1. Fleet Safety – Getting Measurable Results Paul Farrell, CEO SafetyFirst Jeff Lester, former Vice President - Safety, Health & Security Ryder System, Inc. David Hopps, VP - Risk Management, Safety & Environment The ServiceMaster Company

2. Fleet Safety – Getting Measurable Results  Introduction  Continuous Improvement Model  Fleet Safety Management System  Measurement  Questions and Answers Agenda

3. Fleet Safety – Getting Measurable Results Who Is SafetyFirst?  Provide Fleet Safety Services to both: Private Companies and Insurance Providers  Clients in all industry types: Construction Service Contractors Social Services Manufacturing Distribution Communications

4. Fleet Safety – Getting Measurable Results INTRODUCTION

5. Fleet Safety – Getting Measurable Results Fleet Safety Results  Motor Vehicle Collisions remain the leading cause of workplace death (USA)  NHTSA states that during CY2000: 36,249 drivers/passengers died 3.1 million injuries

6. Fleet Safety – Getting Measurable Results Distribution by Vehicle Type Source - Nat'l Safety Council Accident Facts, 2003

7. Fleet Safety – Getting Measurable Results All Crashes by Loss Type Source - Nat'l Safety Council Accident Facts, 2003

8. Fleet Safety – Getting Measurable Results Fatalities by Loss Type Source - Nat'l Safety Council Accident Facts, 2003

9. Fleet Safety – Getting Measurable Results What is Fleet Safety?  Coordinating the efforts of managers and employees to: Minimize the potential for collisions, and Prepare to manage collisions that do occur Assure compliance with laws / regulations that apply to your particular fleet operations

10. Fleet Safety – Getting Measurable Results Typical “Fleet Safety” Details  Recruiting, screening and hiring drivers  Finding “at-risk” or “high-risk” drivers  Training drivers  Reporting, recording, investigating and analyzing crash data  Regulatory compliance  Assuring maintenance/fitness of vehicles

11. Fleet Safety – Getting Measurable Results Fleet Safety Results  Are you satisfied with the results that are produced from these efforts?  Why do crashes continue despite our best efforts? Drivers are governed by behavior Interaction with a dynamic environment – the “real world”

12. Fleet Safety – Getting Measurable Results Fleet Safety Results  To achieve better results there are two keys: Identify opportunities for improvement Introduce or reinforce fleet safety practices

13. Fleet Safety – Getting Measurable Results Continuous Improvement Model Identify SetStandards Measure Evaluate

14. Fleet Safety – Getting Measurable Results Who Is Ryder?  ~$4 Billion Revenue  Logistics and Leasing & Maintenance #1 in Markets Served  ~30,000 Employees  ~9,000 Vehicles Operated Pick-ups, Straight Trucks & Tractor-Trailers Hazardous Materials  ~150,000 Leased/Rentals  ~1,500 Locations

15. Fleet Safety – Getting Measurable Results Identification Phase  Situation Assessment  Analyze Relevant Data  Fleet Safety Management System Gap Analysis Identify Identify SetStandards Measure Evaluate

16. Fleet Safety – Getting Measurable Results Develop and Deploy Phase SetStandards  Develop Initiatives (Prioritize) Cross-Functional Teams Low Hanging Fruit  Deploy Initiatives (Strategy and Timetables) Determine the Best Method for Deployment Establish Realistic Rollout Schedule Identify SetStandards Measure Evaluate

17. Fleet Safety – Getting Measurable Results Measurement Phase Measure  Audit Protocol Measure Standards to Ensure Adequacy & Compliance  Data Analysis Collect Information Regarding the Impact of Standards  Goals & Metrics Identify SetStandards Measure Evaluate

18. Fleet Safety – Getting Measurable Results Evaluation Phase  Identify Strengths (Benchmark among the best internally & externally)  Identify Weaknesses  Criteria for Evaluating Safety Excellence Evaluate Identify SetStandards Measure Evaluate

19. Fleet Safety – Getting Measurable Results Effort vs. Cost Value to the Company P Problem- Driven S Staff- Driven L Line- Driven E Executive- Driven Impact on Business Strategy Create Market Differentiation Integrate into Line Mgmt Manage Efficiently/Effectively Prevent Problems Proactive Safety & Health Management Solve Problems Reactive Safety Management Program Sophistication/Maturity Creating Business Advantage Adding Value Compliance Fire Fighting TYPE OF VALUE ADDED Cost & Effort

