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DEPT OF FINANCE: RISK Loss Recovery for Auto & Property April 14 – 18, 2014
DEPT OF FINANCE: RISK
Loss Recovery for Auto & Property
April 14 – 18, 2014
LOSS RECOVERY FOR AUTO & PROPERTY
Dates April 14-18, 2014
Executive
Sponsor Robert “Bob” Gibson
Process
Owner
Raymond “Ray”
Sibley
Team Lead Devron “D-Money”
McMillin
Team
Members
Kelly Hopper, Robin
Gray, Sharon Davis
Facilitator Greg Reger
Team Selfie
WHY CHANGE IS NEEDED
• Not all claims are reported
• No/haphazard current reporting process for agencies
(multiple reporting forms)
• Increase fund collection (recovered losses)
• Reduce workload on CCD Risk staff
• Risk has a new vendor in 2014
• Ties to mission-level metric: amount of subrogation claims
recovered
Haphazard, inefficient, missing links
Metric Baseline Avg. yearly # claims reported from agencies: auto 547
Avg. yearly # claims reported from agencies: property 477
Days to log claim: auto (average/median) 26.16 / 16
Days to log claim: property (average/median) 34.99 / 24
Risk’s time spent on process (& soft dollar costs) ~12.5% ($6,873.12)
CURRENT STATE
Streamlined, smooth, full compliance
Metric Baseline Target
Avg. yearly # claims reported from agencies: auto 547 15% increase
Avg. yearly # claims reported from agencies: property 477 50% increase
Days to log claim: auto (avg/median) 26.16 / 16 14
Days to log claim: property (avg/med) 34.99 / 24 14
Risk’s time spent on process (& soft dollar costs) ~12.5% ($6,873.12) 5% ($2,749.25)
FUTURE STATE
Of the WASTE identified, we addressed
~63% in our target state
38 wastes identified
~24 addressed
= 63%
GAP ANALYSIS/ASSUMPTIONS
VOICE OF THE CUSTOMER
7
BRAINSTORMING
8
If we… Then we… Effort/Impact
1 Simplify damage report form Expect marked increase in reporting Low/High
2 Update contents of red “Accident
Instructions” envelope
Expect better chance of completion & submission;
eliminate confusion of which form to complete Low/High
3 Include damage report form in red
envelope Provide easier access to reporting form Low/High
4
Get access to FASTER for Risk &
CMR and provide access to STARS
for PW-Fleet
Speed up access to estimate information Low/High
5
Put damage report form on agency
shared drives & near time
clocks/safety info
Provide easier access to reporting form Low/High
6
Work with OHR to include reporting
procedures in NEO & supervisor
training
Provide better communication to new employees and
supervisors Low/High
7
Have PW-Fleet send work orders,
accident reports, and estimates to
Risk
Speed up access to estimate information Low/High
8 Provide quarterly reports to
agencies
Increase awareness of subrogration activity
provided to agency by Risk and increase potential
uncollected dollars
Low/High
BRAINSTORMING
BRAINSTORMING
10
If we… Then we… Effort/Impact
9 Pilot accident kits (disposable
cameras) Provide tools to increase better reporting Medium/High
10 Enable sending via Adobe & Excel Provide broader access to reporting Medium/High
11 Work with Fleet to put red envelopes
in during PM Increase better reporting Medium/High
12 Provide “orange”/badge cards Provide outreach and education Medium/High
13 Develop a better relationship with Xcel Expedite estimate information Medium/High
14
Provide standard, consistent
communication in employee bulletin
and at quarterly safety meetings
Provide outreach and education Medium/High
15 Provide an annual refresher Provide outreach and education
Medium/High
16 6-S Webpage on DOT Provide easier access to information and reduce user
frustration Medium/High
17 Have intern consistently Expedite estimate information Medium/High
18 Have DA work directly with CMR Expedite the restitution process Medium/High
BRAINSTORMING
11
If we… Then we… Effort/Impact
19 Make reporting easy via tablets Expect increased reporting High/High
20 Autopopulate STARS from form Increase efficiency and reduce data entry errors High/High
21 Link FASTER and STARS Increase efficiency and reduce wait times for
estimates High/High
22 Provide more training Expect better and increased reporting High/High
23 Encourage/require use of STARS in
comp & class Greater reporting, increased outreach & education High/High
24 Have standard costs for
homogeneous items Speed up invoicing time High/High
25 Have the agency providing the
estimate up front Speed up invoicing time High/High
26 Update the fiscal rule Expect increased agency compliance High/High
27 Add reporting requirements to an
appointee handbook Increases awareness of process High/Medium
28 Create a policy manual with a defined
process and set expectations
Improve succession planning and standardization of
process High/Medium
BRAINSTORMING
12
If we… Then we… Effort/Impact
29 Increase accountability Increase claims, recovery, compliance Medium/Medium
30
Make additional contacts, involve
agencies more and develop
relationships with agencies
Increase claims and recovery Medium/Medium
31 Make a subrogation SOP and quick
reference guide
Increase awareness and improve succession
planning Medium/Medium
32 Have an inbox/drop-box for Risk Provide greater access to Risk Medium/Medium
33 Ensure consistent reporting processes Provide better information to agencies & decrease
time spent looking for information Medium/Medium
34 Create a reference guide for the
damage reporting form Increase and improve reporting Medium/Medium
