Category: Risk Management

Using Your Workers Compensation Experience to Competitive Advantage

Companies are always  looking  to gain a competitive advantage. A  key differentiator is an employer’s Experience Modification Factor (MOD).  Workers’ Compensation is a significant employee benefit, but it also is significant business benchmark that is carefully scrutinized by those who are evaluating possible business partners.

The MOD is the biggest driver of a company’s Workers’ Compensation rates, the lower the MOD, the lower the rates. Therefore, companies with lower modifiers have a lower cost structure, helping make companies more competitive, leading to more jobs, and higher profitability. The exact opposite is true as well; higher MODs, lead to higher costs making it is more difficult to compete for work.  There are other dire consequences for those with high MOD’s in addition to costs.

Companies are using the MOD as a significant determining factor in qualifying firms bidding on projects. If an experience modifier is over 1.00, the company may be viewed as unsafe, and, therefore, disqualified. The good news is that the MOD is as manageable as any other business function, as long as people are motivated to do so. Here are a few examples:

  • A machine shop with a 1.3 MOD six years ago has seen it drop to 0.745. Before implementing changes to improve their MOD, the company was denied a multi-million dollar contract, even as low bidder, as the purchasing company’s risk manager viewed them as unsafe and therefore questioned the quality of their work. They now have been able to win that contract and have grown from 58 to 110 employees.
  • An asbestos abatement and insulation contractor had a 1.02 MOD. Although barely above 1.00, this MOD prevented them from receiving 11 jobs in a three-year period despite being low bidder, as they were “disqualified” due to being “unsafe.” The contractor could not qualify for private work and therefore had to try and compete in the very low profit margin, highly competitive government arena. After implementing a “zero-accident” safety culture and adding processes to address lost time injuries, within three-years, the contractor had one of the best modifiers in the state. Recently, they were even asked to take over a job from a contractor who was thrown off of it due to that contractor’s MOD going over 1.00. The company went from barely surviving, to thriving.
  • A 55-employee cable and fiber optic line installer with a 1.65 MOD was informed by the telecommunications company that they had two years to attain compliance with their safety guidelines, including a requirement of being below 1.00. Since the telecommunications company represented 90% of their work, losing the contract would be disastrous. Step one was working with the contractor and the telecommunications company. The contractor was given an extension to four-years, but they had to hit benchmarks in terms of number of injuries that would be verified through loss runs from their insurance company and their OSHA logs. The second step, was putting in an aggressive behavior based safety program as their frequency had to be cut by 60% to be in compliance in the first year, and 80% in two years. Based on their results, they were compliant and actually went 19 months without an injury. They will be in compliance with a MOD below 1.00 in three-years, which will also open the door to bidding on work from other telecommunication companies.

With such striking results, what keeps companies from achieving such stellar performance? Experience points to two primary factors:

  • Lack of owner support and commitment for improving the organization’s operations including difficulty in scheduling training sessions, meetings consistently being cancelled and an overall company culture that is driven primarily by the owner’s unwillingness to change, focus on productivity issues only, or “too many irons in the fire.”
  • The workers compensation insurance company’s reluctance to support an appropriate claims management process. Claims adjusters often feel threatened by a consultant’s claims management staff and avoid communicating with them. Unfortunately, any insurance company can have “unseasoned” adjusters, those who don’t fully understand the Workers’ Compensation laws and really don’t have any “skin in the game.”

 Things can go right under the right conditions:

  • Obtaining the full support of owner and executive management staff to implement cultural changes within an organization. Management commitment is the most important factor in changing the attitude of the workforce. Injury prevention and injury management are 100% controllable expenses. Since these are employee costs, it starts at hiring, training, monitoring employees for continuous improvement
  • Conducting training programs with front line supervisors and implementing necessary policies and procedures.
  • Conducting a comprehensive loss trending analysis to identify those losses that are driving the company’s claim frequency and severity. Then, with an evaluation of the findings, develop and implement processes to change the negative culture that is driving both claims frequency and severity.

All of this is anything but an academic exercise. It’s the process for creating a happy, productive and injury-free workforce, along with a business that is successful because it has a competitive advantage that makes it attractive to customers. And behind it all is the Experience Modification Factor. Risk Managers use the MOD as a benchmark.

