SMS Pro Aviation Safety Software Blog 4 Airlines & Airports

Questions on Key Performance Indicators (KPIs) for Aviation

Aviation safety professionals frequently email our subject-matter experts (SMEs) for opinions regarding aviation safety management systems (SMS) and advice as to managing key performance indicators (KPIs). Goal setting relating to key performance indicators is also another very common thread we are asked about.

In the case that follows, I was asked:

"If I were to join the one KPI on Quality & Safety for a CEO in the Aviation business, what would you recommend me to suggest?

Why Aviation KPIs Lagging and Leading Indicators Are Important

Lagging and leading indicators for aviation safety management systems (SMS) key performance indicators (KPIs) are often confused or misunderstood.

Even various online sources have conflicting, vague, or incomplete explanations of the difference between lagging and leading indicators.

Obviously, understanding how to select aviation SMS KPIs is extremely important, and it’s a topic that often generates much interest from all levels of the aviation safety industry. Developing a solid list of lagging and leading indicators is the process of understanding:

Why Use Aviation Key Performance Indicators as Goals or Objectives

Setting goals and objectives for your aviation safety management system (SMS) is a requirement, i.e., not optional.

Become accustomed to this requirement. Embrace it. Realize organizational value from this requirement and stop squandering an excellent opportunity to improve operations and show that the SMS can become the promised "profit driver."

Don't believe you can pencil whip this requirement like so many safety managers today.

How to Use Key Performance Indicator Statistics?

Aviation safety management systems (SMS) revolve around the four ICAO pillars:

• Safety Policy;
• Risk Management;
• Safety Assurance; and
• Safety Promotion.

KPI statistics can be effectively used in each of these four pillars to monitor SMS performance.

Why Monitor Aviation Safety Key Performance Indicators?

Safety assurance is the third ICAO pillar or component of aviation safety management systems (SMS). While practicing safety assurance, aviation service providers focus on safety performance monitoring and measurement. Monitoring activities include constantly reviewing the effectiveness of established safety risk controls.

Safety risk controls are established under the safety risk management process and typically performed during proactive hazard analysis when safety teams perform safety risk assessments.

What Are KPIs?

KPIs, or key performance indicators, track performance in business, quality, and safety. Understanding and using KPIs is a crucial part of SMS.

SMS can track hundreds of data points, especially when using advanced SMS software. Use data tied to objectives and goals to get the most from your KPIs.

Selecting key indicators helps to focus on the outcomes. Looking at all the data can be overwhelming. Much of it will be irrelevant to measuring performance.

Presenting Key Performance Indicators to Managers

A KPI key performance indicator remains the most effective means to communicate and monitor aviation service providers' goals and objectives related to the aviation safety management system (SMS). These dashboards offer the most value when they are:

• Focused on Organizational Key Objectives;
• Free From Clutter;
• Easily Personalized for Individual Managers;
• Secured From Unauthorized Personnel;

Why Compare Trends in Aviation SMS KPI Data?

Curiosity and upper management may frequently demand that safety managers create reports from safety data that compare their operations with their competitors or with a national, regional, or global "average."

Displaying hazard reporting data over time increases management's understanding of the real performance of airline and airports' safety processes.

Safety managers at all but the smallest aviation service providers are required to monitor the performance of their aviation SMS using data accumulated from the SMS documentation processes and detect trends.

Are Your Key Performance Indicators Out of Control?

Most aviation safety managers never went to business school. Otherwise, there would be fewer problems and mistakes relating to key performance indicators (KPI) management.

After spending over a dozen years providing SMS implementation support to aviation service providers around the world, we have repeatedly seen similar mistakes that could be prevented had the safety managers had more training or information revolving around aviation key performance indicators.

Realizing Value from Key Performance Indicators

KPIs allow managers to focus on activities that are important to their operations. Understandably, many of these activities may also be important to their civil aviation authority.

Safety managers today are expected to come up with a list of their company's KPIs. After creating their list, they need to track them religiously with the objective of identifying trends and focusing risk management efforts on identified problem areas.