20. Fleet Safety – Getting Measurable Results Fleet Safety Management System

21. Fleet Safety – Getting Measurable Results Who Is ServiceMaster?

22. Fleet Safety – Getting Measurable Results Who Is ServiceMaster?  ~$4 Billion Revenue  #1 or #2 in Markets – Residential & Commercial  ~40,000 Employees  ~26,000 Vehicles – Top 3 Private Fleets Class 1 – 8 Hazardous Materials  ~1,000 Company Locations - ~4,000 Franchisees  Six Sigma  Total Cost of Risk - $130 Million

23. Fleet Safety – Getting Measurable Results Born to Drive…

24. Fleet Safety – Getting Measurable Results A Little Short…

25. Fleet Safety – Getting Measurable Results Fleet Safety Management System 1. Leadership and Administration 2Employee Selection, Assessment, and Placement 3.Orientation and Training 4. Inspections 5. Accident / Incident Reports, Investigation, and Analysis 6. Work Rules, Procedures, and Permit Systems Elements

26. Fleet Safety – Getting Measurable Results Fleet Safety Management System 7. Occupational Health and Wellness 8. Insurance / Claims Management 9. Purchasing and Engineering 10.Communications & Promotions 11. Recognition & Rewards 12.Regulatory Compliance Management 13.System Evaluations Elements (continued)

27. Fleet Safety – Getting Measurable Results Fleet Safety Management System  Functional Leader Adequate Time, Training, & Resources Proper Reporting Relationship  Written Safety Management System  Policy Statement Safety, Health, Security/Loss Prevention, Injuries, Collisions, Substance Abuse, Regulatory, …  Responsibilities Functions & All Employees & Management Levels 1. Leadership and Administration

28. Fleet Safety – Getting Measurable Results Fleet Safety Management System  Accountability Integrated into Business/Priorities/Plans, Disciplinary Actions, MBOs, Performance Management, …  Employee Involvement Improvement Teams, Six Sigma, Safety Committees, …  Government Regulations Monitoring of Federal, State & Local Regulations 1. Leadership and Administration

29. Fleet Safety – Getting Measurable Results Fleet Safety Management System 2. Employee Selection, Assessment, and Placement  Application Requirements Company Specific & Regulatory  Minimum Hiring Requirements Experience, Collisions, Driving Convictions, Road Tests, Regulatory, Drug Test, Exam, …  Screening & Investigations MVR’s & Background Checks  Interview & Selection Process

30. Fleet Safety – Getting Measurable Results Fleet Safety Management System  Orientation Management Hourly  Training Classroom & OJT Management – Fundamentals of S & H Hourly Initial & Recurrent Training Vehicle Specific “Defensive Driving” Regulatory Compliance Topics Remedial Training 3. Orientation and Training

31. Fleet Safety – Getting Measurable Results Fleet Safety Management System  Three Prong Allocation Past Performance – premium allocation Current Performance - Deductible Charge Back System Incentive System – to get them to look forward  Employee Injury / Illness Management Process  Settlement Authority  Return-to-Work / Transitional Duty 8. Insurance / Claims Management

32. Fleet Safety – Getting Measurable Results Fleet Safety Management System  Vehicle Specifications  Technology/Tools GPS, Onboard Computers, Collision Avoidance (e.g. Eagle Eye), Recorders (e.g. DriveCam) “How’s My Driving?” Decals  Facility (Building & Equipment) 9. Purchasing and Engineering

33. Fleet Safety – Getting Measurable Results MEASUREMENT

34. Fleet Safety – Getting Measurable Results Goals & Measurement at SVM  What Do We Measure?  How Do We Set Goals?  How Do We Motivate Compliance / Performance?  What Do we Learn From Collisions, etc.?

35. Fleet Safety – Getting Measurable Results Goals & Measurement at Ryder  What Do We Measure?  How Do We Set Goals?  How Do We Motivate Compliance / Performance?  What Do we Learn From Collisions, etc.?

36. Fleet Safety – Getting Measurable Results Questions and Answers ?