Jenny Monger, Business Design Manager at Trafalgar House, commented: “When schemes are looking for a new administration provider it’s because they want to deliver transformation - but they often just focus on the transition phase, which may not address the underlying service, data or operational issues that have resulted in the desire to make a change.
“To ensure the right outcomes for the scheme and its members, trustees should also assess the skills and ability of the new provider to deliver transformation as part of, or immediately after, the transition. This is especially important in the current landscape where the increased demand for these skills has led to a capacity crunch, resulting in falling standards and extended project timelines. Typically, the most beneficial transformative projects include benefit rectification projects, data improvement or communication enhancements.
Monger added: “In reality, there are three phases to achieving a transformation of your administration:
1. Transition phase - the standard passing of responsibility between old and new providers, as well as managing the risks involved in data migration, knowledge transfer and project management
2. Standard transformation phase - the assessment of scheme-specific needs and how changes to areas like communications, processes and guidance notes will meet them. This assessment should be included in the transition project plan to ensure time is allowed for these activities
3. Customised transformation phase - the extra technical projects that will be needed once the service has gone live and is in a steady state. These projects may include data quality improvements, GMP reconciliations and work required towards delivering de-risking projects
“In the administration industry, a transformation is rarely dramatic and instant. In our world, transformation is a set of controlled incremental projects, each aiming to deliver a new and improved steady state for members. It is the ability of the new provider to establish, react and sustain change over the long-term that enables a scheme to achieve its overall change objectives, so this should be a central factor in the provider selection exercise.”
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