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ASSE Hawaii Member Meeting 4-20-06
The Island Institute
Jim Newberry
Island Insurance Company
Honolulu, HI
Introduction
Bringing insurance-related risk management practices to our customers in an interesting, efficient and effective manner is one of the primary goals of the Island Institute. Island Insurance Company customers are typically smaller companies, not very sophisticated in terms of risk management practices, and have no full time resources to allocate to, nor experience in safety and claims management.
Two particular developments in recent years led to the need to create the institute. These were growth in writing workers’ compensation and an increase in the customer segment that included contractors. Growth in both areas entailed high risk, especially in combination with each other. Thus, the first endeavor was titled “What Contractors Need to Know about Workers’ Compensation”.
Here are some of the challenges that were evident with this group of contractor customers:
Any good project needs to have a trial run, so we did that. What resulted was a complete revamp of content and time adjustments expanded to accomplish the mission. The initial half-day class was pretty traditional and included the following: the history of workers’ compensation; the true cost of accidents; the accident iceberg as well as a safety handbook for contractors among other things. It was well received and had plenty of support material, but lacked what was necessary to call management to action and provide the supervisors with the abilities they needed to get the job done.
There are formulae for things we know are important, and we often go about giving the same advice and information, over and over, with limited results. This is a common practice of insurance companies. What would be a better approach in providing business success strategies to our customers that would also be beneficial for the insurance company? We know that risk without forethought and effective management will usually result in bad things happening. This is a particularly difficult concept to get across to small business owners because they do not think anything really bad will happen to them. Most of the time, luck induces a false sense of security, especially for those businesses that have yet to experience bad accidents or lawsuits.
The challenge was not only to deliver what the customer needed but to do it in a way and in a time frame that was not too imposing while still providing depth and enough hands-on experience to be effective. What became the final model for the first course series was three half-day sessions: the first was to sell the ideas to executive management and obtain their commitment; and the two half-day follow-up sessions with middle management was to impart the application of safety practices.
The method of training for the executive session was changed to include a case study. We put the participants in the middle of a catastrophic situation they had to deal with as if it were happening to their own company. This, in conjunction with some of the traditional material, is a highly effective and persuasive method of selling the need for risk management.
The business owner, who has put his or her heart and soul into their company, may not realize how their dreams can be crushed by an incident that could easily have been avoided by adopting prudent business practices, or understanding and practicing due diligence. The case study shakes up the executive to the point of being motivated to take positive risk management steps.
The executive session was wrapped up with information about how an insurance company makes a profit and an explanation that made clear that in order for the best outcomes to occur for both parties, there needs to be a true partnership between insurance company and the customer. We closed the session with a commitment backed up with a promise: if the commitment to risk management is not sustained, the relationship will not endure. We are not fooling around in working with our clients because this is business, good business, and while this is a tough message, it is delivered with aloha and backed up with strong support.
A follow-up session was made available to the executive group on the topic of claims management practices including - how to establish a modified duty and early return to work program. A simple outline of the supplementary session on claim management was provided and is the impetus to come back for more. This will be the next chapter in their education. It was felt that this topic needed special attention and required more time than was available in the first session.
One final item was covered creating a link to the follow up program with their managers. The content of the two follow up sessions was explained and that their managers would be coming to talk to them at some point. That conversation would address the safety process that needs to be integrated throughout the company and would deal with the support would be needed to fill the gaps that exist in the current skills and knowledge of personnel at the company.
The two follow-up sessions generally had a high level of participation. This was due to the executives creating a heightened level of expectation for the managers to get and bring back meaningful things to do.
The first of two supervisor follow-up sessions
The first follow-up session with the supervisors also included a case study. The case study was a situation where they had to deal with a real world safety situation and come up with a solution. The problem was right out of an ordinary day at a construction company and was something often ignored or just not done effectively. It comprised a combination of or separate use of ladders, scaffolds and protection of leading edge work. Many of them had never seen a fall protection program or followed statutory guidelines, nor did most of them have a designated “competent person” for scaffolds and fall protection. They were not used to dealing with the proper use of ladders.
This exercise created quite a scramble and required the participants to do research and find effective solutions. Discovering how readily available information was on these topics was a valuable lesson by itself. Then taking the information and organizing it for their use was done in a manner that showed them that safety isn’t that hard and is practical and useful for their day to day operations. The overall learning wasn’t so much of a compliance lesson as it was a practical exercise in determining the best and safest way to plan for and complete work they do on a routine basis. It did however provided them with a higher level of compliance should that need arise.
With an example or two of things they need to do “safety-wise” on a regular basis they were much better prepared to deal with safety issues at their companies. Other materials were covered, but the final item was a homework assignment that needed to be completed before retuning to the second session. This assignment was to identify those things that their safety program needed to cover based on the types of operations they conduct. They were provided with a few tickler lists to help them out.
