Client: A global insurer with total assets over $100 billion serving 15 million customers across 20 countries
Business need addressed: Optimized processes and adopted an effective governance program to deliver improved performance, provide superior customer service, and support profitable growth
Genpact solution: A Lean process improvement program which enabled the firm to eliminate non-value-adding processes, shorten cycle times, and improve efficiency across business operations
Business impact: The firm reduced not-in-good-order (NIGO) transactions by 30% and processing time by 25% while improving its first-touch resolution
The North American division of a Fortune 500 insurance company wanted to transform its rigid operating model, which was impairing its ability to address mounting business challenges. The firm needed to improve non-core business processes and customer service while setting up operational metrics that could lead to continuous improvement.
The insurance carrier realized that disintegrated functions and siloed processes were perpetuating a limited view of the business. The traditional operating model did not empower the insurer to identify opportunities for improvement and fostered inefficiencies while eroding the firm's profitability. Some of the major challenges faced by the insurer were:
- Process redundancies Multiple duplicated functions
- Delayed processing times
- Employees were not properly engaged in servicedelivery improvement
- Increased NIGO transaction across business lines
- High cycle times resulting in poor customer service resolution and distributor dissatisfaction
The firm needed to break out of the siloed structure and drive effective process improvements in order to grow. To address these challenges, the firm needed a process improvement program that could drive cultural changes, with a sharp focus on effective governance, leadership commitment,project accountability, and efficient project management. There was also a need to successfully drive change management across the firm to improve business outcomes.
Genpact assessed the insurer's organizational culture through extensive leadership interviews and implemented a Lean program to transform business processes. The objective of the Lean program was to enable the firm to leverage process improvement methods and tools to successfully transform day-to-day operations across the business and eliminate processes that were not adding value to core functions. Genpact created a best practices road map to implement the program across the business with clearly defined ownership. This included:
- Establishing clearly defined roles andresponsibilities across operating teams
- Creating a Lean project management office(PMO) and governance structure to track projects,monitor training, and facilitate timely reporting
- Setting timelines for the projects to improve cycletime and stakeholder satisfaction
- Realigning projects across product lines to focuson improving user and customer experience
- Deploying a Lean training curriculum
- Training more than 700 personnel on Lean principles, with over 60 trained as Lean practitioners empowered to lead projects and serve as future leaders
The engagement was spread over a two-year period,with the first six months invested in building training modules and deploying them across the business.Over the remaining 18 months Genpact delivered value-stream mapping and Kaizen projects which relied on design thinking to reimagine processes that better serve customers.
The implementation of a Lean-based program generated the following business impact for the firm:
- Reduced non-value steps resulted in a 30%reduction in NIGO transactions
- A 25% reduction in cycle times for resolving customer service requests
- Reduced silos resulting in improved rates of first touch resolution
Successful implementation of new processes has facilitated continuous improvement across the firm and built up team expertise. The project success has also enabled Genpact to continue developing additional end-to-end improvements through value-stream mapping and problem solving across operations.