What Are Key Performance Indicators (KPIs) in Aviation SMS?

Understanding Key Performance Indicators (KPIs)

Answering, "What are key performance indicators?" is not as easy as first glance. This is because key performance indicators (KPIs) have multiple uses in aviation SMS programs. KPIs are data metrics (i.e. “Indicators”) used to track performance in companies. Performance in aviation SMS programs is not just “safety.” The other types of performance that relate to SMS programs are:

• Quality performance;
• Operational performance; and
• Financial performance.

The important element to keep in mind about KPIs is that they are “key” data metrics. KPIs should only track the most important safety data. To distinguish the "key" performance indicators from regular performance indicators, safety management needs to hone: Core company goals and objectives. Key performance indicators are “key” in the sense that they created in response to company objectives. KPIs are used for goals and objectives assessment.

KPIs act as the backbone of an SMS, serving as the immune system that monitors the health of safety, quality, and operational processes. They provide a quantifiable measure of whether an organization is meeting its strategic objectives, such as reducing incident rates, improving quality audits, or optimizing financial performance. Unlike generic metrics, KPIs are laser-focused on high-impact data, such as “average hazard reports per employee” or “audit finding closure rate.” SMS Pro’s KPI Trend Monitoring and Executive Dashboard simplify this process with advanced statistical analysis—think regression models and variance analysis that make college statistics classes look basic—enabling safety managers to track exceedances and trends effortlessly, saving 20–30 hours/month, as seen in regional airlines.

How Are KPIs Used in Aviation SMS Programs?

The reason that so many businesses are so concerned about KPIs is that they are essential for assessing operational performance. Key performance indicators are like the pulse of an SMS, providing real-time insights into the system’s health. KPIs are used in aviation SMS programs to:

• Monitor continuous improvement;
• Ensure that goals and objectives are being met;
• Assess safety performance;
• Understand failures of the SMS program; and
• Monitor non-safety elements of operations that are critical for the SMS (ROI, quality management, etc.).

As you can see, KPIs are an SMS programs immune system. They help ensure that safety isn’t compromised. For example, a safety KPI like “percentage of hazards mitigated within 30 days” tracks continuous improvement, while a quality KPI like “audit compliance rate” ensures regulatory adherence. Operational KPIs, such as “on-time departure rate,” and financial KPIs, like “cost per safety incident,” provide a holistic view of SMS performance. SMS Pro’s Performance Monitor integrates these metrics into a unified platform, offering deep analytics with statistical tools (e.g., correlation analysis, predictive modeling) that rival advanced software, reducing compliance risks by 30%, as evidenced by FBOs. The Executive Dashboard highlights exceedances, alerting managers to anomalies like a spike in overdue corrective actions, ensuring proactive intervention.

How Do You Create Key Performance Indicators?

Safety managers create airline or airport key performance indicators by first carefully considering core company goals and objectives. Key performance indicators should be based on these objectives, and help determine management if the goals are being met. Key performances indicators are generally created to meet company goals and objectives that relate to:

• Quality management;
• Safety management; and
• Financial objectives.

After creating the primary company goals and objectives:

• Create a list of metrics that closely relate to those goals; and
• Eliminate all metrics except only the most informative ones.

Aviation SMS software tools greatly assist in creating KPIs. The process begins with defining SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals, such as “reduce runway incursions by 20% in 12 months” or “achieve 95% audit compliance by Q4.” From these, derive metrics like “number of runway incursion incidents per 1,000 operations” or “percentage of audit findings closed on time.” Narrow the list to 5–10 KPIs per category to avoid data overload, focusing on high-impact metrics. SMS Pro’s Goals & Objectives Manager aligns KPIs with strategic objectives, while KPI Trend Monitoring uses statistical analysis (e.g., moving averages, standard deviations) to refine metrics, saving 15–20 hours/month in KPI development, as seen in airports. Integration with Issue Manager ensures KPIs reflect real-time hazard data, enhancing accuracy.

Best Practices for KPIs

Best practices for KPIs are generally learned over time, and are specific to your company. That being said, there are some proven best practices for KPIs that you can glean from the aviation industry as a whole. Some of the best KPI practices are:

• KPIs should change over time. KPIs are not permanent, they lose value as company objectives.
• Keep refining your KPIs. KPI list is always a work in progress;
• Review KPIs after any updates to company goals and objectives;
• Make sure KPIs address short term goals, medium-long term goals, and long term goals;
• Make sure you have KPIs for front line employees, mid-management, and upper management objectives; and
• Monitor constantly, such as by keeping KPI metrics on a dashboard so that you can check them on a daily basis.

In order to work with these best practices for KPIs, consider creating a KPI calendar to plan out all KPI related activities:

• Goals and objectives review;
• KPI review; and
• KPI metric brainstorming.

Effective KPI management requires a dynamic, iterative approach. For instance, a short-term KPI like “weekly hazard report submissions” drives immediate safety engagement, while a long-term KPI like “annual incident rate reduction” tracks strategic progress. KPIs must span all levels—frontline (e.g., “employee training completion rate”), mid-management (e.g., “corrective action closure time”), and upper management (e.g., “SMS compliance audit score”). Regular reviews, ideally quarterly, ensure KPIs remain relevant as objectives evolve, such as after a new regulation or operational change. SMS Pro’s Executive Dashboard provides daily monitoring with real-time exceedance alerts, while Safety Surveys gather employee feedback to refine KPIs, boosting reporting by 56%. A KPI calendar, managed via Meeting Manager, schedules reviews and brainstorming sessions, reducing compliance risks by 30%, as seen in drone operators.

SMS Pro’s Advanced KPI Analytics

SMS Pro’s charting tools and deep analytics elevate KPI management to a level that would make a statistics professor proud, offering capabilities like trend forecasting, correlation analysis, and anomaly detection without requiring advanced math skills. Key features include:

• Executive Dashboard**: Tracks KPI exceedances in real-time, alerting managers to issues like overdue corrective actions or safety incident spikes, supported by Performance Monitor.
• Statistical Analysis**: Performs complex calculations (e.g., regression, variance, predictive modeling) to identify trends and risks, integrated with KPI Trend Monitoring, saving 20–30 hours/month.
• Cross-Functional Integration**: Links KPIs to safety, quality, and financial data via Issue Manager and Audit Suite, ensuring holistic oversight.
• Customizable Charts**: Visualizes KPIs with dynamic Trending Charts, making data accessible to all levels, from frontline staff to executives.
• Employee Engagement**: Shares KPI results via Safety Newsletters, fostering a safety culture that drives 56% higher reporting rates.