lean transformation_insurance
TRANSCRIPT
The Value Driven Approach
By
Value Driven Solutions
The Resource for the Lean Enterprise
Lean Transformation Strategies for Service Organizations
© 2015 | Value Driven Solutions 2
The Resource for the Lean Enterprise
Value Driven Solutions
Lean Transformation Strategy
Value Driven Solutions (VDS) is a management consulting firm dedicated to
continuous process improvement. Our approach is based on the Lean
Principles for manufacturing and service organizations, and the Six Sigma
methodology for near-perfect quality.
Our Mission
“Value Driven Solutions is fully
committed to enabling businesses to
reach their full operational potential
through the implementation of tailored
problem solving strategies in the most
efficient and cost-effective manner.”
© 2015 | Value Driven Solutions 3
The World Class Performance Cycle
The Value Driven Approach
Lean Transformation Strategy
7. Compare to goals, adjust strategy
8. Continue to improve focused on delighting
the customer
6. Standardize processes
5. Target specific projects using 6σ
DMAIC
4. Define Value Streams, eliminate
waste, and introduce pull systems
3. Ensure satisfaction of customers requirements
2. Established based on LSS principles to
maximize value.
1. Identify customers and see value through
their eyes. VOC
Define Value
Corporate Strategy
Develop Metrics
Maximize Flow
Improve Quality
Eliminate Variation
Analyze Results
Share Success
& Lessons Learned
Customer
© 2015 | Value Driven Solutions 4
Commodity Mentality in the Insurance Industry
Business Case for Transformation
Lean Transformation Strategy
• Competition for market share based mostly on price• Risk reduction strategies took back seat• Less focus on the hidden cost drivers behind a client’s TCOR• Instead higher TCOR due to:
• Poor risk identification process• Gaps in coverage• Inferior claims handling
It’s the hamster wheel effect everyone is on, but can’t or won’t get off.
“
“ Colin D. Baird, Insurance Journal
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Lean Six Sigma for service organizations
Business Case for Transformation
Lean Transformation Strategy
A method for eliminating waste, taking complexity out of processes, and creating better flow.
A business strategy that empowers people to create process stability and a culture of continuous improvement
A growth strategy... gaining more market share and increasing sales, while lowering costs
Not an instant transition, requires old paradigms to be abandoned
Customer focused thinking.... a natural fit with World-Class organizations
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Business goals and process metrics aligned
Business Case for Transformation
Lean Transformation Strategy
Customer satisfaction
Profitability
Market growth
Lead-time
Defects/Rework
Services cost (TCOR)Deliver more
value to stakeholders
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Step 2
Step 5
Roll Out. Commence tool flow down through structured events managed by steering committee. Involve all and Share Success!
Step 4
Measure. Create Leadership Standard work with steering committee. Establish KPIs at the enterprise, site, cell & process level.
Step 3
Vision. Create vision with senior leadership. Establish strategic plan to address gaps from Lean Enterprise Assessment. Create Steering Committee. Prioritize projects according to organizational goals. Roadmap to World Class.
Competency. Intense workshop for all senior and mid-management on operating methodology and LSS tools. Create Lean Six Sigma Tool Box, for specific business model, and Competency Development Program.
5 Steps to Success
Lean Transformation Strategy
Lean Transformation Strategy
Analysis. Perform Lean Enterprise Assessment. Determine the organization’s cultural readiness for change, operational capability, and level of alignment between strategy and goals. Select pilot cell and establish the project’s potential, scope and timeline.
Step 1
!
© 2015 | Value Driven Solutions 9
Lean Enterprise Assessment
Analysis
Lean Transformation Strategy
The goal of the assessment is to determine the organization's: Cultural readiness for change Current state of continuous improvement efforts Operational capability and flexibility Relationship among internal processes and with suppliers Adaptability to the continuously changing competitive environment
and ever-changing regulations
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Associate Level Trained in basic tools can participate and support events
Practitioner Level Can Lead, Co-lead & implement events and provide basic training.
Master LevelCreates vision with senior leadership and provides advanced training.
Lean Six Sigma Competency Development TrackDevelop curriculum to certify participants and support the transformation
.CompetencyEducating the Workforce
Lean Transformation Strategy
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Kaizen
6S
DMAIC
VSM
CompetencyThe Lean Six Sigma Toolbox
LSS tools are not one-size-fits-all. Introduce tools sequentially according to:
Business Model Type and severity of problems Level of competency of the workforce
There are 3 distinct tool categories Problem solving Waste elimination Decision making
Lean Transformation Strategy
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Insurance
Mfg & Aftermarket
Healthcare
Sales & Marketing
Primary focus is process improvement of strategic intent, not on discovery of waste.
Focus on waste elimination, control of inventory, on time delivery, quality, and turn around time
Improvements in patient outcome, quality, reduced wait times
Working with the customer to lower TCOR.Identifying and eliminating waste, and improving flow in the agency’s processes
Effort Put Into System Design Will Result in Greater Benefits
© 2015 | Value Driven Solutions
VisionStrategy Tailored to Specific Business Model
Lean Transformation Strategy
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Cross Functional Steering Committee
Measure
Lean Transformation Strategy
Members Site leadership and management representatives from key departments
(Claims, Sales & Marketing, Underwriting, Human Resources, Compliance)
Key stakeholder groups that have an interest in the outcome of the project
Transformation leadership (Lean Transformation Leader, Site CI Manager, etc.)
Responsibilities Approve project deliverables
Help resolve issues and policy decisions
Approve scope changes
Provide direction and guidance to the project
Acts as liaisons to executive group and sponsors
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Define Metrics for the Enterprise, Site, and Cells based on these four categories
Customer Focus Focus on the Voice of the Customer. Strive to delight customers.
Delivery Working every day to meet 100% on time delivery
Quality Zero defect/rework philosophy.
ResponsivenessBest in Class Turn Around Time and discrepancy resolution.
MeasureEstablish Key Metrics
Lean Transformation Strategy
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Target cell based on process metrics or value stream data
Pilot Event
Roll Out
Lean Transformation Strategy
Form cross-functional, multi-level team Match the tools to the problem Document results Share successes and challenges Select next cell or area to improve Continue to monitor results
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Our Vision
Lean Transformation Strategy
At VDS, our goal is to provide our clients with…
a true baseline from which to grow
help to identify opportunities for improvement of critical processes
a comprehensive road map to World Class performance
VDS offers a balanced and cost effective approach based on:
exceptional customer support
knowledge transfer
innovative solutions.
Value Driven Solutions, LLC @Lean_VDSwww.facebook.com/VDSConsulting
Contact Us
To learn more about VDS Services please visit
w w w. v d s c o n s u l ti n g g r o u p . c o m
Interested in seeing how we can help your organization?
Call us
1 800 253 5260
Or Email us your questions at