Index

INDUSTRY SPOTLIGHT – INSURANCE (Part 1)

We pride ourselves on supporting clients across a wide range of industries. Recently members of our team completed an engagement with a large national insurance provider supporting multiple strategic initiatives. Below is an industry spotlight, highlighting the type of impact we make in the insurance industry — featuring the work of TGG’s Maddie Barbera and Daemon Heydon.

Can you give us an overview of the situation and scope of the client engagement?

Maddie: Our client partner was looking to streamline their organizational teams in order to better handle strategic actuarial modeling work across their product lines. Accomplishing this would also allow specific actuaries to focus on responsibilities that drive high level strategy and are more transformational to the business.

Originally the project sponsors thought they could have internal conservations and build everything out themselves but they realized there was more depth, detail, and complexity than they anticipated, so they requested additional support and expertise.

Daemon: The client identified that actuarial teams were each doing modeling, but the process being used in order to map out the modeling was being done differently by each team. Each of the models was also highly complicated in its own right and as a result of these two dynamics the client needed a language and continuity that wasn’t there at the time. We were focused on creating a bridge to span all the modeling teams so that anyone from any team could look at a process map and understand its various elements and information. Essentially creating a language for the organization that wasn’t there before.

What was the nature of the work that took place during the engagement?

Maddie: We started with an in-depth review of the current process map for actuarial modeling and templates, which was supported by a series of interviews and multiple meetings for each process map model within the organization. We were at the table working with highly talented professionals to help articulate their work and process in a way that other members of the organization could understand. And then taking it a step further by creating documentation for different groups if the needed documentation didn’t already exist.

Daemon: In a very consistent manner we were gathering data – inputs, process steps, outputs, and bringing to life a clear description of what team members were doing at each step in the different processes. We also wanted to help position leadership to be able to answer the broader question, “How can we continue to use this information to make strategic decisions in the long run?”

What was the outcome? How is the end result helping the organization now? In the future?

Maddie: During the engagement we collected and aggregated all the information the client needed in order to support their upcoming organizational redesign efforts. Furthermore, we summarized all the different documentation sources and created an easily accessible universal catalog source to centrally house necessary documents and process information for a variety of groups within the organization. These completed work streams will help position the organization to successfully undertake and execute their broader organizational redesign effort.

What did you enjoy about the work?

Maddie: I enjoyed working with the large cross section of actuaries and how it gave our team insight into different insurance product lines. It was great to be able to work with so many different members/groups of the client team and learn about their roles and responsibilities and how they impacted the organization as a whole.

Daemon: I definitely agree with Maddie and I’d also say it was really fun and rewarding to have other groups in the organization hear about the process modeling work we were doing and then want to see if it could apply to their specific area.

Were there any personal takeaways or highlights?

Maddie: I think a big highlight was getting deep into a multi-layered process within an organization and gaining and building trust with the client partner.

Daemon: Yes, and also being able to deliver something that will provide tangible benefit to the future of the organization was certainly a highlight as well. It’s always fun when clients immediately want to build off of a completed project.

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Our team at The Gunter Group has significant and strategic experience supporting insurance industry clients as they navigate transformational change. If your organization is interested in driving meaningful change in the insurance industry and beyond, we’re ready to help.

TGG RECOGNIZED AS A TOP AGILE SERVICE PROVIDER

We are excited to share that The Gunter Group was recently named one of the “10 Most Promising Agile Service Providers” by CIOReview magazine. TGG was identified through a nomination process for its ongoing and impactful agile work across a variety of industries and organizational levels. The recognition was part of CIOReview’s 5th annual Agile Edition of the publication.

When asked about TGG’s approach to agile initiatives, Principal Consultant and Agile Services Lead Jim Calko commented:

“We work to seamlessly develop the agile programs that impact the most important strategic initiatives for our clients. To achieve this we take a collaborative approach which results in consensus among the clients’ teams and leads their organizations forward with ease.”

TGG’s unique approach to supporting client partners’ efforts to transform elements of their businesses starts with a committed focus as noted by TGG Partner Matt Bader:

“Companies don’t seek to transform to become experts at agile, they seek to transform to better support their customers and achieve better business outcomes. Our firm places a relentless focus on our clients’ strategic goals by bringing agile expertise and experiences as a capability to help them get there.”

