By Marc Lanzkowsky
– March 25, 2014
Collaborating Can Make The Successful Difference
In Leadership: The Change Process In Claims Requires A Different Approach, I put forth the position that changing a claims organization needs a new brand of leadership skill that does not usually exist in the traditional claims organization. In Part 2 on Leadership: Developing a Strategic Transformation Team, I addressed how to break from existing management process to achieve effective strategic results. In the final installment, I discuss how challenges around leading change make it beneficial to bring in strategic support to help achieve the desired success.
Additional Challenges in Leading Transformational Change
Oftentimes, managers are too close to individual problems to have the necessary perspective to see what needs to be done to benefit the whole organization. As a result, many fail to achieve true Strategic Transformation.
There are three main reasons why building Strategic Transformation can be such a challenge:
- Lack of Independence – Management has political ties and history within an organization and are not always free to ask the sometimes difficult questions and make recommendations that are truly in the best interests of the organization.
- No Objectivity – Often companies are attached to their existing organizational and procedural structure. Despite very good intentions, it is human nature for individuals to get emotionally connected to a particular method of doing things. Management can be entrenched with emotional or political agendas as to how things are being done. Change requires an objective, fresh viewpoint–without worrying about what people in the organization might think about the results and how they are achieved.
- Limited Experience –Strategic Transformation requires a set of skills that combines project management with a strategic sense of determination. Managers have experience and skills on how to execute what has been done but lack the depth of knowledge to execute change that transforms their organization. Most claim managers come from a purely technical claims handling role and may lack experience addressing organizational problems, thus failing to grasp all the process concerns of their own operations.
Facilitated Strategic Transformation to Achieve Success
Bringing in an expert from outside the organization is one way to jump-start the Strategic Transformation process. Independent, objective experts can help facilitate the building of teams and focus the organization on successful, rapid implementations. In addition, the best facilitators will have specific capabilities in managing large scale project management, and insurance industry specific knowledge with proven methodologies in management. Such facilitators can:
- Identify Problems – Sometimes employees are too close to a problem inside an organization to identify them. Facilitated sessions can help draw out what many in the company already know but could not see.
- Supplement The Staff and Minimize Disruptions – Getting staff to focus on problems is difficult when the call of everyday business comes. Having a dedicated independent resource helps to balance those situations and ensure projects move forward on time and on budget. Delays can have disastrous effects down the chain and across other projects. Supplementing staff can help avoid these pit falls.
- Objectivity Allows 3rd Parties to Act as a Catalyst- Most employees resist change. Regardless, change is needed, and an independent may be brought in to “get the ball rolling.” In other words, the facilitator can do things without worrying about the corporate culture, employee morale or other issues that get in the way when an organization is trying to institute change. They can also be there as the independent voice to validate how the change will help improve the organization.
- Inject New Ideas – A fresh set of eyes can bring experiences from other transformation projects to inject new change ideas. At one time or another, most businesses need someone to administer “first aid” to get things rolling again.
The Time to Change is Now
In today’s market it is harder for insurance companies to distinguish themselves from competitors. For companies to gain an advantage, carriers must adapt to changing market conditions, embrace technology and further expand their use of data analytics. Moving rapidly to manage change requires new ways to manage multiple initiatives. Strategic Transformation is a method for meeting these challenges and ensuring that projects are rapidly deployed on time and on budget.
How Have You Tried to Move Your Organization Through the Change Proccess?
Posted in Strategic Planning.
Tagged with Best Practices, Claims Management, Claims Operations, Expense Management, Innovative Thinking, Strategic Planning.
Part 2 on Leadership: Developing a Strategic Transformation Team
March 17, 2014
Posted in Strategic Planning.
Breaking from the linear approach to management is the key to leading Strategic Transformation. A standard organization will have a head of claims and then a variety of department heads to manage each line of business. Depending on the company there may be additional senior managers to handle various operational aspects of the group, which may include support staff, call center, technology and data analytics. Under this method, projects get initiated and managed within the same linear organizational framework. The result of this approach is a development process built in a silo that limits input and understanding of possible interdependencies that may exist outside the framework. In this post we will explore further how a strategic transformation team is formed and can be effective.
Leadership: The Change Process In Claims Requires A Different Approach
March 10, 2014
Posted in Strategic Planning.
