The Paperless Agency. Learning Objectives. Learning Objectives

(1)

The Paperless Agency

Robert E. Dunn III, CIC, CRM

Houston, Texas

713-344-0533 ~ 281-728-3407

[email protected]

2

Learning Objectives

CISR Survey Results

Paperless Concepts

Benefits of the “Paperless” office

Preparing to go digital - Evaluation

Inside or Out?

Best Practices

Learning Objectives

Example – Life Cycle of an Item

Less paper across the organization

Managing other than paper data

Evaluating 3

rd

Party Imaging Vendors

Project Management Success

(2)

CISR Survey Results

5

CISR Survey Results

Agency Size – Revenues Increments of $1,000,000

0

5

10

15

20

25

30

35

40 $0-$1MM

$1MM-$2MM

$3MM-$5MM

$5MM-$10MM

$10MM+

2003

2006

CISR Survey Results

Agency business mix

0

10

20

30

40

50

60

70 Commercial

Personal

Life and

2003

2006

(3)

CISR Survey Results

Surveyed agencies with:

0

10

20

30

40

50

60

70

80 Majority

CL

Majority

PL

Majority

L&H

No

Majority

Line

2003

2006

8

CISR Survey Results

When documents are scanned

0

10

20

30

40

50

60

70 As

Worked

As

Needed

As

Received

End of

Day

2003

2006

CISR Survey Results

How agencies scan documents

30

35

40

45

50

55

60 Agency

Management

Systems

Third Party

Programs

2006

(4)

CISR Survey Results

Person who scans information

0

10

20

30

40

50

60

70

80 CSR

Asst. Recep. Prod. Claims Other

2003

2006

11

CISR Survey Results

Length of time records retained

5

10

15

20

25

30

35

40 0 Days 1 Week

1 Month

3 Months

Over 3

Months

2006

CISR Survey Results

Reasons records retained

5

10

15

20

25

30

35

40 Fix

E&O

Prod.

Law

Svc

Other

(5)

CISR Survey Results

Areas in which agencies use imaging

0

10

20

30

40

50

60

70

80

90

100 CL

PL

Claims

LH

$$

HR

2003

2006

14

CISR Survey Results

How agencies handle paperless

carriers

5

10

15

20

25

30

35

40

Access Website Directly Access Website - Real Time Do not Maintain Policy Image Other

2006

CISR Survey Results

Who has desktop scanners

0

10

20

30

40

50

60

70

80 All

CSRs

Some

CSRs

No

Csrs

All

Prod.

Some

Prod.

No

Prod.

2003

2006

(6)

CISR Survey Results

Customer files treated as the primary

files

0

10

20

30

40

50

60

70

80

90

100 CL-Sys CL-P PL-Sys PL-P

Clm-Sys

Clm-P

2003

2006

17

CISR Survey Results

Other agency files treated as the primary

files

0

10

20

30

40

50

60

70 $$-P

$$-C

HR-C

HR-P

2003

2006

CISR Survey Results

Greatest benefit of imaging

10

20

30

40

50

60

70

80

90 Access

Time

Fax/Email

Space

Savings

Lost Files

Disaster

(7)

Paperless Concepts

Scanning Basics

– Why Scan?

– The Benefit of

Front-end Scanning

– The benefits of Dual

Monitors in a

“paperless” agency

20

Key Concept

The primary benefit of Front-End

scanning is that it changes the way

that information is managed and how

work is performed throughout the

agency.

