In my previous posts I talked about why now is a good time for life, pensions and investments (LP&I) providers to invest in the workforce of the future and how robotics process automation can help save processing costs. For providers wanting to position themselves for success in the future, a further step will be necessary—one that requires changing the very DNA of the organisation.
Providers will need to reimagine how they are structured and how they operate, addressing changes in skills and competencies, management and leadership, and the culture of the organisation. But this needs to be a subtle journey, one that allows organisations to navigate their legacy mindset and future worlds in a complementary fashion for several years. So where and how do we start?
I believe there are five clear priorities for LP&I providers:
- Empower next-generation leaders who want to make this happen. Start small by incubating leaders who are not afraid to fail and learn.
- Establish an evolving “two-speed” operating model. Organisational frameworks must support agile, flexible teams, enabled by an experimentation mindset, to adapt to changing business needs (“NewCo” especially to support Digital). But in the medium-term, these new models will likely co-exist with legacy models (“OldCo).
- Lay foundations for merging front- and back-offices. Increased automation pays dividends—both short and long term—through increased productivity and responsiveness. But it must be introduced in a way that ensures humans and machines work effectively together.
- Harness analytics at the next level. Social media listening and big data have a vital role to play in informing personalised proposition designs. Having invested hugely post-RDR (Retail Distribution Review) and to address Solvency II requirements, now’s the time to harness those investments, connecting them with external sources to provide powerful customer-centric strategic insights.
- Manage critical talent proactively in the context of robotics. Having identified the roles most likely to be replaced by machines, along with the key roles and employees that will be critical from now on, proactively establish strategies to reshape a workforce for the future—with data scientists and proposition alchemists at the core.
The LP&I industry is changing faster than ever before, as new expectations from governments, regulators, economists and customers combine with technological innovations to transform the landscape. Providers that create an environment that flexes and provides space for people to experiment—and shape a workforce that is agile, works effectively with machines and is not afraid to fail—will be in the best position for a sustainable and profitable future.
Read our latest thinking on the Workforce of the Future