re adjusted ccc
TRANSCRIPT
Re-AdjustedTaking Your Claims Organization From
Ordinary To Extraordinary!
Christopher Tidball, SCLA, SSBBExecutive Claims Consultant
(904) 742-9031www.christidball.com
Ed Kent, EsquireLaw Offices of Kent & Senen
(661) [email protected]
“Don’t tell me the sky is the limit… there are footprints on the moon” – Paul Brandt
“Guttenberg Moment”
The Ah-ha moment
Archimeades- levers, pulleys, irrigation and the calculation of pi
Mesopotamians (circa 3500 B.C.) discovered that wheels made moving things easier
Through the prism of history…• Nikola Tesla- “Inventor of the 20th century”
– Induction motor, 3 phase electricity, fluorescents
• Thomas Edison- Let there be light– 1097 patents, light bulb, phonograph, movie
camera and projector
• Karl Benz- Mobility on the ground– internal combustion engine
• Wright Brothers- Mobility in the air– First successful airplane
Getting to Extraordinary
• 2012 is a year for bold new ideas
• Leveraging people, processes & technology
• A chance to redefine and reposition organizations to gain a competitive advantage
• Changing paradigm from “what we do right” to “where can we improve?”
• Learn from transformational innovators across the business landscape
Great leaders not only lead, they transform industries…
Leaders…Innovators…Transformers
Innovation Wins!
Source: Business Week
What’s missing?
Source: Business Week
?
Taking Your Claims Organization From Ordinary to
Extraordinary!
• Benchmarking- The devil is in the details
• Organizational Improvement- Leveraging People, Process & Technology
• Just Win, Baby – Getting the right people into the right positions
• Perfection- It may be impossible but chasing it will result in excellence
Benchmarking
The devil is in the details…or is it???
Benchmarking
• Over measuring• Measuring the wrong metrics
•Timeliness•Quality•Accuracy
The foundation of claims
•Timeliness•Quality•Accuracy
The foundation of claims
Benchmarking
• Over measuring• Measuring the wrong metrics• Well intended goals• Unintended consequences
Unintended Consequences
Benchmarking
• Over measuring• Measuring the wrong metrics• Well intended goals• Unintended consequences• Organizational calibration
Defined Metrics
• Avoid tendency to measure everything possible
• Consider the most meaningful metrics to bottom line results
• Which metrics are causally related
• Which metrics will achieve intended goals without unintended consequences
Effective Metrics
• Don’t set a goal of “improving subrogation referrals”… subro unit will be inundated with every closed collision and simply close most of them as unrecoverable.
• Set a goal of increasing subrogation by X%.
• Set a counter measure of decreasing subrogation referrals closed with no recovery.
Benchmarking that really works
• Where are you now?
• Where do you want to be?
• How do you fare against the industry?
• ISO Fast Track Report, NASP Benchmarking Study
Effective Claim Metrics
• Quality Focused– People, process and technology
• Accuracy Driven– Was the outcome the right one for the given situation?
• Missed Opportunities– Fraud Recognition– Missed Subrogation (15% of all claims)– Adverse Demand Containment
The impact of cycle time…
Organizational Improvement
Leveraging people, processes and technology
This is what we are up against!
People
Your biggest assetPeople provide your knowledge and culture
Your most expensive a$$etFTE can account for 50-60% of operating budget
Your long term solutionPeople, not gadgets, gimmicks or even technology, define
your future
The root cause of your problems80/20 Rule20/60/20 define A/B/C players
Claims isn’t for just anyone…
Getting Results
• People
– Proactive behavior• Change mindset from reactive to proactive, front load claims with
aggressive contacts, inspections and settlements
– Hire for quality• Not everyone has the skill or tenacity to be a great adjuster
– Blocking and tackling• The greatest technology and most streamlined processes are meaningless
without fundamental execution of basics
– Accountability• Stop giving ribbons for participation; focus on getting it right
Money left on the table
• 15% of claims closed with a missed subrogation opportunity
• $15 billion dollar industry
• Monthly reviews of files closed with no recovery potential identified can yield significant returns
• How many collisions are paid with no PD payment and no referral to subrogation?
Process Improvement
• Define current processes– Map out end to end claims workflow
• Identify process gaps– Aggressively seek out process deltas
• Right people in right positions– If a person isn’t cutting it in claims will they cut it in subrogation, salvage
or total loss?
• Organizational calibration– Ensure that expectations are fully understood by staff and properly
communicated to all stakeholders
Process Example – Adverse Subrogation
Technology• Predictive Analytics• Data Mining• Historical Analytics • Claims Process Technology• Claims Data Warehousing• Internet /Social Networking
Internet Resources
Just Win Baby!• Getting the right people into the right positions
• Recognize that there isn’t just one way to get results.
• Think outside of the box
• Al Davis’ 2 Rules:
Rule #1 -Show up on Sunday
Rule #2- Don’t break the law
(Of course, #2 was flexible if you followed #1…)
The Culture of Raider Nation
• The “Bad Boys of Oakland” did things differently
• They broke the mold of a traditional franchise
• Al Davis proved there was more than one way to skin a cat
• Breaking down barriers and transforming the NFL– George Blanda was too old yet he played for the Raiders until age 48– John Madden was too green yet he won several division titles and a Super Bowl– Art Shell- 1st African American head coach in the NFL– Tom Flores- 1st Hispanic head coach in the NFL– Amy Trask- 1st female NFL executive
Paradigm Shift
• What Al Davis taught us is that success can come unconventionally
• His motto was “Just Win, Baby”
• Just because we’ve always done it this way doesn’t mean we are doing it right….we need to do it BETTER!
• A paradigm shift to “where can we improve” is the surest way to yield meaningful results
Failure is not fatal, but failure to change might be - John Wooden
Maximizing Efficiencies
– Headcount (A/B/C players)– Workflow efficiencies– Economies of scale– Cost per claim– Basic Blocking & Tackling (80/20 rule)
“By identifying A players, motivating B players and removing C players, any leader has the ability to fundamentally transform any organization”
– Re-Adjusted: 20 Essential Rules To Take Your Claims Organization From Ordinary To Extraordinary!
• Examining claims model
Perfection is hard to attain
• 1972 Miami Dolphins – Never lost a game– But they gave up points
• 1933 Providence Huskies– Never lost a game– Never gave up a point– But even they gave up first downs
Execution and Results
• Southwest Airlines– On time performance is 87.5%
• Toyota Lexus Division– 108 vehicle defects per 100 cars
• Amazon– Customer Satisfaction rating 83 of 100
• Your company– Current leakage rate
“Perfection is not possible, but chasing it will result in excellence”
-Vince Lombardi
Open Discussion
Chris Tidball, SCLA, SSBBExecutive Claims Consultant
(904) [email protected]
Management Consulting/Process Improvement/TrainingClaims Strategies/Subrogation/Six Sigma Methodology
Edward S. Kent, Esq.Attorney At Law
Kent & Senen Law (661) 362-0800
Insurance Defense Litigation/Personal Injury/Estate Planning/Trusts/Bankruptcy