35 Create a draft email template Enable employees to report without filling out a form Medium/Medium
36 Ask PRIMA members for their best
practices Identify alternate approaches to loss recovery Low/Medium
Experiment Actual Effect Adopt
Y/N
Redesigned red envelope &
form
Fewer forms, clearer, less
searching for form Y
Quarterly reports TBD- sending to agencies
Access to FASTER/STARS TBD- meeting next week
Information in NEO and
supervisor training TBD- meeting 4/18
Fleet sends work orders,
estimates, accident reports TBD
Accident kits TBD- piloting with Civic Center
Draft email template Tabled- decided to enable an
Excel form
“Orange”/badge card Handy reference for employees;
looking into cost TBD
6-S DOT page Ease of use of Risk homepage Y
EXPERIMENTS
Action Items Owner Due Date Status
1 Simplify damage report form Devron & Kelly Done, waiting on user
comments
2 Update contents of red “Accident Instructions”
envelope Devron & April 5/9
Waiting for completed
report form
3 Include damage report form in red envelope Devron Done
4 Get access to FASTER for Risk & CMR and
provide access to STARS for PW-Fleet Robin 5/15 Meeting next week
5 Put damage report form on agency shared drives
& near time clocks/safety info Sharon 5/15
6 Work with OHR to include reporting procedures in
NEO & supervisor training Sharon 5/15 Meeting 4/18
7 Have PW-Fleet send work orders, accident
reports, and estimates to Risk Kelly 4/21
8 Provide quarterly reports to agencies Robin & Devron 5/15 Awaiting Cary’s approval
ACTION PLAN
ACTION PLAN
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Action Items Owner Due Date Status
9 Pilot accident kits (disposable cameras) Sharon & Robin 5/15 Prototype created,
looking into costs
10 Enable sending via Adobe & Excel Kelly 6/1 Working w/ Tyson M. for
Adobe
11 Work with Fleet to put red envelopes in during
PM Robin 5/9
12 Provide “orange”/badge cards Sharon 6/1 Determining costs
13 Develop a better relationship with Xcel Ray 5/15 Scheduling meeting
14 Provide standard, consistent communication
in employee bulletin and at quarterly safety
meetings
Devron & Sharon 5/15 Working with Wil
Alston
15 Provide an annual refresher Sharon 7/30 Meeting with General
Services
16 6-S Webpage on DOT Devron 12/31
17 Have intern consistently Ray 5/15
18 Have DA work directly with CMR Kelly DRN Done
ACTION PLAN
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Action Items Owner Due Date Status
19 Make reporting easy via tablets Sharon 8/15 To pilot (e.g. w/ DHS)
20 Autopopulate STARS from form Robin 2016 Needs iFund request
21 Link FASTER and STARS Robin 2016 Needs iFund request
22 Provide more training “Star Pony” 7/1 In development
23 Encourage/require use of STARS in job spec Sharon 4/18 TBD w/ meeting 4/18
24 Have standard costs for homogeneous items Kelly 5/15 Meeting 4/18
25 Have the agency providing the estimate up front Sharon 7/1 Pilot w/ DPR
26 Update the fiscal rule Devron 9/1
27 Add reporting requirements to an appointee
handbook Sharon & Devron 9/1 Working with Wil Alston
28 Create a policy manual with a defined process
and set expectations Sharon & Devron 9/1
ACTION PLAN
17
Action Items Owner Due Date Status
29 Increase accountability Ray 9/1
30 Make additional contacts, involve agencies
more and develop relationships with agencies Sharon & Devron 12/31
31 Make a subrogation SOP Kelly Done
32 Have an inbox/drop-box for Risk Sharon 6/1 Requested
33 Ensure consistent reporting processes Devron 12/31
34 Create a reference guide for the damage
reporting form Kelly Done- form simplified
35 Ask PRIMA members for their best practices Ray 6/1
POTENTIAL QUANTITATIVE RESULTS
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Result % Change Value Type
Increased # reported auto
claims 15% $34,882.69 Hard $ recovered
Increased # reported
property claims 50% $168,154.88 Hard $ recovered
Reduced time spent by
Risk on process 60% $4,123.87 Soft $ savings
TOTAL $207,161.44
Result % Change Type
Reduced average # days
to log claim 45-60%
Service level
improvement
Reduced # days from log
to close of claim ?
Service level
improvement
PARKING LOT
• Overview of STARS
• STARS use
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What did you learn?
• This process is not as painful as anticipated
• Another tool in the toolbox
• RIE = way to immediately act and just do it
How do you feel about the whole
event?
• We didn’t die! It wasn’t as bad as anticipated
• Life-changing and affirming
• Über productive
• Fun!
What will you do differently going
forward?
• Not make as many assumptions
• Consider all CCD employees
• Encourage more improvement events
INSIGHTS
SPECIAL THANKS
Consultants April Hansen, Dave Stewart, Duane
Fields, Gena Newtal, Julie Vlier,
Debbie Reyes-McDermaid, Dianne
Criswell, Jonathan Musgrove, Bill
Haaland, Taylor Fudge
Executive Sponsor Bob Gibson
Process Owner Ray Sibley
FACILITATOR INSIGHTS
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This is a small but mighty team; it was a privilege working with them
The group was good-natured, fun, and super productive; I was very
impressed by their spirit and work ethic
Their challenges may be similar to those faced by other
processes/agencies
Having the ground-level, front-line perspective is critical
Group selfies make great team photos
QUESTIONS?