The bottom line is making a diligent effort to get a company’s Experience Modification Factor to the lowest allowable level will produce a competitive advantage, make your company more profitable, and make it more attractive to future business partners.

Note: The data and information included in this post is provided by The Institute of Workers Compensation Professionals. They are a tremendous resource for this author and for any company wanting to take control over their MOD.

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Mar 02, 2011 | 0 comments View Post

Trust is Not Control

 

Gary Zeune, a nationally recognized lecturer, speaker, and expert on Fraud Prevention, quickly reminded me after yesterday’s post regarding involuntary transparency that I should always remind my readers that, “if they do the right thing they don’t have anything to worry about.”He of course is right, but in the case of involuntary transparency if you do not have appropriate controls in place regarding e-mail, internet use, and social media use by employees you may think you are in good shape when you are not. As Gary says “Trust is not control.” Gary advises to always assume there is an employee who if unhappy may decide to disclose skeletons, some you may not even know you have. He reminded me that if an Army private can allegedly disclose hundreds of thousands of classified documents to Wikileaks with all of the high tech and security controls the Pentagon can buy, what could one disgruntled employee do in an unsecured environment. I really do believe that this new term “ involuntary transparency” will gain legs this year including smaller companies and non-profits. If you would like to contact Gary directly about hearing him lecture or to schedule a training  go to www.theprosandthecons.com. Call him at 614-761-8911 or e-mail him at gzfraud@gmail.com.

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Feb 16, 2011 | 0 comments View Post

New Risk on the Horizon — Involuntary Transparency?

 Every year, new risks crop up, and some old ones reappear. Here are some subjects that will be getting a lot of attention this coming year, and if applicable to your business may be deserving of some of your attention as well.

  • Fraud prevention – Our old favorite, but with several new twists. Where identifying individual fraud and one time occurrences continue to be a risk manager’s stock and trade concern, this year, for good reason, we will see more and more instances of organized networks perpetrating fraud involving multiple claims across jurisdictions and lines of business. Have you developed an enterprise-wide fraud prevention and detection strategy? Are there clear lines of responsibility within your organization regarding these issues?
  • WikiLeaks Type Attack – We have a new term – “involuntary corporate transparency.” Are you capable of preventing such leaks and more importantly are you prepared if one were to occur. Have you undergone a “transparency audit.” Are you proactively monitoring this possibility and prepared for its consequences. In my opinion, this is an issue for even small businesses and non-profits that is about to explode.
  • New Bank Fees. Banks are experimenting with their fees in response to Dodd-Frank and the CARD act. It is a good time to visit with your banker and obtain a clear understanding of your accounts structures and what triggers additional fees or charges.

 Continue to follow these and other risks coming to the forefront by staying tuned. I also suggest you consider scheduling a training on fraud prevention and corporate transparency. If you want suggestions contact me, and I can put you in contact with experts like Gary Zeune and Carlye Christianson.

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Feb 15, 2011 | 0 comments View Post

The Human Factor

The most difficult part of risk management is factoring in the fact that human beings don’t always act rationally or in their best interests. Those four areas risk managers say almost like a mantra — identify, analyze, control, and manage sometimes can mean very little when one person goes “off the reservation.” There are other unpredictables such as Mother Nature that are difficult to predict and realisticly factor into an analysis but none so difficult as “the human factor.”

A seasoned risk manager is helpful when it comes to analyzing the human factor. The more time one is here on this planet the more odd behavior one sees, so it becomes almost second nature to predict to someone who has been around the block a few times. I recently had another risk manager tell me that a risk scenario I was trying to control was not realistic. It could never happen.  I informed him was it had happened and gave him the date and time, and yes to his credit was brought on by one employee making a very bad decision. Fortunately for both our clients we did “control” the unlikely chance that the event would be repeated. Because there was a second employee who made the same bad decision just in a different state for a different employer.

Risk management requires preparing for the forseeable risks, and also for the unforseeable.  Ask your risk manager sometime, “What provisions have we made for the Human factor?”

