Delivering Business Value Gone are the days of the big bang approach Chris Castleberry Sue Connelly 1
Introductions Introductions Presenters Unum The problem with the big bang approach Changing our mindset Case Study Premium Management Efficiencies Delivering business value incrementally Questions/comments/feedback 2
About Unum Group 3
Unum: Past, Present and Future New information Looking Ahead 2007 Developing innovative platforms that address the future needs of businesses 1999 Unum Provident shortens its name to Unum and unveils a new corporate brand. Colonial also unveils a new corporate brand and becomes Colonial Life. 1848 1887 1986 1993 1997 Unum Corporation and Provident Companies, Inc. merge to form Unum Provident Corporation. Provident acquires Paul Revere Life Insurance Co, headquartered in Worcester, MA. Unum mergers with Colonial Companies, Inc. Union Mutual becomes a publicly traded company and changes its name to Unum Life Insurance, owned by Unum Corporation. Provident Life and Accident Insurance company is incorporated. Union Mutual, Unum s oldest predecessor company, is founded. 4
Nation-wide footprint in US and UK Unum US HQ Chattanooga, TN 2,510 employees Unum US HQ Portland, ME 2,890 employees Unum US HQ Worcester, MA 700 employees Unum UK HQ Dorking, UK 480 employees Colonial Life HQ Columbia, SC 1,090 employees 5
Unum can help fill the gaps Core Benefits Medical Prescription Drugs Dental Vision Flexible Spending Account Life Disability Unum Benefits & Services u Financial protection Accident Critical illness Life Short and long term disability u Services Leave management Return-to-work/stay-at-home programs EAP/Work-life balance Employee wellness Disease management connections 6
Delivering Business Value No more big bang! Changing HOW we deliver business value.. 7
The problems with the big bang approach EXPECTED BUSINESS VALUE NOT REALIZED IN A TIMELY MANNER 12-24 months to deliverable INCREASED RISK Tend to be large and complex Difficult to manage resources Business needs change (vision/market) Lengthy Change Management process UNTIMELY SCOPE DECISIONS Promises for phase 2 Result in manual work arounds Home grown solutions UNPREDICTABLE RESOURCE ALLOCATION Unreliable estimating Over-allocation of resources DISSATISFIED CUSTOMER Expected business value is not realized OR It no longer meets their needs Partnership is compromised 8
A new approach to project delivery Collaborative Innovative Acceptance of incremental deliverables Introduction of working more agile fail fast 9
Case Study Premium Management Efficiencies $$$ 10
Premium Management Expected ROI Financials Ø Reduc'on in the volume of accounts rolling into past due status Ø Automa'on of Manual Tasks- Time Savings Ø Reduc'on of Commissions Paid to External Collec'ons Vendors Customers Ø Improved turn around 'mes on past due processing Ø Claims are processed more 'mely due to less internal delays Ø Allow customers mul'ple op'ons to contact us when resolving past due balances Employees Ø Higher morale and job sa'sfac'on Ø Elimina'on of duplica'on of work Ø Single plagorm for users that houses all informa'on and allows for tracking & trending Partners Ø Access to Premium Mgmt Tool; allows for proac've approach to premium management Ø Supports 'mely adjunc'on of claims Ø Reduc'on of mul'ple hand- offs and call backs 11
Case Study: Building Business Acumen CURRENT STATE PROCESS ANALYSIS 12
Case Study: Current State Business Process Contractually Delinquent 1 st Notification Initiate Collections Broker Notification Segmented and Reactive Many handoffs and communication loops 2 nd Notification Manual Intensive Reports Initiate Termination Results Reconciled Customer Notifications Inconsistent tools across business areas to achieve the same goal Manual Systematic 13
Case Study: Business Process Future State Project 1 st Notification Project Collections Project Broker Project 2 nd Notification Project Termination Action Contractually Delinquent 1 st Notification Initiate Collections Broker Notification 2 nd Notification Initiative Termination Results Reconciled Cohesive and Proactive Provide real time data Eliminate the need for hand-offs Provide Common Integrated Tools Manual Systematic 14
Case Study: Build a Business Case 1.1 Current State A delinquent premium report is manually generated on a monthly basis Premium that has been delinquent for x number of days after the contractual grace period goes to a collector 1.2 Problems Delinquent premium is not being reported in a timely manner, resulting in missed opportunities to resolve issues proactively 1.3 Business Vision Develop the means to pro-actively manage delinquent premium e.g. daily refresh of data 1.4 Benefits Eliminate the need to manually generate reports Increase the amount of recovered premium 1.5 Scope All size cases 1.6 Project Approach Provide value to the business incrementally. This is expected to be a multi-phase deliverable. Recommendation is as follows; Phase 1 15
Recommended Approach; Continuous Improvement with each release Premium Management Product Backlog Customer Communication Automate Collection Letters Delinquent Premium Management User Interface Daily Premium Kickout Nov 2013 Feb 2014 April 2014 July 2014 Aug 2014 Oct 2014 Automatic Diary Entries Enhance User Interface Enhancements 16
The value of taking an incremental approach BUSINESS VALUE IS REALIZED SOONER Monthly - Quarterly Releases fail fast DECREASED RISK Size and complexity is managed Resource needs are predictable Requirements are delivered as expected SCOPING IS PART OF PLANNING Scoping decisions made early and often Any workarounds are short term RESOURCE ALLOCATION IS PREDICTABLE Incremental commitment of resources Allows for better planning SATISFIED CUSTOMER Meets business expectations We build strong partnerships 17
Premium Management Actual Initial Results Financials Ø 20% reduc'on in premium rolling into past due status Ø Automa'on of manual tasks- realloca'on of one FTE Ø 44% reduc'on of commissions paid to external collec'ons vendors Customers Ø 40% reduc'on in turn around 'mes on past due processing Ø Claims are processed more 'mely due to less internal delays Ø Provided customers an addi'onal op'on to remit payment via lockbox address on correspondence Employees Ø Higher morale and job sa'sfac'on staff gets excited to see the incremental deliverables Ø Team members are more passionate and commiqed to the methodology because they see the results and they feel part of the deliverable. Ø One plagorm for users that houses all informa'on and allows for tracking & trending Partners Ø Access to Premium Mgmt Tool; less handoffs and calls Ø Supports 'mely adjudica'on of claims reduc'on in wait 'mes for answers 18
Critical Success Factors Cultural Collaboration between Business and IT Increase awareness of need to build BUSINESS ACUMEN Sr. Management endorsing Agile Software Development approach Walk the Talk with regard to Leadership and Empowerment Other Well managed Product Backlog Dedicated and co-located delivery team (business/it) Sprint Planning Open minds not all solutions are technical Develop visual artifacts; prototyping 19
Questions, Comments, Feedback Insurance products are underwritten by the subsidiaries of Unum Group. 2014 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. ADR1077-2014 20