All our hard work is invested, and time is dedicated to our business, but how do we know it is converted into value? Here comes the KPIs (key performance indicators) at the rescue. KPIs are extensively used by businesses to track their progress and goals. But why is there a need to evaluate your growth rates? Growth analysis is essential for any business, let us see why. By analyzing your growth you can easily set target goals, compare your growth with businesses of your size, and estimate the future growth of your business.
Table of Contents
An introduction to KPIs
The key feature of KPIs is that they allow you to set strategic goals. Depending on your requirements, you can either use it for evaluating monthly goals and growth or fixate on long-term strategies. There are different varieties of KPIs that can be used to set different goals. The strategic KPIs can be used to monitor the goals and growth of the organization (for example market shares and revenue.) While organizational KPIs track organizational performances for shorter periods (for example average monthly costs of transportation.) Another category of KPIs is functional KPIs which perform specific functions like finance KPIs.
To curate an effective KPI strategy you should keep a note of the following things. Integrate a stable balance of leading and lagging KPI tools. Leading indicators in reference to KPIs tally the future prospects of business like expected revenue for the upcoming month. In contrast, lagging indicators determine the analysis of achievements that are already obtained. In addition, it is extremely necessary that you inculcate a work environment that facilitates the working of KPIs. Using KPIs if your employers don’t even know what it is doesn’t sound like a good idea. You can build a work culture involving KPIs by starting to educate your employees about them.
What are KPI dashboards?
KPI dashboards are nothing but tools that integrate data and provide a visual representation. The visualization can be simplified by the use of graphs and charts. This can make analyzing effective, quick, and more organized. The major KPI dashboards used are the Executive KPI dashboard, Operational KPI dashboard, Tactical KPI dashboard, and Analytical KPI dashboard. Among all the varieties of KPI dashboards, they are restrictive in features. Choosing the right type of KPI will depend majorly on your organization and requirements.
Safety KPIs: What are they?
Safety KPIs are performance indicators designated to analyze the metrics concerning safety. Building a safe and healthy environment has become an important target for any organization. When we target safety as a performance indicator, it can be harder to evaluate as compared with other performance indicators like finance. We can easily rely on statistics and analytics obtained from safety KPI dashboards. The easier the reliance, the harder is logistics and administration involved in providing accurate results. Using safety KPI dashboards has aided in gaining advances from manual methods. The absence of human errors and high reliability make it preferable to manual methods.
The objective and quantitative data from safety KPI dashboards can be used to effectively track the performance of the organization. Required improvements, trends, and the latest trends can be defined by the use of safety KPI dashboards. Choosing the right type of KPI dashboard will depend on what domain your business is based on. Another factor that plays a major role in choosing the right KPI dashboard is the type of expected goals. When it is restricted to building safety KPI dashboards, here are 8 metrics you should not forget to use.
1. Driver safety metrics
Driver safety metrics can be beneficial to reduce the chances of collisions. The safety KPI dashboards of driver safety metrics are inbuilt with smart features. The dashboards can determine human activities or behaviors like drinking, smoking, perilous following distance, speed of the vehicle, texting, etc. By using driver safety metrics one can easily assess the behaviors and analyze the risks associated with driving. These metrics can coach the drivers by providing needed insights.
2. LTIFR (Lost Time Injury Frequency Rate)
LTIFR is an acronym for Lost Time Injury Frequency Rate. This safety KPI dashboard provides an output that covers the frequency of injuries or events that result in time loss for some time. For instance, a minor accident will hardly take an hour. On the other hand, if we consider the occurrence of a serious accident, we can predict the loss of months with respect to time.
3. Average Overtime Hours Per Person
This safety KPI dashboard can track the time an employee worked excluding their normal or scheduled working hours. Lower statistics for this particular implies that the workload is being handled effectively by an organization. It can evaluate the frequency of rest periods and the time durations of rest periods. An even and healthy workload also makes sure that the employees are not exhausted and reduces the chances of fatigue. One thing to note here is overtime can vary for an individual company. Inefficiencies can also be evaluated using these safety KPI dashboards.
4. Reported Accidents
This KPI safety dashboard determines cumulative data of reported accidents in the workplaces or of the employees. If you wish to determine fleet safety, this safety KPI dashboard is what you should be opting for. This metric should be closely evaluated when inculcating new processes or machinery. This KPI can determine the correlation between the novel machinery and the reported accidents. Additionally, apart from monitoring the number of accidents, the figures can be used to obtain a ratio. The ratio can further help in extracting the number of accidents per employee.
5. Equipment breakdown
Equipment breakdown is an important safety KPI dashboard that you can’t miss to use. The breakage of equipment often leads to the loss of activity. By an analysis of equipment breakdown, you can evaluate and set goals as per the requirements. The production and safety both can be enhanced exponentially by using this safety KPI dashboard. Equipment breakdown often results in accidents. In fact, a greater number of accidents happen because of the failure of the equipment. Hence, this indicator can be an important metric when it comes to safety KPIs.
6. Near Misses
The focus attained by actual incidents is something we wouldn’t discuss here. But near misses are often neglected when they can be equally important as the actual incidents. By analyzing the near misses, the probability of real incidents happening can be predicted. Along with knowing the likelihood of real incidents happening, related preventive measures can be implemented as well. Obtaining data for this safety KPI dashboard can be difficult. Active participation of employees and an efficient reporting system can be helpful.
7. Driver Training
The driver training metrics should be an integrative part of safety KPI dashboards. The necessity of coaching and training drivers on a regular basis can not be neglected. This metric can help in evaluating different things like time of training time and how much of the information is retained. The insights gained from different metrics of the organizational KPIs, and training can be provided in the concerned domains.
8. Vehicle Inspection
This particular safety KPI dashboard can help in gaining insights by inspecting the vehicles. This will result in the building of maintenance plans for the vehicle. As a result, the optimum levels can be maintained. Another benefit obtained can lower costs on an overall basis. This can also prevent the breakdown of vehicles unexpectedly.
Wrapping It Up
The administration of a business can be a tricky task. Generating leads, tracking revenue, understanding competition, impressing customers, and did we not miss a lot of major focuses of a business? But amidst all the priorities building a safety KPI dashboard can not be missed. With the right technology, safety can be evaluated and worked upon. The safety KPI dashboards provide a review of the safety performance of an organization.
The benefits of safety KPI dashboards are entertained by safety managers, HR managers, analysts, and executives. In organizations, with the absence of KPIs, it can become impossible to decide objectively or track performance and focus on the required spheres of the organizations. For making it convenient, safety KPI dashboards can be easy way. KPIs can enhance and bring the optimum levels of productivity along with bringing the risks to minimal levels.