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Feb 11, 2011 | 0 comments View Post

Retaliation – The Risk is Real

Retaliation – The Risk is Real by Carlye Christianson
The US Equal Employment Opportunity Commission recently released charge filing statistics for the 2010 fiscal year. Retaliation discrimination was the most frequently cited form of discrimination, followed closely by race discrimination. Sex and disability discrimination held the third and forth positions. 2010 marked the highest number of claims in a given year with 99,922 total charges.

Retaliation refers to those employees who:
a. Observed some form of misconduct,
b. Reported their observation to an appropriate person within the company, and,
c. Felt that they were punished as a result of their decision to report.

Retaliation can take many forms, ranging from termination to getting the cold shoulder from coworkers. In a 2009 study by the Ethics Resource Center of nine kinds of retaliation, three were experienced by the majority of those respondents who had indicated that they were retaliated against:
• Exclusion by supervisors or management from work decisions or activities (62 percent),
• Given the cold shoulder by coworkers (60 percent) and
• Verbal abuse by supervisor or someone else in management (55 percent).

Certainly many of the cases in which employees were retaliated against did not reach the level of a claim filed with the EEOC. These statistics reflect a significant risk to companies – for profit and not for profit alike – of facing a claim of retaliation. The claims can result in harm to companies ranging from defending an action brought by an employee to lessened employee engagement and decreased employee retention.

To limit the risk, the following should be implemented:
• Review your company policies to ensure a fair system of reporting is in place.
• Communicate broadly within your company your non-retaliation policy.
• Implement comprehensive anti-harassment and anti-discrimination policies and training that covers all forms of unlawful harassment, discrimination and retaliation.
• Train everyone who is likely to receive reports to follow-up with reporters in an appropriate manner.
• Be mindful of how unrelated actions might be misinterpreted by an employee who is feeling uncertain and exposed after deciding to report.
• Encourage managers at all levels to communicate that retaliation is unacceptable and to back it up with action.

Please contact me if I can provide further assistance in reviewing your policies and in providing requisite training. I can be reached at carlye.cb@cox.net and 703 992 6049.

Editors Note: Carlye Christianson is a leading expert in discrimination law and risk management for non-profit organizations. She writes, lectures, consults and trains nationwide. She is headquartered in the DC area. We are fortunate to have her as a new contributor and affiliated with our site. Look for more of her analysis in week’s to come.

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Jan 21, 2011 | 0 comments View Post

Nothing to Lose?

 We hear the expression all the time – nothing to lose. A golfer coming to the last hole, needing a birdie to win, lines up the putt and he knows, “don’t come up short.”  He has nothing to lose if he rolls the ball by the cup. A desperation pass, a shot from mid-court at the buzzer, or pulling the goalie at the end of a hockey game, are all calculated decisions knowing there are no huge risks from failure. In each case the athlete is engaged in risk management. A coach may slow down the basketball game knowing the odds are in his teams favor playing a slow game, than one where the ball is flying up and down the court. The coach is analyzing risk and practicing risk management. The concepts are simple, but the tools can become sophisticated. We may drive a car down the road even though there is a small risk  that the engine might conk out, but that same leak on a NASA Shuttle can abort a mission. It depends on the ultimate decision maker’s appetite for risk.

 Risk management comes down to identification, analysis, control and practice. What differs in Risk Management of  driving a car and a space shuttle is simply the tools used to perform the analysis and the appetite. Risk management occurs every day from fastening your seat belt to deciding to stay at work late that evening. Some decisions become second nature and some take months and years to make, but the basic rules are in place for every decision. What we try to do in consulting with you is to make you more conscious that this process is going on, give you tools to perform identification, assist the analysis, provide alternatives to control depending on your appetite, and finally how to make this smoothly integrated into your practice.

 Whether your company is small or large this process goes on every day. Individually the tools we provide you make you more successful at work, and less stressed at home. Call us to see how we can get you started. You have nothing to lose?

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Jan 11, 2011 | 0 comments View Post

Taking Stock in the New Year.

