SMS Pro Aviation Safety Software Blog 4 Airlines & Airports

What Is a Key Performance Indicator?

Answering the question, what is a key performance indicator, is not exactly as straightforward as it may seem.

This is because key performance indicators, known commonly as KPIs, have multiple uses in aviation safety management systems (SMS).

Most obviously, as “performance” in the name implies, KPIs are data metrics (i.e. “Indicators”) used to track “performance” in aviation SMS.

What Is a Key Performance Indicator in Aviation SMS?

Key performance indicators (KPIs) are data metrics used to track performance in aviation safety management systems (SMS). This “performance” was not intended to measure only safety, but also quality and financial performance as well.

Understanding what is a key performance indicator is an essential component of being able to identify signs of good KPIs.

Here are the 4 most important things you need to understand about what KPIs are (ideally),

Safety Managers Suffer Common Problem Selecting Valuable KPIs

A Key Performance Indicator (KPI) measures how effectively aviation service providers are achieving key business or safety objectives. Civil aviation authorities also use KPIs to evaluate their success at reaching safety targets.

When focusing on safety, there is a tendency of some safety professionals to use the term "safety performance indicator" (SPI) to differentiate pure business metrics from safety metrics. Rest assured, SPIs are subsets of KPIs.

Why KPI Charts Matter

The main continuous improvement activities for maturing aviation safety management systems (SMS) following an ICAO-compliant SMS implementation include developing:

• key safety performance indicators (KPIs); and
• safety goal and objectives tied to KPIs.

Since KPIs are set to track safety goals and objectives, KPIs are a big deal. They are generally associated with the baseline or core performance of an aviation SMS. Choosing great aviation SMS KPIs takes

Why KPIs Are Different in Aviation Safety Management Systems?

Key performance indicators (KPIs) in aviation safety management systems (SMS) are different than KPIs from most other industries. The differences both benefit and hurt safety management teams' ability to choose the right KPIs for their organization.

The important differences between aviation SMS KPIs and other industries are that:

• KPIs in aviation need to cover a broader spectrum of performance (quality, safety, compliance) than most industries;

What Are Lagging Indicators in Aviation SMS?

Lagging indicators are an extremely important element of system performance monitoring in aviation safety management systems (SMS). Safety professionals and accountable executives should become familiar with lagging indicators as these managers are responsible for regularly reviewing organizational safety performance and detecting substandard safety performance.

Lagging indicators show the historical performance of your aviation SMS implementation. They answer 3 essential questions about safety in your risk management program:

• What safety events are happening?

Difficulty of Selecting KPIs in Aviation Safety Programs

Selecting key performance indicators (KPIs) in aviation safety management systems (SMS) is neither simple nor always intuitive. In addition to being time-consuming and costly, selecting and monitoring KPIs can also be a stressful experience.

Lives depend on choosing good KPIs. Your job may depend on selecting good KPIs.

Fortunately, selecting KPIs is helped by the fact that:

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.