As insurance companies seek to transform their organisations, their success can be measured using different metrics. Insider Engage talks to Jason Nash, vice president of consulting services at Emergn about how insurance companies assess the outcome of their transformation programmes.
For an insurance company, ensuring it delivers a successful transformation programme is dependent on what it expects to achieve.
“Many of our insurance companies are looking at gross written premium to measure their success. Sometimes they're looking for a customer experience that has been improved with an online product,” Nash said.
“In many cases with any change programme the key things that we're looking to do is win people's hearts and minds and bring people on that transformation journey with us.”
There are also various tools and models that can be implemented so clients understand the process, however it’s crucial to have the right metrics in place, according to Nash.
“We might be using tools such as Kotter’s eight stages of change, or other models to help our clients understand that. We need to focus on the people first and how their interactions are driven by their neuroses and their own insecurities,” he said.
“Often we see change programmes undermined by team members who didn't necessarily buy into the change at the beginning of the process, which is why the right metrics to put in place to measure the change programme are so critical.”
Different metrics can be applied to different scenarios and can be differentiated as leading or lagging metrics.
“A great example of leading a metric might be something like net promotor score (NPS), where you're looking for customer satisfaction. That can be a great leading measure for future sales performance.
“It's also about making sure that you recognize that lagging metrics sometimes have their place as well. Revenues is clearly a very important metric for many businesses. It's one of the lagging metrics, but it's one that again people want to have an understanding of where that fits in the in the picture for them. “
While using these metrics are very a valuable way to assess how a company is performing, it can also be challenging.
“When we work with new clients, we often encounter companies that will have tens of metrics and in some cases, those metrics are driving conflicting behaviours,” said Nash.
“The precision of metrics can definitely be a challenge, where we see people who are obsessed by making sure that every metric is correct down to the individual item. While other challenges with metrics might be around manual collection of the data.”
Learn how Emergn help clients own their transformation and create high-performing teams at emergn.com.
