Restoration Rewind Delta Development Group Monthly Newsletter
January 2018
Do you have what it takes mentally to change for your goals?! We talk about the start of a New Year and taking on new activities, new endeavors and creating new experiences to better ourselves and to reach new goals. In order to move forward and experience new things we need to look deep in our self and decide if we have the right characteristics to do such.
All can foresee the future only when it coincides with her own wishes, and the most grossly obvious facts can be ignored when they are welcome George Orwell
Confirmation Bias Confirmation bias is the tendency for people to look for and favor information that confirms their preconceptions and to avoid, devalue or dismiss information that conflicts with their beliefs. For example, a conservative may read The Wall Street Journal, view The Drudge Report online, and watch Fox News while a liberal may read the New York Times, the Huffington Post online and watch MSNBC. Both are seeking out information that usually confirms their ideas and are avoiding information that conflicts with her ideas. When was the last time you subscribed to a magazine, bought a book, or regularly listen to or watched a political pundit who challenged reviews? If you are like most people, it's been a long time. In fact, you probably spend most of your time validating what you think is right. Most people think they are right all the time! And not just about some important things but about everything! And we constantly seek ways to validate what we already think is right.
Highly Successful People, entrepreneurs and business leaders are doing just the opposite and its they are actively seeking out opposing views, challenging their ideas, and even occasionally changing your mind! In order to be successful at creating change in meeting goals and going to levels you never have before been to, you need to get out of your comfort zone and challenge your ideas and beliefs. You need to listen to other people. Possibly Delta Development Group or other mentors that you have surrounded yourself with on how to reach new goals and obtain new levels of success.
Delta Disaster Services of Northern Colorado
Feature left to right; Tom, Cammy, and Adam 4 years in a row now, the Northern Colorado office has volunteered their time at the Realities for Children Charity event. Realities for Children Charities is a charitable organization that provides for the unmet and emergency needs of Northern Colorado Children who have been abused, neglected or are at-risk. This year, Realities for Children received over 400 bikes for donation, the most they have ever received. Thank you, Delta Disaster Services of Northern Colorado, for volunteering year after year to help this awesome charity!
INSURANCE INDUSTRY CHANGES The insurance industry historically has resisted change and when they did experience change, it was generally created by them for the betterment of their operations, not for their customers. Increased customer expectations and technological advancements continue to create havoc in the insurance industry. It is forcing insurance companies to change the way they do business. Every discipline within the insurance industry will be going through extreme change over the next several years. The focus of this article is to identify just a few of the changes that we will see within the property claim departments of some of these carriers. It’s a look at the changing expectations of the customer when a claim occurs and how this is creating challenges for claims departments throughout the industry.
Oh, That Demanding Customer! Claim departments have finally figured out what industry they are part of – the customer service industry! In the past, most of their processes and procedures were focused on controlling loss dollars and reducing the life of a claim. The actual service provided to the paying customer wasn’t as big of a priority as it is today. But a funny thing has happened over the past few years. The customer has demanded they be front and center during the entire claim process. Why the change? Customers now compare their claim experience to the experiences they have with any other company that services them, regardless of the industry. That means insurance carriers are not only being compared to their peers within the industry, but also to customer service giants like Amazon, Marriott, Apple, and Chick-fil-a. If the customer is unhappy with their claims experience today, they can simply pick up their phone, tablet or log onto their computer and make a quick change! The insurance industry has significant challenges they must overcome to create a better culture built around the customer experience. Let’s look at just a few of these challenges.
Talent Drain
A recent article by Patricia Harman stated, “the insurance industry is positioned to undergo a significant transformation as nearly a quarter of professionals including claims adjusters, are expected to retire in the next 12 to 18 months. The effects on the industry are already being felt as insurers are actively recruiting the next generation of adjusters, claim managers, technology experts and data scientists.” At the same time the insurance industry is trying to attract talent to replace thousands of years of combined experience and wisdom, they are also having to adjust and change their entire culture around the customer experience. Complicating the hiring process to attract top talent is the fact that potential employees see the insurance industry as boring and don’t feel it provides the same opportunity and income as other competing industries. The same article goes on to state that, “the number of survey respondents who said they would recommend the insurance profession to other people dropped from 68 percent in 2015 to 64 percent in 2016. In addition, adjusters aren’t as positive about the future of the industry as they were previously. In 2015, 57 percent rated the industry outlook as positive compared to only 38 percent a year later. Those with a negative outlook on the industry increased by 44 percent over 2015 and the number who thought the outlook was neither positive or negative increased by 13 percent.” These are the perceptions of the people who have built a career in the insurance industry? Not good! What this means to claims adjusters and restoration contractors is that they will no doubt experience some bumps and bruises as claims leadership focuses on trying to identify new staff that can execute their updated customer service strategies. Executing a new strategy is one of the hardest things to do with an experienced workforce, let alone one that is struggling to keep quality people employed. There is no doubt that claim departments will overcome these obstacles, but if they want to do it as quickly as possible, with minimal disruption to the customer, then they need to take a lesson from the other industries leaders that have paved the way at creating an exceptional customer experience.
