Building Trust with Intentional and Transparent Communication

by Katie Petersen | May 31, 2022 | Business Strategy | 0 comments

Building Trust with Intentional and Transparent Communication

Written by Kevin Martlage

This month we are focusing on the culture of your business and how you can continue to work towards developing and providing a supportive and nurturing environment for your employees, customers, and those your business serves. There are numerous approaches to building a supportive work culture, but two of the most important approaches focus on communication and trust.

Trust is ultimately the most important ingredient in any positive work culture, but communication is key to building that trust and maintaining it effectively.

It is widely thought that communication is one of the most misunderstood and undervalued of all the interpersonal skills. Despite this, most people feel that they communicate effectively. Whether you feel you are an effective communicator or not, how can you enhance your ability to intentionally provide the context of your communication in a way that ensures the recipient is successful in understanding your true intent. The answer is in reviewing the difference between Reactive Communication (it is about me) and Intentional Communication (it is about you).

Throughout my career, I have had the opportunity to lead numerous teams. Some have been more successful and productive than others, but regardless of their performance my approach to leading them has always been the same. Without an intentional commitment to communication, the team will never truly understand the “why”. Without an intentional commitment to transparent communication, the team will become consumed with the “why” and lose sight of their ability to achieve goals. Without the intentional commitment to using both of those approaches while actively listening to my team to build trust, well… nothing else would really matter.

Let me ask you a question. How much time and energy is being spent by your tree crews, your crew leaders, or your management team each day questioning the ‘why’ behind what they are doing and what you are saying to them? The answer to that question may depend on the position that person holds within your organization and certainly the situation that person may be in.

For example, a person clearing brush from a work site may fully understand the ‘why’ behind what they are being asked to do by their crew leader. The ‘why’ in this case is simple. Pick up the brush that is left behind as the rest of the crew prunes the tree and pile it by the chipper. That statement is clear and understandable by even the newest member of your crew. However, as you move upward within your organization, the understanding of the ‘why’ may become a bit more difficult to understand but is equally important.

Perhaps you have an instance where a crew leader is requesting a new piece of equipment that is not in the budget for that year. The reactive communication style would go something like this,

“Sorry, but we cannot pursue purchasing that piece of equipment at this time.”

Even though the crew leader may appear to accept your answer and move on, there is still a chance that they may be questioning your decision or thinking about the ‘why’ behind your decision. This internal questioning could lead to lost productivity and lost time on the job site as they wrestle to understand why it was just “no.”

As the communicator in this instance, it is important for you to intentionally provide your response in a way that ensures the receiver of that communication understands the full intent of what you are saying and the reason being that response. This is the essence of intentional communication which is all about the recipient and their understanding. This approach will help to eliminate the possibility of lost time while they are focusing on trying to understand your decision instead of obtaining your full intent and the reasoning during the initial conversation.

The intentional response in this situation may go something like this,

“I appreciate your request for the new piece of equipment, and I have reviewed options to see if we can make that happen. I’d like to go over my decision with you.

Based on our budget for this year, we are not going to be able to pursue purchasing that item. However, I am committed to continuing to look at some other options including making sure, at the very least, we get that item in the budget for next year.

While this piece of equipment is certainly important, I feel that there are other options we can use to get us through the rest of this fiscal year. Here are those options, and I’d like your feedback regarding this approach.”

As a leader you have just intentionally and transparently provided as much information as possible in anticipation of the questions that you may encounter. You have done your best to ensure that the recipient of your communication understands your full intent in a transparent manner. While the crew leader may still have additional questions or comments, you have allowed for the conversation to include the ability for the recipient to ask questions and to confirm your delivery has answered all their questions. As you continue to provide this type of communication it will start to build trust as there will be little opportunity for the person to ever question your intent. They will begin to trust that when you have a conversation they will be getting as much information as possible and that you will do your best to ensure their understanding instead of just assuming all things are good.