Successful organizations are always changing and adopting to improve their operations, lower costs and increase efficiencies. Claims departments are no different and have been under pressure to transform their operations and live by the mantra of doing more with less. Good claims organizations continuously evolve and adapt to ensure they add value to the overall business. Regardless, changing to meet the challenges of the marketplace is often fraught with problems and difficulties. Many initiatives fail to get off the ground or fail in the implementation process. Change can be very successful and if managed and led correctly. To change effectively there must be a strategic approach and a change in how these initiatives are led.
Claims Challenge: It’s Time for a Change – Are You In?
January 14, 2014
Posted in Commentary, My SPOT, Strategic Planning.
Here’s a challenge! Let’s redesign the claims industry. Yes innovation has improved the world of claims over the past few decades to make claims more efficient. As recent catastrophe’s have shown, the industry is much better at responding to losses than in years past. Regardless, claims functions in an assembly line approach. This has of course been a huge improvement and like manufacturing has helped to produce a better more consistent product. Today’s world allows us to collaborate more so my challenge is to tap into your collective experience and come up with even better ideas. What do you think?
4 Keys to Managing a Successful Outsourced Claims Operation
October 30, 2013
Posted in Best Practices, Compliance, Due Diligence, SPOT on Issues.
All things being equal there are many fine TPAs in the market that will provide wonderful service to your insureds in a cost effective and comprehensive manner. Initially you think you have chosen a good one. However, as time goes on you realize you are not exactly getting what you expected from your TPA. So what happened?
It matters little what your reasons for outsourcing were. Bottom line is if you didn’t take certain steps to properly select and manage a TPA you are likely to end up with problems. The partnership you form with your TPA will be fruitful if you take key steps to select and manage them in a way designed to foster long term success.
Learn how in our latest post!
Kindergarten Management: Getting Back to the Basics
June 10, 2013
Posted in Best Practices.
Everything we know in life started back in kindergarten. Kindergarten is where we learned to socialize in groups, lived by rules, played well with others, managed time, took turns asking questions and listened to authority. Success and creativity were rewarded and failures became further learning experiences. The more I thought about this recently the more I realized that kindergarten is a perfect example of a well-functioning organization and management.
We can lean a lot by going back to kindergarten. Bear with me take a look how this would apply in a claims department.
Claim Files Are Evaluated Using A Form Of Root Cause Analysis So Why Not Do The Same When Evaluating The Department?
March 5, 2013
Posted in SPOT on Ops.
Similar to a claim file analysis, operational problems require an assessment as to what happened, how it happened, how could it have been prevented, who was at fault, what’s it going to cost to fix the claim and are there any lessons learned. For example, let’s say payments are being delayed resulting in fines being assessed against the department. If one looks at the fines as a claim one would want to determine what caused the fine? how did it happen? and how can it be corrected? An analysis of the “claim” needs to take place prior to making any decisions. Why not use these smae claim evaluation techniques to understand the operation? In our latest post we give a suggestion for doing just that.
3 Things Good Claims Professionals Won’t Do
January 24, 2013
Posted in Best Practices.
I have audited a lot of claim files over the years and one consistently good claims professionals manage their claim files following best practices. And when looking at these files there are certain patterns that develop. Good claims professionals don’t fail to document, assume things they don’t know and always stick to the basics. Our latest post gives three examples of things NOT to do to become a good claims professional.
How Would Albert Einstein Approach Claims
January 3, 2013
Posted in Best Practices, SPOT on Ops.
Who knew Albert Einstein was a claims professional? OK maybe he did more important things in this world but some of his most memorable quotes could certainly apply to a claims organization. “Nothing happens until someone does something” as he has been quoted so make it happen and readt our latest post.
4 Areas Of Concern From The Latest Insurance Executive Conference
December 12, 2012
Posted in Commentary, Strategic Planning.
Recently insurance leaders came together at the 23rd Executive Conference looking at “Driving Growth in the Life and Property-Casualty Insurance Markets.” Throughout the conference 4 themes seemed to permeate: Data and technology, regulatory environment, climate change and social media. It would seem these issues will with the market for a while. Take a look at our brief overview of the conference.
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Posted in Commentary, My SPOT, Strategic Planning.
Here’s a challenge! Let’s redesign the claims industry. Yes innovation has improved the world of claims over the past few decades to make claims more efficient. As recent catastrophe’s have shown, the industry is much better at responding to losses than in years past. Regardless, claims functions in an assembly line approach. This has of course been a huge improvement and like manufacturing has helped to produce a better more consistent product. Today’s world allows us to collaborate more so my challenge is to tap into your collective experience and come up with even better ideas. What do you think?
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