Read the full CIOReview profile on TGG here: https://www.cioreview.com/gunter-group

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Interested in learning more about agile strategies and practical recommendations – check out TGG’s Agile Blog Series:

DOES TRANSFORMATION HAVE TO BE TRANSFORMATIONAL?

TGG Senior Consultant, Danny Quarrell recently supported a large client partner with a key Transformation initiative. Below Danny shares details and insights on how a mix of enablement projects alongside game changing Transformational projects are key to a healthy Actuarial Transformation Program.

Does transformation have to be transformational?

The biggest ongoing question in my first actuarial transformation program engagement seems like a trick question. Of course, it’s supposed to be transformational! It’s literally called The Actuarial Transformation Program.

Well not so fast my friend!

Rather than looking at an Actuarial Transformation (AT) program as a group of transformational projects, it should be viewed as a spectrum of projects that have a range of transformational outcomes. The end goal is transformation, of course, but each project contributes to that goal in different ways.

The projects that have the least transformative impact can often be the most overlooked and under prioritized projects in the program. Yet these types of projects are worthwhile (and even required) activities that create an opportunity for transformation where there previously wasn’t one and work to keep your community engaged. We refer to these types of projects as transformation enablers.

Transformation enabler projects will typically share these characteristics.

1. They free up time

2. They reduce risk

3. They are an iterative step on a path to a transformational solution

4. They keep the actuarial community engaged in the program

5. They build trust with the broader organization that leadership is actually committed to seeing a transformation through to actual transformative results

Before we get too far into our discussion, let’s be clear on what an example of a transformational project would be. Let’s say you have multiple groups of actuaries that rely on the same modeling calculation platform, but each team prepares their data (inforce data, assumption data, etc.) in their own way for ingestion into the platform and they each have different ways of storing outputs. Maybe one group relies heavily on Excel, another uses R and SQL, and maybe a third group uses MS Access. A transformational project might look like:

Building an enterprise-wide application that would allow each team to manage their inforce data, set assumptions and initiate model runs through a common interface and process. The application would also manage model results and provide robust tools for governance, controls, and auditing.

I think most people would agree that kind of project would be very transformational within an actuarial organization. It would reduce the time needed to prepare data and create the ability to produce multiple model runs in a shorter time frame, reduce risk, reduce ramp up time for actuaries rotating between teams, and streamline the governance process since all models would use the same processes.

Game Changer!

These game changing types of projects are the stuff dreams are made of; they’re also fraught with risk! They take years to implement, have high costs, require incredible levels of trust and engagement from your subject matter experts, and they can sink your program when they go wrong.

These risks are exactly the types of risks transformation enablers are meant to address. Let’s drill down a bit.

· Major transformational projects take years to implement and can easily lose momentum or fail to win the support of the people they are meant to help

Enabler projects can provide shorter term wins, keep the actuarial community excited about the future and help them stay engaged with the program

· Not every team is ready to be transformed, some people are just trying to keep from sinking!

These teams need relief, not transformation. They don’t have the time to stay engaged with the solution that you want to build and release 18 months from now. Give them the relief they need, then engage them on transformation

· Legacy processes are often fragile and have high risk. Process owners don’t want to exacerbate risk with change

Process owners for legacy processes know where their processes are fragile and where the risk lies. Iterative solutions can provide targeted solutions to these key areas. Lowering risk and the stress of owning the process.

· Legacy processes can benefit from being improved iteratively, and stakeholders are more likely to provide valuable feedback when given multiple opportunities via iterative solutions being presented

When you present iterative solutions that start by alleviating key pain points the subject matter experts and key stakeholders are more willing to engage on further improvements and accept greater change to the processes they own. Rather than asking for trust when you promise a big benefit down the road, earn trust by presenting small benefits now.

The actual enablement projects will vary from program to program and team to team, but the characteristics will remain the same.

1. They free up time

2. They reduce risk

3. They are an iterative step on a path to a transformational solution

4. They keep the community engaged in the program

5. They build trust with the broader organization that the leadership is actually committed to seeing a transformation through to actual transformative results.

New organizational initiatives pop up every quarter but the surest way to achieve collective buy-in is to make the real work visible, recognized, and a focused priority. A mix of enablement projects alongside your game changing Transformational projects are key to a healthy Actuarial Transformation Program.

At The Gunter Group our experienced team has decades of experience leading transformational initiatives for client partners. Our versatile team knows change doesn’t happen overnight and are ready to help your organization make transformational progress and achieve transformational results.

