|
Tips for Reducing Mistakes
- Michael Hammond
I recently read an article that was written by
Melanie Lockwood Herman, Executive Director of the nonprofit Risk
Management Center. In this article, she offered several risk management
tips for reducing mistakes. As I weighed her suggested tips, it occurred
to me that we could all benefit from implementing these ideas. She
suggests that mistakes often times remain "dirty little secrets," yet
human behavior and organizational culture tell us that humans will always
be prone to error. If we fail to look beyond the person associated with
the mistake, we will miss an opportunity to prevent its reoccurrence and
strengthen our organization.
As we begin the new year, consider the following
tips developed by Herman as you reflect on how to change a "blame and
shame" culture to one that is driven by the commitment to fix what needs
fixing.
Encourage dissent.
Bring employees who disagree with a proposed strategy to the front of the
room. Explore the reasons for dissent and listen intently to those with
the courage to speak up.
Resist the urge to bury mistakes.
The fear of being blamed for a costly mistake leads to
cover ups while increasing the odds that the mistake will be repeated.
Praise, rather than punish employees who bring mistakes to the forefront,
especially when they identify their own errors and do so in a timely
manner.
Think risk. The
optimism bias leads us to expect that things will turn out better than
likely. Remember, it is possible and advisable to consider downside risk
without sinking into despair. By giving some thought to the possibility of
a bumpy road, twists and turns and undesired outcomes, you will be in a
stronger position to manage what happens, whatever happens.
Look for root causes.
It's easy to find fingerprints on mistakes. Instead of blaming, look for
the systemic reasons and causes. It's possible the error resulted from
convoluted or contradictory instructions. The mistake may have been due to
an unrealistic expectation that someone would follow a list of precise,
sequential steps while multitasking.
Look for ways to simplify policies and procedures.
Simplification is an inexpensive way to
reduce mistakes and resistance. We all have encountered policies that are
not followed precisely because staff members have a hard time
understanding what is expected. Rewrite policies so they are most likely
to be understood by new employees and veterans alike.
Add the topic of mistakes to the agenda.
Consider exploring miscalculations at your next staff meeting. To get the
discussion going, ask:
l What was the biggest mistake or miscalculation we made this year?
l Do you have a clear understanding of what went wrong?
l What is required to better understand how, when and why things do not
turn out as we hoped they would?
Recognize that culture change is required to shift
from blaming to fixing broken systems and practices.
It's neither productive nor practical to terminate the employment of every
person who makes a mistake. A commitment to reflecting on how and why
mistakes occur is less expensive and more productive in the long run.
Be an example. Leaders
who willingly and honestly admit mistakes set the right tone in an
organization, while those who bury their own errors or blame others, send
a potentially dangerous message. If we expect employees to step forward
and admit their mistakes, we will need to step up first.
As you begin the process of implementing plans for
2011, I invite you to consider using Herman's tips listed above as a means
to reducing mistakes and strengthening your organization. Since MVRMA is
in the business of paying on behalf of members for wrongful acts and
accidents that occur, these tips present an opportunity to prevent a
recurrence of mistakes and to strengthen us for the uncertainty that lies
ahead.
back to top
- Dinsmore & Shohl
Ohio Supreme Court Upholds Minimum
Length of Service Requirements for Maternity Leave
Recently, the Ohio Supreme Court held that companies
do not engage in discrimination if they terminate pregnant employees who
take a leave of absence prior to meeting a minimum length of service
requirement. McFee v. Nursing Care Management of America, Inc. dba
Pataskala Oaks Care Center (2010), 126 Ohio St. 3d 183.
At issue in McFee, was the employment policy
of Pataskala Oaks Care Center ("Pataskala Oaks"), which mandated that an
employee would not be eligible for leave for any purpose until after one
year of service. Eight months into her employment, the plaintiff, McFee,
requested leave on account of a health issue related to her pregnancy.
While on leave, Pataskala Oaks terminated McFee's employment due to her
absence before she was eligible for leave. McFee then filed a charge of
pregnancy discrimination with the Ohio Civil Rights Commission ("OCRC").