Processes and Procedural Changes
As claim departments adapt a “customer first” culture, they will be forced to change processes and procedures that have been in place for decades. These are more commonly referred to as Best Practices in the insurance realm. These changes will create challenges for both the claims adjuster and restoration contractor as these new best practices are implemented. Following are just a few of the challenges they face:
Increased Bureaucracy No sense in sugar coating it, claim departments find it tough to trust others, sometimes including their own staff. They do have a valid reason for some of these trust issues since claims handling is in a very regulated and litigious industry and can be very costly if mistakes are made. Many of these new best practices have become checklists created by senior leadership and they don’t allow much room for common sense decision making by the actual claim associate or restoration contractor involved in the process. Any decision that must be made gets elevated to the appropriate level of management. This practice is no different than the “helicopter parent” who is always looking over their child. Employee empowerment just seems to be nearly non-existent in this industry today. In most cases, bureaucracy and customer service do not go hand in hand. If claim departments are serious about the customer experience, then they need to work hard at implementing best practices that are created by those who are servicing the customer at the front line. After all, the adjusters and the restoration contractors are the ones that interact with the actual customer every day and understand their expectations. In most cases, bureaucracy can be overcome with just a little common sense. Sloooooow Claim departments are notorious for being very slow to make decisions and implement changes. They check and re-check before anything gets done. In today’s digital world, customer’s expectations can change instantly. To succeed in today’s service world, claims departments must understand that any best practices that are created must be put in place quickly, but more importantly, claim departments must allow the claims associate and restoration contractor to challenge these best practices if they are not in the best interest of the customer. Technology
It’s no secret claims departments historically don’t like to spend money when it comes to technology. However, claims departments are now being forced to enter the 21st century and get up to speed on growing technology trends. This is going to be a big challenge for claims departments as they balance the high costs of technology versus the customer experience. InsureTech, which is the application of technology to traditional insurance practices, will continue to put pressure on claims departments with a multitude of products that create a better customer experience. Society now expects to easily and efficiently conduct business in real time using their mobile devices. As part of their overall experience, customers are judging companies based on the speed and accuracy of fulfilling their promises. Claims departments must work quickly to identify and implement technology that will have the biggest impact on the customer experience. Technology that brings about quick damage recognition (think drones), easier estimating practices and immediate on-site settlement processes are what to expect if you are a claim adjuster or restoration contractor. People Skills Regardless of who is hired, what best practices are in place, or what technology is purchased, claims departments need to understand that they are first and foremost a customer service organization. A customer, who in most cases has experienced an unpleasant loss or damage to property, wants to feel some empathy and compassion. The challenge is that it has become more difficult to find employees in today’s marketplace that can balance technology with face-to-face customer interaction. The next generation of claim associates was brought up relying on texting, e-mail, and social media to interact with one another. Although those are efficient ways to communicate, being a claims adjuster or restoration contractor still requires high level, face-to-face people skills. We old timers called that utilizing our “soft skills” to effectively build a relationship and negotiate a settlement. Even though the insurance industry is a billion-dollar profitable industry, they, like all businesses, have many challenges ahead of them. Meeting the changing needs of their customers while maintaining profitability is the goal. Having spent most of my career working with the insurance industry, there is no doubt they will find and implement solutions. But as they work to meet these challenges, I encourage you to buckle up! One thing we know for sure, the industry will continue to change.
CASH IN THE DOOR Based off of November’s royalties…DELTA DISASTER SERVICES OF SOUTHERN COLORADO lead the path. Great job team!
Finance Corner ITS TIME TO MAKE SURE YOUR BUSINESS MEASUES UP! So many things to measure and so little time! I always hear (from my husband) “Measure Twice, Cut Once.” Most people who have worked with wood or any type of construction can relate to that saying. Our businesses are the same. It is always best to measure before making any changes. You always need to constantly “measure” your business and all aspects of your business. Here are some of the most relevant measurements in any business: 1.
