Leadership’s Role to Improve Speed to Market

Speed is defined as the ability to move in one direction as fast as possible. When running a race, the start and finish lines are clearly defined, and the course is filled with directional signs to keep the runners moving in the right direction. The speed of the runner is the only variable that differentiates winners from losers.

Insurers of all sizes are running a race of their own to deliver new products, services, capabilities, and experiences. The course for each company is unique, and the indicators along the route to cross the finish line are not always clear. The teams running the race want to run faster, but they are often delayed by cultural and strategic obstacles.

Executive leaders play a critical role in setting the pace of the organization. Insurers that struggle to improve their speed-to-market capabilities may want to take a closer look at the clarity of their direction, the alignment of their teams, and the commitments they are making to ensure success.

• Direction – Most executive leadership teams of insurance companies have a three-to-five-year plan that outlines their overall strategy to achieve growth and profitability while managing risks in the market. This strategic plan provides directional statements and assumptions about product mix, distribution, target market, and the use of technology. It is here that strategic objectives and the mechanisms for guiding implementation of the objectives are framed. Unfortunately, in some organizations, the key themes and messages in these strategic plans are not effectively communicated to employees and business partners, which limits the speed at which the organization can operate. Delivery teams that lack an understanding of the strategic direction of the organization will ultimately be influenced by external forces to inform their decisions. Executive leadership teams that rally around their strategic planning efforts and effectively communicate a common direction across the organization have the most potential to improve the pace of the teams that they lead.

• Alignment – Once a direction is set and communicated by leadership, ensuring ongoing alignment of resources to tactical objectives becomes the next challenge to improving speed-to-market capabilities. Every organization has limitations; managing capacity, expectations, and deliverables is key. Regulatory changes, product enhancements, and rate revisions are foundational projects that benefit from having a set of dedicated resources to deliver and maintain. All other project requests should be evaluated for alignment back to defined corporate objectives. Executives that recognize the importance of prioritizing and communicating their tactical plans in alignment with corporate objectives across the enterprise will gain credibility and improve their ability to increase speed to market for key initiatives.

• Commitments – Rogue IT projects, not associated with or justified by a corporate initiative, can lead to delays in key initiatives and damage the trust the organization has in leadership to stay the previously communicated course. This may feel limiting, especially for companies that seek to encourage an entrepreneurial spirit with their employees. Insurers need to set a foundation for innovation initiatives in their strategic plans and corporate objectives. By doing so, they further align the organization from a top-down perspective on digital transformational priorities related to employee experience, agent experience, and customer experience.

The value of a clear vision, strategy, and set of guiding principles to rally employees around can be overlooked in efforts to increase speed-to-market capabilities. There are no tools to replace the important role leaders play in setting the pace. It is a core competency and responsibility of the executive leadership team. As companies navigate the pandemic with an increased number of WFH employees, the ability to communicate direction, achieve alignment, and demonstrate a commitment to the strategic plan will become ever more important. The companies that exhibit excellence in these areas will have the best chance of winning the speed-to-market race.