Workplace Strategy
Utility Division Meeting
Jim Johnson
June 21, 2010
®
Future Vision for Workplace
Recent Council Legacy
as a Membership
Organization, a Workplace
Safety Trainer,
Supplemented by Surveys
and Assessments
Vision of Council as a
Workplace Safety Leader:
• With knowledge and
practices based on data
and statistical analysis
• Led by surveys,
assessments, and
measurement
• Supported by membership
• Supplemented by training
and resources
Strategic Objectives
Safety Focus
Financial
• Reduce workplace injuries
- 5 year goal of 400 lives saved and
480,000 injuries prevented
• Strong year over year growth
- Revenue from surveys, assessments, online,
workbench an increasing % of total
• Reduce non-fatal injuries by risk category
- Overexertion, slips, trips, falls
• Meeting target return on revenue
- Strategy for reinvesting in advocacy and
enhancements to workplace business
• Reduce fatal injuries by risk category
- Motor vehicle, falls from heights
• Long term objective of exceeding $10MM revenue (scale)
• Impact safety off the job
• Recognition as the number one provider for midsized and
small market segments
Target Market
• Advocate for small and mid-sized (<1,000
employee) bringing best practices and effective
tools
- Research, Campbell, World Class Team,
Customer best practices, data studies
• Increase impact by reaching more organizations
and more workers
• Safety partner for large organizations where we
can support and enhance
- National leadership in applying best
practices
Journey to Safety Excellence
• Leadership, Engagement and Culture
- Employee perception surveys
- Leadership workshops
• Safety Management Systems
- System assessments
- Best practices and skill/knowledge transfer
• Risk Reduction
- Improvement action management
- Non-fatal and fatal target risk solutions
• Performance Measurement
- Safety workbench guiding safety process
3
Tools for the Journey to Safety Excellence
Measure/Re-measure
(Survey & Assess)
“Baseline &
Improvement over
Baseline”
Capture Lessons
Learned
“Enhance Best
Practices”
Leadership, Engagement
& Culture
Safety Management Systems
Risk Reduction
Performance Measurement
Implement Plans &
Manage Improvement
“Close the Gap”
Determine Gaps &
Set Goals
“Vision for What
Could Be”
Develop
Improvement Plans
“Apply Best
Practices”
4
Competition
Safety market is highly fragmented . . .
Competitor
Safety
Revenue
Bureau Veritas
DuPont Safety Resources
Marsh-Risk Consulting Practice
Major Players
510,929,000
200,000,000
112,400,000
$823,329,000
ATC Associates Inc.
ESIS Inc.
Liberty Mutual Group-Commercial Market
E4Safety Professionals L.L.C.
Safety Management Group
Regional Reporting Inc.
Safety Resources
Large Players
52,741,832
28,750,000
19,700,000
14,670,000
12,585,350
12,000,000
10,494,696
$150,941,878
Gallagher Bassett Services Inc.
F.A. Richard & Associates Inc. dba FARA
Risk Consultants Inc.
FDRsafety L.L.C.
PSRG Inc.
CAS-Claims Administrative Services Inc.
National Safety Council
Conner Strong Risk Control
Zurich Services Corp.
Strategic Safety Associates/MoveSMART
Bickmore Risk Services & Consulting
Applegate Associates, A Safegate Co.
Meadowbrook Inc.
Network Safety Consultants Inc.
Safety Alert Network Inc.
PMA Management Corp.
Medium Players
7,940,000
7,865,000
7,200,000
6,500,000
5,500,000
3,835,290
3,500,000
3,260,000
2,960,000
2,847,035
2,830,082
2,100,000
2,069,000
1,275,000
1,250,000
1,222,245
$62,153,652
Safety
Revenue
Competitor
Chubb Services Corp.
Five Star Risk Management Services
Safety Dynamics Group
Safety Consulting Inc.
Easy Safety Solutions
Reliability Group
Loss Control Associates Inc.
RPF Associates
AcceptableRisk
CompManagment Inc. Risk Services
Other
Total Small
860,000
800,000
458,000
400,000
375,000
350,000
290,000
220,000
215,000
200,001
459,407,469
$463,575,470
Estimated Workplace Safety Market
Training and Consulting
$1,500,000,000
Small (?)
MM
Major (3)
$
MM
Large (7)
MM
Medium (16)
MM
Source: Business Insurance Annual Listing of Safety Consultants (August 24, 2009)
5
The Environment
Issues
Opportunities
• Current NSC market approach is highly transactional .
. . Commodity products
• New leadership and recognition of need for increased
investment
• Training content is underinvested . . . Go forward
investment resources are limited
• Workplace is the foundation of NSC . . . High brand
recognition
• Online capability for training is significantly behind
competitors . . . NSC 0% Web delivery, some
competitors 100%
• Profitable and high quality existing business for survey . . .
