Column: Risk Management

Retooling Reschooling

By: | May 2, 2017 • 3 min read
Joanna Makomaski is a specialist in innovative enterprise risk management methods and implementation techniques. She can be reached at riskletters@lrp.com.
Topics: ERM | May 2017 Issue

I fondly remember my high school home economics classes where we learned to cook, sew and do wood work. In fact, my high school years were on the cusp of the gender shift, when girls were finally allowed to join the boys in wood working classes.

We also had an elective class where we could learn to type using a typewriter — that crazy contraption that was thought only to be a fad and for which I saw little future use.

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I never did take the typing class.

Fast forward to today — how deeply I regret my naive, limited thinking and decision. How I wish I took those 8th grade typing classes. There isn’t an hour of any day when I am not hunting-and-pecking at a keyboard. How I still suffer.

It is clear the world around us is ever changing. How we do and make things, how we make money is changing — ever evolving. Tools are smarter, more connected, intuitive.

Like it or not, we have entered the high speed digital transformation highway and there is little room for a U-turn for any industry.

This is a transformation affecting all of our computing devices and tools — devices that connect to each other, talk, take directions from each other, and learn lessons, each exploiting the deep pool of data they collect and store. Technology research firm Gartner suggested that by 2020 there will be more than 26 billion connected devices globally.

This new technological paradigm takes advantage of rapidly growing internet connectivity and rich data. It is poised to drive out inefficiencies, optimize resources and (ideally) help workers do their jobs better and more safely.

Like it or not, we have entered the high speed digital transformation highway and there is little room for a U-turn for any industry.

Brilliant risk management capabilities such as personal protective clothing that is equipped with worker vital sign sensors have now been unlocked.

This sensor data empowers field, remote and centralized workers in real time, allowing critical information to be shared with support entities, including emergency responders if the worker experiences any health issues. This used to be equipment reserved only for science fiction movies or space exploration.

Even with this blunt reality unfolding before our eyes, very important people seem to be resisting change. Maybe out of pure politics or nostalgia for simpler times we see attempts to resurrect industries and jobs that are no longer viable.

Maybe some don’t realize that keeping dying jobs alive on life-support systems such as subsidies and incentives is simply unsustainable.

There is no question that this technology transformation can empower some workers; but it also threatens others. This can put at risk traditional roles, leaving workers behind.

Such a technological transformation cannot occur without a wholesale cultural transformation. Digitization is indeed a change of tools, but it is also a change of workplace models, hierarchical relationships, customer experiences, competitors and most importantly, mind-set.

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To be successful, culture change starts at the top. Leadership and a devoted implementation team are prerequisites to effectively move an organization to a more flexible, less hierarchical, more autonomous digital culture where employees can truly be creative. A workplace environment not to be feared, but revered.

Knowing this, getting early worker engagement, retraining and finding new ways to adapt existing skills should be much easier.

Just because the typewriters left the shop floor doesn’t mean you can’t adapt and develop digital skills such as using a digital speech interface to do all your typing. &

More from Risk & Insurance

More from Risk & Insurance

2017 Risk All Stars

Immeasurable Value

The 2017 Risk All Stars strengthened their organizations by taking ownership of improved risk management processes and not quitting until they were in place.
By: | September 12, 2017 • 3 min read

Being the only person to hold a particular opinion or point of view within an organization cannot be easy. Do the following sound like familiar stories? Can you picture yourself or one of your risk management colleagues as the hero or heroine? Or better yet, as a Risk & Insurance® Risk All Star?

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One risk manager took a job with a company that was being spun off, and the risk management program, which was built for a much larger company, was not a good fit for the spun-off company.
Rather than sink into inertia, this risk manager took the bull by the horns and began an aggressive company intranet campaign to instill better safety and other risk management practices throughout the organization.

The risk manager, 2017 Risk All Star Michelle Bennett of Cable One, also changed some long-standing brokerage relationships that weren’t a good fit for the risk management and insurance program. In her first year on the job she produced premium savings and in her second year is in the process of introducing ERM company-wide.

Or perhaps this one rings a bell. The news is trickling out that a company is poised to dramatically expand, increasing the workforce three- or four-fold. Having this knowledge with certainty would be a great benefit to a risk manager, who could begin girding safety, workers’ comp and related programs accordingly. But things sometimes don’t work that way, do they? Sometimes the risk manager is one of the last people to know.

The Risk All Star Award recognizes at its core, creativity, perseverance and passion. The 13 winners of this year’s award all displayed those traits in abundance.

In the case of 2017 Risk All Star winner Steve Richards of the Coca-Cola Bottling Company, the news of an expansion spurred him to action. He completely overhauled the company’s workers’ compensation program and streamlined its claim management system. The results, even with a much higher headcount, were reduced legal costs, better return-to-work experiences for injured workers and a host of other improvements and savings.

The Risk All Star Award recognizes at its core, creativity, perseverance and passion. The 13 winners of this year’s award all displayed those traits in abundance. Sometimes it took years for a particular risk solution, as promoted by a risk manager, to find acceptance.

In other cases a risk manager got so excited about a solution, they never even considered getting turned down. They just kept pushing until they carried the day.

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Butler University’s Zach Finn became obsessive about what he felt was a lackluster effort on the part of the insurance industry to bring in new talent. The former risk manager for the J.M. Smucker Co. settled on the creation of a student-run captive to give his risk management students the experience they would need to get hired right out of college.

The result was a better risk management program for the university’s College of Liberal Arts and Sciences, and immediate traction in the job market for Finn’s students.

A few of our Risk All Stars told us that the results they are achieving were decades in the making. Only by year-in, year-out dedication to gaining transparency about her co-op’s risks and learning more and more about her various insurance carriers, did Growmark Inc.’s Faith Cring create a stalwart risk management and insurance program that is the envy of the agricultural sector. Now she’s been with some of her insurance carriers more than 20 years — some more than 30 years.

Having the right idea and not having a home for it can be a lonely, frustrating experience. Having the creativity, the passion and perhaps, most importantly, the perseverance to see it through and get great results makes you a Risk All Star. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and passion.

See the complete list of 2017 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at dreynolds@lrp.com.