Provided to AGRIP July 22, 2002 by Al Hatten of WSTIP. See Excel for 00-02 ProForma Budget

Washington State Transit

Insurance Pool

2002–2005
Strategic Business Plan

APPROVED JUNE 21, 2002

Business Plan

As developed by the Washington State Transit State Insurance Pool (WSTIP) Board of Directors in collaboration with WSTIP’s customers and key stakeholders, the Business Plan provides direction for the organization over the next three years, focusing on tomorrow’s technology, customer services, future markets, WSTIP employees and WSTIP’s internal operation.

Vision

We are the premier providers of high quality risk and management related products and services for all facets of the transit industry.

Mission

To provide value-added services for our members.

We will accomplish this by:

  1. Reducing members cost of Risk;
  2. Providing comprehensive management services;
  3. Look at innovative opportunities; and
  4. Encourage alliances and partnerships.

Our Core Values

  • We treat everyone fairly and with respect.
  • We value innovation and embrace technology as a partner.
  • We are committed to excellence in service delivery and cost-effective programs.
  • We value our employees.
  • We value integrity and ethical conduct.
  • We value the diversity of our members
  • We speak with one voice.

Situational Analysis

These are our assumptions about the future for WSTIP, the transit industry and the customers it serves. It is very important to monitor these assumptions in order to properly identify changing trends and needs requiring WSTIP’s response.

Economic

  • Increased pressure from the taxpayer to reduce taxes
  • Changing priorities and customer expectations driven by reduced funding available to transit properties
  • State budget shortfall of $1.8B
  • Dot.com “bust”
  • Boeing moving to Chicago

Political/Regulatory

  • Reduced funding available from State and Federal government
  • Increasing mandates; complexity of government structure and function
  • Effective lobbying needed to achieve WSTIP mission in providing a “solution”
  • WSTIP’s principal emphasis on Washington State public transportation providers’ issues, secondarily on FTA Region 10 issues.

Demographics

  • Aging population
  • Mandates for van pool & paratransit service
  • Changing demands for transit revenues

Knowledge

  • Users rely on WSTIP to inform them about best practices, risk management and legal trends
  • Users rely on WSTIP for data and analysis of data

Social Values

  • Greater emphasis on the value of time
  • Need for customized “answers”
  • Bridging age gap; new managers coming on

Insurance and Pooling Industry

  • Competition from (or collaboration with) commercial insurers
  • Withdrawal of commercial insurance (Hard Market)
  • Competition between pools
  • New risk financing alternatives - Captives
  • Partnership/Alliances

Technology

  • Investment in multi-media communication solutions
  • Need ready and cost effective access to information

Staff

  • Harder to find and retain qualified staff
  • Need to support continuing education and personal growth

Key Success Factors

Due consideration of these assumptions directs WSTIP to emphasize the following key success factors for its operations over the next three years:

  1. Providing refined, efficient operations
  2. Focusing on customer needs and expectations
  3. Effectively deploying technological capabilities & resources
  4. Producing value added products and services
  5. Broadening the base of customers
  6. Establishing profitable alliances
  7. Excelling in competitive marketplaces
  8. Emphasize proactive risk management practices

Outcome Oriented Goals (Ends)

WSTIP has identified the following four goal areas to direct its path towards the vision of WSTIP as the premier provider of high quality risk management related products and services for all facets of the transit industry. As each goal is accomplished, WSTIP moves close to the realization of its vision. Accomplishment of all four-goal areas will be required for WSTIP to achieve that vision.

Business: Our business is managed efficiently to minimize cost and maximize value for members.

Customer Service: Our members receive high quality services that are continually improved and customized to anticipate and meet their diverse needs.

Employees: We provide our employees with the environment and tools they need to deliver outstanding customer service.

Enterprise/Marketing: Industry alliances and outreach beyond our regular membership expand our ability to support our members and public transportation.

Action Plan

The following pages define the action plan, expanding the discussion of each goal area to encompass:

Objectivesthe key areas of activity required to accomplish the goal, not in order of priority

Strategiesindividual achievements targeted for short-term (12 – 18 months) and long-term (2 -3 years) timeframes, not in order of priority

Performance Indicatorsdescribing specific measurable actions that will be undertaken to carry out the strategies.

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Washington State Transit Insurance Pool–11/16/18
2002–2005 Business Plan

Our business is managed efficiently to minimize cost and maximize value for members

We manage our resources efficiently to deliver cost effective services balancing demand and revenues.

This objective will accomplish two primary purposes:

  • to enhance the expectations of the members for deliverables and,
  • to reduce non-productive time.

Strategies

Short-Term (12 – 18 months)

The organization’s divisions (Administrative Services; Insurance; Claims Management; and Risk Management Services) are analyzed for their cost/benefit as part of an annual budgeting process that considers efficiency, demand and resources available. New departments will be subject to the same analysis.

All members receive an evaluation of their satisfaction every 24 months.

