Risk Insider: Nir Kossovsky

Schooling the NFL in Reputation Management

By: | September 23, 2014 • 3 min read
Nir Kossovsky is the Chief Executive Officer of Steel City Re. He has been developing solutions for measuring, managing, monetizing, and transferring risks to intangible assets since 1997. He is also a published author, and can be reached at [email protected]

Back in the dark ages before the Internet, players on the gridiron were expected to play brutally hard for fans who sat through sometimes equally brutal weather.

Advertisers targeted the demographic with beer and pickup trucks, and paid enough for the privilege to enrich television networks, team owners and the tax-exempt league organization.

Football was entertainment for many, and a religion for many more. Winning was everything — a cultural obsession that over time sustained a range of abusive practices.

In 2009, Eric Olson, senior vice president at BSR, a social responsibility consultancy, warned that “hyper-transparency” enabled by the Internet would change the boundaries used to assess a company’s scope of control, and its degree of accountability and responsibility.

Football’s first major media sensation along these lines was the 2011 Penn State football coach child sex abuse scandal. It was a warning shot for the professional league. In rapid succession, stakeholders have made it clear to the NFL that the intangibles of quality, safety, and ethics on and off the field must now be intrinsic to the sport.

Two years ago, after labor issues simmered all summer between the league and its referees, a Monday night game between Seattle and Green Bay was marred by a disputed touchdown call by substitute referees.

Fans were livid. Vikings punter Chris Kluwe wrote that the NFL’s reputation “is tarnishing faster than a sailor’s virtue in a two-dollar whorehouse.”

“These refs are not fit to stand in for the men you’ve locked out for what is increasingly looking like nothing more than simple greed—attempting to squeeze blood from a stone simply because you can,” Kluwe wrote to NFL Commissioner Roger Goodell in an open letter.

In rapid succession, stakeholders have made it clear to the NFL that the intangibles of quality, safety, and ethics on and off the field must now be intrinsic to the sport.

Last year, the NFL agreed to pay $765 million to settle hundreds of cases accusing it of hiding information about the dangers of concussions, naively hoping that fans would refocus on the players and the games that make the sport a national obsession.

But to the NFL’s stakeholders, the game no longer exists in a vacuum.

The current reputation scandal centers on domestic violence. Stories and videos of beatings are illustrating graphically the meaning of hyper-transparency. Hannah Storm, anchor of ESPN’s SportsCenter, closed her review of the weekend NFL games in September by questioning if the league she enjoys actually cares about female fans, families, or the issue of domestic violence.

“What exactly does the NFL stand for?” she asked rhetorically at the end of the Monday morning program.

Storm could have been channeling The Walt Disney Company, which owns ESPN. In the age of hyper-transparency, stakeholder expectations have never been higher, and tolerance for errors has never been lower – disappoint them and they will punish you.

In the entertainment business Disney know so well, managing reputation is a business imperative.

Read all of Nir Kossovsky’s Risk Insider contributions.

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]