How are insurance organizations maximizing value for sourcing relationships? Here are the keys to success.

1. 5KEYSTOSUCCESSFUL
SOURCINGRELATIONSHIPS
do what counts.W H I T E
P A P E R
How are insurance organizations maximizing
value from sourcing relationships?

2. Most daily business
decisions are plain
purchasing decisions. Going
to the copy store to have a
presentation printed and
bound is a plain purchasing
decision that does not
require a relationship with
the vendor. This is a quick,
in-and-out transactional
service, and your experience
is based on the transaction,
not the relationship.
The decision to outsource
and delegate back-office
processing work is
significantly different. When
this type of purchasing
decision is made, the
relationship forged must be
meaningful, productive and
lasting. Over an extended
period of time, needs and
wants are going to change,
and this requires a
relationship strong enough
to weather that ebb
and flow.
KEYS TO
SUCCESS
Keep it simple. Agree on the frequency
of planned communication for reports
being delivered, conference calls, etc.
Both sides should keep multiple lines of
communication open for quick and easy
responses to inquiries from their new
strategic partner.
A common pitfall in a sourcing
relationship is only communicating when
there is an issue. Having regular lines of
communication open are important for
building the foundation of the
relationship. This makes it easier to have
discussions that may be more difficult.
1. COMMUNICATION
What are some keys to a
good relationship?
· setting expectations
· commitment
· trust
· consistency
· accountability
· measurement
· communication
· performance
· dependability
· listening
· respect
· aligned purpose

3. GOVERNANCE AND ESCALATION
Sometimes you'll have specific items to
discuss that will result in more involved
meetings, but even when there doesn't
seem to be much to talk about, it's good for
the relationship to check in and confirm
everything is going well. These
short meetings are opportunities to talk
more about the 'why' behind the work
being delegated, and organizations may
find the thoughts and ideas of the team
performing the work insightful.
Consistency of these meetings sets up the
cadence for discussion, and can make it
easier to escalate potential issues because
of the level of comfort established. When
something isn't going well, bringing it to the
attention of the provider ensures both
parties remain on the same page and
continue to work together towards a
shared goal.
2. TRUST
Building trust takes time, but more
importantly, it takes effort from
both parties involved in the
relationship. Telling the truth, honoring
promises and maintaining a transparent
posture on both sides allows for innovation
and idea sharing, whereas keeping a wall up
inhibits the provider's ability to deliver
maximum value to the organization.
Being consistent in the format of the
information being shared establishes an
expectation level that can be met regularly.
3. COMMITMENT
Commitment starts internally in the
language used when talking about
the relationship. Portraying a belief in the
service and committing to its success goes a
long way with staff, as opposed to taking a
more reserved stance using language like
wish, hope or try. Reminding staff that the
processing teams are an extension of the
internal sales, service and management
teams displays commitment. Believing and
expressing that the relationship will develop
into a partnership promotes similar behavior
across the organization. This is the same for
all business relationships including agency
and carrier relationships.
Get to know your processing team
and encourage them to get
acquainted with your internal staff.
This helps increase the level of
comfort when delegating new
processes or making changes to
existing work being performed.

4. TRANSFORMATIONAL
LEADERSHIP PAIRS
Assigning a relationship leader at the
insurance organization and the service
provider can greatly impact the success
of the engagement.
With a point person on both sides
focused on nurturing the relationship, it is
much easier to resolve problems and drive
solutions since there is an explicit level of
mutual commitment.
4. ALIGNED
PURPOSE
The service provider should
understand your mission, vision,
and value. They should be contributing to
the goals and objectives of the organization
and absorbing the actions and approaches
being used internally. Additionally, the
provider should become familiar with the
systems and resources used, working to
build a trusted relationship with internal staff.
Teams should know how they fit together
and how the work they do is related to the
work of their colleagues and their provider.
Testing alignment frequently and refreshing
it periodically can go a long way in aligning
purpose, which subsequently builds
efficiencies and room for growth.
WHO IS RESPONSIBLE?
The insurance organization is responsible
for communicating its needs and wants
to the service provider. The provider is
then responsible for honestly and openly
expressing its capability to meet those
needs and wants. After these two
pieces are shared, both parties are
responsible for working together to
agree on requirements.
Insurance
Organization's
Representative
· responsible
for internal
adoption
· manages
change
· communicates
progress with
staff & mgmt
· provides
feedback to the
provider on
service levels
Service
Provider's
Representative
· responsible
for ensuring
all the
client's needs
are met
· manages the
processing
team
· provides
feedback on
the delegation
process

5. Expectations
Unwritten; based on
traditional norms of
performance.
REQUIREMENTS COME IN 3 LEVELS:
2.
3.
Specifications
Directly expressed in the
written agreement.
Delights/Future
Yet to be discovered by
either party, but can be
reached if a strong
relationship is built.
1.
Proper measurement begins by
working with your provider to
define the target or objective.
Then through collaborative review of the
results, the approach being taken to hit
the target can be calibrated. Both parties
should constantly be asking themselves
"why?" in order to understand the
purpose behind the measurements being
taken. This allows for critical thinking on
both ends of the relationship in regards
to improving accuracy and focusing
in on true key performance indicators.
5. MEASUREMENT

6. do what counts.
RESOURCE PRO
1180 Avenue of the Americas
16th floor
New York, New York 10036
888.577.7552
www.resourcepro.com
W H I T E
P A P E R