Although many agencies have invested heavily in automation systems, many firms have yet to derive the full benefits that these systems have to offer. In this document, Sharon Cunningham discusses issues of installation, training, procedures, and management of automation systems to help you get the most out of your investment.
During the past several years, most agents and brokers have made large investments in automation and now have more powerful hardware, as well as enhanced software. Most have also added e-mail, desktop faxing, Microsoft products, and Internet access to their automation resources. Their financial investment has enabled the industry to interface with carriers and provide a more professional level of service to customers.
It hasn't, however, produced the paperless offices or created the efficiencies that were expected. The industry is still working with and relying on paper, duplicating information into various systems, and using cumbersome procedures. Most managers in the agency business are investing more dollars than ever on maintaining their automation systems, but not gaining the benefits they hoped for.
There are several reasons why the agency system is in this predicament, including installation, training, procedures, and management of agency automation.
AFTER SYSTEM INSTALLATION, THE AUTOMATION EFFORT MUST CONTINUE
The agency management system is the major investment in technology for most agents and brokers. As a result, agencies devote a lot of effort to choosing the right system and then focus on preparing for system installation. During the pre-installation period, managers and employees have committee meetings to plan, assign deliverables, chart tasks, and set target dates. When the complex and intensive process of installation is finished, management breathes a sigh of relief and considers automation to be implemented.
The belief that the process is finished, however, actually limits the agency's ability to gain the benefits the system can provide. Truly implementing automation is a process and not a one-time event. The planning, coordinating, and problem-solving that took place during installation must continue forever, not just until the 'going live' date. After installation, its essential to maintain an automation committee with representatives from each department. The committee should meet regularly to discuss issues and questions from their departments and then communicate information to the other employees. This type of participation encourages other line areas, such as Bonds, Life, and Employee Benefits to use the system. It also brings the automation support staff and users together on a regular basis to identify what custom work, system setups, or software integration need to be completed.
The key is to keep the focus on automation after installation. Without an automation focus and effort, employees and managers can become discouraged with the system and go back to their non-automated ways of working. If they begin to see the system as a necessary evil, rather than a resource, its unlikely that the agency will achieve its return on investment.
VENDOR TRAINING IS ONLY THE BEGINNING
The fact is that most agency employees are inadequately trained or not trained at all on their systems. If they were employed at the agency at the time of installation, they received basic training from the vendor, who taught them how to input data and process transactions. But they probably weren't trained on shortcuts and didn't receive training on certain modules, such as submission tracking, proposal generation, or management reports. If they were hired after the vendor training, they probably received no training, relying on other employees in the department to show them the basics. In agencies with high turnover, I've found almost no one who had any formal training on the system. To compound the problem, as upgrades to the system are installed, there's little or no training. Employees, then, don't know how to use the new features unless they take the initiative to learn.
To meet their automation training needs, agencies should have an in-house trainer. Depending on the size of the agency, the trainer position could be part time or full time. The best trainers are employees who know insurance and the insurance process, and have an excellent knowledge of the agency management system. Their skill sets should include good communications skills, the ability to present information in a logical format, and the capacity to document training schedules and plans. Working with the department managers, this person would develop refresher training or custom modules. The trainer would be the first person a new employee would work with. The message would be that using automation is so important that everyone will receive regular training.
YOU DON'T GAIN EFFICIENCIES BY AUTOMATING BAD PROCEDURES
In many agencies, automation has done little to create efficiencies. It's simply superimposed over already inefficient procedures. Employees are still maintaining and pulling paper files, as well as computer files, and transcribing the same information into various formats and systems. Most systems today give the agency staff the ability to use the electronic file as the primary file, to handle a transaction while the customer is on the phone, and to send and receive information electronically. However, employees won't use automated procedures unless they receive training and are evaluated on how well they use them.
Working in an automated environment can mean changing not only what's done, but who does it. A typical inefficient procedure in the past was the process of producing applications. Applications were handwritten by producers and re-entered into the computer system by CSRs. The efficient procedure is to have producers input their own applications into the computer. Another dramatic opportunity for increasing efficiency is to change who produces certificates of insurance. Agencies have moved from typing the certificate to producing it through the automation system. But automation systems now allow customers to access this information directly, usually through the agency's Web site, and produce their own certificates. Moving the certificate work to the customer creates significant time savings for the agency. And the customer is pleased to have 24-hour access to their information, as well as instant processing.
AGENCY MANAGEMENT MUST PROMOTE AND SUPPORT AUTOMATION
A golden rule of management is that people respect what managers inspect. Many agency executives don't feel confident or comfortable with the agency management system, and as a result, delegate it to IT or accounting staff. These individuals are capable of keeping the system running, but aren't knowledgeable about all of its capabilities nor empowered to implement them. To implement the system fully, a senior manager needs to champion the use of the system. The person who fills the role doesn't need technical knowledge or expertise on the system. They only need to know the system's major capabilities and have a good understanding of effective automation practices.
As the champion of agency automation, this agency executive needs to promote automated processing, encourage employees to do things the automated way, and motivate managers to use the wealth of marketing and management information the system can produce. Constant challenging of why an automated solution won't work and recognizing people who make the system work will go far to promote the automation effort.
The message in this article is that system implementation is an ongoing process that requires an agency to commit both resources and time. But the rewards in increased productivity, higher profits, and happier employees will be well worth the time and effort.