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 HOW TO SELL TOP MANAGEMENT

1. Provide personal satisfaction ____

2. Improve labor relations ____
3. Enhance public relations ____
4. Increase production rate ____
5. Give legislative compliance ____
6. Improve product quality ____
7. Reduce injury rate ____
8. Improve operating costs ____
9. Reduce liability potential ____
10. Improve customer relations ____ 2
 The Principle of Economic of Association
“ A manager will usually pay more attention to statistical or
general information when expressed or associated with cost
terminology”.
Example:
 A plant’s immediate past injury loss history is translated to
a cost per man-hour figure using national average
cost.
 For many years the St. Regis Corporation has expressed
the accident statistics given to its management group
in terms of an “injury cost rate” rather than a
disabling injury rate.
 Many companies relate their accident losses to the sale of
products necessary to offset each $100 accident
with profits. 3
  The Principle of Critical Few
“ In any given group of occurrences, a relatively small number
will tend to give use to the largest proportion of results
(costs).”
“Pareto’s Law”- in almost every kind of economic statistical
situation, approximately 25% of the items accounts for 75%
of the total value. Or “vital few” and “trivial many” (“main
issue and “critical few”).
Example:
 Insurance companies use their extensive computer capability to
analyze accident data in terms of causes as well as costs.
The “critical few” accident type causes, injuries, or body
parts injured, (those resulting in the largest percentage of
total costs) can become immediate targets for
concentrated management efforts. The objective of
course, is to maximize dollar results for the least 4
expenditure of time and effort.
 The Principle of Reciprocated Interest
“ People tend to be motivated to accomplish results you want,
to the extent you show interest in the results they want to
achieve”.
“The principle tells us that if we want to sell management or
any safety or any safety or loss control idea, we must present
in such a way that the receiver will organize the value that he
will gain toward those things he is interested in.”
Example:
 JSA/procedure program, provides an opportunity to
uncover inefficient practices and methods that when
properly changed, often result in substantial cost
reduction.
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 The Principle of Future Characteristics

“ The past performance of an organization or unit tends to

foreshadow its future characteristics”.
“The value here is to use past cost information as a guide to
professional management action that will prevent history
from repeating itself.”
Example:
 Past history of costs on machines or equipment, production
maintenance, downtime and related damages are all used as a
base line for many types of comparisons.

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 The Principle of Application
“ The more often a manager communicates a message, the
more certain he can be that is is understood and will be
retained”.
“Accidents and other undesired events have an enormous
effect upon an organization’s profit, or the attainment of
its established budget.”
Example:
 … Circulate select articles on related costs from external
publications to key members of management.
 … Circulate select photographs of specific accidents involving
property damage, with a brief explanation of estimated
costs.
 … Circulate reports of individual large courts awards or 7
settlements involved with familiar circumstances.
 The Principle of Economic Priorities
“ A manager will usually give priority response to items
possessing the potential for the greatest proportion of
results from the least investment of available resources”.
“This principle is also expressed in a widely accepted
economic corollary that a firm should choose from mutually
exclusive cost control techniques the one which offers the
highest rate of benefits to costs, when both are expressed
as expected values.”
Example:
 Cost item are relevant when they can be associated with the
budget the particular individual is accountable to manage.

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 The Principle of Vested Interest
“ A manager is predominantly interested in those economic
considerations affecting his own budged”.
“ A manager is predominantly interested in the budget he is
accountable to achieve, and by comparison, only interested in
anyone else.”
“Example:
 Cost item are relevant when they can be associated with the
budget the particular individual is accountable to manage.

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 The Principle of Substantial Evidence
“ In the absence of adequate historical information, it can be
assumed that a manager will require more substantial
evidence of need”.
“Nearly every safety or loss control specialist has had an
operating manager request evidence that losses in the
immediate area of responsibility have occurred to justify
that action suggested.”
Example:
 The safety and loss control organizations of many large
corporations circulate major loss announcements and reviews
to their various companies, in order that those with similar
conditions or practices can learn from the loss experience of
others.
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 The Principle of Adequate
Evidence/Information
“ The timeliness of a manager’s decision making is directly
related to the adequacy of information he has upon which to
act”.
“ Providing management with an increased number of devices
and techniques to aid decision making will bring the
application of loss control in general industry more in tune
with the technological advances of our space age.”
Example:
 Quantitative risk assessment to evaluate risk and
determine potential economic loss should undesired events
occurred.

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 The Principle of Dimensional Value
“ The degree of management attention is directly related to
the size of the problem”.
“We do not gain the management attention unless we present
the costs of our losses in their true magnitude of economic
perspective.”
Example:
 When we combine the everyday costs involved with the
inter-related disciplines of safety, environmental health, fire
and security, we posses a package of costs reduction
potential of unquestionable motivational dimension.

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 SUMMARY
“ The ten (10) principles of economic
application can be utilized to motivate increase
management interest and action in loss control
program. They can be used individually, or in
combination; but most important of all, use
them!”

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CONCLUSION
 “A comprehensive control program is aimed at
elimination of problem of occupational health,
property protection, product safety, security,
and any other area where unintended incident
can occur and detract from the company’s
profitability.”
 “ Safety and loss control are important part of
the executive suite. No longer second-class
citizen, loss prevention and profit
performance have become synonymous.”
 “ Total loss control programming is sound business
planning, the best of both worlds under one
roof.” 14
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