DON’T LET TECH DEBT STAND IN THE WAY OF DATA-DRIVEN INSIGHT

Technical debt can put organizations in a headlock, both in the short and long term. Almost nothing casts a bigger, scarier shadow for decision makers — the perception of the time and cost necessary to overcome tech debt looms large, keeping entire companies frozen in fear.

This burden makes it difficult to efficiently extract insights from data. It’s a recipe for stifled growth.

We’re here with a message of hope: you don’t have to dive into a resource-intensive, five-year transformation project in order to manage your technical debt and realize your data potential. You have other options, and it all comes down to prioritization.

What is tech debt?

Technical debt is often defined as the cost incurred when you repeatedly choose short-term solutions rather than doing the (larger, more expensive) work of tackling the big-picture causes of your problems.

But let’s look at the issue through a different lens: what is the nature of technical debt?

Because new solutions are built and deployed every day, all organizations incur tech debt, to some degree, with every system and process implementation decision they make. Even if you implement a new, innovative solution today, there will be a better one available tomorrow. In this scenario, you will still incur tech debt — just less than an organization that makes no updates.

Too many organizations think of tech debt as a problem that can be permanently solved. In reality, it’s a constant that’s renewed continuously by change and growth, and trying to “solve” it completely is a futile pursuit.

While you can’t make tech debt vanish into thin air, you can certainly make it more manageable. If you focus on managing its impacts in an ongoing way, you can deflate its looming, monstrous reputation and get to work on making meaningful improvements in the here and now.

Is tech debt destroying your data-driven dreams?

Analytics bottlenecks are a common issue related to tech debt. Silos slow down the analytics process; if only one person knows where a spreadsheet is and how to extract meaningful data from it, they become the bottleneck.

With each short-term fix and siloed process, data becomes harder to manage, access, and analyze. In turn, drawing insights from that data requires more time and effort, the insights become less timely and less reliable, and informed decision making becomes more challenging.

In other words, tech debt has a way of draining value from data — and the longer you let that debt accrue, the more value you’re losing. Using a prioritized approach to managing tech debt can help you cover more ground right out of the gate, so you don’t lose any more value than you have to.

One way to apply this prioritized approach is with backlog grooming, the periodic process of reviewing and prioritizing backlog tasks (and removing unnecessary or outdated tasks).

How do you prioritize what areas to address?

There is a lot of information available on how to tackle tech debt. Unfortunately, most of it is theoretical. While the abstract stuff can be valuable, if you’re looking for a practical way forward, you need to bring your considerations back down to earth and fold in the business perspective to create a technical debt prioritization plan.

You probably have a lot of tools at your disposal, internally and externally, and resources to leverage. Take a look at what you need to have happen — not theoretically (e.g. eliminating all technical debt by some point in the future) — but actually.

For example, The Gunter Group recently worked with a retail automotive company that was struggling with data debt. It was impacting every area of their business, including employee satisfaction, customer satisfaction, and profit margin. They needed a new approach, but with such a vast problem, it was difficult for them to know where to start.

We worked with multiple teams within the company, including manufacturing, HR, marketing, and technology innovation to create a prioritization plan. High priority initiatives included redefining company-wide KPIs, designing and implementing machine learning algorithms, and improving data literacy across departments.

Though they still have a long way to go on their data maturity journey, this company was able to start making changes where it mattered most, rather than remaining paralyzed by the challenge ahead.

How we work with clients to tackle tech debt

Remediating data-related tech debt requires far more than just technical skills — it requires asking the right questions, gaining a holistic understanding of your organization’s business goals (as well as how they may vary across different departments), and creating a dialogue to explore possible solutions.

Each of these components requires a tremendous amount of time, which internal teams rarely have. In most cases, managing ongoing operational struggles takes priority over transformation, and team members don’t have the capacity to focus all their energy on addressing tech debt. Meanwhile, recruiting new team members is a time-consuming, resource-intensive process, and thanks to the tech talent shortage, it’s more challenging than ever.

Turning to outside help can get the data transformation ball rolling without overwhelming internal teams or opening a can of recruitment worms.

At The Gunter Group, we leverage a multidisciplinary approach (technology, people, strategy, and execution) that enables us to see the long-term big picture while solving the highest-priority problems in the short term.

Combined with our extensive technical capabilities, this approach allows our clients to chip away at their technical debt and reclaim the value of their data as quickly as possible — without the burden of hiring a new team.

