Timely Reporting

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Timely Reporting Powered By Docstoc
					     Risk Management
     By D. B. “Libby” Libhart

             ur mission at McDonald’s is to deliver your food with         increases. Worker’s compensation claims along with reported
             fast, accurate, and friendly service. Serving our customers   customer accidents tend to increase in our industry with the
             with the expected speed requires the highly coordinated       peak times of business. There are more employees and more
     actions of our management team and crew. Satisfying surges of         customers in the building or on the premises during those times.
     customers during peak times is repeated several times each and        In addition to keeping our employees safe and secure from
     every day.                                                            accidents, the reductions of accidents and their associated cost
        Orders are taken from several points at the front counter          also affects the profitability of the restaurant, including insurance
     and the drive-thru. The kitchen crew is busy making the food          premiums.
     as others are filling the orders and still others are cleaning,          So, what do we do about it?
     mopping, wiping tables, collecting trash, and performing a
     multitude of tasks.                                                   Timely Reporting
        All the activity is carefully coordinated, but in our industry,      The comprehensive safety and loss prevention program at
     when the pace of work increases, the opportunity for accidents        McDonald’s begins with the accurate and timely reporting of

                                                               July – August 2006                                      
in the Quick-Service
Restaurant Environment
accident claims. Timely reporting of the incident allows quick    to get the claim into the hands of the professional adjuster as
response by our third-party administrator.                        quickly as possible, the restaurant management team calls in the
   The health and safety of our employees and customers is        claim within 24 hours of occurrence.
paramount. The third-party administrator’s involvement ensures
the quick and proper treatment of any injury that may occur. An   Trend Analysis
adjustor is assigned to handle all aspects of the claim and has       Understanding the claims information collected by the
responsibility for working with the employee and the preferred    third-party administrator is important in identifying trends
medical provider as well as the customer and their needs.         and determining action steps. The data can indicate patterns
   McDonald’s has agreements in place with preferred medical      of particular causes and types of accidents. It can also indicate
providers to provide the best care at a reasonable cost. The      patterns regarding the frequency or severity of claims as well
agreements with these preferred medical providers help reduce     as time of day, day of the week, or specific location within the
unnecessary trips to the emergency room, so that emergency        restaurant or on the premises. The data is shared with operations
rooms at hospitals are reserved for emergencies only. In order    personnel along with action-oriented solutions. Resources can

LossPrevention                                          July – August 2006
                                                                          then prepared to address the issues and provide solutions and
                                                                          resources. It is important to train the management team and crew.
                                                                              Outsourced inspections also include the review of play areas
                                                                          for children, food safety, and policy and procedures for the
                                                                          handling of chemicals in the restaurants.

                                                                          Proactive Intervention
                                                                              Some of the proactive measures taken to address root causes
                                                                          include the following:
                                                                              Slip-Resistant Shoes—All corporately owned McDonald’s now
                                                                          require the management and crew to wear slip-resistant shoes.
                                                                          The shoes are ordered for the employee and are considered
                                                                          part of their uniform. Slip-resistant shoes have been a proven
                                                                          proactive measure for the reduction of employee slip-and-fall
                                                                          accidents in the restaurant.
                                                                              Floor Mats—Slip-resistant floor mats may be used near the
                                                                          dish sink in the kitchen, in front of kitchen ice machines, and
                                                                          in walk-in coolers and freezers. Mats have also been effective in
                                                                          slip-and-fall prevention in the dining room when placed inside
                                                                          entrance doors and in front of self-service beverage areas and ice
                                                                              Properly Cleaned Floors—Employees are trained to quickly
                                                                          clean up any spills that occur. They are also trained to place “Wet
                                                                          Floor” signs by the mopped areas in the dining room of the
                                                                          restaurant to advise our customers of the freshly mopped floors.
                                                                              The crew is also trained to use separate buckets and mops
                                                                          when cleaning the kitchen and dining room so that dirt and
                                                                          grease mopped up in the kitchen are not transferred from
       Our mission is to give our customers a                             the kitchen to the dining room. The proper concentration of
       pleasant experience every time and be                              approved cleaner is used with hot water. Training also includes
                                                                          frequent changing of the water and cleaning solution in the mop
         their favorite place to eat. They want                           buckets.
      their order to be accurate and they want                                Proper Use of Safety Tools—As mentioned above, wet-floor signs
                                                                          may be placed about the spilled area or freshly mopped floor.
         it fast. The key to a sound safety and                               The hot grills require scraping and cleaning. A specially
                                                                          designed tool is utilized to keep hands and fingers away from the
      loss prevention program is to have well-                            hot grill surface.
        trained employees working safely in a                                 Hot oil must also be filtered, drained, and replaced regularly.
                                                                          Hot shortening accidents while filtering can cause severe burns.
       safe environment, no matter the speed.                             The proper safety tools when draining the hot oil include face
                                                                          shields, special gloves, and aprons.
                                                                              Proactive Messages—Each corporate-owned restaurant
     then be applied to correct any issues or conditions responsible      receives a monthly poster with proactive safety messages and
     for the accident trends.                                             instructions and talking points for training. They include training
                                                                          materials and discussion points for the restaurant.
     Restaurant Reviews, Audits, and Inspections                              Restaurant Safety Committees—Restaurant safety
        Safety reviews are conducted in multiple ways—by a                representatives establish a restaurant safety committee with
     restaurant safety representative, the management team,               active participation and representation of various positions,
     outsourced to professional safety inspectors, risk management        authority levels, and responsibilities. It is important to have
     representatives, and/or security managers. It is imperative to       restaurant maintenance represented on the committee. The
     identify the root cause of the accidents that occur and inspect      safety committee may design a lesson plan for a particular month,
     the premises for unsafe conditions, practices, and compliance of     and discuss action items for the restaurant. The committees are
     safety policy and procedure.                                         encouraged to review their particular accident claims, identify the
        The restaurant safety reviews and inspections are designed to     root causes, and discuss the training and communications with the
     identify these causes and conditions. If needed, an action plan is   rest of the restaurant management and crew.