Key Concept

Advanced Practices such as Front End

Scanning Ultimately Exist to Create

More Time to:

– Provide Enhanced Customer Service

– Increase Internal and External Sales

Which

(8)

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

23

Evaluation

Utilization Considerations

– Fully functional management system

– System is first and primary source of

information

– All data up to date as of last transaction

– Written procedures

– Written work flows

Evaluation

Utilization Considerations

Regular file audits

– Audit results impact performance reviews

– System suspense worked each day by all

employees

– Service staff can easily work each others

accounts

(9)

Evaluation

• Utilization

Considerations

• Regular file audits

– System suspense worked

each day by all employees

– Audit results impact

performance reviews

– Service staff can easily

work each others accounts

26

Evaluation

Key Utilization Issues

– Images are not a substitute for proper

documentation and system utilization

– Implement and audit effective procedures

prior to implementing advanced practices

Evaluation

Organizational Considerations

– Past success with major initiatives

Remodeling / Moves

Phone Systems / Management Systems

Faxing / Desktop Faxing

Changes in key personnel

Carrier Changes

(10)

Evaluation

Organizational Considerations

– Positive culture adopting change

– How agency communicates with staff

– How staff communicates with agency

– Training capabilities of agency

29

Evaluation

Organizational Considerations

– Capabilities of management system

– Attitudes of

key

employees to initiative

– Allocated budget

– Who will lead the initiative

– Who will have

tie breaking

authority

Successful Arguments

for Implementation

Ability to provide better service

– Enhanced coverage reviews

– More in-depth explanations

– Opportunities to fill gaps and round out

– Above and Beyond service experiences

(11)

Successful Arguments

for Implementation

All information at their fingertips

More control of work reduces stress

Paper pile elimination reduces work

Increases ability for cross servicing

32

Successful Arguments

for Implementation

Increased morale from team work

Reduced agency E&O Exposure

Enhanced agency competitiveness

Increased agency growth

Enhanced employee value

Key Concept

Efficiency is performing the prescribed steps

with the least time and effort

Effectiveness is producing the desired

outcome with the desired quality

(12)

Foundational Tie Breakers

Practices must be shaped around what is

best for the customer, not necessarily what

is convenient for us

The agency has the right and responsibility

to determine how work is performed

35

Managing Concerns

Encourage concerns to be voiced

publicly

– Provide regular venue

Allows them to be dealt with at once

Reduces back channel chatter

Reduces significance of issues

Common Objections

“It failed at another agency”

– Tactic – Research in advance what other

agencies have done, including successes

and failures. Visit both scenarios if

possible to learn from their experiences,

and to be able to address employee

concerns.

(13)

Common Objections

“I just know it won’t work”

– Tactic – Some employees need more time

than others to adapt to new ideas. Work

to identify them, and give them advance

warning about the change to come. Do

so only if their confidentiality is certain.

38

Common Objections

“I have been in the business too long

to be told how to work”

– Tactic – Such behavior is usually about a

perceived lack of respect. By treating

them as a key player from the beginning

of the process, these “key” employees

often become the champions needed for

success.

Common Objections

“We won’t be able to work when the

computer system is down”

– Tactic – Usually a last ditch attempt to

derail the initiative. By addressing any

system issues prior to implementation,

this will have no merit. Today’s systems

should provide 99.99999% reliability.

(14)

Common Objections

“I knew it wouldn’t work”

– Tactic – A symptom of the frustrations of

a new process. By creating clear

expectations up front with everyone that

there will be mistakes and missteps, the

agency can focus on resolutions rather

than defending the initiative.

41

Common Objections

“We can’t afford it”

– This is a management perspective. It

comes from a fear of adapting to the

change, or not truly recognizing how the

change will allow the agency to grow.

May also be a genuine cash flow issue.

Common Objections

“We can’t afford it”

– Tactics – If change, deal with as with

others. If cost, create business plan

showing expected resulting growth (ROI).

If cash flow, investigate alternatives to

major capital expenses: leases, using

existing equipment, i.e. copiers, buying

refurbished equipment, company

(15)

Inside or Out?

