Article

Lead with the process

By Kim Wilkes
Executive Vice President

If you are a frequent reader of The Nolan Newsletter, you have probably noticed that one of our tag lines is “People, Process, and Technology.” These three subjects must be taken into account equally during redesign efforts, but too often the process part of the equation is handcuffed by organizational or technology constraints.

To optimize a process, the supporting organization and technology must enable rather than constrain. Case in point: think of the processes entailed in underwriting an insurance application (either life or P&C), issuing the policy, and the subsequent activities associated with keeping the policy in force. To truly redesign these processes, they should be looked at as two pieces: policy acquisition and policy retention. Policy acquisition is the process that lasts from receipt of the application to issuance of the policy to application of the payment. Policy retention includes the processes that are necessary to keep the policy on the books and satisfy the customer.

Too often, these processes are divided among various departments and multiple systems. This can create an environment where quality becomes an issue because of the multiple hand-offs; the “right hand, left hand” syndrome; multiple workarounds; and/or unacceptable service standards. Over the years, many of these issues may be exacerbated by multiple reorganizations or partial systems enhancements. Any meaningful process redesign should analyze the process steps for minimal hand-offs and optimal quality and service—doing the right things at the right time and for the right cost.