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Why managing change is crucial for a successful transformation

Achieving transformations in the insurance sector requires technological expertise and know-how, as well as a deep understanding of the business and the art of getting everyone involved to embrace and work with the change. To establish a successful end-to-end solution, it is essential to integrate change management from the very beginning of the process. "When transformations fail, it's usually because people are resistant. That's why Ensur takes tight control of change management in every project," emphasize Sibylle Berhin (Manager Business Consulting & Digital Transformation) and Stephan Podevyn Business lines lead ITC (ensur).

Why is change management a conditio sine qua non?

Sibylle Berhin: "Every transformation process that I or my colleagues at Ensur guide involves change – it is by definition. And in front of us is not a machine, but there are real people. Also by definition: everyone is different and reacts differently to change. The better you are prepared for this, the better you can help them implement the changes that are needed to make the project a success. For me, it's crucial to understand what the people are facing. The better you know the context – and at Ensur, we know the insurance world inside out – the better you understand the people and can tailor the transformation accordingly. If you embed change management in the context and don't treat it as a separate entity, you'll fundamentally deliver better results."

“If you don't ensure that people are on board, your transformation project will fail”

Stephan Podevyn: "Indeed, understanding people is a key ingredient of change management. It's no secret that people are mostly resistant to change. When a new digitization project, system, or process is announced, it rarely leads to cheering in the workplace. On the contrary, everyone wonders how the change will affect their personal situation. People often prefer to stay in their comfort zone with inefficient processes and manual work rather than engage in a change that promises improvement. So, if you focus solely on technical change and don't ensure that people are on board, it will fail.

Sibylle: "That's why we manage human change just like we manage a project. In addition to a project plan, we also design a communication plan that outlines who communicates what to whom and when – from the very beginning to the end of the project. Ongoing and consistent communication is the most important tool to secure the necessary engagement of people."

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Getting the key players on board and involved is paramount?

Stephan: "Key players are often the project sponsors, so you usually don't have trouble with them. It's mainly the other employees, from middle management down, whom you need to reach in order to gain their cooperation. No one is naive; people are well aware that the digitization of a process will impact their job. Therefore, it's logical that they want to know from the start how the transformation will ultimately affect them. Everyone must understand the importance of the change, the case for change, or the burning platform.

Sibylle: "To substantiate and communicate that 'why' effectively, it's crucial for us to understand how people work. If you don't grasp the issues they are facing, you can't deliver the right message. My colleagues and I at Ensur have an advantage because we can tell our clients: 'We understand you and your business. We know your pain points.’ So, we can credibly tell all employees involved in the project that we are going to address those pain points, making their job better. With more value-added tasks.'

Stephan: "Our credibility and authenticity also help in keeping our project at the top of the agenda because there are numerous change trajectories at many insurance companies. Change fatigue can become a real issue."

“Keeping the people informed about progress is a sign of respect for the time and effort they invest”

Sibylle: "I mentioned the importance of sustained communication to ensure everybody successfully embarks. This also plays a role here: by constantly reminding people why we are pursuing this transformation and what the ultimate goal is, you create the necessary buy-in. Keeping the people you work with informed about progress is a sign of respect for the time and effort they invest.”

Stephan: "If you deliver a project with a digitized system that eliminates a lot of paperwork and yet see many people still resorting to their paper-based processes 'because it works better,' then you've failed in your change management."

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Since not every employee is a front runner in terms of change, how can you keep everyone engaged?

Sibylle: "By default there is a project governance where we systematically keep the C-level and the steering committee informed – it's logical that you need their buy-in. But we go further since for change management, you indeed need to focus on all stakeholders and tailor the message each time. Ideally, the communication is done by individuals from within the organization, as that carries more weight than when a consultant does it. However, it's true that sometimes the C-level isn't the best communicator due to a lack of trust. In such cases, we advise them on how best to approach it."

Stephan: "Part of Ensur's success lies in the fact that every project manager also possesses the skills of a change manager. Change management is an integral part of our internal training curriculum because every consultant needs to recognize the signs of those who 'aren't on board' from the very beginning. This is where the seed of success lies: everyone is part of the transformation and has a role to play. So, we're not just dealing with technical matters but also things like body language: sometimes, you need to 'see' what someone isn't 'saying.'”