Production! ▪ What were your sales for the month? For the Year? ▪ Did you meet your goal? How far off (over/under) is it? ▪ Both dollar volume and number of referrals. ▪ Where did the referrals come from? ▪ Total number of new jobs? ▪ Which referrals did you not close and why? ▪ Was there something that could have been done differently on your part to capture the sale?
2. What was your average job? (Dollar volume). Always try to meet or exceed the national averages. National average for mitigation is $2,500-$3,500 and Construction $5,000 to $7,500. 3. Profit Margins! This one is obvious, but as you get busy it also easy to forget. Gross profit margin on mitigation should be meeting or exceeding 60% to 70% and construction 30% to 40%. If you are not meeting these margins, we need to identify why. Here are some of the most common problems: ▪ Estimating errors? Are you leaving money on the table? ▪ Labor costs? Are your technicians spending too much time at the jobs? ▪ Was your subcontractor inefficient or the wrong person for the job? Do they need to be replaced? ▪ QuickBooks data entry errors? Was something charged to the wrong job?
▪
Did you do a “favor” for a friend or an adjuster that reduced the margin? At least you will know why you didn’t meet your objectives. ▪ Were there supplements that did not get turned in and/or billed? 4. Marketing: ▪ Number of Referrals ▪ Where did the referrals come from? ▪ Marketing Activities. X number of calls resulted in X number of referrals resulted in X number of new jobs. ▪ Is your referral base growing? If not, why not? If yes, great! Keep it up! 5. DSO. Days Sales Outstanding. This is an important for measurement of your “Cash Health”. Turning the money and collecting the money is critical to maintaining a healthy cash flow. 6. Customer Satisfaction Surveys. Customer satisfaction is an indication that your company understands the needs of your customers. Understanding your customers and being able to satisfy their needs is crucial to the strength of your business. Having strong customer service polices will add to the success of your company. Be sure to share these with your referral sources and adjusters! 7. Employee satisfaction. This is another key indicator of business success. Developing a work environment that rewards employees for their hard work is imperative in attracting and retaining quality employees. If workers know they are appreciated, they are much more likely to go the extra mile when needed. Employees are an indispensable part of your business. They are the face that greets your customers. Do everything within your power to make sure that face is a smiling one.
Marketing Corner From the top down, leaders of today’s organizations subscribe to a few core principles to make them effective. The list of principles across industries is long and diverse based on their role and industry. Within franchising, leaders need to follow as much as lead. This is a great read on how the youngest coach in the NFL subscribes to his core principles to deliver on results and growth of his team. These should resonate with all franchise owners. Enjoy! Jason
Rams' Sean McVay, Dodgers' Dave Roberts share leadership bond By: Alden Gonzalez
THOUSAND OAKS, Calif. -- A couple of weeks ago, Sean McVay, the Los Angeles Rams’ 31-year-old rookie head coach, received a text message. It came from Dave Roberts, the Los Angeles Dodgers' 45-year-old manager. The two had spent most of the year exchanging leadership quotes and philosophies, and this one in particular grabbed McVay. It was simple, but it emphasized something critical: "One of the best things a leader can provide is clarity." "If you can give the players no gray, but clarity," McVay said, "and they understand exactly what it is we want to get done, how we want to handle things, I think that's a very powerful thing." Roberts read up a lot on McVay when the Rams hired him around the middle of last January. Roberts wanted to know more about the sports landscape in L.A. But he's also a fan of leaders in all walks of life, and he found himself captivated by the ascension of the youngest head coach in modern NFL history. Over time, they grew close. "Sean and I just really connected," Roberts said in a phone conversation. "He's a lot like me." Roberts and McVay both have a thirst for mentorship and soak up all they can about the art of culture building. They believe the best leaders are the ones who empower others, not those who impose their will. One
of Roberts' favorite thoughts is that to be a leader, one must also be a servant, a concept McVay called "a great one." Like McVay, Roberts knows what it's like to be a young leader under pressure. He was only 43 when he received his first managerial job in 2016, to steer a Dodgers team that had the sports industry's highest payroll and resides in the nation's second-largest media market. The most important approach in those instances, Roberts said, is "to be yourself and to be honest with yourself." Roberts imparted that on McVay, but he quickly realized that he never really needed to. "Sean's very comfortable in his own skin," Roberts said. "When a person has that, exudes that confidence, you gain respect. That's something that I really admire about Sean." McVay's leadership tactics are rooted in the philosophies of John Wooden and Bill Walsh. Roberts, a UCLA product, has been deeply influenced by Wooden, but he also looks to the financial world for examples of consummate leadership. McVay and Roberts met through Jon Gordon, a bestselling author on the subject of leadership, culture and teamwork. Gordon made sure to put them in touch when McVay threw out the ceremonial first pitch at Dodger Stadium on May 8. They exchanged phone numbers, and Roberts says they have since been "in constant contact." "A lot of the things as far as the positive leadership, the connecting with your players, and really building and developing the relationships -- we're very similar in terms of those core beliefs," McVay said. "He's always really good about sending encouraging things. Maybe something that might resonate with him, he'll go, 'Hey, this is something that I think Sean might be interested in, too.' And I think that's awesome." McVay often uses the phrase "process over results," and Roberts had a hand in that.