I have witnessed firsthand a loss in productivity due to a lack of transparent and intentional communication among a work group more times than I care to admit. While it may be difficult to put a number on the productivity lost due to communication that is not transparent and intentional, the main point is that something was lost, and that loss could have been avoided or at least minimized. I am certainly a realist in that it is difficult to achieve a perfect world where transparent and intentional communication always coexists, however it is the pursuit of that end goal where incremental success can be realized. This will make your conversations more effective and efficient while building that all important trust among your team.

It takes commitment by the leaders of any organization to ensure intentionally transparent communication is at the forefront of their leadership style when building a trusting culture. A trusting work culture will allow the team to focus on each other, the team, and the goals of the organization instead of becoming too consumed with trying to understand the “why” behind your decisions.

In next week’s tip, we will talk about why building and maintaining trust is important to the success of your organization. Trust is thought of as the life blood of any successful team and I look forward to talking about how that can help take your team and organization to the next level.

For additional help with company culture, contact a member of the ArboRisk Insurance team! If you’re looking to improve upon your communication skills or want to help one of your key team members develop personally, sign up for the Thrive Leadership Development package today! Additionally, if you find it difficult to find or keep quality employees, check out our Thrive Hiring & Recruiting Package.

As part of ArboRisk’s Thrive family, we are also offering a FREE business culture self-assessment to help you begin to identify some ways in which you can continue to enhance your company’s culture. The assessment is extremely easy to complete and will take you less than 5 minutes. Following the completion of your assessment, you will receive a summary of recommended areas of impact to consider as you continue to enhance your company culture.

What Is Company Culture Anyway?

by Katie Petersen | May 31, 2022 | Business Strategy | 0 comments

What Is Company Culture Anyway?

Written by Kevin Martlage

Austrian American management consultant, educator, author, and leader in the development of management education Peter Drucker once coined the phrase, “culture eats strategy for breakfast.” While that statement could be discussed, argued, and debated based on your thoughts and approach to leadership and strategy, the essence of what Drucker is trying to say is extremely important for you to consider as a leader and business owner. So, what is company culture anyway?

Your company culture is ultimately your brand and what makes you unique in a variety of different areas. It can be defined by your company values, attitudes, and beliefs which lead to you providing a supportive and nurturing environment for your employees, your customers, and your stakeholders.

As a business professional turned consultant who has spent the last 30+ years developing, building, supporting, and leading teams in both non-profit and for-profit organizations around the world, I have had the opportunity to work in a variety of different business cultures and with a lot of simply amazing people. Some of those business cultures have been more supportive and productive than others, but the companies that have had their culture defined as the ‘DNA’ of what they were about were the ones that I remember the most. To me, a defined and supportive business culture is the true X factor of what makes some organizations extraordinary vs just being great. Culture is all about defining how you are serving each other and your customers and then making sure that everything you do is based on the culture and those things that you have identified as being important.

I spent 15+ years of my professional career working for one of the greatest companies in the world. FedEx and specifically FedexOffice. During my time with FedexOffice, I had the opportunity to advance to different levels of the company and was able to work alongside countless driven and influential people who were all extremely talented at what they did and brought to the table.

As you may or may not know, FedEx is also one of the largest companies in the world and in 2020 was #50 on the Forbes Top 500 list. In 2020 FedEx had over 850,000+ employees worldwide who were responsible for $69.217 billion in annual revenue. To work in that business culture and alongside so many diverse and great people is something that continues to have a large impact on my view of the value of culture in any company.

With that many people working in locations all over the world, having their own values, beliefs, backgrounds, and personalities, you can imagine how difficult it may be to ensure that FedEx delivered upon the corporate strategy every day. With so many moving parts, divisions, trucks, packages, opportunities, and responsibilities it could be very easy for things to go off track unless you have a great support mechanism to ensure each employee understands what is important. The FedEx support mechanism I want to share with you supports Drucker’s quote, “culture eats strategy for breakfast” and is something I feel strongly can help take you and your team to the next level.

FedEx has one sentence that defines their culture and their approach to that culture. It is known as the Purple Promise which has the purpose of building and earning trust and loyalty of the FedEx team members, their customers, and the communities in which they support.

The Purple Promise is simply this:

“I will make every FedEx experience outstanding.”

