The HartfordAND THE CLAIM LEADERSHIP MODEL

Heidi Lewin – EDUC 6105 Orgs,

Innovation & Change

(Landseer, 1851)

Please turn on your Speakers

History of the Company-Early beginningsMay 10, 1810

(Firetruck, 1901) (Nathaniel Terry,Portrait n.c.). (Great Fire of 1835, n.d), (Landseer, 1851), (Morse, n.d.)

History of the Company-Famous Insureds

(Abraham Lincoln House, n.d.), (Abraham Lincoln, n.d.), (Babe Ruth, n.d.), (Lee House, n.d.), (Buffalo Bill, n.d.), (Timmons, n.d.),

History of the Company-Major projects

(Golden Gate Construction, n.d.), (Golden Gate,, n.d.), (Hover Dam Construction, n.d.), (Hover Dam, n.d.)

History of the Company - Present Day

(The Hartford [HIG], n.d.), (AARP Logo, n.d.), (US Paralympics and The Hartford, n.d.), (Larry The Stag, 2010)

Comm.

Markets

Talcott

Resolution

Mutual

Funds

HIMCO

FinancialLaw

Consumer

MarketsFinance

Human

Resources

Enterprise

Risk Mgmt

Claim Services

Field Ops

Spec. Invest.

Work Comp

Auto

Gen. Liability

Property

Claims Legal

Property &

Marine

Chief

Underwriter

Actuary Comm

Markets

Actuary

Reserving

GB Cla ims

Large Loss

HHI

Practices

Field Cla ims

CEO

Middle Market

Chief Cla im

Officer

Group Benefi ts

Sa les &

Dis tribtuion

Select

Customer

CEO

Comm. Markets

Talcott Resolution

Mutual Funds

HIMCO Financial

LawConsumer Markets

FinanceHuman

ResourcesEnterprise Risk Mgmt

Middle Market

GB Claims

Chief Claim Officer

Large Loss Spec. Invest.

Group Benefits

Field Claims Work Comp

Sales & Distribution

HHI Auto

Select Customer

Practices Gen. Liability

Property & Marine

Property

Chief Underwriter

Claims Legal

Actuary Comm Markets

Claim Services

Actuary Reserving

Field Ops

The Hartford Culture

Pre-Remote Worker Program

• Top-Down decision making process

• Reactionary Change

• Northeast culture and viewpoints

• Out of touch

Post-Remote Worker Program

• Collaborative decision making

process

• Proactive Change

• Viewpoints and cultures from country wide

• Engaged Leadership team (The Hartford, 2013)

• Why• Transactional vs. Transformational Leadership

• Improvement in the 3 business metrics

• File Quality

• Customer Service

• Work Environment

• Daily activity breakdown for front line leaders

• 85% of their time performing process driven work

• 7-10% coaching

• 5-8% of their time doing team administrative work

• Front line leaders were not empowered to lead their teams

• Who?• Claim staff from all lines of business

• How?• Change Process

• Post Implementation guidelines

The Claims Leadership Model-CLM

(D. Carrow, personal communication, November 13, 2013)

The CLM Process - Assessment and

Planning

• Initial Survey with McKinsey & Company

• Process and Time studies using Six Sigma studies

• Project managers traveled to TD Ameritrade to observe the

Lean Management System

• Outcomes

(D. Carrow, personal communication, November 13, 2013)

The CLM - Change

• Front line supervisors focus shift

• Employee facing activities vs. All Quality file reviews

• Daily team huddles

• Benchmark performance reviews on a team level

• Weekly department huddles

• New daily activity breakdown for front line leaders

• 50% Employee facing activities

• 30% File level activities

• 20% team oversight and professional development(D. Carrow, personal communication, November 13, 2013)

The CLM - Resistance

Front Line Supervisors

• Time management

• Flavor of the month

• Performance level decline

• Pay for performance culture

Claim staff

• Waste of time-time management issues

• Intrusive

• Uncomfortable with a less structured performance assessment

(R. Garcia, personal communication, November 15, 2013)

