Stop chasing numbers, start getting results

At the end of the day, where the rubber meets the road, there is only one thing that really matters; results.  Far too often organizations spend too much time chasing numbers only to be muddled in mediocrity.   Call this person, close that file, inspect that vehicle, refer more to subrogation, move the salvage.  The list of metrics upon which adjusters are measured goes on and on.  

Certainly, there are tasks that have to be completed.   Good adjusters, managers and executives know this and don’t need to be asked twice.   Herein lies the problem; are the myriad of metrics designed to get results or simply prod marginal staff along?   

As discussed in Re-Adjusted: 20 Essential Rules To Take Your Claims Organization From Ordinary To Extraordinary, not everyone is meant for a career in claims.  Yet, many organizations ignore this in their hiring practices.   The reality is that organizations are comprised of A, B and C players.   The key to success is to acquire as many A’s as possible, motivate the B’s and remove the C’s.  

Companies become great because of their people and their culture.   Companies also fail for the same reason.   As a frequent flier, I typically travel on the one airline that has redefined that industry.    The reason they have succeeded is because their people do things right, in a consistent manner with processes and procedures designed to get results, not the least of which is the hiring of the right personnel. 

Whether it is an airline, a manufacturer, a professional service provider or a claims organization success occurs when there is basic execution of the fundamentals.  It is important to not forget that claims is a skill, not a job.   It takes a certain personality to effectively handle the tasks required for thorough investigations, negotiations and settlement.  

In reviewing processes throughout the industry, both here and abroad, it never ceases to amaze me how many opportunities exist.   Liability is often assessed at zero or one hundred percent despite a significant percentage of claims involving shared liability.   Injury investigations often overlook pre-existing conditions or intervening circumstances.   Scene investigations are rarely completed and witnesses often aren’t questioned.   Clinics go uninspected, patient sign in logs aren’t obtained, red flags for fraud are routinely ignored.  

It is this basic blocking and tackling that separates not only A,B and C players but entire organizations who can gain a significant competitive advantage with simple process improvement.    Fortunately, none of this is overly complex.   To the contrary, it simply involves hiring the right people, training the right knowledge, implementing the right processes and leveraging the right technology.  

By following this model, the results will come.   During my tenure overseeing claims operations we found success by transforming from the status quo.   While measuring mountains of metrics had historically given us data, it wasn’t giving us the results we sought.   By moving to one simple metric and calibrating the organization, the focus moved from chasing numbers to getting results.

In this particular case the simple metric was an all encompassing quality assurance score.   A good claim file will meet every metric that had been previously measured individually.   This focus enabled the organization to improve accuracies, reduce expenses, decrease cycle time and increase retention.   It also provided the data needed to ensure the appropriate people were in the appropriate job function.  

With a simple re-adjustment designed to leverage people, processes and technology, it is possible for any organization to go from ordinary to extraordinary.    Those who are overly ambitious will not only redefine their own organization but have the potential to redefine their industry.  

“The vision must be followed by the venture.   It is not enough to stare up the steps, we must step up the stairs.” – Vance Havne

Christopher Tidball is an executive claims consultant and the author of Re-Adjusted: 20 Essential Rules To Take Your Claims Organization From Ordinary To Extraordinary!  He is a twenty plus year industry veteran with wide ranging claims, management and executive experience at multiple Top 10 insurance carriers.   To learn more, please visit www.christidball.com or email chris@christidball.com.