Measuring ROI in Environment, Health, and Safety

Preface xxi
List of Authors xxxi
1 Environment, Health and Safety is Everywhere 1
1.1 The New Role of EHS 2
1.2 Environmental Initiatives 2
1.3 Safety Initiatives 6
1.4 Health and Fitness 13
1.5 Managing Change in EHS 17
1.6 Final Thoughts 19
2 Is It Worth It? 21
2.1 EHS Killers 22
2.2 Value Redefi ned 28
2.3 Why Now? 31
2.4 EHS Chain of Impact 35
2.5 Shortcomings of Current Measurement and Evaluation Systems 38
2.6 EHS Leadership: A Requirement for Success 43
2.7 Challenges Along the Way 44
2.8 Final Thoughts 47
3 Investing in Environment, Safety and Health Initiatives 49
3.1 Overview 49
3.2 Strategy 1: Avoid the Investment 50
3.3 Strategy 2: Invest the Minimum 55
3.4 Strategy 3: Invest with the Rest 58
3.5 Strategy 4: Invest Until It Hurts 62
3.6 Strategy 5: Invest as Long as there is Payoff 66
3.7 Final Thoughts 70
4 The ROI Methodology: A Tool to Measure and Improve 73
4.1 A Brief Overview 74
4.2 Results Framework 74
4.3 Results Framework and Business Alignment 79
4.4 Benefi ts of Developing the Chain of Impact 82
4.5 The ROI Process Model 83
4.6 Operating Standards and Philosophy 96
4.7 Case Application and Practice 96
4.8 Implementation 97
4.9 Benefi ts of Applying the ROI Methodology 98
4.10 Final Thoughts 101
5 Project Positioning 103
5.1 Creating Business Alignment 104
5.2 Determining Payoff Needs 107
5.3 Determining Business Needs 111
5.4 Determining Performance Needs 118
5.5 Determining Learning Needs 120
5.6 Determining Preference Needs 121
5.7 Developing Objectives for EHS Projects and Programs 122
5.8 Case Study Examples 126
5.9 Final Thoughts 134
6 Measuring Reaction and Learning 135
6.1 Why Measure Reaction? 135
6.2 Sources of Data for Measuring Reaction 138
6.3 Areas of Feedback 139
6.4 Data Collection Timing for Measuring Reaction 140
6.5 Data Collection Methods for Measuring Reaction 141
6.6 Use of Reaction Data 142
6.7 Why Measure Learning? 143
6.8 Challenges and Benefi ts of Measuring Learning 144
6.9 Learning Measurement Issues 146
6.10 Data Collection Methods for Measuring Learning 147
6.11 Use of Learning Data 149
6.12 Final Thoughts 150
7 Measuring Application, Implementation and Impact 151
7.1 Why Measure Application and Implementation? 152
7.2 Application Measurement Issues 153
7.3 Data Collection Methods for Measuring Application 157
7.4 Barriers to Application 159
7.5 Use of Application Data 160
7.6 Why Measure Impact? 160
7.7 Impact Measurement Issues 161
7.8 Data Collection Methods for Measuring Impact 165
7.9 Considerations for Selecting Data Collection Methods 169
7.10 Measuring the Hard to Measure 172
7.11 Final Thoughts 173
8 Isolating the Impact of EHS Projects 175
8.1 Why the Concern About Isolating Project Impact? 176
8.2 Preliminary Issues 179
8.3 Methods to Isolate the Impact of Projects 181
8.4 Considerations When Selecting Isolation Methods 198
8.5 Final Thoughts 199
9 Converting Impact Data to Money 201
9.1 Why the Concern About Converting Data to Monetary Values? 202
9.2 Five Steps to Convert Data to Money 204
9.3 The Five Steps to Convert Data in Practice 206
9.4 Methods to Convert Impact Measures to Money 207
9.5 Considerations When Selecting Data Conversion Methods 215
9.6 Intangible Benefi ts of EHS Projects 219
9.7 Final Thoughts 226
10 Calculating the ROI 227
10.1 Why the Concern About Project Costs? 228
10.2 Fundamental Cost Issues 229
10.3 Fully Loaded Cost Profi le 233
10.4 Cost Classifi cations 235
10.5 The ROI Calculation 236
10.6 ROI Misuse 238
10.7 ROI Targets 240
10.8 Intangibles Revisited 241
10.9 Other ROI Measures 241
10.10 Final Thoughts 243
11 Reporting Results 245
11.1 Why the Concern About Communicating Results? 246
11.2 Principles of Communicating Results 247
11.3 The Process for Communicating Results 250
11.4 The EHS Scorecard 261
11.5 Final Thoughts 268
12 Implementing and Sustaining ROI 271
12.1 The Concern About Implementing and Sustaining ROI 272
12.2 Implementing the Process: Overcoming Resistance 273
12.3 Assessing the Climate 274
12.4 Developing Roles and Responsibilities 274
12.5 Establishing Goals and Plans 278
12.6 Revising or Developing Policies and Guidelines 279
12.7 Preparing the Project Team 280
12.8 Initiating ROI Projects 282
12.9 Preparing Sponsors and Management Team 283
12.10 Removing Obstacles 284
12.11 Monitoring Progress 286
12.12 Final Thoughts 287
13 Measuring ROI in Safety Management for Project Leaders 291
13.1 Background 291
13.2 Why Evaluate this Program? 294
13.3 The ROI Process 295
13.4 Planning for Evaluation 297
13.5 Data Collection Plan 297
13.6 ROI Analysis Plan 297
13.7 Action Planning: A Key to ROI Analysis 300
13.8 ROI Forecast with Reaction Data 303
13.9 Improving Response Rates 305
13.10 Results 306
13.11 Communication Strategy 316
13.12 Lessons Learned 316
13.13 Discussion Questions 317
14 Measuring ROI in a Modular/Reusable Safety Railing System 319
14.1 Background 320
14.2 Problem Defi nition 321
14.3 Project Background 322
14.4 Business Alignment 323
14.5 Evaluation Methodology 323
14.6 Evaluation Results 328
14.7 Communication Strategy 336
14.8 Lessons Learned 336
14.9 Questions For Discussion 337
15 Measuring ROI in an Ergonomics-Based Risk Management Intervention 339
15.1 Background 339
15.2 Evaluation Methodology 343
15.3 Evaluation Results 350
15.4 Communication Strategy 356
15.5 Lessons Learned 356
16 Measuring ROI in Stress Management 361
16.1 Background 361
16.2 Why ROI? 365
16.3 Program Results 373
16.4 Communication Strategies 384
16.5 Policy and Practice Implications 385
16.6 Questions for Discussion 385
17 Measuring ROI in a Safety Incentive Program 387
17.1 Background 387
17.2 The Solution 389
17.3 Data Collection and Analysis 391
17.4 Data Interpretation and Conclusion 393
17.5 Calculating the Return on Investment 394
17.6 Communication of Results 395
17.7 Questions for Discussion 396
18 Measuring ROI in a Job Safety Training Program at a Major Food Retailer 397
18.1 Background 398
18.2 Evaluation Methodology 400
18.3 Calculating ROI 406
18.4 Barriers and Enablers 408
18.5 Communication Plan 409
18.6 Conclusion 411
18.7 About the Author 411
19 Measuring ROI in a Work-at-Home Program 413
19.1 FMI: PART A 414
19.2 FMI: PART B 421
19.3 FMI: PART C 424
19.4 FMI: PART D 427
19.5 FMI: PART E 428
19.6 FMI: PART F 432
19.7 Questions for Discussion 440
19.8 FMI: PART G 440
19.9 Questions for Discussion 442
Index 443