The Purple Promise is something that is taught to every employee on their first day and remains an important part of how FedEx conducts their business around the world. The Purple Promise can be used in any situation, any decision, and any action you may be taking as an employee. Whether you are the most entry level package handler or the Chairman of the Board, the Purple Promise is the life blood of FedEx and is evident in everything they do.

As you begin to understand the true meaning of the Purple Promise you understand that every action matters. Whether that action involves business conduct, integrity, decisions, your team, each employee, each package, every location, every driver, every truck, every plane, and even every individual shipping label, your actions, and the experiences you create are the most important part of what FedEx does. Regardless of the gravity of a situation, the unhappy customer you may be dealing with, or the decision you must make, if you can honestly say you did everything you could do to make that FedEx Experience outstanding then chances are you made the right decision.

The Purple Promise illustrates Drucker’s point perfectly by saying it is the experience that is the most important, not the strategy.

As a tree care company owner, if you were to approach everything you do by ensuring that the experience will be outstanding then how can you go wrong in your strategic planning, team member training, customer interactions, completion of your work, and most importantly how you approach your business as an owner and the support of your most asset, your team.

So, the real question comes down to this. What is your company’s ‘Purple Promise’ and how can you enhance your current work culture to ensure that your team is supported with outstanding experiences? Over the next 3 weeks, we will be investigating various ways to assess, develop, implement, and enhance your current work culture. The overall concept and meaning of the FedEx Purple Promise is an interesting model to consider as you begin the journey of identifying and developing your own effective work culture.

As part of ArboRisk’s Thrive family, we are offering a FREE business culture self-assessment to help you begin to identify some ways in which you can continue to enhance your company’s culture. The assessment is extremely easy to complete and will take you less than 5 minutes. Following the completion of your assessment, you will receive a summary of recommended areas of impact to consider as you continue to enhance your company culture.

For additional help with company culture, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management Leadership Development Package!

Employment Practices Liability Insurance

by Katie Petersen | May 23, 2022 | Risk Management | 0 comments

Employment Practices Liability Insurance

Written by Mick Kelly

One of the first concerns that a new business owner has is how to deal with the hiring, firing and discipline of employees as well as wondering what the consequences your employees’ actions may have for your business.

Not only is the risk of being sued by an employee very real and on the rise, the risk of being sued because of the actions of an employee, outside of the scope of their work, is also very real.

This is where Employee Practices Liability Insurance or EPLI comes in!

What is EPLI

EPLI helps protect businesses against claims and lawsuits arising from improper or unfair acts brought by employees. EPLI includes coverage for the cost of defending a case in court and the damages from a judgement or settlement that may arise from a lawsuit. Legal costs are typically covered in the event of a win or loss.

EPLI covers against claims from:

full-time and part-time employees
temporary and seasonal employees
applicants for employment
independent contractors

Examples of lawsuits that can be brought against an employer include:

Unfair discipline
Wrongful termination
Unfair demotion or negligent evaluation
Breach of employment contract
Failure to employ or promote
Sexual harassment
Discrimination – age, race, sex, religion, etc
Libel, slander, defamation of character
Invasion of privacy
And more

Most small business owners think such claims will never come against them since the have the best employees or their employees just “aren’t like that” – but the claim may come from the actions of someone else within your organization or from a mistake from the employer. Even a “heat of the moment” dismissal may result in an ex-employee seeking damages for wrongful termination.

EPLI is typically a claims made policy – meaning you must have it at the time of the incident in order to have coverage.

How much does EPLI cost?

A rough rule of thumb is EPLI costs between $25 – $40 per employee but pricing does vary per carrier

EPLI Premiums, are typically based on the these factors:

Type Of Business
Number of Employees
Coverage Limits
Deductible
Past EPLI claims history

Many carriers will offer EPLI as an add on to the business liability policy but in the incidences where they don’t, EPLI policies can be purchased as stand alone policies.

How much coverage should you carry?

This question varies from business to business. Most small business’s don’t have the thousands of dollars that it would cost to defend an EPLI case and a way to offset that is to pay a monthly premium for the EPLI coverage.

It should be noted that most EPLI policies have a deductible and that the cost of the monthly premium plus the deductible along with the likelihood of a claim should all be factored in before deciding to purchase the policy.