44

Advantages of Imaging

Within Management System

Single location for all customer data

One less program to learn/support

“Happy Accidents” – aka –

Synergy

Advantages of Imaging

within Management System

Single source for reporting

E&O Prevention

Increased System utilization

Protection of data

(16)

Disadvantages of Imaging

within Management System

Capabilities of System

Lack of Control

Unable to search by keyword

Requires agency to do more things

right

47

The Paperless Mindset

More Information Available

to More People

Carrier Bulletins

Agency Announcements

HR Forms and Policies

Accounting Forms and Policies

Carrier and Vendor Contacts

Underwriting “Cheat Sheets”

(17)

More Information Available

to More People

Movement From – My Information

Movement To – Our Information

Movement From – My Success

Movement To – Our Success

– WE Succeed (Team, Dept. Agency)K

– WE Fail (Team, Dept. Agency)K

50

More Information Available

to More People

Via –

– Utilizing System

Modules

– Agency-wide

Intranet

– Shared Folders

– Interdependent

Goals and Priorities

No Sacred Cows!

Principals

Producers

Service Staff

Support Staff

Accounting

Claims

Carriers

Vendors

(18)

The Life of A Scanned Item

53

System Dependent not

Personnel Dependent

Clearly documented Procedures

Clearly documented Work Flows

Regular File Audits

Institutional Knowledge

System Dependent not

Personnel Dependent

Everyone knows how to scan

No insurance knowledge required to

scan – Scanning not about insurance

System and process knowledge

(19)

The Life of a Scanned

Item - Assumptions

Items are scanned and attached within

Agency Management System the same

day received

Agents copies are not given to staff

Staff works from image of item

56

The Life of a Scanned

Item - Assumptions

Staff works mail on a daily basis or at

least reviews what was received

Staff have strong skills in Windows

Staff have strong skills in Agency

Management System

The Life of a Scanned

Item - Assumptions

All staff have dual monitors*

Agency has written Procedures and

Work Flows

Agency regularly Audits staff work

(20)

The Life of a Scanned

Item – Receiving Mail

Items received in office and prepared

for scanning

– Removal of paper clips, staples

– Identification of duplex vs. single sided

– Identification of customer/prospect

59

Scanners

The Life of a Scanned

Item - Barcodes

(21)

Access Bar Code

Generator

62

Provide Details for Bar

Code to be Produced

• Item is labelled with

basic information

– Customer/Prospect Name

or Number

– Policy and/or Claim

Number

– Today’s Date

– Type of Attachment

(Policy, Photo, Etc.)

– Description

(22)

Sample Attachment

Category Spreadsheet

65

Sample Attachment Category

Spreadsheet – Filtered

Security Settings Allow

Attachment Modification

(23)

Each Scanned Item is

Tied to an Activity

Items are set aside for batch scanning or scanned.

Once items have been scanned, they will appear on

the Homebase Activity List appear for the related CSR

or WHO to work.

68

Items are Worked

Electronically Then

Locked Down

Once worked, the CSR re-categorizes the item

Activities Complete the

Process

Finally, the CSR works the related suspense item,

closing original and creating related new Activity.

(24)

The Life of a Scanned Item –

Image Scan/Batch

71

Follow the Prompts

• Select Router

Location

• Select Scanner

(25)

Route or Attach Images to

Appropriate Files

74

Details Plus Activity Much

Like Bar Code Production

Once Routed, Same as

Scanned with Bar Codes

Appear as Activity on Homebase

Worked Electronically

Re-Categorized and Locked Down

Activities Complete the Process

(26)

Other Items Worked

From the Image

Correspondence

Underwriting items

Cancellations/Reinstatements

Claims

Audits

Reports

Direct Bill Policies

77

Other Items to Attach

Emails - Incoming and Out bound

Voice mails

Faxes - Incoming and Out bound

Photos

Documents

Documented Conversations

– Handwritten or entered into system

“Paperless” =

Greater Dependence

On:

Standards/Procedures

Processes/Work Flows

Quality of Work from Staff

Quality of Management Practices

Systems/Security

(27)

System Integrity is

Crucial

System data is first and primary source

of information

No backup, producer, or “cheat” files

Everything verified against system for

accuracy

80

Paperless Carriers

Should agency retrieve copies of

policies from carrier websites?

