Culture And The Impact On Technology Results For 2018
The gap between the level of technological change and the level of organizational culture change needed to leverage technology is a substantial factor in risk and claim automation success.
Risk and Claim technology solutions have changed much faster over recent years than the capabilities of the average internal risk or claim management staff team to execute it. Why? Changing culture takes strong leadership, personal risk, and new organizational processes. But it is worth it.
The fact that the average RMIS and Claim system is often over seven years old typically means there are obsolete workflow tools, outdated processes and skill sets that need to change as much as the technology. There are often common culture profiles slowing the progress of risk and claims technology results. Each of these culture profiles can be improved or revitalized as part of building your high-performance culture.
- Resistance to Change – Old systems and a workforce resistant to even small changes can stifle efficiency and cause teams to fall into “status-quo” results on a year over year basis. Workers in this culture are often not inspired or required to accept new technology change regardless of benefits or return on investment. The cost of this culture and behavior can be illustrated when management measures the wasted costs or the related lost opportunities for improvement this workforce culture creates. By example, a simple ten percent productivity improvement of staff time from using new workflow processes is often a hundred thousand dollars or more in savings. Another example is not implementing or upgrading data interfaces that ultimately reduce productivity and lower responsiveness on claims and risk results.
- Underfunded & Under Measured– For many organizations the fact is they often have not secured budget funding at the level appropriate to the risks and costs they are expected to manage. By comparison, a common insurance company might allocate 5% of their Gross Written Premium (GWP) for technology each year. Most Risk Managers have no similar ongoing metric that gets funded each year. Funding for technology improvements are done with a one-time purchase as a special event process. This underfunding of a high-performance technology culture impacts user skills, data interpretation, workflow improvements and often limits technology access to a just a small core group of funded users. So why not define a stronger per user spending level, or a per claim cost spending metric for technology investment, or a per risk topic spending targeting X% improvements in Indemnity and Expense areas. Making a larger investment is a smart investment for increasing your level of success building a high-performance culture.
- No Project Sponsor or Champion. Leadership and strategy can make or break a large tech implementation. Someone needs to determine the metrics for success and stay with the team through the hard work of integrating the system into the organization. Leadership can now also use dynamic real time Key Performance Indicators (KPI’s) to provide instant on data that allows for quick and agile staff performance. Stronger leadership integration into best practice KPI’s helps technology deliver stronger benefits and supports the culture of high performing teams.
- Restricted and Platform Constrained – Open technology platforms are more secure than ever, so relying on old scripted data push / pulls are a waste of time. Faster compliance, intake, and reporting are all the result of an open, integrated system. Meeting new levels of compliance in CMS, EDI, OSHA, Medical Data management and other forms of compliance, requires a more open technology platform with external data sharing and subject matter expertise. The same applies to portal links for faster intake of risk and claim data. Winning risk and claim cultures are the ones embracing this more open and dynamic type of technology platform.
Solving For The Outcome
If culture is important to realizing technology results, then equally important is supporting the culture participants with higher levels of support services. Creating a higher performing culture includes leveraging soft cost topics in implementing a risk or claims management system changes. The recent blog Soft Costs In RMIS & Claim Automation Projects highlights the areas that can ensure your success supporting a high performance culture by overcoming common risks of technology services. These soft costs risk areas like data transition, training, internal project management, user interface configuration and ongoing service, represent the majority of topics that determine project outcomes and success. They also promote an increase in staff efficiency and staff effectiveness which is a core need for any high-performance culture.
Modern Risk, Policy and Claim Management Software helps makes your staff and culture more agile. Dynamic charts and graphs and analytics, allow users to see progress in real time. The key is using these technology tools to also create a high-performance culture within your team that will meet new challenges and reduce the total cost of risk.
For more ideas on how to create a high-performance culture to drive winning results with technology for risk and claims, contact Mark Dorn at 978 729-7539 or via email at email@example.com