“We succeed because we have a passion for the people we work with, we understand them and their business”

Sibylle: "You indeed need to learn to ‘read’ people. You can be the best in theory, technically, or analytically, but you add real value when you engage with the people in the project. We succeed because we have a passion for the people we work with, we understand them and their business, and we support them throughout the process with advice and action."

What if the change is perceived as a threat?

Stephan: "That's something you inevitably encounter with every transformation. The change curve is identical to the grief curve, with the well-known successive stages of denial, anger, bargaining, depression, and acceptance. If you don't take that curve into account and manage it properly, people often get stuck in a negative phase too long. There's also no point in denying the existence of that curve because you can't ignore it. Additionally, the hope that you can eliminate the change curve through good communication and change management is an illusion. The best you can do is flatten the curve. So, it's crucial to set realistic expectations from the beginning and not oversell, knowing that there will be a phase where things won't go as smoothly (but making sure nobody falls too deeply) and ensuring that everyone ends the project at a higher level than where they started."

You can't expect people to support something they don't understand"

Sibylle: "To tackle resistance effectively, you also need to understand why it exists. Knowing the cause allows you to respond and act appropriately. Remediation requires detection. Quite often fear stems from the feeling of uncertainty and loss of power: people fear ending up in an unstable position. By the way, we never see those who are critical of the project as ‘opponents’ since they often give interesting insights. That’s why we often involve them even more closely in the change, sometimes giving them a special role as ambassadors. Change ambassadors are individuals who help spread the change and act as our antennae within the organization, allowing us to capture what's happening. Everybody is part of the journey."

Stephan: "A good remedy for resistance is to clearly outline the entire context and provide insight into the project's necessity and purpose. You can't expect people to support something they don't understand."

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Change management is a necessity for a successful transformation, but how much energy does it require during a project?

Stephan: "The impact of change management depends on the type of project. We sometimes liken our projects to sports disciplines. Short, simple, straightforward projects are like 'sprints' – they don't require a significant investment in change management with all the bells and whistles. There are also short, complex projects, like a merger, which we call 'high jumps.' Marathons are relatively simple but long-lasting projects that require ongoing change management efforts. Long-lasting and complex 'decathlons' demand a heavy investment in change management and communication. But never underestimate the technical efforts required to execute a migration."

Sibylle: "Regardless of the 'sports discipline,' you must always keep the energy level for change high. Once you let the effort slip, you lose allies."

“We master a lot of theory around change management. However, what really sets us apart is our practical approach at every step of the journey."

Achieving success regularly probably helps boost enthusiasm for the change?

Sibylle: "Every milestone is a potential success. If everything goes according to plan, you know well in advance what you'll be celebrating and communicating. The fact that we can prepare for this so well is part of Ensur’s success. Moreover, even if we don't reach a milestone, it's a reason to communicate transparently so that we can analyze the situation together and, if necessary, make an extra effort."

Stephan: "To gauge progress, you need a measuring tool. To measure the effect of change, we use our change barometer. We start with a baseline measurement that allows us to assess the impact of changes and identify pain points precisely, enabling us to capture issues such as people feeling insufficiently involved or the need for additional training. This way, the steering committee also knows how to intervene."

Sibylle: "Success can be measured through milestones or our change barometer, but it's also a constant throughout the trajectory. With our typical approach, we manage both project management and change management tightly and consistently. There's a lot of theory around change management and knowing all the possible tools is crucial for matching the right model to the right project. However, what sets us apart is our practical approach at every step of the journey."

TAKE-AWAYS:

KEYS FOR SUCCESS

  • Never let the attention waver
  • Understand your client's business
  • Foster stakeholder management
  • Communication, communication, communication
  • Ensure buy-in from all employees
  • No blind spots on the way: training and development
  • Propagate the chance through change ambassadors
  • Measure progress with a change barometer and adjust as needed

Should you have any questions regarding this topic, please don’t hesitate to reach out: stephan.podeyn@ensur.be and sibylle.berhin@ensur.be

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