                                                                July – August 2006                                   
    Return to Work and Modified Duty—The contributions of
our employees are greatly valued. We want injured employees
to continue to be productive members of the restaurant team,
despite work restrictions. Getting injured employees back to
work must be a component in a comprehensive safety program.
Coordinating with doctors, health clinics, and managed-care
facilities to get our employees back to work is a priority.
    To return employees back to work quickly, jobs are modified
to accommodate many physical restrictions. If restrictions
involve not standing for prolonged hours, the employee may
be supplied a stool. If a restriction involves a lifting-weight
restriction, a job or task may be found to accommodate it.
    Managers are trained to understand the ramifications of
injured employees not getting back to work as quickly as
possible. While the injury of any employee is taken seriously and
every effort is made to provide them with the best possible care,
                                             continued on page 70

 Training is interactive with the employee
    and ensures that the employee has
 received the proper foundation in safety
    and security. It’s a new and exciting
   way to deliver consistent, up-to-date
   information in restaurant operations.

                                                                              Circle 32 on advertiser information form
LossPrevention                                           July – August 2006
                                                                           The most progressive, proactive, and contemporary training
                                                                       program at the restaurant level has been the recent development
                                                                       of e-learning training modules. Any restaurant employee can
                                                                       access any training portion of restaurant operations on a
                                                                       specially designed computer in the restaurant. The program
                                                                       is presented in a choice of English or Spanish. The modules
                                                                       are interactive and test the learning of the employee as they
                                                                       progress through the training material.
                                                                           The training material presents an orientation to the company
                                                                       and foundation areas of restaurant operations, including security
                                                                       and safety, hospitality, cleanliness and sanitation, maintenance,
                                                                       and information pertinent to the service and food production
                                                                           The safety portion of the training material provides
                                                                       instruction on accident prevention. The key message repeated
                                                                       throughout the training module is “…no work is so important
                                                                       that it needs to be done in an unsafe manner.”
                                                                           The security training is interactive with the employee and
                                                                       ensures that the employee has received the proper foundation
                                                                       in safety and security. It’s a new and exciting way to deliver
                                                                       consistent, up-to-date information in restaurant operations.

                                                                       Measurement and Accountability
                                                                           After inspections are completed, recommendations are made
                                                                       for improvement and the safety committees become active. The
                                                                       questions then becomes—who do we hold accountable and how
                                                                       do we measure our success?
                                                                           Accountability. Because responsibility for safety is the
                                                                       responsibility of multiple individuals in various management
                                                                       capacities, accountability is shared.
                                                                           Divisional Risk Managers—In corporate-owned McDonald’s
   The most progressive, proactive, and                                restaurants, divisional risk managers are held accountable for
   contemporary training program at the                                the reduction of accident claims frequency and severity for their
                                                                       assigned division of approximately 2,000 to 2,500 restaurants.
   restaurant level has been the recent                                They work very closely with the third-party administrator
development of e-learning training modules.                            and preferred medical providers along with various levels of
                                                                       restaurant operations, human resources, and the security and
   The program is presented in a choice                                safety department.
                                                                           Risk managers are also instrumental in providing the training
  of English or Spanish. The modules are                               and education materials presented at the operations supervision
  interactive and test the learning of the                             and restaurant levels in all corporate-owned restaurants.
                                                                           Security Managers—As the security and risk management
  employee as they progress through the                                departments become more closely aligned in loss prevention
              training material.                                       activities, it has synergized many of the same goals and
                                                                       objectives in reducing losses and making a positive contribution
                                                                       to the safety of our employees and customers. Security
     RISK MANAGEMENT                                                   managers are now an integral part of the safety initiatives in the
     continued from page 69
                                                                       restaurants. They conduct reviews and develop action plans for
     we want them to continue to be a productive member of the         improvement. Security managers are also held accountable for
     restaurant team, even with their restrictions.                    the reduction of frequency and severity of accident claims as well
         The return-to-work and modified-duty programs also benefit    as the overall safety performance in their assigned regions.
     the company by decreasing lost time due to injury, improving          Restaurant Operations—Restaurant operations is held
     staffing issues, increasing morale, reducing medical costs, and   accountable for the improvement of accident claims frequency
     limiting litigation.                                                                                           continued on page 72