January is a great time to take stock. It is usually cold, you don’t want to go outside, and it is better to be by a warm fire taking  inventory. Taking stock is your first step toward your own risk management as well.  You can’t avoid risk until you know what is at risk. I am not talking about having a CPA come and start going through your checkbook. I am talking about sitting down alone, better with your spouse, even better with your whole family. Ask simple questions like where are we financially. How much do we have, and how much do we owe? What is our cash flow position? What major financial events do we face – Taxes, Tuition, New Car, Vacation. What do we need to happen to meet our basic demands? What negative events could occur that would prevent us from being able to handle those major events. How do I protect from having a tragedy if one of those events occur?

 This exercise is not easy but it gives you an opportunity to plan and involve your whole family in the process. When a hiccup occurs you can say we planned for this. There will always be an unforeseen occurrence, but you will have planned for the basics, and be better prepared for unforeseen. You are identifying risk, analyzing risk, controlling and transfering risk, and practicing risk management. Whether you call it taking stock, family meeting, or kitchen table conference you are being your household’s risk manager. After such a day,  call your insurance agent, your CPA, attorney, financial planner, and set up meetings with all of them in January. Do it soon thereafter. They usually are not as busy in January, and have more time to spend with you.

 You may not need all those professionals, although a good Independent Insurance Agent is a must. Whatever your circumstances take stock while it is too cold to go outside, and you get overwhelmed by the events of the year. Involve your family as much as you can. Then enjoy the fact that whatever your circumstances, you have at least identified the issues you face. The devil you know is easier to deal with than the devil you don’t. Have a great new year.

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Jan 07, 2011 | 0 comments View Post

Whose Got Your Homeowner’s Insurance Blind Side — Part 3

Rule No. 3. Make sure what is being insured and not insured.

Although there are common homeowner’s policies and the terminology in a lot of cases is the same, not two policies are exactly alike, especially when you add exclusions labeled sometimes as “endorsements.” That’s why you have your meeting with your independent agent. (Make him/her buy the coffee or the lunch.)  Bring with you the policy you got in the mail, at least a picture of the house, pictures of any significant landscaping or outbuildings, and the basic information on your mortgage. Now after the usual pleasantries start with going over the policy:

  • Address — Make sure it is the right address and description. Especially if your property includes outbuilding, studios, unique landscaping, sculpture, etc. ( My last policy came in the mail to my right address, but the policy itself covered the home down the street.)
  • Value — Talk about the  value of the property. Value has numerous meanings -replacement value, market value, mortgage amount, cost less depreciation value. What will you receive if there is a total loss, and just or more importantly a partial loss? In today’s economy what will happen – will your lender let you rebuild or take its payoff and run? Has your property depreciated so much in market value that you will end up with nothing? Has your property appreciated due to time or improvements you made? Is that addition even insured? There are answers to all these questions and many more based on your unique circumstances, but if you and your agent don’t have this discussion then one day the answers may be not what you expected. Tell him/her about any unique features that may not be easily replaced or constructed.
  •  Personal property is always difficult because no matter how much trouble you have gone to keep records of what you own you won’t have it all, and even then the records might have been destroyed as well as your home. Also you may not have purchased your most valuable possesions. You may have inherited them or being given to you. Will your policy cover their value to replace or some depreciated value based on age. Again there are answers, but the answers may affect how you insure the personal property.
  • Most policies contain sublimits for things like landscaping, outbuilding, etc. Even if your home is properly insured the rest of your property may not be. Take the time to think through what would happen if you had to start completely over what would happen to all that work you put into things that are not part of the main structure. Again if you don’t have this discussion you may not be able to rebuild your dreamhome.

I think you are getting my point.  In a lot of cases this discussion with your agent will not lead to higher premiums, in fact it might lead to savings. Continue to visit the site for more tips as we help you plan to have a stress free new year.

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Jan 05, 2011 | 0 comments View Post

Whose Got Your Homeowner’s Insurance Blind Side? — Part 2

Rule No. 2 Review your policy when it comes in the mail. Despite your lack of understanding of insurance terminology right there on the policy will be language to the effect — “When you receive this policy in the mail, please carefully review and report to your agent any errors you may notice immediatedly.” Now forget the fact that you are not an expert in reading insurance policies, the company is immediatly trying to “transfer a mistake” from them to you. If there is a loss and you all of a sudden find yourself underinsured or not covered the first thing you are going to hear from the adjuster after he/she has delivered to you the bad news is, ” Didn’t you read your policy?”

