1. Re-Adjusted
Taking Your Claims Organization From
Ordinary To Extraordinary!
Christopher Tidball, SCLA, SSBB Ed Kent, Esquire
Executive Claims Consultant Law Offices of Kent & Senen
(904) 742-9031 (661) 362-0800
www.christidball.com edkentlaw@att.net
2.
3. “Don’t tell me the sky is the limit…
there are footprints on the moon”
– Paul Brandt
5. The Ah-ha moment
Mesopotamians (circa 3500 B.C.)
discovered that wheels made
moving things easier
Archimeades-
levers, pulleys, irrigation and the
calculation of pi
6. 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
7. 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
14. 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
22. Benchmarking
• Over measuring
• Measuring the wrong metrics
• Well intended goals
• Unintended consequences
• Organizational calibration
23. 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
24. 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.
25. 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
26. 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
30. People
Your biggest asset
People provide your knowledge and culture
Your most expensive a$$et
FTE can account for 50-60% of operating budget
Your long term solution
People, not gadgets, gimmicks or even technology, define
your future
The root cause of your problems
80/20 Rule
20/60/20 define A/B/C players
32. 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
33. 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?
34. 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
38. 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…)
39. 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
40. 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
41. Maximizing Efficiencies
• Examining claims model
– 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!
42.
43. 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
44. 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
45. “Perfection is not possible, but
chasing it will result in excellence”
-Vince Lombardi
46. Open Discussion
Chris Tidball, SCLA, SSBB Edward S. Kent, Esq.
Executive Claims Consultant Attorney At Law
(904) 742-9031 Kent & Senen Law
chris@christidball.com (661) 362-0800
www.christidball.com edkentlaw@att.net
Management Consulting/Process Improvement/Training Insurance Defense Litigation/Personal Injury/
Claims Strategies/Subrogation/Six Sigma Methodology Estate Planning/Trusts/Bankruptcy
