Why do transformation projects fail…and what can actuarial leaders do to make them succeed?
History has shown us that the key objectives of corporate transformation projects are very often not met (a fact to which many studies attest), but are there factors present in actuarial teams specifically that can make or break actuarial transformation projects?
In my previous post, I looked at why we need transformation projects in actuarial teams and why we shouldn’t give up on them.
Over the next few weeks, I will examine a few commonly identified reasons for the failure of transformation projects and what we can do to address these issues and change the way the industry operates.
Actuaries only trust actuaries
Perhaps due to a historically privileged position at insurance companies, actuaries tend to respond best to other actuaries. To a degree, I understand this. However, by not relinquishing control of models to non-actuaries and not buying into a significant change initiative unless it is being championed by an actuary in a leadership position, it will lead to innovation and change remaining stunted.
Continuing to operate in this way will never work because even at an entry–level, actuarial team members are inducted into a culture that, justifiably or not, respects actuarial authority to the exclusion of others.
Stepping out of the comfort zone
Actuaries in leadership positions need to be visionary and proactive in order to inspire those who respect them. This kind of contagious enthusiasm can only be evoked when leaders themselves drive the project and make it their own.
In many cases, actuaries in leadership positions do not take enough ownership of, or fear transformation projects, often as a result of previous project failures. Even if they have been involved in approving and providing budget for a project, I have seen time and again that actuarial leaders will step back once the project has commenced and expect the process consultants or project managers to make it a success.
Reluctantly cooperating with nagging consultants is not enough. To achieve sustainable improvements and buy-in from everyone involved, actuarial leaders need to believe in transformation projects, visibly, passionately, and genuinely – and create the time and space for their teams to do the same.
If you are an actuarial leader and want to understand more about the benefits of transformation projects, our highly-skilled actuaries specialise in transformation and understand the challenges faced by actuarial teams contact us to find how we can support you.
This post was originally published on 30 May 2017 and updated on 16 February 2020.