Long-Term (2 - 3 years)

A variety of resources will be available to allow customers to interact by long distance.


Our business is managed efficiently to minimize cost and maximize value for members

Performance Indicators

Performance audits and cost analyses are effective tools to ensure that members/owners expectations are met. Further, technology will soon allow for distance participation in a real-time environment.

  1. All members receive an evaluation of their satisfaction every 24 months. The board gives staff direction of the content of the members’ evaluation prior to the on-site visits or before July 1st of the survey year. The board discusses and gives direction to the disposition and deliverables of the members’ audit on or before September 15th of the survey year.
  2. All Projects are initiated only when a viable purpose and goals are agreed upon and cost analysis completed.
  3. By July 1, 2003, one alternative to on-site participation will be offered.
  4. Effective 9/01/02 timesheets will be adjusted to reflect staff resources to the following divisions: Administrative Services; Claims Management; Insurance; and Risk Management.
  5. During the September financial workshop beginning in 2002, a cost benefit analysis will be reviewed on all divisions for the current year and the projections to the upcoming budget cycle.


Our business is managed efficiently to minimize cost and maximize value for members

We maximize the value of information by utilizing current technology.

Our commitment to Server Based Computing (SBC) is designed to provide members with on-line access to information services and data in a cost and time effective way.

Strategies

Short-Term (12 – 18 months)

  1. We will provide the members an alternative to the current desktop “client” application for RiskMaster and SortMaster via the web site.
  2. On or before September 2003, policies and guidelines will be distributed to interested data warehouse participants to allow event document-scanning capabilities.
  3. We will provide easy, navigable and up to date web pages.
  4. “Back-up” services are immediately accessible in the event of a catastrophic loss.
  5. Staff will maintain knowledge skills on current trends.

Long-Term (2 - 3 years)

  • We are the premier public transit data warehouse for small and medium public transit agencies in the FTA Region 10 to increase the revenue of the pool and use the information for risk management trending and analysis.

Our business is managed efficiently to minimize cost and maximize value for members

Performance Indicators

Customers’ access is a function of three components; training/technical support, staff knowledge and security. Initial indicators are:

  1. Members’ satisfaction and needs to SBC will be verified during the members’ satisfaction survey.
  2. The web site shall be monitored monthly and will be evaluated for ease of navigability during the member’s satisfaction survey.
  3. A written catastrophic / disaster plan shall be completed by January 1, 2003 and reviewed annually.
  4. The CEO shall review staff’s training needs on an annual basis.
  5. By January 1, 2005, increase participation from 15 to 22 public transits within the FTA Region 10 (WA- 24, OR - 9, AK - 4 & ID - 7) in the data warehouse.
  6. Provide the environment for data warehouse participants to scan their event-based documents by September 2003.

Our business is managed efficiently to minimize cost and maximize value for members

We anticipate and take advantage of developments in insurance and risk financing alternatives.

In response to the cyclical financial changes in the commercial insurance market, our flexibility and access to a variety of risk financing alternatives allow us to provide programs to a broader customer base.

Strategies

Short-Term (12 – 18 months)

  • Alternatives for excess liability, property and risk financing are assessed for viability annually.

Long-Term (2 - 3 years)

  • WSTIP analyze and review potential sponsorship and/or participation in a national public transportation excess liability pool or captive.

Our business is managed efficiently to minimize cost and maximize value for members

Performance Indicators

Our success in this area will be measured by our competitive position in the marketplace.

  1. Every 24 months staff will “commercially shop” to determine if our programs are appropriately priced.
  2. Review options for a captive or excess liability product for public transit only by 01/01/04.
  3. Staff to review the possibility of self-insuring the auto physical damage risk before September 15, 2002 and make a recommendation to the Board of Directors.
  4. Staff to review the possibility of increasing the self-insured retention level to $500,000 per occurrence before September 15, 2002 and make a recommendation to the Board of Directors.

1

Washington State Transit Insurance Pool–11/16/18
2002–2005 Business Plan

Our customers receive high quality services that are continually improved and customized to anticipate and meet their needs.

Our customers receive high quality services that are continually improved and customized to anticipate and meet their needs

We proactively identify our diverse customers’ needs and develop resourceful solutions.

Demands on the time and resources of our customer base require increased responsiveness. Our current and potential customers need ready access to meaningful products and services that they can implement immediately. Further, as changes in societal, economic and political forces impact our customers, we will be positioned to respond with new programs, as necessary.

Strategies

Short-Term (12 – 18 months)

  • “New” member representatives participate in the WSTIP orientation program.
  • Members’ underwriting data are available via Internet.
  • We provide pre-litigation services for our members.
  • We seek alternative funding such as grants, collaborative relationships or alternative joint purchasing groups in order to develop new programs to assist our customers.

Long-Term (2 - 3 years)

  • Customers may choose from a menu of products and services for their insurance and management needs.