Conclusion

Think about a meaningful, specific problem you’re facing right now that’s rooted in technical debt, and what you would be able to accomplish if this problem was being managed proactively.

If you set your sights on eliminating tech debt across your entire organization, you’ll likely get caught up in a complex tangle of issues — and that one major problem that’s holding you back now will still be holding you back in six months.

To accelerate your progress, identify your most pressing issues, and reach out to expert help if you need it. With the right strategy and the right partner, you can mitigate tech debt and use your data to its fullest potential.

Is technical debt slowing you down? Discover how to improve your data infrastructure and decision making with workshops hosted by The Gunter Group.

WHY ISN’T YOUR DATA TRANSFORMATION PROGRAM TRANSFORMING ANYTHING?

It’s a familiar tale — you’ve embarked on a journey to transform the way your company uses data, but all you have to show for it is a lot of very ambitious documentation and hundreds of progress update meetings where time feels like it’s standing still.

Why isn’t your in-progress data transformation program producing tangible results? Here are three common reasons why your efforts might be failing to deliver:

1. Your approach isn’t incremental.

We recently wrote about data maturity models and how they can actually hinder data transformation if you don’t apply them correctly. To summarize, organizations tend to focus too much on the brass ring (reaching some proverbial data maturity nirvana) and not enough on the details (getting more value from data along the way).

Often, the goal is a total overhaul of how data is used from the top to bottom of the business, delivering unimaginable value to everyone, everywhere — an ambitious transformation that will take years to achieve. Even if you’ve had a few updates and helpful process changes along the way, most of the value remains locked behind the “project completion” door.

What does that mean for those who are trying to get some incremental improvement and use data more effectively in the near term? It means they have to just sit tight and wait for the big reveal — otherwise, they’ll be doing work that’s not aligned with the broader strategy.

It’s important to consider the folks in your organization who use data to complete everyday tasks, and how you can make their jobs easier, not harder, during the data transformation process.

2. Technical debt is handcuffing you.

Individual innovation can be a huge asset for an organization. You want people to take initiative, solve problems, and make it happen. But when it comes to managing data, all that individual problem solving can add up to huge technical debt, and make organization-wide data transformation efforts feel insurmountable.

When everyone has their own unique, siloed quick fixes and band-aid solutions, there’s no more unifying structure left to transform — so where do you even start? Think of the chaos you’d unleash by pulling at even one loose thread; mission-critical systems that were crudely patched together would come tumbling down.

As an additional challenge, there will always be responsibilities and processes that can’t be switched off while things are fine tuned. For example, if you’re using your existing data systems to calculate monthly commissions, that presents a huge barrier to making any meaningful changes — you can’t stop paying out commissions until changes are implemented, and it would be risky to just cross your fingers and hope that brand new systems produce accurate results in time for you to cut checks.

Getting out from under technical debt isn’t impossible — it just requires a lot of effort. It’s also infinitely easier to achieve with the right combination of planning, skill, and resources, which is why many companies partner with firms that specialize in tackling technical debt.

It’s also important to remember that tech debt isn’t something you can escape completely, but a challenge that needs to be continually addressed. Good solution design assumes that today’s new solution is tomorrow’s tech debt, everything is eventually deprecated, and all solutions incur maintenance and upkeep. Finding the balance between standardization and innovation is important, as too much of either can be stifling.

3. You don’t have the right people.

Pulling off a successful data transformation project takes a lot of skill sets (strategic planning, project management, change management, ETL development, data science, etc.), and it’s highly unlikely that you’re going to find a single person who can do them all well. It’s also unrealistic to expect your current staff to sustain day-to-day operations and magically find the time to make changes. In 99% of cases, you’ll need outside help.

Trying to build an in-house team is difficult, especially in the midst of a data analytics talent shortage. Planning and recruiting for a team can take anywhere from six months to a year, plus the time it takes to get everyone up and running. If your organizational culture (or even just a particular decision maker) is change-resistant, this process can take even longer — and feel like pulling teeth.

Technical leaders often have to spend a large amount of time jockeying for resources and pitching projects. You may have to argue and advocate for three months to hire one person that was needed to solve a problem three months ago. By the time you get a decision, you’re going through the same cycle with a different problem.

It’s easy to see how years can go by with little to no progress.