Now in your next installment we will go over some of things to look for in that policy, but here is a tip. When you receive your policy in the mail send an e-mail to your independent agent. Here is what you say in your own words. I just received my new homeowners policy in the mail. Thank you for handling this for me. Since I am not an expert at reading policy language, I am relying on your expertise to review the policy to make sure it is what we discussed and provides the appropriate coverages. If we need to discuss the policy please call so we can set up an appropriate meeting. I bet you receive a call.

Now, a lot of companies do not send you a policy every year. You may get simply a summary of insurance and a bill. Again I will discuss what to look for in that summary and those “endorsements” that fill up your mailbox and your insurance file folder. But again when you receive something from the company a quick e-mail to your agent telling him you received ______________. To be careful save these e-mails in a folder on your computer it may be the best few minutes you can spend.

As you can tell I am a big advocate for having an independent agent, and establishing a relationship with his/her office. When you have a question call or e-mail. When you have a claim call or e-mail your agent even if you are dealing with a company adjustor. Your agent can make the difference. He/she can make a tragedy a lot less painful or stressful.

Continue to visit the site for more tips as we help you plan to have a stress free new year.

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Dec 29, 2010 | 1 comment View Post

Whose Got Your Homeowner’s “Blind Side?” — Part One

I watched again with my daughter the Sandra Bullock movie The Blind Side. It has all my weakness, a sports movie somewhat, sappy, and a little bit of humor, plus Sandra Bullock is one of my favorites. From all I read, she has her “head put on right.” At some point in the movie she says words to the effect, “any housewife knows your first check you write every month is to pay the mortgage, but the second is to pay the insurance.” Well I don’t know if every housewife knows that much about homeowners insurance or any husband either, but they both should know some basics. Most homeowners have to have it because the bank is going to require it, usually your premium is paid by an escrow account with the mortgage servicer, and for most Americans it is the single largest investment they own.

For the next few articles as you start your year-beginning planning we will to try to give you some basics and tips how to make sure you can sleep at night because you are properly protected. Rule 1… Buy your homeowner’s insurance through an Independent Agent. Do not get pressured through your bank to buy your homeowner’s insurance through them, and unless you are an expert in homeowner’s insurance do not buy your insurance on the Internet. You have a lot of money in your home, you owe a lot of money on your home ( at least most people do ). Make sure that if a tragedy would occur that a second tragedy doesn’t occur when you realize what your policy does cover and what it does not cover.

Again, watch for the next few installments.

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Dec 27, 2010 | 0 comments View Post

What Did Santa ( The New Tax Law ) Leave Under Your Tree?

One thing everybody is saying about the new tax bill passed by Congress, and signed by the President, is that in it is something for everybody. What we know is what has been widedly reported — The Bush Tax Cuts for all Americans are extended for two years, extension of unemployment benefits, reduced payroll taxes, and no Estate Taxes except for couples with Estates over 10 Million dollars, etc. What we will not know for a while is what are the stocking stuffers for the select few. Those loopholes and exemptions that found their way into law lay undiscovered or hidden just waiting for high priced lawyers and accountants to find them. Like the diamond ring or pearl necklace at the very bottom of the stocking, the truly valuable presents for a certain few may take some digging deep, but are worth the effort.

I suspect the location of the really valuable gifts are already known to a select few who had a role in placing them there. But less I sound too cynical, I also expect that in the law lies many treats that were not intended to be given out, but the mere complexity of the law and how it integrates with the existing law caused loopholes and exemptions to be inadvertantly created.

Like Santa’s elves one can be certain that these few days prior to Christmas tax lawyers and accountants are very busy going over the new law line-by-line looking for those packages that they can hand out to their clients. Let’s not limit elfs to lawyers and accountants. The raising of the size of estates exempt from Estate and Gift tax has insurance agents and insurance companies reviewing their products to determine what products best fit the new law’s raised exempt amount. What parent wouldn’t want to leave an estate to their children of significantly larger amounts if it is tax free? It will not surprise me if the marketing plans for packaged $10 Million dollar tax free Life Insurance and Annuity products haven’t already been subject to planning sessions already. I called my friend Marvin Address at marvin.address@addressinsurers.com and asked him, was I wrong but did the exemption give a whole lot of people a chance to build a lot of wealth tax-free.