"It's something I really believe in because I think as a young coach or manager, it's natural to chase results and understand that you're being judged on results," Roberts said. "But to really trust in the process, and getting people to do things the right way, and betting on the results in the back end, I think, is a more attainable goal."
Process over results
That process-over-results mentality helped McVay take the Rams from the bottom to the top in a matter of 12 months. They went 4-12 in 2016, suffering their 10th consecutive losing season, and now they're 11-5, getting ready to host the Atlanta Falcons in the first round of the playoffs on Saturday (kickoff is set for 8:15 p.m. ET on
NBC). Roberts sent McVay a congratulatory text message after the Rams clinched the NFC West on Christmas Eve, but the two haven't spoken much since. McVay is a little busy now. Like most others, Roberts was initially stunned to find out the Rams had hired someone as young as McVay to be their next head coach. "But when you talk to Sean, and when you hear things about Coach McVay, the question I ask is, 'Why wouldn't he be the head coach of the Los Angeles Rams?'" Roberts said. "Of course, he should be. It's no longer about his age, and I think anybody who gets in contact with him, it doesn't take long for them to kind of dismiss that. He was born to be that leader."
A Look at the Incredible Benefits of Trying New Things •
By: Larry Alton
Are You Stuck? Have you ever paused to consider the ease at which you follow daily, weekly, and annual routines? Most people wake up at the same time, eat similar things for breakfast, wear the same rotation of clothing, arrive at work at the same time, grab lunch with the same people, watch the same shows at night…yada, yada, yada. Routines like these become so familiar that we often lose track of the fact that we’re just cruising through life. Despite the fact that we live in an enormous universe with seven different continents, nearly 200 different countries, more than 7 billion people, thousands of languages, and hundreds of thousands of unique experiences, we stick to what we know. Then we wonder why we feel stuck, stale, and stagnant. Feeling stuck in place is totally normal. What’s not normal is to keep living the same way day after day and year after year. If you were driving through some muddy terrain in your car and your tires got stuck in a ditch, would you just sit there and spin your wheels? No, you’d do everything within your power to get out of the ditch and keeping moving.
The Benefits of Trying New Things 1. Overcome Fear In most cases, fear is the one thing that keeps us from trying new things. We’re afraid of the investment, consequences, and worst-case scenarios. What if I don’t like it? Some level of fear is always present when trying something new, but you’ll soon realize that your mind exaggerates things. Once you make it a priority to try new things, fear will cease to be a crippling factor in your life. Instead, you’ll see it as a minor speed bump that stands between you and some new experience.
2. Get to Know Yourself Better It’s weird to think that you don’t know yourself as well as you could. We think we know ourselves, but then we try new things and realize we have unique likes and dislikes that were unknown. As you try new things, you’ll naturally recognize who you are and who you want to become.
3. Stimulate Creativity Ask any highly creative person how they continue to innovate and express themselves in new ways – they’ll tell you the key to their success is a commitment to trying new things. When you try new things, you put your brain into unique situations that force it to really think. This stimulates creativity. As a result, you begin to think about everything in a new light.
4. Makes You More Marketable You are the most important person in this equation. Your desire to try new things should be centered on you and your life goals. But at the end of the day, a commitment to forging new life experiences makes you more marketable to the world. Other people begin to see new talents and skills and your entire “body of work” becomes more appealing. This results in unique opportunities – both in your career and personal life
And we will leave you with this…