The OCRC found that Pataskala Oakes' policy
constituted unlawful sex discrimination. On review, the Court of Common
Pleas held that the policy was not discriminatory, while the Fifth
District Court of Appeals reversed the judgment. The Ohio Supreme Court
subsequently reversed that decision, concluding that both the Court of
Appeals and the OCRC misread Ohio's sex discrimination law. According to
the Ohio Supreme Court, "the General Assembly intended to ensure equal
treatment for employees affected by pregnancy, but not to impart greater
rights or preferential treatment to employees affected by pregnancy."
While Ohio Administrative Code 4112-5-05(G)(2)
prohibits an employee's termination under a policy that provides
sufficient leave for temporary disability due to pregnancy or a related
medical condition, Ohio Administrative Code 4112-5-05(G)(5) provides that
women cannot be penalized for taking time off work for childbearing, if
they are eligible to do so. These two code provisions must be read in
harmony so that "when a woman qualifies for leave, the leave
provided for childbearing must be reasonable." By interpreting these
provisions together, the Ohio Supreme Court found that Pataskala Oaks'
policy was not discriminatory since all employees who did not meet the
service requirement could be terminated.
With this ruling, Ohio law now mirrors the Federal
Pregnancy Discrimination Act, which does not require preferential
treatment for pregnant employees. In light of this decision, employers are
not required to waive eligibility requirements, nor are they required to
provide pregnancy/maternity leave if no other leave is provided to
employees. However, if an employer does provide leave benefits, the
employer must ensure that any minimum length of service requirement for an
employee to take a leave of absence is applied uniformly and consistently
to all employees.
back to top
- Craig Blair
MVRMA members have benefited greatly because of the
pool's excellent claims history. Not only have insurance renewals in
recent years been flat or slightly reduced, but more than $7 million from
closed loss years has been refunded to the membership.
At this time each year, we believe a review of the
previous year's claim activity is beneficial to keep us on the right
track. In 2010, MVRMA had 331 reported losses, which is fewer than recent
years. However, it's severity (amount paid) not frequency that is of
greater importance, and it's too early to predict how 2010 will fair in
that respect. Last year, there were 14 lawsuits filed against our members,
which is down for the second year in a row. Of the nine closed lawsuits,
defense counsel had four (44%) dismissed and settled five (55%). The
percentage of dismissed lawsuits was unusual because 65% of our cases
generally get dismissed.
Subrogation Report
Subrogation, filing for reimbursement against third
parties that damage city property, is one of the services provided by
MVRMA. With the current economy and the loss of tax revenue for many of
our members, collection from negligent third parties is more important
than ever. Please refer to the Subrogation Policy in the MVRMA Handbook
if you have questions. The chart below shows the recent history of
subrogation activity:
Loss Year
Claims Per Year
Average Collected
2000-09
39
$2,572
2010
32
$3,650
back to top
-Starr Markworth
MVRMA's Multi-Media Library
One of the value-added services MVRMA provides to
its members is the Multi-Media Library. The library currently consists of
more than 325 videos/DVDs as well as 18 CD-ROM programs that are available
to member cities at no charge.
The purpose of the library is to provide additional
information to supplement the members' in-house training efforts. The
library covers a broad range of public sector safety and management
issues. When possible, programs are purchased that are specific to public
entities or certain services that our members provide.
Funds are budgeted annually for the purchase and
upgrade of additional materials.
Recommendations from member cities of topics to
include are encouraged and utilized in the planning of future purchases.
Currently, we are in the process of adding new materials in the DVD format
and replacing outdated and broken VHS videos with DVDs.
Some of the new DVDs recently added to the library
include: First Aid Safety, Welding, Respiratory Protection, Traffic
Control Thru Work Zones, Hand and Power Tool Safety, Scissor Lifts,
Strains and Sprains, Forklift Safety, MSDS Information, Driven to
Distraction II, Back Safety for Landscape and Maintenance Workers and The
OSHA Lead Standard.
The most current MVRMA Multi-media Library listing
can be found at www.mvrma.com under Training and Loss Control. A Video
Request Form can be downloaded, or requests can be made by phone
937-438-8878 or by email smarkworth@mvrma.com. Please allow 3-5
days for delivery of these materials and limit your requests to three
videos/DVDs. MVRMA assumes the cost of delivering the materials via the US
Postal Service, and the member cities are responsible for returning the
materials to the MVRMA office.
PRIMA Cybrary
All MVRMA members have access to the PRIMA Cybrary,
a service provided by the Public Risk Insurance Management Association
(PRIMA).
