Bringing About Change

Have you ever felt like it is “off with your head” if you suggest doing something differently? All industries are like that, but the insurance industry may be more than most.

After all, the insurance industry has a fiduciary responsibility to it customers that goes beyond other industries. Ultimately the industry is responsible for the financial, and some would say emotional, security of its customers. Millions of individuals and hundreds of thousands of businesses are counting on the players in the industry to provide the soundest and most cost effective risk products possible. When there is a claim they all expect fast, efficient and fair closure. These are indeed serious matters, but we should not let the weight of those responsibilities hinder us in the quest to improve the industry with new thinking. Nor should we be afraid of change. Everyone I talk to in the industry says change is coming — “big time”.

The creation of an environment and the processes implemented to successfully implement change in any organization, is called “change management”, and it is no small feat. Nowhere can it seem more formidable than in the introduction of new technology. In this case, the challenge is to blend the human considerations with the new technology with positive synergy for the company. In a recent study, companies identified that internal resistance to change was by far the leading barrier to productivity gains with the introduction of business-to-business software. It was not poorly designed software, difficult user interfaces, or poor integration to existing legacy systems. It is the staff’s willingness and ability to change their ways of doing things that determines success.

Three processes

Change management deals with three processes: “unfreezing”, “changing” and “refreezing”. These processes sound simple, but if you consider the many variables and unique composition of every organization, it is a daunting task.

The inevitable demand to maintain performance throughout the change can make it even more difficult. Everyone has experienced a poorly managed change process at some time in his/her career. No wonder people are resistant to change, and therefore it is no wonder they will tend to “shoot the messenger” bearing new ideas that require change.

Essentially, what many organizations lack are all of the skills to effect the change and an understanding of the formal methodologies of change. A comprehensive set of skills is required to successfully navigate a large change management project including analytical, political, people, systems and business skills.

Which strategy or combination of strategies should be used? The table below is referenced from Bennis, Benne and Chin from their book “The Planning of Change.”

People are rational and will follow their self-interest — once it is revealed to them. It is therefore logical to assume that change is based on the communication of information and the offering of incentives.

People are social beings and will adhere to cultural norms and values. Change is based on the redefining and reinterpreting existing norms and values, and developing commitments to new ones.

People are basically compliant, and will generally do what they are told or can be made to do. Change is based on the exercise of authority and the imposition of sanctions.

Outsourcing change

Large companies usually hire change management specialists from management consulting companies to fill in the missing skill sets and provide a proven change management methodology. Their participation can reduce risk to the company, offer a smoother process and increase the benefits of the proposed change. And, an outsourced change management team will conserve company resources for running the everyday business.

Steven Glover, Partner at Deloitte & Touche states, “too many organizations look at psychological underpinnings of change management and dismiss it as airy-fairy, feel-good fluff. In fact, it is just the opposite: it is a well-researched, pragmatic discipline designed to deliver real, lasting benefits from technology, process or organizational improvements”.

So, whether you hire a change management team or appoint an internal team, do your homework on the details, study up on some change management theory and create a change management plan that everyone can agree on. You might get to keep your head.

Change Management: Three Basic Strategies

Strategy	Description
Rational-Empirical	People are rational and will follow their self-interest
		— once it is revealed to them. Change is based on		the communication of information and the offering		of incentives.
Normative-Reeducative	People are social beings and will adhere to cultural
		norms and values. Change is based on the redefin		ing and reinterpreting existing norms and values,		and developing commitments to new ones.
Power-Coercive	People are basically compliant and will generally do
		what they are told or can be made to do. Change is	based the exercise of authority and the imposition		of sanctions.

Have you ever felt like it is “off with your head” if you suggest doing something differently? All industries are like that, but the insurance industry may be more than most.

After all, the insurance industry has a fiduciary responsibility to it customers that goes beyond other industries. Ultimately the industry is responsible for the financial, and some would say emotional, security of its customers. Millions of individuals and hundreds of thousands of businesses are counting on the players in the industry to provide the soundest and most cost effective risk products possible. When there is a claim they all expect fast, efficient and fair closure. These are indeed serious matters, but we should not let the weight of those responsibilities hinder us in the quest to improve the industry with new thinking. Nor should we be afraid of change. Everyone I talk to in the industry says change is coming — “big time”.

The creation of an environment and the processes implemented to successfully implement change in any organization, is called “change management”, and it is no small feat. Nowhere can it seem more formidable than in the introduction of new technology. In this case, the challenge is to blend the human considerations with the new technology with positive synergy for the company. In a recent study, companies identified that internal resistance to change was by far the leading barrier to productivity gains with the introduction of business-to-business software. It was not poorly designed software, difficult user interfaces, or poor integration to existing legacy systems. It is the staff’s willingness and ability to change their ways of doing things that determines success.

Three processes

Change management deals with three processes: “unfreezing”, “changing” and “refreezing”. These processes sound simple, but if you consider the many variables and unique composition of every organization, it is a daunting task.

The inevitable demand to maintain performance throughout the change can make it even more difficult. Everyone has experienced a poorly managed change process at some time in his/her career. No wonder people are resistant to change, and therefore it is no wonder they will tend to “shoot the messenger” bearing new ideas that require change.

Essentially, what many organizations lack are all of the skills to effect the change and an understanding of the formal methodologies of change. A comprehensive set of skills is required to successfully navigate a large change management project including analytical, political, people, systems and business skills.

