As we continue our series on successful implementations of risk management software, I'd like to examine the benefits of implementing a new system in phases. In my experience managing hundreds of implementations, I've found that bringing the application up in defined, manageable segments can be a win-win for both the RMIS provider and the client.
The reasoning behind this is based on three key considerations:
- Deploying risk management software in a step-by-step fashion allows the client to gain firsthand
experience as the installation is progressing.
- Members of client team can then experience some early successes from using the new system.
- Both client and provider benefit from lessons learned at various stages along the way.
And perhaps the biggest advantage of all:
The client-side sponsor and the RMIS vendor can gain buy-in from stakeholders as they become comfortable with each aspect of the technology. Stakeholders, from end users to executive-level sponsors, will see the benefits of a new system as its being deployed. And finally, new users are less likely to report concerns or revert back to their prior risk management methods (for example, relying solely on spreadsheets).
Guiding Factor #1: Project Size
Let me point out that a phased implementation should not be chosen for every implementation. The determining factors are the size of the project, timing and project deadlines; the personnel available from both the client and provider is another important factor.
Successful implementations adhere to a proven and agreed-upon methodology. For example, the project kickoff meeting will include a mutual review of the implementation methodology to ensure a collective understanding of the project. We can develop the project plan, highlighting the separate phases and the time anticipated to complete each phase.
FOR EXAMPLE: A national retailer we worked with actually asked us for a phased installation. Each year, from mid-October through the first of the New Year, the client shifted their entire focus to their holiday sales. They knew they could only get part of the implementation done for their new RMIS. We agreed and decided together to complete our first phase that included the conversion of claims from all of their sources. The second phase, which included property and policy, would come on once the holiday rush was behind them.
Guiding Factor #2: Availability of Necessary Personnel
Typically, when a project team is assigned to an implementation, we look at availability and skill sets and assign people for the entire project. If we take a phased approach, we can reassess our personnel requirements as we go and assign the best resources to the subsequent parts of the project. This is true on the clients side as well.
FOR EXAMPLE: The client may have staff who are extremely knowledgeable about data consolidation and data reconciliation but are less familiar with the property renewal process. If we attack implementation as one big project, we might do well on the claims side, but we might find ourselves expending more time and resources on the property side.
Using a phased approach, we bring on the appropriate people for data consolidation and when the time comes, deploy the renewal people for the property side.
Phasing allows the provider and the client to put the most qualified personnel on each phase of the project. Phasing enables better coordination of skill sets and schedules across various team members and allows them to work on distinct and finite parts of the implementation.
Guiding Factor #3: Client-Side Support and Resources
At times, we work with risk managers from sizable organizations who have dedicated IT teams that routinely manage major projects. As a result, these clients have the appropriate people available, they know their schedule and they know the skill sets of the resources who are coming onto the team.
By contrast, weve seen cases where a small risk management team is tasked with the implementation, even as the team has, for example, its renewal period coming up in three months.
On these small- to medium-sized projects, the risk manager is trying to organize the project as well as do their day-to-day job of insurance renewal, claims adjusting, and all the other things that go on in the day-to-day world of a risk manager.
The risk manager's team faces a real challenge: a major implementation competing for their time and focus.
In cases like this, we'll sit down with this client and take them through a discussion that helps to identify critical near-term needs, objectives that can wait, and how to identify who on the clients team can handle which tasks in combination with their normal duties.
Guiding Factor #4: System Training
The phased approach to RMIS implementation also pays dividends from a training perspective. When the RMIS provider can focus the training efforts on one piece of the system at a time, trainees are more likely to get comfortable with and accept the system.
FOR EXAMPLE: Let's say a client focuses on getting the claim system up and running first. The client and RMIS provider can then start to train users to run some reports so they get to know the system as it relates to an area of their work claims management that they already know and understand. Then, as the other pieces roll out, such as policy or property, end users of the RMIS will have a solid foundation on which to build. At this point, users are, in essence, learning the new modules workflows.
In addition, a focus on training also gives the RMIS companies account team time to build a relationship with the client, experience success with the system and, later, roll out the subsequent parts of the system.
