EFFECTING REAL PERFORMANCE CHANGE THROUGH COACHING

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1 WHITE PAPER: EFFECTING REAL PERFORMANCE CHANGE THROUGH COACHING Even the best athletes improve their performance by reviewing game film with their coaches. As it turns out, the same approach works for drivers.

2 This whitepaper explores four major benefits fleet managers have seen from using in-cab video event recorders and safety programs as a risk management and coaching tool. 1. Strengthening the organization s safety culture 3. Decreasing driver turnover and improving HR effectiveness 2. Understanding driver learning curves 4. Reducing costs Adding context to coaching. Athletic coaches understand the value of game film in helping players review and analyze each step and misstep so they can perform better in the future. Similarly, an increasing number of fleet supervisors are realizing the power of video to help improve driver performance and safety, and reduce risk through better coaching. Technology has changed the way fleets approach driver coaching by enabling a more detailed view of what s happening on the road. However, systems like telematics only track events, like hard braking or speeding. To identify where there are specific coaching opportunities, particularly when a driver is repeating risky behaviors, you also need to understand why those incidents occurred. Imagine an athletic coach getting a report on each player s running time, goals scored, penalties, etc., and trying to make future decisions without having seen a single minute of game footage. Was there a bad call? How were the field conditions? What were the opposing players doing? Without visual context, an athletic coach is missing the full story. The same is true on the road. Safety managers can t ride along with drivers at all times to provide on-the-spot guidance. Video event recorders are the next best option, helping drivers take note of even minor mistakes that could eventually lead to major consequences if not corrected. This helps coaches gain a better understanding of where their time is best spent. BENEFIT 1: Strengthening the organization s safety culture. Video event recorders can help reveal a variety of behaviors some worthy of positive recognition and some that need adjustment. For behaviors in need of coaching, your approach can make all the difference. Spending the time to review video clips with drivers shows them you re making an effort to help them improve. Drivers who understand that you re focused on their safety, not on taking disciplinary action for every infraction, are more likely to respond to coaching. They re also more likely to let you share their video footage with other drivers as a training tool. This helps build a culture of trust and fosters a collective emphasis on improving safety. As one of the nation s leading distributors, US Foods built a safety-driven company culture by using a video-based safety solution. As a result, the company saw a dramatic decrease in unsafe driving behavior. Case Study: US FOODS By the numbers: Total associates: 25,000+ About: Total locations: 60+ Fleet size: 6,500+ A leading US food distribution company servicing restaurants; healthcare, hospitality, government & educational institutions

3 With a 6,500-vehicle fleet consisting mainly of 28- to 53-foot tractor trailers, US Foods wanted to increase safety fleet-wide. Within six months of implementing a program that used in-cab video technology as a coaching tool, the distribution company cut the number of minor vehicle accidents and worker compensation claims in half. Using this coaching method also helped the US Foods fleet reduce risky driving behavior by 70 percent. Looking for a way to improve its driver training program, Crowder College piloted a video-based safety program to see if it would be an effective coaching tool. James Wooden, Curriculum Coordinator for the Transportation Training Dept., said that viewing video is now one of first things he does when coaching someone new. This type of early usage helps instructors see if new drivers are understanding the principles being taught. Beyond that, it takes lessons from theoretical to practical. We can say to new drivers, See where your trainer is looking right now. See what his eyes are on. Where are you looking? How far ahead? Wooden said. It helps them to see as a professional driver sees. It helps them to become aware of what I call the cliff edge, the point at which a behavior could become dangerous the point at which an error is about to occur. Now we can look and see what s happening, and change the behavior before the accident occurs, said Herb Marlowe, safety manager for US Foods. We can see that behavior, and instead of changing the driver through discipline, we can help them proactively see what they re doing. BENEFIT 2: Understanding driver learning curves Watching video footage is a particularly effective training tool for novice drivers. It can also give coaches a clear look at each driver s learning curve, revealing how quickly each driver improves after viewing footage compared to others who made similar mistakes. This helps create more effective, targeted training programs. Case Study: CROWDER COLLEGE Background: About: Two-year community college offering a wide range of degrees and certifications, including professional driver training Crowder College s coaches use the video in targeted ways to reinforce specific learning objectives. Wooden says specific routes are mapped out to provide critical teaching moments, which are captured on video when the student is behind the wheel and the coach is in the passenger seat. Following the test drive, the coach and student sit down together to analyze what went right or wrong. Now we can look and see what s happening, and change the behavior before the accident occurs. Instead of changing the driver through discipline, we can help them proactively see what they re doing. BENEFIT 3: Decreasing driver turnover and improving HR effectiveness It s true that drivers can feel uncomfortable with the idea of in-cab video event recorders, at least at first. But drivers quickly experience increased morale and job satisfaction once they see how video enhances coaching and creates a more accurate system for gauging their performance. People thrive when they re recognized for good work and improvement, and when they feel their companies are investing in their safety and growth as employees.