A company with a well run HR department may feel more comfortable forgoing the coverage in the knowledge that all the correct steps are being taken in regards to discipline, termination, hiring, etc. however, even a highly skilled HR department doesn’t mean you’re immune from lawsuits.

What EPLI doesn’t cover

EPLI exclusions include:

Criminality or violations of state/federal laws – EPLI will not cover you against a criminal act or if you are in violation of state or federal laws. It may cover you up until the point you proven guilty but not beyond that.
Punitive damages
Worker’s compensation claims
Contractual liability or breach of contract

EPLI with Third Party coverage

This is an add on to EPLI coverage. While EPLI covers you against employee lawsuits, Third Party coverage covers you against the actions of your employees towards others such as customers or clients. These lawsuits are typically discrimination or sexual harassment in nature.

In a labor market where it’s become very difficult to hire and a lot of business’s are hiring “a body” to get by, this coverage can be helpful. While all businesses want to vet their employees to the highest standard and only hire people of the highest moral quality, it’s not always possible to be certain of either and EPLI coverage with Third Party coverage can be a way of mitigating that risk.

That being said, Third Party EPLI claims for smaller businesses are far more common in the food and accommodation and retail services than they are in contractor fields. The additional 15 – 20% cost associated with it should be weighed up against the likelihood of employee interaction with clients and customers.

For more information on EPLI, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management New Heights package!

Working with Insurance Adjusters

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Working with Insurance Adjusters

Written by Tom Dunn

You sustain a loss to your property, and report it to the insurance company. Shortly after, you are notified who the adjuster is that will be handling your claim. For most people, the fear of the unknown now sets in. What will it be like working with this person to resolve the claim and get your business back to normal? Will I be treated fairly and receive just compensation or will they find ways to deny coverage or try to pay as little as possible?

I know first-hand of this experience, having worked for a national TPA adjusting firm as well as as a staff adjuster for a self-insured risk pool that insured municipalities and school districts. From my perspective as an adjuster, I always tried to put the person who sustained the loss at ease during the first interaction and assure them they would be treated fairly.

It is probably a normal reaction to have some anxiety, but there is no reason for this relationship to turn out poorly. If you go into the relationship with the mindset that this person can be my advocate instead of adversary and follow some simple steps, you can walk away from the experience feeling like you have been made whole.

This article will focus on property losses, but there are many different types of claims that adjusters handle. The same basic principles for working with an adjuster apply for any type of claim. It probably helps to know what the role of the adjuster is to help know how the process will work. Here is a summary of the process an adjuster may take:

Determine the cause of loss
Determine if there is coverage available under the applicable policies
Determine the extent of property damage
Determine if the damage should be repaired, replaced and what to do with the damaged property
Determine the amount of payment

Seems straightforward, but here are some steps to make the process smoother:

Report the claim to the insurance company promptly. Your agent can help with reporting a claim.
Know your policy. You don’t have to be an expert or know all of the ins and outs of the policy, but you definitely should become familiar with what is generally covered and your obligations. Pay attention to the “Duties after a Loss and Proof of Loss Requirements”.
Ask questions of your adjuster. A good adjuster will explain your duties and obligations and bring up any coverage concerns, but don’t be afraid to ask for explanations if you have questions. As with all strong relationships, communication is the key. Be polite and responsive in all interactions, but it is ok to be firm.
Take steps to mitigate any further damage while the claim is being investigated. This is required in the policy language. See #2
Collect documentation of your damage. Take a complete inventory of damaged and undamaged property (pre-loss inventory is even better). Take photos and videos of everything that was damaged as soon as possible after the loss and identify what it is showing.
Insurance companies may recommend a contractor or you may be able to choose your own to complete repair work. Make sure they are present when the adjuster comes to inspect the damaged property and have experience working with insurance adjusters.
Keep a claims journal documenting your interactions with the insurance company adjuster (dates, times, subject matter). The adjuster is doing the same with you and this can help resolve any discrepancies.
Remember the appraisal clause in the policy language. Hopefully, if you have followed steps 1-7, this won’t be necessary, but if you don’t feel you are receiving just compensation for your loss, you have the right to invoke the appraisal clause and seek a non-biased opinion of a third party. See #2

Dealing with the aftermath of a claim can be a stressful situation. Being prepared, detailed, proactive and advocating for yourself goes a long way in obtaining a successful resolution. A good insurance agent knows when and how to become involved, without being a hindrance to the claims process. Utilize that relationship, when needed.

