In February 2022, FedEx embarked on a comprehensive transformation that would fundamentally reshape how the global logistics giant approached workers’ compensation and risk management. The company faced the daunting task of consolidating several separate risk management teams across its enterprise into a unified organization.

The challenge was significant. Each operating company had developed its own systems, processes, and cultures over years of independent operation. Nancy Chiesa, senior manager, workers’ compensation claims, and her team encountered different RMIS systems, varying best practices and deeply rooted operational silos that had to be harmonized.  

“Each team that we merged together did things differently in terms of how much they went in the weeds on claims,” Chiesa said.

Tackling the Problem

FedEx’s approach to this massive undertaking centered on strategic communication, cultural integration and building trust among team members who had never worked together. The company created what it called the Enterprise Claim Risk Management (ECRM) team, bringing together 23 advisors, three workers’ compensation managers, and Chiesa under one unified structure. Combined with the liability division, the new organization grew to approximately 70 members. 
 
Jim English, managing director, litigation at FedEx Ground, recognized that messaging would be critical to success. Many employees had spent years perfecting their individual approaches and assumed their methods were superior. 
 
“They thought that the way they were doing things was the right way,” English said. “So we tried to make sure we told them, you’re all doing a great job. You all did things that are great, but we want to pick and choose the best from what everybody was doing and come up with some brand-new practices.” 

The leadership team deliberately integrated personnel from different operating companies rather than maintaining existing geographical or organizational boundaries. English and Chiesa ensured that the three managers represented the three largest operating companies, while team members from Express, Ground, Freight, and Office were mixed to foster collaboration.

FedEx implemented several innovative strategies to address the cultural challenges. The company introduced “FIKA” time, a Swedish coffee break concept where team members could gather voluntarily for thirty minutes to discuss anything except work. This simple initiative helped build personal bonds and trust among colleagues who had never met.

“We really emphasized that we had a rare opportunity to build something from scratch, and everybody’s opinion and perspectives mattered,” Chiesa said. We encouraged the team to imagine what the future could look like, not just what it does look like today.  That sparked real excitement.”

The company also hosted off-site team summits and implemented Fun Fact Friday sessions to help team members learn new claim manual information while building relationships. Leadership emphasized that they were experiencing the same uncertainty as their team members, creating a sense of shared challenge rather than top-down change.

Operationally, FedEx tackled several critical areas. The company consolidated claims manuals into one comprehensive document, revamped corporate social and environmental initiatives with their TPA, and developed new RFPs centered on their unified approach. One of the most significant achievements was reducing their network of defense counsel from 150 law firms to 23, leveraging volume to negotiate better rates and establish consistent performance metrics.

“We looked at some of the larger firms that we were already using and just added states for them so that we could whittle down having so many firms,” Chiesa said “We wanted a good mix of firms that had represented all of the different operating companies. We didn’t want to just go with one operating company’s practice. We integrated that and really made it a mesh of all the operating companies.”

Organization: FedEx * Location: Memphis, Tenn. * Number of Employees: 500,000 * Category: Transportation & Logistics

FedEx also consolidated its medical management program, partnering with Enlyte to handle all medical management needs including case management, bill review, pharmacy, and utilization review across all operating companies. 

“As an executive who has overseen major company transformations, what Nancy and the teams at FedEx have done in successfully integrating seven distinct risk management operations into one cohesive unit is extraordinary,” said Nina Smith, president of customer and market operations, Enlyte. 

“As the industry continues to experience mergers and acquisitions, FedEx’s Enterprise Claims Risk Management team truly exemplifies what excellence in transformation looks like, implementing standardized processes that deliver impressive results. Enlyte is honored to have partnered with FedEx prior to and through this journey, employing the enterprise-wide medical management solutions they needed as they consolidated their workers’ compensation programs and created a culture built on trust, transparency and collaboration.”

Success to Build On

The results of FedEx’s transformation have been substantial. As of March 2025, the frequency of new workers’ compensation claims decreased by 2.3% year-over-year, with new indemnity claims dropping 9.7%. Open claim inventory fell 7.1% year-over-year due to multiple strategic initiatives.

The centerpiece of FedEx’s success has been its nurse triage line, overseen by manager Edward Kinslow. The program allows injured employees to connect immediately with a nurse who assesses injuries and determines appropriate next steps. The program achieved a 79% utilization rate with a 54% self-care recommendation rate. Most importantly, the indemnity rate for claims using the nurse line dropped from 57% to 33%, while lag time decreased by 82%.

Nancy Chiesa, senior manager, workers’ compensation claims, FedEx

“We didn’t have anything like that before. At Ground, we had just rolled out the nurse line before we consolidated all the operating companies, so we expanded the rollout to all,” Chiesa said. “We’ve realized a 25% decrease in the average incurred when they use the nurse line because they’re getting the right care at the right time, and it’s much faster.”

Building on this success, FedEx has expanded to include onsite nurse clinics at two locations with higher claim frequencies. Though still relatively new, estimates point to an 88% increase in self-care rates at these facilities.

The company implemented additional innovative programs including field and safety training and bottom 20 utilization programs, using data and metrics to provide targeted training at underperforming locations. FedEx also created settlement champions to triage claims ready for settlement and developed a specialized subrogation team that improved recovery rates from approximately 13% to an expected 23-27%.

English emphasized that their success came from learning to value diverse perspectives rather than imposing a single approach.

“You have to be able to articulate why it’s a good thing. Everybody, including me, and maybe Nancy, I’m not sure, thought that it would be better if we just stayed the way things were before,” he said. “We had to convince ourselves that it was a good idea, and then we had to convince everybody else that it was a good idea.”

The transformation taught FedEx valuable lessons about successful change management. The company discovered the importance of forming the right mix of partners and processes while developing team inclusion throughout the organization.

FedEx continues to build on its momentum, incorporating new technologies including AI into its program while maintaining focus on return to work, early claim reporting, and employee empathy. The company’s commitment extends beyond operational improvements to creating a culture that genuinely cares for injured workers.

“We like to think we’ve built a resilient workers’ compensation program because we’ve taken the best of everything that all the individual opcos had to offer and rolled that into one,” Chiesa said. “This is our team’s legacy, and we’re proud of what we created.” &
 

The Theo Award celebrates its sophomore year, honoring 32 workers’ compensation programs for their excellence and service to workers across the nation. To learn more about the award and amazing qualities each winner possesses, visit here.