4 Removing the possibility for personal interpretation of events is especially helpful when addressing issues created by personality conflicts. Let s say, for example, you ve encountered an employee who feels that he or she has been harshly criticized or has received unwarranted feedback. With in-cab video footage you have indisputable video evidence, allowing you or your HR staff to facilitate an unbiased coaching session that s based entirely on the facts at hand. Case Study: DECRESCENTE DISTRIBUTING By the numbers: Distribution size: 11 counties in Upstate New York Delivery counts: More than 10 million cases of product annually Fleet size: 60+ vehicles this save potentially hundreds of thousands of dollars in lawsuit fees and vehicle repairs, but it also protected the drivers. With the last few accidents, it showed our guys in the right, which was very impactful, Turcotte said. DeCrescente had originally turned to the Lytx DriveCam program as a precautionary measure, to help alleviate mystery damage and to ensure drivers were adhering to the strict no-tolerance policy on cell phone use. It paid off, helping to better protect the company and its drivers. The video footage revealed that despite the policy, drivers were in fact using cell phones while on the road. Turcotte said that thanks to documentation from the video-based program and proper driver coaching, the company has not had to terminate any drivers for failure to adhere to its no-tolerance policy. Instead, coaches can work closely with each driver on individual performance needs. Beverage distribution company DeCrescente Distributing has experienced less driver turnover since implementing video event recorders in its fleet. In the midst of one of the worst driver shortages in trucking history, fleet managers know how crucial driver retention is, especially when it comes to quality drivers. [Video-based driver risk management] isn t a monitoring system, it s a behavior system, said Tom Turcotte, Vice President of Operations for DeCrescente. It changed the Drivers quickly experience increased morale and job satisfaction once they see how video enhances coaching and creates a more accurate system for gauging their performance. behavior of our drivers. They drive differently, act differently, and handle themselves differently in vehicles. Turcotte said that in multiple cases, DeCrescente has also been able to prove their drivers were not at fault in what turned out to be fraudulent or false claims. Not only did BENEFIT 4: Reducing costs Improving safety through effective coaching and reducing costs go hand-in-hand. That cost reduction is realized through decreased collision costs, less vehicle wear and tear, and increased fuel efficiency, and less driver turnover. Costs associated with collisions Every year, the rising cost of raw materials, new-vehicle technologies, parts and labor, and additional components for parts assemblies increases the costs associated with collisions. A 2014 study found that crashes in the US cost an estimated $836 billion in economic loss and societal harm, according to the National Highway Traffic Safety Administration (NHTSA).¹ And the average cost to employers for an on-the-job crash is $16,500, not including the cost of accidents involving an injury or fatality, which is substantially more.

5 The best way to reduce costs associated with collisions is to understand the behaviors that are putting drivers most at risk and change them. Nearly 80 percent of crashes and 65 percent of near-crashes involve some form of driver inattention within three seconds before they happen, according to a 2006 NHTSA study.² Now consider this: A 2014 study conducted by The Virginia Tech Transportation Institute (VTTI) evaluated a sample of crashes from 2010 to 2012, looking at the potential reduction in crashes in large trucks and buses in the US had those vehicles been using the DriveCam safety program. The findings were significant: More than 800 lives could have potentially been saved, nearly 40,000 injuries prevented, and more than 25,000 collisions avoided during that time period. Safety programs that focus on the drivers make all the difference. The best way to reduce costs associated with collisions is to understand the behaviors that are putting drivers most at risk and change them. Reducing vehicle wear and tear When drivers are aware of the potential to trigger video, they drive more carefully. The result is lowered costs associated with vehicle wear and tear. For example, with drivers more aware of their performance, DeCrescente has only had to replace one tire damaged by a driver within the last two years. Trucks go on and off curbs all the time it s one of the hazards of the industry and common among all fleets, Turcotte said. My drivers are much safer drivers with the DriveCam Safety Program. They go over curbs more slowly so the event recorder won t trigger. Improving efficiency Safe driving also equates to more fuel-efficient driving. According to a 2011 study from the University of Michigan Transportation Research Institute, driving at high speeds can negatively affect fuel economy by as much as 30 percent, while aggressive driving like hard braking, cornering and rapid acceleration can negatively affect fuel economy by 20 to 30 percent.⁴ But it s just as important to know the root causes of those behaviors as it is to know that they re happening at all. Maybe the driver was hard braking to avoid a bicyclist who appeared out of nowhere. Only video can give you that unbiased information. SUMMARY How the DriveCam Program delivers these results Maintaining a fleet of top-notch drivers requires a comprehensive, proactive approach to safety and coaching. By combining cutting-edge video technology with patented analytics, the Lytx DriveCam Safety Program helps identify opportunities to improve driver performance through coaching. It also helps effectively manage driver risk by predicting which drivers and behaviors are most likely to lead to collisions, so you can focus your coaching time where it s most needed. With better training comes better drivers, and with better drivers comes a better bottom line. To find out how Lytx can help you transform your fleet operations and get your drivers home safely, go to lytx.com. RESOURCES ¹ National Highway Safety Administration, New NHTSA study shows motor vehicle crashes have $836 billion economic and societal impact on US citizens, last accessed January 2016, billion-impact-on-u.s.-economy,-society ² National Highway Safety Administration, Research on real-world driver behavior released, last accessed January 2016, Driving+Safety/Distracted+Driving+at+Distraction.gov/Breakthrough+Research+on+Real-World+Driver+Behavior+Released 3University of Michigan Transportation Research Institute, Sivak, Michael and Schoettle, Brandon, Eco-driving: strategic, tactical, and operational decisions of the driver that improve vehicle fuel economy, UMTRI , August Lytx, Inc. All rights reserved.