For additional help in working with insurance adjusters, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management New Heights package!

Lastly, check out this article on maximizing compensation from vehicle accidents in October 2021 TCI Magazine.

Why Auto Insurance Rates are Increasing

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Why Auto Insurance Rates are Increasing

Written by Tom Dunn

Commercial auto rates have been increasing at an alarming rate across all industries and the tree care industry is no exception.

This article is meant to shed some light on the causes behind the rate spike and point you to a few resources to help you minimize your cost.

Distracted Driving and Accidents

As with any insurance coverage the rate that you pay is directly connected to the likelihood of a claim happening. Therefore, when there are more accidents, the cost of the insurance goes up.

For many tree care owners, their truck is also their mobile office and just like working in a traditional office, there are plenty of distractions that can take your focus away from what you should be doing. The only difference is in a vehicle, the consequences of lack of focus are always more severe, leading to property damage, injuries and even death.

Distracted driving is the largest cause of motor vehicle accidents and comes in many forms. Some of the most common are:

Cell phone use: Talking or texting. Even the hands free options can distract.
Multi-tasking like eating or drinking while driving
Adjusting controls in the vehicle
Checking GPS navigation system
Talking with another passenger
Looking at something outside car

Inflation

Technology has led to many advances in vehicles that are supposed to make them safer, however that technology comes at an increased cost for consumers when it comes time to repair a damaged vehicle, especially delicate electronics.

Same principle at work with individuals who are injured in a motor vehicle accident. Hospital services have gone up dramatically in cost.

More Drivers

Yes, there were less drivers on the road during the peak of Covid, however, the number of licensed drivers has grown overall to over 230 million across the country.

Inexperienced Drivers

Unfortunately, there are enough experienced drivers with the skills and expertise to drive commercial vehicles to replace the drivers who are retiring. In general, inexperienced drivers have more accidents.

Infrastructure

Old, crumbling roads and bridges increase the wear and tear on vehicles, making accidents more likely. Roads not designed to handle the volume of traffic we see today which leads to more congestion and accidents.

Supply Chain Disruptions

Covid did lead to a decrease in the need for vehicle parts for a short period, however as driving has returned to more normal levels, there has been an increased demand. Sadly, the supply of available parts has not caught up.

Extreme Weather

It doesn’t have to be considered an extreme weather event to lead to an accident, and you don’t have to be a meteorologist to see the increase in extreme weather events. Company vehicles can be damaged just sitting in a parking lot, however, Tree Care companies are often on the road as first responders in extreme weather events thereby increasing their chance of being involved in an accident during a storm.

Huge court verdicts

Also known as “Nuclear Judgements,” these are defined as a verdict in favor of a plaintiff with a damage award over $10M, but can be used for any verdict larger than anyone expected.

One of the insurers that ArboRisk works with recently had a $6M verdict handed down for a motor vehicle accident involving a tree care company. An interesting look behind the reasons for nuclear verdicts shows that how a company addresses safety definitely matters:

Juries have shown that if a company overlooks workplace safety, doesn’t provide adequate safety training for employees and has a history of repeat violations, they will be punished for their lack of training oversight.
Failure to utilize available technology (driver monitoring systems, forward collision systems, back-up cameras, voice control-Bluetooth) can also lead to punishment from a jury.

While it may seem like there is no hope for your business auto rates, know that you are not helpless in controlling your own rates. Companies that take driver and fleet safety seriously position themselves to receive the lowest rates possible. We actually recently wrote an article to give you four ways you can lower your rates.

Additionally, every ArboRisk client has access to our extensive driver and fleet management resources on our Thrive website. Not an ArboRisk client? No problem! Enroll in our Thrive Safety Package to get one-on-one help lowering your risk of an auto accident within your company.