Two-Minute Q&A Chat Series
Denise Garth: Welcome back to our ‘Two-Minute Q&A Chat Series’ exploring distribution management, where we ask the tough questions on how to get the most out of your transformation. In our previous discussion, we introduced the DM Maturity curve and what value it can bring to carriers. Today we will be discussing how you can define your current position on the curve as a carrier. Let’s get into it! Brad, what questions do you have for me?
Denise Garth: As we discussed last week, when considering a distribution transformation for your organization, it is critical to first understand what strategies, goals and objectives are crucial for your team to be successful in today’s rapidly changing market. Most carriers continue to deliver significant value for their customers and distributors while staying at the early stages of the Distribution Management maturity curve, through a mix of heroic efforts by operations team members and relationship management with key distribution partners at the executive level. But heroics are not sustainable, let alone scalable and ultimately will limit growth. Understanding where your organization stands on the maturity curve will help further evaluate what goals and objectives your organization should achieve in order to be a market leader.
Denise Garth: The 5-stage Distribution Management Maturity Curve is a spectrum. Not every insurer’s organization fits perfectly into just one of the five stages. In this framework, we provide a “day-in the life” view of an organization at each of the five stages. An insurer should reference this while focusing on the key dimensions of where you feel your organization is today, and where you aspire to be going forward to effectively compete.
We believe that carriers have a significant opportunity to differentiate themselves in the marketplace by stretching for capabilities higher-up on the maturity curve and using these capabilities to steer their transformation visions and channel expansion opportunities going forward.
Denise Garth: As a carrier moves from one stage to the next stage, they will experience alleviation from firefighting mode. Instead of focusing on day-to-day business activities, carriers and their business users will be able to focus on both today’s and tomorrow’s market demands, and they will eventually be able to predict their distribution channel and customer needs.
As carriers move up the DM maturity curve, they start to deliver value across three key dimensions.
These are the three strategic drivers we touched on before:
We believe that the real value of a Distribution Management transformation lies in a carrier’s ability to rise above the competition by enabling key capabilities in order to climb the maturity curve.
Denise Garth: Once an organization identifies where they are on the Distribution Management curve, they must ask themselves the right questions to make a journey effective. Such questions include:
Denise Garth: I hope we answered your questions on how to define your current location on the maturity curve. In our next session, I will be asking Brad more tough questions on the maturity curve stages, including where your organization should be and why based on your organization’s goals and objectives. Find out how Majesco and PwC are working together to transform Distribution Management.