For you and your business you have probably completed or about to finalize your plans and budget for 2011. Before the ink is dry make a call to your tax advisor and ask for an appointment. Individually, make a call to your Independent Life Insurance Agent. Put him/her to work on your personal plan. Ask about new products coming out, and ask this question can I really purchase enough life insurance that I can leave my family $10 Million dollars tax free?

As the packages under this years Christmas are opened and discovered I will try to keep you advised. We also welcome your comments as well.

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Dec 20, 2010 | 1 comment View Post

U. S. Drywall — The Next Housing Crisis?

This morning, I opened today’s morning newspaper and read two seemingly unrelated articles and my “spider sense” started tingling. No, I am not Spiderman. I am a lawyer and a risk manager, and my “spider sense” is activated when I run across something that makes me think, “ A tangled web is about to be spun.” The articles were about National Gypsum being sued in Florida. The lawsuit claims National Gypsum’s drywall releases corrosive and toxic sulfur gas. This lawsuit is similar to other lawsuits cropping up around the country against drywall manufacturers including U.S. Gypsum and Georgia-Pacific. The second article is about Bank of America negotiating with investors who want B of A to buy back soured mortgage loans packaged into bonds by Countrywide Financial. What do the two articles have in common – homes. Homes may be the common thread that may occupy our already overburdened court system for a long time, as we once again seek to discover who is ultimately responsible.

Just yesterday, I said that in 2011 we would be discussing the next toxic tort. I asked could it be Manganese? Well what was today’s’ headline? – “U.S. drywall now targeted as harmful.” Will Drywall become Asbestos’s successor? Put aside for the minute the possibility that the current drywall being installed may actually be toxic and all the potential plaintiffs who are sick and/or have abandoned their dream home. My “spider sense” asks how many more issues are there out there. Think of the foreclosed homes bought from lenders have recently installed drywall. How many homes whose mortgages that are in default and whose owners are looking for a way to slow down or halt the foreclosure process have recently installed drywall? How many loans now in bond and securities portfolios are collateralized by homes with defective drywall? You can see where I am going. Toxic fumes are bad enough. Can we handle a financial crisis predicated on the fact we may have a whole generation of homes who have to be “detoxed.” We can if we take the right steps now and that takes thoughtful people who are willing to look at both sides of the issue.

The two meager articles leave me with thousands of questions that I suspect I will find out over time. Way beyond the obvious candidates, many businesses and individuals should be preparing for the future as this plays out. Here are some likely suspects but this “web” will have many snares, traps, and turns:

• Drywall Manufacturers, Gypsum suppliers, Utility Companies.
• Plaintiff’s lawyers, Defense lawyers, Toxic Tort Experts and specialists
• Lenders, Servicing Companies, Mortgage Companies, Mortgage Securities sellers and Buyers
• Home builders, Drywall retail suppliers, Developers, Real Estate Agents, Inspectors, and Appraisers
• Insurance Companies – Homeowners, Products Liability, E&O, D&O, Reinsurers
• Federal and state agencies – EPA , DOL, HHS, and all of the new regulatory bodies supervising the mortgage industry.

As I said these are just a few of the entities that will be touched. There is not a risk manager who shouldn’t have on his/her 2011 to do list evaluate consequences of drywall issue – identify, analyze, control, and manage. We will follow this issue over the year, prepare subscription materials to assist our clients, and stand ready to assist your business, your law firm, or you, individually. Contact us at www.webbhubbell.com or directly at whubbell73@gmail.com.

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Dec 16, 2010 | 0 comments View Post

Christmas — Have all your orders been shipped?