Performance Indicators

The more programs and information that is directly accessible on line, the less time our customers need to spend trying to access this information.

  1. “New” member representatives will receive orientation within 3 months of their appointment.
  2. 80% of members underwriting data are on line on or before 9/01/2002..
  3. The pre-litigation fund shall be marketed annually to the members.
  4. New programs will look at possible grants or collaboration relationships prior to implementation.
  5. New products shall have established goals and objectives prior to the expenditures of resources.

We promote the delivery or exchange of services and knowledge between transit entities through our educational and communications programs.

We act as an important linkage between transit entities. By means of active involvement in the pool, customers collaborate to provide new answers and network to share ideas. This collaboration will continue to expand as we grow to include other customers to our base. We will employ a multi-faceted approach to delivering valuable education and training services to incorporate on site support, interactive web-based training, regional seminars and video conferencing, and active operational support of the Washington State Transportation Training Coalition. The result will be improved safety and efficiency of all transit operations serving the public.

Strategies

Short-Term (12 – 18 months)

  • Members Services Manager responds to the needs of customers for technical assistance.
  • We will make available a media response plan to assist members in emergency/disaster situations.
  • We will encourage our customers to utilize our computer and interactive web-based training programs.
  • We support and assist the Washington State Transportation Training Coalition in its growth and responsiveness to needs of the transit industry.

Long-Term (2 - 3 years)

  • We will solicit/offer grants to secure equipment, training and collateral services for our members.

Performance Indicators

We perform a valuable service when we facilitate our customers’ ability to share ideas and collaborate to develop solutions for problems they face in common.

  1. Members will regularly seek the counsel of the Members Services Manager by 9/01/03
  2. 50% of customers are trained in the use of the media response plan by 9/11/03.
  3. 100% of members will have the ability to utilize the “e-knowledge” training programs.
  4. We will report at the annual meeting the “state of the relationship” with the Washington State Transportation Coalition.
  5. WSTIP will solicit at least one grant application annually.

We support the use and enhancement of best practices in public transit management.

We will provide the criteria and support needed for our members to implement the use of best practices. Our members will be enabled to benchmark with other members to their own performance as well as contributing to improved decision making.

Strategies

Short-Term (12 – 18 months)

  • All customers; regular, associate and partnerships, use RiskMaster services regularly.
  • All members utilize the “Best Practices” program to improve their results.
  • Staff will conduct a minimum of two on-site visits per year to each member.
  • Members use the data and trend analysis provided to assist in evaluating their performance and benchmark themselves against their peers.

Long-Term (2 -3 years)

  • We are a resource for public transit accident/incident data in the FTA Region 10 district.

Performance Indicators

When members assess the comparative value of their management programs, they can make effective decisions about use of resources.

  1. We will conduct an annual user’s training class in RiskMaster for both veterans and beginners.
  2. 100% of the members are reviewed for their implementation of best practices by 09/15/03.
  3. We will schedule a minimum of two on-site visits annually with our members by the CEO, Deputy Director or Members Services Manager.
  4. 75% of members undertake benchmarking analysis by 09/15/03
  5. We will promote our database to interested federal and state agencies.
  6. Best Practices will be reviewed as needed to incorporate new standards for emerging issues such as 15 passenger vans.

We are a customer service organization that is committed to continuous quality improvement in our service delivery.

We will perform as a model customer service organization. We will continually measure and improve our service delivery while facilitating and encouraging our customers to access our services.

Strategies

Short-Term (12–18 months)

  • Our interactive web page responds to requests for information and training.
  • Members may request data online based on menu selection criteria.
  • The insurance renewal process is facilitated via the Internet.
  • Customer service is recognized as our number ONE product; customers evaluate and direct improvements in our service delivery.

Long-Term (2 - 3 years)

  • Web Casting allows for group training and distant participation.

Performance Indicators

The level of usage determines the value of on-line services to our member. Customers will direct development and refinement of the service delivery.

  1. 75% of customers using on-line requests
  2. 50% of members accessing and analyzing their data.
  3. 75% of members submitting insurance renewal information on-line
  4. 75% of customers respond to customer satisfaction survey.
  5. Training is assessable via Web Casting by 06/15/04.

1

Washington State Transit Insurance Pool–11/16/18
2002–2005 Business Plan

We provide our employees with the environment and tools they need to deliver outstanding customer service.

We provide our employees with the environment and tools they need to deliver outstanding customer service.

We support the personal and professional development of our employees and provide managers with the tools for success.

Strategies

Short-Term (12 – 18 months)

  • Each employee participates in an individualized professional development plan.
  • Employees and managers are encouraged to participate in interest and/or user groups and industry association activities aligned with their professional goals.

Long-Term (2 - 3 years)

  • Employees accomplish advanced educational opportunities with our encouragement.
  • Managers seek continuing education and professional development opportunities through accredited college or university and/or professional affiliations / designations.

Performance Indicators