The CLM - Implementation

• Training for front line supervisors

• Need for the model

• Increased business metrics

• Proper way to conduct employee facing activities

• Use of daily huddles

• How to provide appropriate feedback

• Identify those employees with a high performance level

• Communication-key to implementation. (E. Bounds, R. Guillermo, M. Drescher, & V. Mayorga, personal communication, November 20, 2013)

The CLM - Post Implementation

• Huddle guidelines established

• Feedback forms to document employee facing activities

• Leadership blog

• Handout for claim staff outlining the new model

(D. Carrow, personal communication, November 13, 2013)

The CLM – Success Story

All three core business metrics saw an increase

• Overall File Quality - 78% to 85% standard files

• Customer Loyalty – 82% to 87% satisfied

• Work environment – 91% of claim employees would rather

work for the Hartford than for anyone else. (D. Carrow, personal communication, November 13, 2013)

Reflections

What went well

• Planning

• Research

• Implementation

• Communication to front line supervisors

• Follow up

Area for improvement

• Claim representative communication and anticipation of

resistance.

Reflections

The change process incorporated many factors presented by

Dr. Bligh

• Created a sense of urgency

• Communicated the rational for the change

• Identified likely resistors

• Created small wins

• Identified Structural obstacles

Visionary vs. Reactionary(Laureate Education, n.d.)

References

AARP Logo [Computer graphic]. (n.d.). Retrieved from bhpmss.org

Abe Lincoln Illinois Home [Photograph]. (n.d.). Retrieved from http://iconnect.thehartford.com/Pages/Archive1287781464486.aspx

Babe Ruth in Uniform [Photograph]. (n.d.). Retrieved from http://iconnect.thehartford.com/Pages/Archive1287783787962.aspx

Buffalo Bill [Lithograph on paper]. (n.d.). Retrieved from http://www.pbs.org/wgbh/americanexperience/films/cody/

Fire truck [Photograph]. (1901). Retrieved from http://fire.hartford.gov/PictureGallery/old_fire_truck.jpg

Golden Gate Bridge Construction [Photograph]. (n.d.). Retrieved from http://iconnect.thehartford.com/Pages/Archive1287781376075.aspx

Hoover Dam Construction [Photograph]. (n.d.). Retrieved from www.library.unlv.edu

Hoover Dam [Photograph]. (n.d.). Retrieved from hoover-dam-directions.jpg.

Landseer, E. H. (1851). Monarch of the Glen [Painting]. Retrieved from http://www.1artclub.com/the-monarch-of-the-glen-by-sir-edwin-landseer/

Larry the Stag [Photograph]. (2010). Retrieved from http://benhauck.com/wp-content/uploads/2010/05/landscape-opening-bell-as-larry-the-stag.jpg

Laureate Education [Producer]. (n.d.). Sustaining change. Retrieved from Walden course EDUC 6105

Lee House at Arlington [Photograph]. (n.d.). Retrieved from http://washington.dukegill.com/images/Arlington_Cemetery_Arlington_House_001.jpg

Mid-America Games for the Disabled [Computer graphic]. (n.d.). Retrieved from www.midamericagames.com

Morse, S. F. (n.d.). Eliphalet Terry [Oil on canvas]. Retrieved from www.en.wahooart.com

Nathaniel Terry [Painting]. (n.d.). Retrieved from http://iconnect.thehartford.com/Pages/Archive1287781376075.aspx

The Great Fire 1835 [Painting]. (n.d). Retrieved from http://newyorklookingback.blogspot.com/2011/12/great-fire-1835.html

The Hartford. (2013). Map with Office Locations [Computer Graphic]. Retrieved from www.thehartford.com/sites/thehartford/files/facts-about-the-hartford.pdf

The Hartford. (n.d.). Hartford Home Office [Photograph]. Retrieved from http://www.thehartford.com/higfiles/flash/historical_timeline.html

Timmons, R. (n.d.). Robert E. Lee [Painting]. Retrieved from www.rebelyell1.com