Evaluate Workflows In The New Workplace

Let’s start with the Internet. A few years ago, only a handful of agencies, companies, and customers used the Internet. Then, gradually, more and more of us built Web sites and started using e-mail. Now, most of us prefer e-mail to old-fashioned ways of communicating — snail mail and fax. E-mail didn’t just happen overnight. It evolved.

The same holds true of other e-commerce applications. The more clients ask for the ability to process routine transactions, such as certificates of insurance or claims requests online, the more widely these services will become available. Demand drives supply.

E-commerce is quietly eliminating the technology boundaries we’ve lived with in this industry for years. Geographic boundaries are disappearing. The workforce is changing as technology allows for job sharing and telecommuting. Streamlined processes are replacing clerical work.

As e-commerce introduces itself into our industry, we’re seeing another important change: the shift from data to information. Everything used to be about data. We purchased agency management systems to manage our data. We spent the first year loading our data. Then, we were (and still are) deeply disappointed at the quality of the output: applications full of errors, schedules with either too much or too little information, sloppy formatting for integrated proposals — you name it. The promise of technology from a database standpoint was (and remains) sadly lacking.

But as e-commerce makes its entrance, data is becoming less important. Information has become the key. And we have plenty of information. Today’s agency management systems make it easy to manage information and to store it in a variety of formats. You can select the format that best meets your customer’s needs. Information is available at your fingertips if you implement your system properly.

So, how will things change? What will be the impact? Nobody knows. But there’s one thing for sure: your agency management system must become the primary source for all insurance transactions if you’re to survive the changes e-commerce is creating. If you rely on paper, and if your service and sales staff don’t how to serve your clients from electronic files, you won’t be a player in the long run.

E-commerce requires your agency to identify and implement its processes and procedures. You must evaluate your workflows to ensure that you’re using available technology to offer your clients superior service. The new workplace is constantly changing with the introduction of new technology. The key is to have a workplace that can easily change and adapt as needed.

REVIEW YOUR WORKFLOWS

From a workflow perspective, what must you do to prepare your organization for e-commerce? First, review your current workflows. Interview each service provider in every department. Follow each process from start to finish, from the initial phone call or piece of mail to final communication and documentation. Are there any hand-written notes? What happens to them when the process is completed? Who handles the request? Is it passed off to another? What role does the agency management system play in the process? What role does the paper file play in the process? Are transactions duplicated in both the electronic file and the paper file? Why?

These are just a few of the questions regarding your current workflows. The point is to identify areas where the process is inefficient. Here are some typical findings in Commercial Lines:

1. The paper file is the primary source for all transactions. The agency management system is used to facilitate processing paper. Integrity resides in the paper file.
2. Redundant files abound. The computer database, paper file, and Word and Excel files — each contains important information in a different format. Each service provider maintains these redundant files differently.
3. The roles of service providers and production staff overlap. There’s no clear ownership of routine processes. Everyone has their hand in transactions. Ownership passes back and forth — usually not in a timely manner.
4. Everyone wants training in Word, Excel, Outlook, and the agency management system.
5. Procedures are documented, but no one follows them. There’s limited access to written procedures and updates are difficult to distribute. No one really knows the guidelines or is held accountable for following them.

Once you’ve identified the problems, create an action plan that outlines how you’re going to solve them: the details, the resources needed (staff and financial), and a time-line for completion. I like projects that take about 90 days to complete.

Make sure you know where you’re going and what changes need to occur before you proceed to create new workflows for the new workplace.

CREATE NEW WORKFLOWS

The process is quite simple. Getting a commitment from management to spend the time and resources required to develop workflow properly is the tough part. Until you have this commitment, don’t start. It takes a lot of effort to develop sound, integrated workflows. Management commitment is the single most important step.

Once you have the commitment of your managers, identify the processes you’re going to address. It’s best to start slowly. Complete — and implement — these workflows before you go to the next ones. I’d suggest starting with the certificate, endorsement, and renewal processes.

Next, create a task force of service providers and production staff. The more people you can involve in the process, the easier the implementation. I prefer a large task force with two subcommittees: one for certificates/endorsements, one for renewals. Always include a producer on the renewal subcommittee.

The first task force meeting should include both subcommittees. Use this meeting to set ground rules: the roles the task force members will assume, confidentiality issues, and update procedures. I’d recommend assigning a facilitator, note taker, and timekeeper for each meeting.

It’s also important to create a format for workflow documentation. Each procedure (certificates, endorsements, and renewals) should have a set of service standards that includes workflow checkpoints and expectations for turnaround time. Once you establish standards, identify workflows that need development. For example, the endorsement process includes three workflows: ordering, receiving, and second requesting.

For each workflow, answer these questions:

1. What’s the purpose?
2. Who’s responsible?
3. What’s the follow-up?
4. What standard letters are required?
5. How will any paper be filed?
6. How will electronic forms or letters be filed?
7. Is there a notation to the electronic file? If so, what coding and descriptions are required?
8. What output will be generated?
9. How and to whom will output be distributed (e-mail, snail mail, fax, etc.)?

Once you’ve answered these questions, develop the workflow steps. Here’s an example of the workflow steps for ordering an endorsement:

1. Click on Options, Change Request. If endorsements already exist, click File/Add
2. Make appropriate changes to coverages and/or schedules

• Click Update Client Screen Address
• Enter coverage information and additional interests
• Verify that Comp and Coll deductibles are properly selected

Click File/Print

• Change producer code to CSR

• Always update immediately

• E-mail or fax the request

Update desc field with date, A/D/C, brief desc of change, last 4 digits of VIN

• Pend for 91 days
• Include source of request in the Notes
• Include effective date
• Include last 4 digits of VIN#
• Add to history

Update activity detail

• Include source of request in the Notes
• Pend for 91 days
• Enter the CSR for follow-up

1. Preview change request. E-mail or fax to carrier
2. Send confirmation to insured
3. File paper supporting documentation in the t-file

• Any manual notes taken should be entered as activities and discarded

Workflows should be online to simplify access to workflow documentation. Bulky procedures manuals are a thing of the past. Be sure that service providers have instant, "just in time" access to workflows. Online workflows also make it easy to update changes as required.

Once you establish your new workflows, the task force doesn’t go away. As e-commerce makes its way into our industry, you’ll be positioned to implement the new workflows easily. So, when you decide it’s time to implement certificate online, just bring the task force together. They’ll revise your workflows for easy implementation. It’s no big deal. You’re ready to implement change when it makes sense for you. This would be impossible if you were still relying on paper.

Creating new workflows for the new workplace is a process. If you have a good foundation, you’re ready.