measure key performance indicators, completely and in great detail (and I repeat) great detail.

Now here’s the good news. I used to think that the Balanced Score Card was the best system because of its complexity and detailed analysis. I still do, however, since writing that last article, I learned that there is a simpler, easier system available and it works!

The Safety Index System developed for Baxter Healthcare Corp by a lovely and helpful man named Javier J. Ruiz-Mendaz, P.E., offers this leading indicator: It prevents incidents before they happen because you can correct a low score before it results in losses.  In fact, these indicators can predict if you are more likely to have an incident!

What this means for you, as the Health and Safety Manager, you can stay current with legislation, write new training programs and standards, sell safety to management, and more because you now have more time. Sound impossible? Here’s how you implement it.

You delegate this simple and easy safety system to the proper people – your supervisors and other managers. You can now act as their resource person and not as the only one responsible for Health and Safety in your Company. Interested?

Here are more details:

This system is so easy and simple to use.  In fact, everyone can be held responsible in their designated areas. And the best part, the Safety Index system is easy enough so that your supervisors really could get to like doing this.

Here’s how it works. First, you create a list of to do’s….you know, those unfinished or critical items arising from job safety hazard analyses, training sessions, inspections, accident investigations. Next, you track how many get corrected, how many get corrected late, or not corrected at all. All your Safety Managers have to do’s.  Now you put a percentage weight on it. This To Do element should have the most weight in the system because if left uncorrected, to do’s will result in incidents.

After you have the number of inspections completed, the number of incidents investigated, the number of training sessions attended, you then assign weighing to these additional items. Here’s what your list with weights looks like:

To do’s……40%

Inspections….15%

Incident Investigations ….15%

Training Sessions Completed….15%

Compliance to Standards…..15%

You could put different weights to different elements depending on how you view them in terms of preventing incidents and their importance in your organization. Once you have a rating in place, you determine the completeness of the metrics.  Did the area supervisor finish 60% of the assigned task, 40%, 30% or 100%?