The ‘X’ Factor in Tech Change

As a broker, you’ve done the hard work of researching and selecting a Commercial Management System (CMS) for your office. Now it’s time to invest the money, sit back and reap the rewards of greater efficiency, right? Not quite. As anyone who has gone through a system implementation can tell you, it’s not quite that easy. In fact, the strategy you choose can spell the difference between successful take-up and expensive failure.

When people recount the reasons why technology projects miss the mark, they often cite technical errors or system incompatibility. These issues clearly exist with any software (or hardware). But they are also the most straightforward problems to solve. Testing, dry-runs and training can dramatically reduce, if not eliminate, most of the technical challenges in any given project.

NEW TECH IMPLEMENTATION

Many overlook how people, in the form of service staff, producers and even owners, can hinder and sometimes sabotage a technology implementation. Resistance to change is the biggest hurdle most offices face in introducing new software, plain and simple. At Policy Works, we are well aware of this obstacle and we have been able to help brokers address some of the common issues associated with new process, workflow and technology for commercial-lines management.

The standard reaction to change runs the gamut from “Oh great, another new program for me to learn,” to “How can I fit this into my schedule? I’m busy enough as it is.” Other typical comments include: “That is not the way we’ve done it in the past,” and “This won’t work at our office because Joe (or choose any other example of a senior executive here) has to sign off on all changes.” Far from being unreasonable, these are common human responses to change. There is a level of anxiety and nervousness about implementing a new system – particularly one that affects the day-to-day lives of CSRs, marketers and producers. Some people fight it tooth and nail; others accept it with resignation and drag their heels.

Although this reaction is understandable, it carries with it the potential to scuttle a major technology investment for brokers. This is where the people who lead change in a brokerage office – starting from the principal, and working down to senior managers – can strongly influence the approach, acceptance levels and enthusiasm of staff in confronting change. A clear rollout plan with active, visible leadership and open lines of communication can make a tangible difference in the success of any technology implementation.

MANAGEMENT PARTICIPATION

One of the first steps in confronting change is for principals or senior managers to clarify how new processes and revised workflows are inevitable with any introduction of technology. In the case of a new system, the point must be made firmly that its use is mandatory, not optional. The reasons should be explained concisely. For example, you might say that as brokerage management, you see a big opportunity in increased productivity, streamlined work processes, more professional submission documents and reduced E&O exposures. You have made a significant investment of time and money in the system, and you need staff to commit to a new way of doing business.

It is crucial to have a transparent, comprehensive rollout plan in place to overcome implementation anxieties. A clearly laid out plan guides the process and helps encourage adoption by staff. The plan should have clearly defined objectives, responsibilities and timelines to help employees absorb the demands of change.

The rollout plan certainly need not be the same for all brokerages. For example, one of the key tasks that consumes time early in the process of implementing a CMS system is the entry of all existing commercial policy information into the system during the first year. Some brokerages can decide to approach this task by easing into the transition with new business first and then renewals. Others may wish to invest more upfront in planning and resources, hitting the ground running by pre-entering existing policy information and completing a data conversion. Either option can work; they just require different levels of commitment and planning.

A key part of the rollout plan for the brokerage is appointing an implementation team consisting of a “champion” and technical contact. The champion is responsible for spearheading the implementation process and acting as a liaison between broker and vendor throughout the entire process. The technical contact should be versed in the system requirement guide and understand the implications of installing a new system onto the network and completing the server installation. Depending on the size of the brokerage, these positions may be combined into one.

TRAINING AND TECH

This leads to the absolute importance of communication to all those affected by a new system implementation. One of the best ways to overcome staff resistance to change is to explain how the new technology will affect their day-to-day work lives. Specific examples should be cited that show how tasks such as data gathering, submissions, endorsements and remarketing can be made easier, more consistent and more efficient. Senior managers shouldn’t simply tell staff that the new technology will make their lives easier; they should, with the help of the technology provider, demonstrate specifically how new software will improve turnaround and eliminate manual tasks. If your staff were not involved in the purchase decision, you should ask the technology provider for an overview special presentation for them prior to training.

The rubber really hits the road in training sessions for actual implementation. Attendance for all those affected by a CMS rollout should be mandatory; so should preliminary knowledge of the software. Getting staff to attend is one thing, but actively involving brokerage principals and/or senior management in any training session is a must. Senior management participation conveys to employees that the new system is an important part of a brokerage’s operations, not just a fad or management whim. The worst thing a brokerage principal or senior manager can do is to purchase a system and then “dump” it onto someone else to implement. The most successful cases occur when management is involved in every step of the process, including training.

Training should involve hands-on sessions to learn the system. Also, there needs to be a process for ongoing, post-implementation feedback. It is vital to keep lines of communication open through brief weekly meetings or even “lunch-and-learn” sessions that assess the use and acceptance of new technology and workflow processes. Principals and senior managers should be aware that new users invariably progress along a learning curve. Patience, encouragement and understanding are needed as users become comfortable with the system.

For broker principals, it is important to remain actively involved throughout the implementation – especially for the first six months to one year. There is a real danger of technical information and knowledge becoming “siloed” amongst one or two key employees. The challenge becomes particularly acute if these staff members eventually leave the brokerage. In this sense, ongoing participation and sharing of information throughout the commercial department should be encouraged.

Ideally, this implementation plan should be worked out closely with your solution provider. In fact, these are good due diligence questions to ask any CMS (or BMS, for that matter) technology provider in terms of training and ongoing service. A brokerage principal should be able to get immediate answers to what kind of implementation and after-sale support the vendor provides.

If they want technology implementation to be successful, brokers should put the same effort into a rollout plan that they do with research and product appraisal. Following some key steps can make the difference between a widely adopted system ope rating at peak efficiency and software languishing or used half-heartedly by resistant employees. Don’t think that simply because you bought it, they will come. You have to plan for participation.