Here are 10 tips to consider when planning your loss control service needs and negotiating a contract that will fulfill those needs. These suggestions apply to any type of service provider (though they may not apply to your particular situation).

Tip 1

The provider's proposal should distinguish between regulatory compliance and loss control. It should offer programs that provide a clear approach to meeting both the need to ensure compliance and the need to control losses.

Tip 2

Make sure that the services being proposed are the ones you really need. The proposal should be phrased in terms of the benefits to your company, not just the volume of services to be provided. Ask for a list of benefits that you can expect to receive. The listed benefits should tie into the assessment of your needs and objectives.

Tip 3

The issue of service volume should come at the end not the beginning of discussions. A service provider's motives may be to negotiate volume to meet its own internal needs and business plan, not yours.

Tip 4

Incentives such as "gain sharing" may be worth discussing to ensure both parties have the same financial goals. Locating a service provider who can demonstrate results-oriented strategies, measure success and rectify failure is worth your time and effort.

Tip 5

Beware of smoke and mirrors. There's nothing magic to loss control. Never has been, never will be. Loss control programs are people programs first, technical definitions second.

Tip 6

Identify who you're negotiating the safety and health service needs part of the agreement with. Is it the person responsible for the end result? Is it a representative with hands-on experience? Answers to these questions could raise a red flag indicating that the person's primary interest is his or her own sales volume, not your business plan.

Tip 7

Use an experienced, independent consultant for the initial planning, development and implementation. Take a pilot approach toward developing a loss control strategy that works. This will give your program longevity and credibility, rather than a quick fix that may change often. By doing this, you have a greater chance of focusing on benefits, implementation strategies and results. You'll also be working in an isolated environment that will cost less and create the fewest distractions if changes have to be made.

Tip 8

Don't be afraid to experiment. Choose locations that have your worst problems. Visit and network with locations that have your best records. You're looking for a balanced approach. You may learn more from your own people through the eyes and ears of others than you realize. Your personnel are in the best position to help develop loss control programs that increase production and decrease overhead.

Tip 9

Once a program is moving in the right direction, focus on getting buy-in from your front-line managers. This will ensure they will move forward once your safety and health program has taken effect. Reward success.

Tip 10

Now is the time to negotiate volume. You'll need help implementing the plan designed to reduce accidents, increase production and get a return on your investment. Develop measurement criteria as a part of the business plan. This is your opportunity to provide financial input identifying new steams of potential income for your company. You're taking proactive steps toward increasing your company's capacity to increase its competitiveness in the marketplace.

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