It is Christmas time and you are expecting that very special present to arrive from the on-line discount house, or you decided since you were laid off, to start selling your wife’s knit baby blankets online. All of a sudden she breaks her wrist and you can’t fill the orders fast enough to meet the commitments you made last month. One rule you both should understand is the Federal Trade Commission’s (FTC) Mail or Telephone Order Merchandise Rule, better known as the 30 Day Rule.
The 30 Day Rule governs businesses and how they fill orders to be shipped. If a specific period is not set by a business for when goods will be shipped, they must be shipped within 30 days. In our example, if the wife breaks her wrist, your business can’t ship within the 30 day time? You must promptly tell the customer by mail, telephone, or email, and give the customer a new estimated shipping date. The business must then also give the customer a chance to cancel their order and receive a full refund. When extending the offer to cancel or accept the new shipping date, you must give the customer a reasonable amount of time to make their choice.
Another option for your business if the shipping date is delayed is to cancel the order and extend a full refund. The refund cannot be credit for future purchases. Let’s hope all your orders arrive, so the stockings are full, and your wife’s wrist damage turns out to be only a slight strain.

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Dec 16, 2010 | 1 comment View Post

“You better not shout, you better not cry, ….”

“You better not shout, you better not cry, ….”

What does Santa Claus is Coming to Town have to do with risk management, insurance, and business consulting. Think about it and I bet you have some ideas. Here are a few. “ you better not shout…” is a quick lesson in that there are consequences to our behavior. Another lesson from these few simple lines of the song is – good behavior is rewarded, bad behavior is not. It takes a lifetime to learn this one. How about “he is making a list?” We make list for most of our activities – to-do lists, shopping lists, list of questions for the doctor,etc. Punch lists for contractors, safety checklists, take-off checklists for pilots are just a few examples of How almost every aspect of business includes making and checking lists. How we deal with our life’s lists has employed thousands of life counselors, and created an industry of specific paper products to make list-making easier. Why should we be surprised that Santa makes a list. Now here’s the kicker – Santa checks it twice. If magical Santa needs back-up systems, who are we to ignore the need to do likewise.

This little Christmas song was not written to get you to purchase day-planners for all your loved one’s for Christmas. It does however point out that even a simple children’s song can be used as a tool to deal with the most complex issues in our business. Too often, our business leaders, our politicians, and our life counselors make the simple-complex, the fun- difficult, and what is easy – hard. Perhaps every now and then, they need to just relax and sing a little song to get their point across.

To learn more about how our group of professionals can help you, contact us using this website, or e-mail us at whubbell73@gmail.com.

PS: Don’t forget to send Santa your Christmas Wish List.

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Dec 07, 2010 | 0 comments View Post

Fodder For Your Opponent’s Bulletin Board

My first real exposure to risk management was listening to my father while we watched college football games over 50 years ago. Dad, had played football for General Neyland at the University of Tennessee, and what had been drilled into his head by one of football’s legends was being passed onto me. He had been taught that a forward pass was a high risk play to be reserved only after you were playing on your opponent’s side of the field. The quick kick was a weapon to be used frequently to keep one’s opponent backed up, and 3 and 1/3 yards a play kept moving the ball forward and out of one’s opponent’s hands. Apparently General Neyland did not have a large appetite for risk, but his conservative approach always kept Tennessee in the game and with a chance to win, which they did often.

As I began to play myself, certain truisms were drilled into us to make sure we didn’t lose the game before we had a chance to win it. Avoid penalties and turnovers, play for good field position, and don’t gamble on your side of the field were just a few of the “risk management tools” that became mantras at every skull session and practice. They were never referred to as “risk management tools”, they were “fundamentals.” Football was a game of risks and the team who avoided risk, controlled risk, and practiced risk management the best usually came out the winner.

I can think of many “rules of the game” and how they apply to business and personal risk management. One was a simple warning given us every day by the coaches. We were told whenever we talked to the press never ever disparage one’s opponent. Never say something that would incite the other team’s ire or inspire them. “Old school” wisdom was to praise one’s opponents. It made for boring interviews, but seldom did another team become motivated by a “stupid remark.” Watching athletes today “trash talk” and “predict embarrassing their opponent” makes me cringe. I hear my father and my coaches in the back of my head saying never “ give your opponent something to post on his bulletin board.” Who is your spokesman? Does he practice risk management? Has he/she been practiced in the art of never giving anyone bulletin board material? Think about it. Think about calling together your whole team about “how to win the game.”

The professional’s at Webb Hubbell Consulting are here to help your organization. Contact us through this website or e-mail us at whubbell73@gmail.com.

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Nov 23, 2010 | 1 comment View Post
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