This is another situation where it can be helpful to work with a data transformation partner, which gives you access to highly skilled, experienced people, without the pressure or long timeline of trying to build an in-house team.

Conclusion

Our general advice for data transformation can be summed up in two words: don’t wait. Every day you remain stalled out, you acquire more technical debt, and your problems get more complex. You lose more business, you gain less on your competition, and your company loses value.

If you need to see real outcomes from a data transformation project, focus on incremental improvements, and find a partner who can help you overcome the challenges we’ve outlined here.

Above all, remember that data transformation isn’t a “project” that begins and ends. It’s a decision to become a data-oriented organization — and it takes continuous effort and agility.

Not seeing results from your data transformation initiatives? Discover how to improve your data infrastructure and decision making during our upcoming Data Maturity workshop on December 15th at 11:30am Pacific Time.

TGG PARTNER Q&A:
2022 CONSULTING MAGAZINE BEST FIRMS TO WORK FOR

This fall The Gunter Group was recognized as a “Best Small Firm to Work For” by Consulting Magazine for the fourth consecutive year. This marks the fourteenth workplace award that TGG has received in the last eight years.

We visited with TGG partner and head of TGG’s Nevada team, Tony Schweiss to hear more about the award and the significance of being honored nationally for The Gunter Group’s culture and workplace.

This is the fourth consecutive year TGG has been recognized as a Best Small Firm to Work For by Consulting Magazine. What does this consistency and recognition mean to the team?

Tony: It’s a reflection of the amount of effort, energy and thought that we put into building a team that is aligning its culture to the work that we do and the outcomes we are trying to deliver as a team. It’s also a reflection of the caliber of people that we have on our team and the commitment our team has to do high quality work for our clients, to support each other, to collaborate and live out our Non-Negotiables, and hold ourselves accountable.

The consistency, year-in and year-out is amazing and is incredibly exciting in terms of the ongoing acknowledgement of the effort we put into our culture on a yearly, monthly, weekly, daily basis and I think everyone on the team should be really proud of it.

Not only has The Gunter Group’s team grown geographically over the past 24 months but the location of clients has been broadening as well. How does the Consulting Magazine honor validate these geographic developments?

Tony: For us it is an essential priority that as we expand as a company and our footprint grows, that we stay culturally committed to what makes us a great team. The pursuit of excellence and the goal over time to create an engaged team no matter where they are, has been a driving requirement for us as we grow.

To be recognized for this award four years in a row as we continue to grow geographically proves that it is possible to create highly engaging cultural value as we scale up as a firm. The recognition also validates the effort and resources we have dedicated to our team and organization, and serves as a celebration opportunity as well.

You are located in Nevada, what is it like for you to work with individuals across the country in different hubs/areas and how does TGG develop and maintain its strong organizational culture with geographically dispersed team members?

Tony: For me, I think it’s really exciting to work with team members from so many different areas. Whether it’s the Denver area, Southern California, the Salt Lake City area, the East Coast, or the Pacific Northwest, the variety of experiences and perspectives that generate from a collection of unique locations is exciting to be a part of and see benefit our client partners.

It’s been fun to experience but also presents a challenge: how do we maintain the value of our culture in a more virtual environment and dispersed geographies.

Having been geographically removed from our main hub for a while now, the best version of an engaging team and workplace is one that is aligned in terms of its goals and mission as an organization. And for us it’s about helping our clients achieve their goals in a way that is better and faster than what they could have done on their own.

I think it’s helped bring into focus opportunities for engagement with each other and how we’re doing our work but also how we are connecting as a team. It has forced us to try new things, evaluate quickly and then double down on methods that have really added to our cultural foundation across multiple geographies. As much as possible we continue to utilize not only virtual opportunities to engage with teammates but also encourage our local teammate hubs to spend time together in person and support that activity from an investment perspective.

What are you most excited about for the TGG team and culture in the coming year?

Tony: At the end of the day we’ve grown a lot over the last 3-4 years and we’ve grown purposefully so that our team has new and interesting opportunities in the future. As we grow we have to continue to be thoughtful about how we do our work internally, engage and connect with one another, how we collaborate, and how we deliver our work as a team.

What I’m really excited about over the next year is to continue to mature how our employee experience presents itself and matures across geographies so we can ensure a great professional opportunity for our entire team regardless of where they are located. I think it’s the most crucial work we have in front of us but it will also be the most rewarding for our entire organization in the months and years to come.