They were informed that they would not be allowed back into the second class without having completed their assignment. Not completing the course would mean that they would not attain a preferred status with our company and all the benefits that go along with that. This message is mingled with a “we practice what we preach” message. If you expect safety to be done (like the homework assignment) then accept nothing short of it being done. This is a difficult first lesson in raising the bar in any organization, and it needs to be demonstrated, practiced and reinforced.
The second of two supervisor follow-up sessions
Two weeks later there was a mixture of experience, interest, attitude and expectations. By initially having each participant report back on certain aspects of their homework and what their individual needs are they settled in to the final bit of work they needed to do. This “check in” was a low-intensity method of reporting back on the requirements for completing the course. We even voted on who should be allowed to stay, and the potential fall out of not following through on a requirement or commitment. This activity was a demonstration of what they need to practice back at their companies regarding group participation, gaining consensus and what they need to do with uncooperative employees.
As the session progressed, instead of the instructor playing expert and offering all the answers, the participants were put in groups to work together to help each other discover that their own talents and those of their coworkers are some of the resources they need to make safety happen. Help was available and coaching took place in the groups, but they did the work with their peer group and gained self-reliance in doing so.
The key was to reinforce the lesson that success comes through working together, not being overwhelmed by the idea that safety is too difficult and relying on your team for expertise. We provided as many opportunities to experience this as possible.
Once they had an outline of their safety program and had worked through a few sections in detail they had done enough work to be able to develop materials on their own. This is where we believe that a lot of approaches to program development go wrong and why we feel this model is more effective. A safety program is not a written document that once completed fixes an organization. A safety program should reflect the operations as well as the organization that it is built for. By allowing their program to develop, along with the people using it, it becomes a living document and a reflection of the company. The parts of the program that come together in the beginning need to mature and grow and provide the grounds for success and expansion.
The participants left with a good sense of mission and purpose. They were also given some tasks to complete with their bosses. They were to make sure that their roles and goals were clear and they agreed that positive changes were going to take place. Not easy changes but changes that would be good for the company, employees, customers and other contractors they work with. There will need to be an investment in training; getting the required equipment to do the work safely, planning the work, and talking about the work. These conversations about work tasks and projects should be done in ways that build teamwork as well as promote quality and safety. Increased efficiency and pride are often an outcome of these efforts.
A dialog list was created identifying those things supervisors feel they need in order to be able to develop their safety process, document it at least at a minimum level, and get it working company-wide. By creating the dialog list they had a roadmap to return with that would help them negotiate with the boss about what needs to take place and how it is going to happen. Finally a gap list was created that identified areas each participant needed further help with. This could include supervisory skills, training skills, planning and safety knowledge (general or specialized). The institute would keep track of these gaps, make adjustments, as well as expand curricula based on customer needs.
The participants returned to the job with forward momentum created from their experiences and the training they received. They participated in a unique version of Safety 101, created some of the basic elements for their program, and took away a road map to develop their safety plan. This was all done within a realistic time frame and the knowledge of and how to build on their successes.
What does the institute do to keep the fire burning and assure progress is taking place? The participants are encouraged to send in drafts of their policies and procedures as well as documentation of their various safety activities. We provide feedback, resources, phone support and on-site visits.
These interactions and the on-going dialog build a solid working relationship that endears the customer to Island Insurance. Through these exchanges the current needs of the customers can be identified and the programs expanded to meet their needs. As the needs are met the reliance and support turns into interdependence and respect that are the strongest of ties in a difficult business.
It’s hard to talk about safety without bringing up supervision, planning, training, responsibility, accountability and other organizational aspects of a business. It’s not always easy for safety professionals to approach or master these functions, but it is necessary at least enough to help the key players develop them at a minimum level of competency. These management activities are common obstacles which managers and supervisors struggle with and why they don’t get around to safety, especially in the smaller organization. They are fundamental to safety for the small business owner.
The Institute purports that these basic management functions can best be developed through experiential activities versus lecture and information-based education programs. We believe that case study and practical work exercises are a more powerful and efficient way of working with our client base. We believe that by not only helping organizations improve in the area of safety, but also in becoming better and stronger in all that they do, we help our customers succeed thus ensuring our success.
We also encourage our clients to approach safety by growing their safety programs based on their needs and around the culture and mythology of their organizations. Furthermore, they learn that safety is not a separate aspect of running their business but a way of operating their business. The value and focus that safety brings to an enterprise can help it realize gains that won’t happen without a dialog within the company of doing things the right way. Safety becomes the vehicles to talk about how the work is being done and make it all more meaningful.
