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Controlling your Destiny

In 2004, Ruby Tuesday, Inc. challenged traditional self-administration of guest liability claims by developing an innovative staffing model that mirrored a Third-Party Administrator (TPA) with a focus on empathy and efficiency. The new approach allowed for control of claims and data, significantly reducing costs while enhancing employee satisfaction. From transitioning staff to building relationships, results showed a 47% drop in premiums and a $2.7 million annual impact. Learn how transforming risk management can save money and cultivate a healthier corporate culture.

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Controlling your Destiny

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  1. Controlling your Destiny Michael Barrett Director of Risk Management Ruby Tuesday Inc.

  2. Step out of the cookie mold…. • In 2004, RTI began to question the idea of self administration on guest (liability) claims • We realized that we needed to mirror a TPA but have a softer, kinder approach • No one cares about our team members or our guests like we do. So, let’s prove it. • Sounds great, but how in the heck to we convince company leadership to make the jump?

  3. Dollars and Sense • RTI developed a staffing model similar to a TPA with a few twists… • Every component of the staffing model HAD to reduce costs (Return to work, safety, admin fees, etc.) • Selling points to executive team = Control our claims, control our data, drive down costs, keep people happy • RMIS = Own it, love it, and make it your own WMD • Insurer approval is mandatory (you can shop ,too) • January 2005, we got our wish. Ok, now what? • Find people who embody your vision • Staff went from 2 to 10

  4. Timeline • May 2005, we took our first claim in house. Created light duty program! • 2007, began paying workers compensation claims in house • 2008, took entire liability retention in house • 2008, added a feature to RMIS where restaurant managers can report directly into the claim system from restaurant office • Changed culture from being a department which allocates charges to a department which saves the company millions of dollars • All achievements come back to desired goal = Save $$ • Better relationship with field as we have returned $$ to the restaurant’s bottom line = higher bonus • Now act as Consultants rather than dictators

  5. Risk is a Profit Center Waiting to Get Out… • None of the proposed goals mean a thing if you don’t back them up with results. So, how did we do…. • Since 2005: • WC and GL premiums are down 47% • TPA fees vs in house staff are favorable by $120K per year • WC pure loss rate down 44%, GL down 39% • Significant reduction in collateral from Primary somewhat offset by self insurance bonds • 42% reduction in WC claims • 2005 Lost Time = 19%, 2010 = 9% • Annual impact to RTI: $2.7MM

  6. Lessons Learned • Don’t be afraid to jump, especially if you know where you are going to land • Track your team’s success (and then tell everyone about it) • Everything discussed here today comes down to the same essential theme = relationships • Give a lot before you expect to receive • Bring ice cream instead of a hammer • Take all the blame and none of the success • Don’t confuse habits with wisdom • Measure the splash…. • Use the current economy to your advantage

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