case study:  Insurance processing review

• A lack of profitability - the pricing model was agreed some years previously based on a multi-year outsourced model
• Cost- reduction initiatives were underway, but unclear whether these would deliver sufficient financial benefit

The organisation wanted to achieve target profitability (8%-10%) in less than 12 months. Lift efficiency and effectiveness of the core operations and cost reductions in broader business to meet over-riding objective.

A workflow management system had been implemented 2 years earlier and had been reasonably successful. However it had not been implemented in all areas.

Strategic
Develop scale – industry consolidation is happening; recognise it; merge with the number three player to combine and become a greater competitive force against the number one player.

Establish governance – put in place a governing board to drive a cold hard look at both internal performance and industry wide positioning.

Internal
Reconfigure the senior management team to overcome the extreme levels of defensiveness experienced (do they have something to hide?).

Take a closer look at IT costs and undertake a cost reduction program.

Apply the workflow management system to other areas and review other projects with a view to stopping or deferring non-strategic or low value projects.

The review provided deep insight into how the organisation was being managed. The formation of a board was underway soon after completion of the engagement. Work was also underway to consolidate with the number three player in the market.  Identified many areas for improvement potentially delivering 20-25% productivity improvement.