How it is handled is the linchpin to success
Six in ten executives are looking to increase their investment in digital initiatives. In financial services, an industry rife with tradition and procedure – for good reason when compliance is concerned – getting the buy in from colleagues to embrace the cultural change can be one of the biggest challenges. Adam Miller, Chief Information Officer at Markerstudy Group, draws on his experience to highlight how insurance leaders can foster an environment that helps colleagues embrace the changes that come with using digital tools.
Financial services, in particular the insurance industry, may be steeped in tradition, but it also has an appetite to embrace technology to change the status quo. Customers, as well as the C-suite, are all looking for digital solutions – but early in my career I realised that getting positive buy-in from colleagues that will be using these solutions is critical to successfully implementing any change.
Some reluctance to adopt new systems can be expected and can arise for a variety of reasons and it’s coming to terms with these reasons that is the job of the CIO. Scepticism can be down to preferences, ease of use, familiarity or a lack of digital skills and can leave some feeling lost when trying to navigate new technologies.
A lack of ability or expertise to lead digitisation initiatives is another key barrier to successful digital transformation. Leaders need to lead by example and understand that they will experience resistance internally when implementing digital technologies.
In particular there are three areas of cultural change to help aid colleagues on their digital transformation journey which can help to successful implementation.
1: Establish the key core cultural attributes – open mindedness to change, not resistance
These challenges are not insurmountable for insurance organisations to overcome. They need to ensure the right core cultural attributes are in place to see digital transformation projects facilitate a smooth transition with the right skills involved.
Having a culture of continuous learning is critical. Actively encouraging colleagues to invest in education and training are important elements to aid successful implementation. Empowering people to change and embrace new ways of working will help colleagues and teams to absorb skills quicker and more effectively.
I found that when people are given space, they will accelerate these changes far quicker. To increase this buy-in, it is imperative to create an environment which encourages innovation and experimentation to ultimately encourage breakthroughs to help drive the company forward.
2: Turning threats into more visions
Digital transformation projects can bring about major changes within organisations which may meet inherent cultural resistance. An inability to change mindsets can still pose significant barriers to transformation success.
Whilst we are seeing the insurance industry start to embrace and accelerate change, some parts are steeped in traditions and legacy models. Some colleagues can view implementing digital tools as a threat to their job, rather than an enabler or a way to enhance their ways of working.
To overcome this mindset, insurance leaders need to make a concerted effort to demonstrate the tangible benefits of digital adoption. For instance, increased efficiency gives agents more time for the customer, to have innovative thoughts and for sharing ideas to improve customer service.
At this stage communication is key to effectively demonstrate the vision, emphasising the benefits colleagues will gain from digital tools. We’ve seen some of this within developer communities for example, with the impact of GitHub Co-pilot on their jobs. It’s important to clearly explain the positive impact tools can have on a colleague’s role and how it can work alongside, not instead of, them to increase their efficiency and job satisfaction.
3: Managing change management starts at the top
Leaders play a crucial role here and need to be seen leading from the front and be the change they want to see. They need to be role models, demonstrating a digital-first mindset, setting the direction for the rest of the company to follow.
They must have a change management plan in place from the get-go that takes into account the resistance and implementation block ahead of them before starting their digital transformation journey. Leaders are then ready to address the concerns of colleagues head-on, allowing them to be transparent with what’s driving the need for change and how it can positively influence their work.
Insurance organisations need to invest in training programmes and resources to support and guide colleagues through the transformation journey. This can help empower them through their journey giving them the tools and skills to feel confident in using new digital tools.
Successful change goes way beyond a technology programme
Digital and cultural transformation is more than just new technologies. It requires a company-wide shift in mindset and behaviours towards the use of digital technologies. Leaders need to embrace the cultural resistance they may experience from colleagues with a change management plan. By communicating, being transparent, and leading by example, insurance leaders can navigate the changes with ease and create an environment of innovation, empowerment, and growth.
Leaders can give people the best solution, but it won’t work if they don’t know why they have it, how to use it, or believe it’s the right change for them to be adopting. Paying close attention to the finer points of change management is essential. Focusing on this will help leaders to successfully navigate the challenges and ultimately emerge a stronger company.
About the Author
Adam Miller is Chief Information Officer at Markerstudy Group. Markerstudy Insurance Services Limited (MISL) is one of the largest Managing General Agents in the UK. With a strong presence in the UK motor insurance market, we specialise in niche motor cover, where our solid market knowledge and experience enables us to create highly targeted products for sectors such as: young drivers, high performance/high value cars, Japanese imports, kit cars, unusual occupations, accident/conviction records, taxis and driving schools – to name but a few.
