Michael Barrett Director of Risk Management

Ruby Tuesday Inc.

Step out of the cookie mold….In 2004, RTI began to question the idea of

self administration on guest (liability) claimsWe realized that we needed to mirror a TPA

but have a softer, kinder approachNo one cares about our team members or our

guests like we do. So, let’s prove it.Sounds great, but how in the heck to we

convince company leadership to make the jump?

Dollars and SenseRTI developed a staffing model similar to a TPA with

a few twists…Every component of the staffing model HAD to

reduce costs (Return to work, safety, admin fees, etc.)

Selling points to executive team = Control our claims, control our data, drive down costs, keep people happy

RMIS = Own it, love it, and make it your own WMDInsurer approval is mandatory (you can shop ,too)January 2005, we got our wish. Ok, now what?Find people who embody your visionStaff went from 2 to 10

TimelineMay 2005, we took our first claim in house. Created

light duty program!2007, began paying workers compensation claims in

house2008, took entire liability retention in house2008, added a feature to RMIS where restaurant

managers can report directly into the claim system from restaurant office

Changed culture from being a department which allocates charges to a department which saves the company millions of dollars

All achievements come back to desired goal = Save $$Better relationship with field as we have returned $$ to

the restaurant’s bottom line = higher bonusNow act as Consultants rather than dictators

Risk is a Profit Center Waiting to Get Out…None of the proposed goals mean a thing if you

don’t back them up with results. So, how did we do….

Since 2005: WC and GL premiums are down 47%TPA fees vs in house staff are favorable by $120K per

yearWC pure loss rate down 44%, GL down 39%Significant reduction in collateral from Primary

somewhat offset by self insurance bonds42% reduction in WC claims 2005 Lost Time = 19%, 2010 = 9%

Annual impact to RTI: $2.7MM

Lessons LearnedDon’t be afraid to jump, especially if you know

where you are going to landTrack your team’s success (and then tell everyone

about it)Everything discussed here today comes down to

the same essential theme = relationshipsGive a lot before you expect to receiveBring ice cream instead of a hammerTake all the blame and none of the successDon’t confuse habits with wisdomMeasure the splash….Use the current economy to your advantage