Insurers use Key Performance Indicators (KPI’s) to track the performance of restoration companies and award work to those vendors that score well on these metrics. By using KPI’s, insurers can better track efficiency of the work being performed. In addition, they also serve to help shorten the claim lifecycle and control claim costs. Each one of these measures of performance are laid out in the Service Level Agreement contract that is signed by the service provider. This means the service provider needs to complete each particular service requirement within a predetermined time span. By having a time component tethered to most service requirements, insurers can use these KPI’s to measure performance and efficiency.
Efficiently Managing KPIs
Not only do KPI’s serve a cost and performance purpose, they also serve as a compliance measure. Meaning, is your company completing the required task within the prescribed time frame? For example, you might be contacting the customer within the prescribed time frame but are you also “completing” the required task within the allotted time frame? In most cases, this means very simply clicking a button, adding a note, or uploading files. Although this may seem pretty simple, it remains a challenge for some companies.
Being “compliant” goes beyond just understanding how your company is being measured. It’s about adhering and completing those requirements in real time. Without the right tools, it can be challenging to efficiently manage KPI’s.
The key to being successful with them is developing a clear workflow and process that your team can easily follow. For example, the normal workflow for the typical process of a claim includes many distinct steps, such as:
- Contacting the client
- Arriving on site
- Taking and uploading initial loss photos
- Filling out and filing the preliminary 48-hour report
- Researching and providing estimates
“Restoration companies need to use the best tools available to maximize workflows and minimize time spent on a job.”
However, just identifying and following this process is not enough. According to Property Casualty 360, it’s important to ensure there’s a way to gather, track, and measure the data. This source further warns about the problems with using spreadsheets to manage important tasks, because data entry is labor intensive, prone to human error, and difficult to migrate to different departments or aggregate for reporting purposes. Further, owners and managers are unable to truly analyze the information contained on different spreadsheets. Instead, restoration companies should consider using a cloud based platform such as DASH Enterprise, which helps streamline and automate the management of KPI with cutting edge tools that help companies become top performers in their market. Knowing and improving your company’s data footprint will keep you ahead of the metrics driven by insurance carriers, while keeping your customers happy and bringing you more business.
Top Performers Get More Jobs
Based on a proven Six Sigma methodology, DASH’s VPASS, which stands for Value Progression Adjusted Sigma Score, is a real-time compliance monitoring system. This dynamic and transparent method for measuring and quantifying the key performance indicators outlined in a service level agreement ensures restoration companies stay on schedule and complete each job with the highest quality. With better data management, VPASS helps restoration companies track time-sensitive components of the job. Through DASH’s compliance manager and VPASS score, owners and managers can quickly see trouble areas in their companies, which in turn allows them to easily improve on these areas. As they say, it’s easier to fix something when you know where to look.
With DASH compliance manager, it is easy to track the progress of each task, measuring and analyzing the KPIs along the way toward the job’s completion. This makes it easy for owners and managers to know which employees have completed which jobs and what additional duties need to be done, providing greater oversight and management over daily operations. By using the time component for each task, VPASS is similar to a credit score by using past performances to predict future performance.
VPASS’s algorithm was developed to recognize that some delays are unavoidable. The VPASS allows for some exceptions to be made, which lets managers pivot and respond to the changes that arise during the normal course of operations. For instance, if a customer makes a particular request that throws off the scoring guidelines and this is out of the service provider’s control, the final score will not be affected.
DASH helps restoration companies stay on top of their claim game, allowing them to increase capacity, improve customer service, reduce cycle times and errors, and ultimately increase profitability.