Does agency have confidence in

quality of downloaded data?

Does agency utilize Real Time

interface?

Paperless Carriers

Does agency download with all

available carriers?

What do carrier contracts say about

access to websites if relationship

terminates?

(28)

Effective Categorization of

Attachments is Essential

Uniform

Consistent

Fool proof

Documented

Audited

83

Key Concept -- Coding is About

Retrieval and Manipulation

Communication vehicle not important

Content, recipient, purpose have value

Align System’s filtering capabilities

with simple Category hierarchy

How will items be retrieved?

Key Concept

Which scanner you use depends on

who is doing the scanning – and –

What is being scanned –

– Bulk of front-end items

– Additional “as needed” items

(29)

Third Party Vendors –

Key Questions

Time on Market – Vendor and Product

Ten similar agencies using Product

File formats (.tif, .gif, .jpg, .pdf, .wav)K

86

Third Party Vendors –

Key Questions

If integrated with system – how?

– Access from within system

– Hot keys

– Floating buttons

– Actually part of database

– Supported by System Vendor?

Third Party Vendors –

Key Questions

Costs of their program –

– Software

Support – Included or additional

Upgrades – Included or additional

– Hardware

Scanner – Theirs, yours, either

Storage – Theirs, yours, either

(30)

Third Party Vendors –

Key Questions

Is anything Proprietary?

– File formats

– Integration

– Storage

– Hardware (Scan station, Scanner)K

– Etc.

89

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

Productivity Curve for New

Initiative Implementations

(31)

Planning for Success

Potential Exposures

– Increased dependence on system

– Increased concentration of data

92

Planning for Success

Reasonable Strategies

– Review and adjustment of –

Backup Procedures

Disaster Plan

HR Controls –

– Confidentiality

– Computer Use Policies

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

(32)

Documentation

Systems Driven organizations create

Institutional Knowledge

– Clear, Concise, Written

Procedures

Standards

Work Flows

-- Creates Accountability and Uniformity

95

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

Education

Often stops short

Use to adjust Work Flows

Re-visit system basics - ICBT

Peer to peer instruction

Create momentum for other initiatives

Agency as Learning Organization

(33)

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

98

Implementation

Date announced well in advanced

– 1

st

_{of year, quarter, month}

– Significant date

Other steps completed

Competing priorities considered

– Holidays, peak periods, Other Initiatives

Implementation

Successful Strategies

– Cold Turkey

– One Department

– Test Case

– Competition, Incentives

– Be Creative, but be consistent

(34)

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

101

Auditing

What gets measured gets done

“When did this start happening?”

Procedures and Work Flows lead the

way

Start w/Peer to Peer or Group Audits

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

(35)

Feedback

Input from Multiple Sources

– Audits

– Front-line Use and Customer Satisfaction

– Management

– Networking

– Maturation

– Product knowledge

Ongoing

104

Project Management Steps

Evaluation

Planning

Documentation

Education

Implementation

Auditing

Feedback

Refinement

Begins perpetual loop

– Refinement, Auditing, Feedback,

Refinement

Audits now individual and documented

– Ideally part of Performance Reviews

Quality Control Loop works on any

(36)

Where to Start

Local - National Users Group Members

Local – National Agents Groups

Success stories and Horror Stories

Visit at least one of both

– Talk to front line users if possible

– What is similar to your agency?

– What is dissimilar to your agency?

107

Where to Start

Other Vendor’s Users Groups

For a regularly updated list go to:

www.acord.org/augie/augie.aspx

– Click on AUGIE Leadership

– Check out Tools & Resources

Free Tools

Free Documents

(37)

Conclusion - Questions

Contact Information:

Robert E. “Robby” Dunn III, CIC, CRM

713-344-0533 ~ 281-728-3407