Liberty Mutual: A Safety Break-through Is Coming

Oct. 20, 2000
The results of behavioral safety programs promise to demonstrate\r\nhow a company's safety program improves financial\r\nperformance, according to Karl Jacobson, senior vice president at\r\nLiberty Mutual.

The results of behavioral safety programs promise to demonstrate for the first time how a company''s safety program improves financial performance, according to Karl Jacobson, senior vice president at Liberty Mutual.

"We think this is going to be a major break-through for the safety profession," Jacobson said earlier this week in Baltimore at the Ninth Annual Risk Management Forum, a conference sponsored by Liberty Mutual, a Boston-based insurance company.

Entitled "The Value of Safety," Jacobson''s talk discussed some of the difficulties safety professionals have faced in selling safety and health programs to upper management.

"Unless you talk the language of the operators and treasury people," he said, "you''re probably not going to be heard."

For example, audits of safety programs generally correlate poorly with actual loss reduction -- the audits only show whether or not a program''s procedures are being followed.

A better approach, according to Jacobson, is a process that begins with a risk management assessment to uncover a few of the major causes of loss confronting a company. After this, he recommended installing a program that is focused on cutting these losses by establishing goals and monitoring progress toward these goals.

"I think one of the problems we''ve had in safety is we''ve tried to look at it as if it isn''t part of the business," said Jacobson. This older approach is giving way to a newer model more oriented to improving a company''s bottom line.

Traditional safety and health programs are changing into risk management programs, Jacobson noted. One example of this change is the integration of pre and post-loss management.

"In the old days, the safety guy used to say it''s the claims guy''s job to get somebody back to work," he said.

The remarkable performance results of behavioral safety programs constitute the most exciting recent development in this trend toward connecting safety to loss reduction, according to Jacobson.

Such programs work both by recognizing safe behaviors and confronting unsafe behaviors, but Jacobson added it is important to place more priority on positive reinforcement.

"What we''re seeing is that over time, as safe behaviors go up, lost work day rates go down," he said.

But Jacobson cautioned that behavioral safety might not be the place to begin. He said that in his experience, the companies that have had the most success with these programs are those that have had successful traditional safety programs and found they had reached a plateau in their performance.

by James Nash

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor: Before joining Endeavor Business Media in 2020, Nicole was previously editor of Hemp Grower and  Physicians Practice and senior editor of iAdvance Senior Care magazines

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