The PRIMA Cybrary is your members-only resource for
a variety of sample documents and articles that every risk manager needs,
covering such topics as:
Requests for Proposals,
Job Descriptions,
Transportation & Vehicle Safety,
Emergency Services/Disaster Recovery,
and much more.
Use this resource as a starting point for all of
your risk management related projects. Documents in the PRIMA Cybrary have
been contributed by risk management professionals in public entities. Find
out what worked for them and get a head-start on your next project.
Please contact the MVRMA if you are looking for
sample documents and would like the MVRMA staff to research the PRIMA
Cybrary for you.
back to top
Cyber Liability Coverage
Issues
In our August 2010 Risky Business article, we
detailed information about cyber liability, and in this article and some
future articles, we will highlight in more detail some of the specific
Cyber Liability coverage issues. While the typical cyber liability
coverage form will respond to the financial damages of third parties, it
typically excludes first party crime coverage for the insured's money and
securities from computer fraud. In this article, we will focus on the
first party computer fraud exposure for money and securities and address
the specific coverage that MVRMA offers its members for this exposure.
Computer Fraud is one of the coverage parts included
in the MVRMA crime policy. In this policy, it is defined as loss of money
and securities resulting directly from the use of any computer to
fraudulently cause a transfer from inside the premises or banking premises
to a person (other than a messenger) outside those premises or to a place
outside those premises. The policy goes on to define money as currency,
coins and bank notes in current use and having a face value, and
securities as negotiable and nonnegotiable instruments or contracts
representing either money or property.
The tricky part of the Computer Fraud coverage comes
from the definitions of premises and banking premises. Both definitions
have an historical basis for use in conjunction with robbery, burglary and
theft of the physical aspects of money and securities and do not seem to
lend themselves to the cyber world. A premises is defined as the interior
of that portion of any building the insured occupies in conducting
business. While the premises part of the coverage seems pretty straight
forward, the definition of a banking premises is less so. A banking
premises is defined as the interior portion of any building occupied by a
banking institution or similar safe depository. In researching the banking
premises definition, it appears it probably does not include stock
brokerage firms or other financial institutions that are not banks. In
viewing the state of the financial services industry today, many financial
institutions have evolved into businesses that may not meet the specific
definition of a bank. The premises may house a bank branch in one area
with other functions, such as insurance, stocks and bonds sales and
administration, in other areas of the building. In that situation, would
the entire financial institution be classified as a bank? The policy
language is not clear and the interior of the a bank may be best defined
by the federal or state laws that apply to the banking institution where
the covered loss occurs.
In view of the vague and chaotic nature of these
definitions and the possibility of adverse interpretation, we suggest that
you review the vendors that have possession of your money and securities
to determine if they fall within the definition of banking premises. Given
the age of consolidation of financial services, if you are unable to
determine a vendor is a bank, we suggest you review the operations and
contracts of these vendors to confirm their operations have computer fraud
controls in place and that contract provisions and insurance are in place
to protect and readily replace your money and securities in case the cyber
controls should fail.
back to top
Congratulations!!
Congratulations to the City of Vandalia which
was recently selected as one of "Dayton's 15 Best Places to Work" by the
Dayton Business Journal. The city will be honored at a banquet in
March and will be featured in an upcoming article.
back to top
At the December 20, 2010 Quarterly Board Meeting,
the following actions were taken:
- Approved the Open Claims & Incurred Losses Report
- Approved the 2011 Liability Coverage Document
- Approved the 2011 renewal of liability coverage
$1.5M x $500K with GEM and $8M x $2M with Gen RE
- Approved the 2011 renewal of crime coverage with
National Union Fire Insurance Company under Option 2, which increases the
limit of liability to $2M per occurrence for employee theft, forgery or
alteration, computer fraud and funds transfer fraud
- Approved the 2011 Final Expenditure Budget, PCF
and Objectives/Work Plan
- Awarded MVRMA's banking, credit card and
depository services agreement to Huntington National Bank
- Elected the following officers for 2011:
President - Mark Schlagheck, Bellbrook
Vice Pres. - Tom Judy, Sidney
Treasurer - Nancy Gregory, Kettering
Secretary - Julie Trick, Vandalia
- Approved the following dates for MVRMA's 2011
Quarterly Board Meetings:
Monday, March 21
Monday, June 20
Monday, September 26
Monday, December 19
back to top
|