Which strategy or combination of strategies should be used? The table below is referenced from Bennis, Benne and Chin from their book “The Planning of Change.”

People are rational and will follow their self-interest — once it is revealed to them. It is therefore logical to assume that change is based on the communication of information and the offering of incentives.

People are social beings and will adhere to cultural norms and values. Change is based on the redefining and reinterpreting existing norms and values, and developing commitments to new ones.

People are basically compliant, and will generally do what they are told or can be made to do. Change is based on the exercise of authority and the imposition of sanctions.

Outsourcing change

Large companies usually hire change management specialists from management consulting companies to fill in the missing skill sets and provide a proven change management methodology. Their participation can reduce risk to the company, offer a smoother process and increase the benefits of the proposed change. And, an outsourced change management team will conserve company resources for running the everyday business.

Steven Glover, Partner at Deloitte & Touche states, “too many organizations look at psychological underpinnings of change management and dismiss it as airy-fairy, feel-good fluff. In fact, it is just the opposite: it is a well-researched, pragmatic discipline designed to deliver real, lasting benefits from technology, process or organizational improvements”.

So, whether you hire a change management team or appoint an internal team, do your homework on the details, study up on some change management theory and create a change management plan that everyone can agree on. You might get to keep your head.

Change Management: Three Basic Strategies

Strategy	Description
Rational-Empirical	People are rational and will follow their self-interest
		— once it is revealed to them. Change is based on		the communication of information and the offering		of incentives.
Normative-Reeducative	People are social beings and will adhere to cultural
		norms and values. Change is based on the redefin		ing and reinterpreting existing norms and values,		and developing commitments to new ones.
Power-Coercive	People are basically compliant and will generally do
		what they are told or can be made to do. Change is	based the exercise of authority and the imposition		of sanctions.

Have you ever felt like it is “off with your head” if you suggest doing something differently? All industries are like that, but the insurance industry may be more than most.

After all, the insurance industry has a fiduciary responsibility to it customers that goes beyond other industries. Ultimately the industry is responsible for the financial, and some would say emotional, security of its customers. Millions of individuals and hundreds of thousands of businesses are counting on the players in the industry to provide the soundest and most cost effective risk products possible. When there is a claim they all expect fast, efficient and fair closure. These are indeed serious matters, but we should not let the weight of those responsibilities hinder us in the quest to improve the industry with new thinking. Nor should we be afraid of change. Everyone I talk to in the industry says change is coming — “big time”.

The creation of an environment and the processes implemented to successfully implement change in any organization, is called “change management”, and it is no small feat. Nowhere can it seem more formidable than in the introduction of new technology. In this case, the challenge is to blend the human considerations with the new technology with positive synergy for the company. In a recent study, companies identified that internal resistance to change was by far the leading barrier to productivity gains with the introduction of business-to-business software. It was not poorly designed software, difficult user interfaces, or poor integration to existing legacy systems. It is the staff’s willingness and ability to change their ways of doing things that determines success.

Three processes

Change management deals with three processes: “unfreezing”, “changing” and “refreezing”. These processes sound simple, but if you consider the many variables and unique composition of every organization, it is a daunting task.

The inevitable demand to maintain performance throughout the change can make it even more difficult. Everyone has experienced a poorly managed change process at some time in his/her career. No wonder people are resistant to change, and therefore it is no wonder they will tend to “shoot the messenger” bearing new ideas that require change.

Essentially, what many organizations lack are all of the skills to effect the change and an understanding of the formal methodologies of change. A comprehensive set of skills is required to successfully navigate a large change management project including analytical, political, people, systems and business skills.

Which strategy or combination of strategies should be used? The table below is referenced from Bennis, Benne and Chin from their book “The Planning of Change.”

People are rational and will follow their self-interest — once it is revealed to them. It is therefore logical to assume that change is based on the communication of information and the offering of incentives.

People are social beings and will adhere to cultural norms and values. Change is based on the redefining and reinterpreting existing norms and values, and developing commitments to new ones.

People are basically compliant, and will generally do what they are told or can be made to do. Change is based on the exercise of authority and the imposition of sanctions.

Outsourcing change

Large companies usually hire change management specialists from management consulting companies to fill in the missing skill sets and provide a proven change management methodology. Their participation can reduce risk to the company, offer a smoother process and increase the benefits of the proposed change. And, an outsourced change management team will conserve company resources for running the everyday business.

Steven Glover, Partner at Deloitte & Touche states, “too many organizations look at psychological underpinnings of change management and dismiss it as airy-fairy, feel-good fluff. In fact, it is just the opposite: it is a well-researched, pragmatic discipline designed to deliver real, lasting benefits from technology, process or organizational improvements”.

So, whether you hire a change management team or appoint an internal team, do your homework on the details, study up on some change management theory and create a change management plan that everyone can agree on. You might get to keep your head.

Change Management: Three Basic Strategies

Strategy	Description
Rational-Empirical	People are rational and will follow their self-interest
		— once it is revealed to them. Change is based on		the communication of information and the offering		of incentives.
Normative-Reeducative	People are social beings and will adhere to cultural
		norms and values. Change is based on the redefin		ing and reinterpreting existing norms and values,		and developing commitments to new ones.
Power-Coercive	People are basically compliant and will generally do
		what they are told or can be made to do. Change is	based the exercise of authority and the imposition		of sanctions.

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