Potential for consulting
• No electronic delivery of product
• Widely divergent operating models for independent
chapters
• COC training delivery model costly . . . Few trainers,
high travel
• Larger competitors focused less on midsized and small
organizations
• Insurance companies and brokers have pulled back from
small and medium sized customers . . . Focus on risk
assessment for underwriting
• NSC COCs in states with high worker populations (CA, TX,
GA, N.FL, IL) and strong distribution network through
membership base and Independent Chapters
• Increasing recognition of the value in measurement, data,
and software solutions (“workbench”)
• Strong potential for partnerships that add high value
6
Strategic Objectives
Core Strategic Offering
Survey / Assess / Consult
Determining
where you are
and where you
need to go
• Existing survey and safety system
assessment
• Gap and goal definition
• Improvement plans
• Alignment of resources
• Call center “Safety Help Desk”
Knowledge / Skill Transfer
• Increase online content with long-term
Developing
capabilities to
support the
improvement
process
Managing the
improvement
process
goal of blended learning in classrooms,
onsite and online
• Modular content, mix and match to
individual needs including blended
• Develop leadership & behavioral workshops
Tools – Safety Workbench Software
Solution
•
•
•
•
•
Data capture and management tool
Guides business process for safety
Assists with benchmarking
Measures performance
Manages improvement, tracks compliance
Approach for Execution
• Survey product is best in class
Improve follow through with customer
needs
Grow midsized and small through increased
automation
• Enhance assessments
Provide self-assessment in Workbench as
well as onsite
• Consult to support improvement process
Preferred Provider Network for on-site work
and support
• Partner with an online provider for
immediate offerings and revenue
• Partner with a leadership / behavioral
provider and develop co-branded offering
• Leverage online partner resources for NSC
content conversion
• Currently negotiating with Summit and BST,
Terms & Conditions TBD
• Partner with a software company
• Design fixed functionality for small / midsized organizations and customize for large
• Leverage partner to host technology
• Terms & Conditions TBD
Knowledge, Value, Relationship
7
Strategy Implementation
2011
Survey / Assess / Consult
•
Continued strong growth
•
Assessment update/process
•
Marketing/sales push
Knowledge / Skill Transfer
•
Partnership contract
•
OSHA 10/30 hour online
•
OSHA compliance online
•
Complete course / content plan
•
ASC initial online transition
•
Special projects (e.g. USMC)
Tools - Safety Workbench Software
Solution
•
Partnership contract
•
Safety / business process
•
Pilot (COC)
•
Congress rollout
PPO
•
•
•
•
Contracts and negotiated rates in
place
Certified, tested
Metrics established
Quality control
Center of Excellence
(Advocacy)
•
Knowledge management and
sharing plan
•
Technology plan
2012
Survey / Assess / Consult
•
Build volume of midsized and
small customers
•
Increase use of online admin of
surveys
•
Growth of SMS assessment
business, online & onsite
(provider)
Knowledge / Skill Transfer
•
Progress with course/content plan
•
Continued ASC online transition
•
Emergence of adaptable, blended
models
•
Conversion to e-product vs.
warehousing of hard product
•
Virtual symposiums and webinars
Tools - Safety Workbench Software
Solution
•
Building volume, initial renewals
•
Benchmarking tools
•
Strengthen tie to supporting
offerings (content, training)
PPO
•
•
•
•
Monthly provider tracking
First contract renewals
Metrics updated
Provider forum (webcast)
Center of Excellence
•
Pilot (COC)
•
Advisory Board (World Class
Team)
•
Incorporation of valued outcomes
from Campbell and Executive Edge
Track
2013
2014
Survey / Assess / Consult
•
Confidence in renewable
customer base
•
Refinement / expansion of SMS
assessment tools
•
Continued increase as % of total
workplace revenue
Survey / Assess / Consult
•
Significant % of total workplace
revenue
•
Recognition as high quality,
trusted, reliable partner with
consulting based on data driven
best practices
Knowledge / Skill Transfer
•
Online continues to increase as
% of total training revenue
•
E-product continues to increase
as % of total product revenue
•
Evidence of adaptations to
evolving technology
Knowledge / Skill Transfer
•
Online a significant % of total
training revenue
•
Solid onsite, dedicated training
business
•
Classroom managed as a quality
compliment to online and onsite
Tools - Safety Workbench Software
Solution
•
Emerging as major revenue line
•
Track record of renewals and
new subscriptions
•
Continued enhancements
Tools - Safety Workbench Software
Solution
•
Substantial subscriber base with
strong renewal and net gain
•
Significant other revenue driven
from tools (e.g. training)
•
User conference
PPO
•
•
•
Continued growth in revenue
served
Incremental NSC staff growth to
manage provider teams and
customer business
Possible industry specialization,
technical specialization
Center of Excellence
•
Online with hit tracking
•
Quality control plan for content
management
•
Statistical studies from
workbench data
•
Basis for advocacy work
PPO
•
Global network recognized by
the NSC brand and distinguished
for quality, trust, reliability
Center of Excellence
•
Continued growth in use
•
Recognition as among the best
in class for similar offerings
•
Recognized as a preeminent
source of best practice, reliable
solutions and results driven
advocacy.
8
Online Training and “Safety Workbench” partnerships
New Products
Online Training Partnership







Evaluate NSC classroom courses in relation to providers online course content and create plan
for online development
OSHA 10 hour / 30 hour construction / industry training (Spanish for industry) for immediate
offering
OSHA compliance series for immediate offering
Evaluate other partner courses for potential offering
Evaluate potential for use of partner’s Learning Management System
Create branded web site and define business process (online orders, payment, etc.)
Final agreements and terms and conditions by June 1, 2010
“Safety Workbench” Partnership









Service Bureau model (NSC as primary license holder and administrator)
Annual subscription, standard pricing and member discount (renewable revenue)
Net growth goals from high percent retention and new subscribers
No partner cost based on revenue share model
Call center model for phone consultation, preferred providers for onsite consultation
Potential for additional revenue through aligned resources and training
Data for research, push of analysis reports to add value, offer of additional functionality for
additional fee
Partner selection and terms and conditions targeted for July 1, 2010
Attempt to complete pilot and obtain initial subscriptions with formal rollout at Congress
9
New Products
Preferred Provider Organization
 Provider contract prepared and ready for use
 Government, Western, Central, Northeast and Southeast
candidates identified
 Continued identification of additional quality providers
 Coordination with International for global provider network
 Re-qualify existing providers
 Negotiate rates and finalize contracts
 Annual contract renewal with updated rates negotiated
 Develop quality control program and evolve NSC safety
consultant role for provider oversight
10
Questions?
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