Today’s business climate is highly competitive. Companies are seeking new ways to gain an edge in the market. Unfortunately, many insurance companies are still encumbered with new and old legacy systems that force work arounds that inhibit digital transformation and undermine productivity and progress. A structured examination of an organization’s business operating model, processes and technology can bring about a significant organizational transformation. A systematic review of your enterprise provides an orderly progression to enable your organization to have breakthrough success.
Understanding what makes your organization unique
Your company is a unique entity driven by the way you interact with your customers and the internal culture which has been established. Identifying these unique factors will help you to focus on where key investments need to be made and will uncover other non-differentiated areas requiring less investment.
New technology is only part of the answer
We all understand that technology is changing rapidly, but so are all of the other aspects of your business. People and customers are changing. The way they desire to interact and communicate is changing. Distribution channels and processes are changing. Investing in new technology without a controlled method of examining all the important business pieces as well will not bring about the organizational transformation necessary to realize your organization’s goals into the future. Understanding how new technology will enable the people and the processes is critical.
There are many factors which can create the need for business transformation. These would include remaining competitive in the market, improving the customer experience, obsolete systems, too many systems, mergers and acquisitions, staff alignment and business expansion, to name a few. Keeping that in mind will help everyone in the organization to adjust expectations and begin to think about the big picture before diving into the complexity of the details.
Understand the customer and the market
Today, customer expectations have dramatically changed. Companies such as Amazon have challenged all markets to demand a better customer experience. Insurance can be a complex product which has complex distribution. It may be one of the last industries not to have been fully disrupted. Having a vision for the customer experience you want and need to provide is critical.
Understand your own business model and architecture
Begin with an examination of your business model and define your own Insurance business architecture. Evaluate where your business model can be disrupted. Clearly identifying your business drivers and understanding your present operating model is an important first step. The alignment of your technology, functional processes, the scale of your business and the maximization of the use of information in the future are important to being successful in the transformation. Consider how emerging technologies can be embraced to help you reduce complexity.
Be clear on where you are headed
Cleary define your “goal state.” Bring clarity to the results you want to achieve at every level of your business. (Strategically, Operationally, and Functionally). If new technology is required, you are now in a position to choose the appropriate tools. These steps provide a solid foundation for the transformation process.
Build a detailed transition plan
A detailed transition plan helps communicate to all parties involved what is going to happen and when. All good plans should include accountabilities, timeframes and specific check points. Transition plans should include people, process and technology.
Be sure to maintain transparency throughout the work-streams and transitional state progression by establishing a strong executive communication plan. Naturally, budget and standard project management disciplines need to be maintained throughout.
Enable your people
People are an important component in the transformation process. It is critical to assess the readiness of the organization to embrace change. The readiness of the organization is defined by the skills, capacity and ability to learn.
Measure and manage the transition
There is one last important thing to remember to get to your “goal state.” Measuring and managing the transition to the “goal state” discussions will provide key indicators to help you arrive there. Remember the adage that “you achieve what you measure and manage.”
Does your organization need more information on how to build an Organizational Transformation Framework? WiKiFri helps organizations transform outdated business models, technology and processes into modern, agile, ready-to-grow businesses with advanced systems and architectures. Find out more about how WiKiFri can help your organization. Contact Bill Freitag at email@example.com.