                                                             July – August 2006                                  
                                                                                   McDonald’s protocols, and provide us with comprehensive
                                                                                   information that allows us to understand how accidents occur.
                                                                                   This gives us the data necessary to develop protocols to help
                                                                                   reduce accidents.
                                                                                       Fraud—Quick-service restaurants are susceptible to
                                                                                   possible fraudulent accident claims. Every claim is reported
                                                                                   to the third-party administrator and the claim is investigated
                                                                                   according to established protocols. Any suspicious or major
                                                                                   claim may be reviewed by a team consisting of the claims
                                                                                   adjustor, restaurant supervision, security, and the divisional
                                                                                   risk manager.
                                                                                       Most corporate-owned restaurants are equipped with the
                                                                                   latest technology in digital cameras and recorders. Protocols
                                                                                   have been established for covert surveillance for suspicious
                                                                                   workers’ compensation claims. If a claim is proven to be
                                                                                   fraudulent, the investigation moves to the next step, potentially
                                                                                   resulting in the loss of applicable medical benefits, termination
                                                                                   of employment, and possible prosecution.
     Restaurant operations is held accountable                                         Fraudulent claims by the public are turned over to counsel
          for the improvement of accident                                          and possibly to local law enforcement.

           claims frequency and severity,                                          Rewards and Recognition
         from the restaurant management                                                 Rewards and recognition have been used very effectively
                                                                                   at McDonald’s to improve and/or maintain high levels of
       staff ascending through every level of                                      performance. Public recognition of crew, restaurant managers,
                                                                                   and supervisors at meetings and conventions add emphasis
               restaurant supervision.                                             to the safety program and reward the behavior that prevents
                                                                                   accidents and saves insurance premium dollars.
     RISK MANAGEMENT                                                                    Restaurant crew, managers, and supervisors are rewarded in
     continued from page 70                                                        a variety of ways for excellent performance in safety. This serves
     and severity, from the restaurant management staff ascending                  to reinforce the safety initiatives continually to train, educate,
     through every level of restaurant supervision.                                and communicate safe working habits to our restaurant crew and
         The restaurant teams are responsible for the restaurant crew              management teams and create a safe, pleasant environment for
     safety and security training utilizing periodic training materials,           our customers as well.
     e-learning modules, and teaching safe operations of restaurant                     Working safely in a quick-service restaurant during the height
     equipment.                                                                    of the lunch rush is challenging. Our mission is to give our
         They are also responsible for reporting accident claims                   customers a pleasant experience every time and be their favorite
     within 24 hours, and the follow-up and correction of any                      place to eat. They want their order to be accurate and they want
     deficiencies found in outside inspections or audits.                          it fast.
         Measurement. It is vitally important to measure results. We                    The key to a sound safety and loss prevention program is to
     do this in a variety of ways.                                                 have well-trained employees working safely in a safe
         Claims Review—One of the most important aspects in the                    environment, no matter the speed. All of the key components
     success of the safety and loss prevention program at McDonald’s               described above have to be coordinated and embedded into the
     is the relationship with our third-party administrator. They                  established culture, because at McDonald’s—Safety is No
     handle every aspect of claims management, following                           Accident.

                              D. B. “LIBBY” LIBHART is the director of security for          U.S. reporting into him and oversees implementation
                              McDonald’s USA. He has held this position for two years        of the national security and safety plan in support of
                              and has been with the McDonald’s system for nearly eight       McDonald’s U.S. business strategy. Previously Libhart
                              years. In his current role, he is responsible for security,    worked in loss prevention with Taco Bell/Tricon, now
                              safety, and loss prevention in McDonald’s more than            YUM! Corporation. He can be reached at 630-623-7099 or
                              2,100 company-owned restaurants. He has thirteen     
                              McDonald’s regional security managers throughout the

                                                                      July – August 2006                                        

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