Insurance, ECM, and Hazardous Drywall: The Real Cost of Quick & Cheap

The 2009 drywall crisis – hazardous gypsum board made by companies in China and installed in U.S. homes - raised the eyebrows of homeowners, builders, insurers, state departments of health, and the U.S. Consumer Product Safety Commission this past year – and rightfully so. Corrosive gases that caused structural damage to homes, as well as acute and chronic health problems, led to hundreds of grievances. Drywall and fittings had to be torn out, removed, and replaced, not to mention the health consequences of stress, asthma, neurological problems, and more. How could more than half a billion pounds of defective, hazardous materials be imported, delivered, and installed without being detected? Why weren’t the problems caught earlier? Wasn’t anyone watching?

The legal system will reveal answers, but I suspect the problem has a lot to do with our demand for everything to be quick and cheap. Time is money. Limited funds leave little time for planning, production, oversight, or quality control. A well-defined plan, agreement on what constitutes quality, a fair price, and patience might have led to better suppliers, more thorough inspections, and proper reporting, revealing problems before the goods ever passed through the import dock on the way to the builders.

All of us want the best price, but what we really need is to pay a fair price for the right goods and services. Anything less has negative outcomes. It’s true of material goods, insurance products, and even enterprise content management (ECM).

Getting the ECM solution your business needs

Although many insurers have successfully implemented ECM to centrally access and manage their valuable business content, nearly as many have failed or been disappointed. Why? Sometimes it’s a jumbled vision, poor planning or understaffing. Other times vendors are chosen without careful scrutiny and reference checks. Just as often, it’s because either the insurer or the vendor cut corners in the wrong places and at the wrong times, leading to disastrous consequences.

Here are five things you need to understand thoroughly so you aren’t ensnared by the enticement of Quick and Easy:

1. Understand your needs

The biggest favor you can do for your project is to conduct a thorough needs assessment – involving all of the people who will be affected by the project in any way – and to communicate the outcome in detail to your vendor. This involves drilling down through your staff in every department with questions that will help you to understand exactly how your business functions on a daily basis, and what the challenges are. To do so, you need candor, and you need everyone’s perspective – not just your own. If you don’t already have it, create an environment that encourages openness and constructive analysis so your discussions lead to improvements before you implement ECM. Digital storage and management of your content shouldn’t simply reflect how you do things today; rather, you should optimize and improve first, with an eye toward automation.

Your business is a labyrinth of interconnected processes that are woven around your customer documents, governed by regulations and internal policies, and carried out by specialized staff. Unless you understand who handles each document and under which permissible circumstances, how each is used, when it’s needed, and what content could be re-used elsewhere for the benefit of your company, you may end up with a mismatch. If you don’t know exactly what you need, you can’t communicate it. If you communicate the wrong information or leave out important details, you might wind up with an underperforming solution. Vendors rely on an intricate and accurate picture so they can deliver exactly what you order. Know what your business and your workers need…not just what you think you need.

2. Understand what you’re getting

Understand the strengths and the limitations of the ECM product you choose. Is it:

• Browser based so you can access and work with your files securely from any location?
• Scalable and flexible enough to meet your changing needs as your company grows?
• Configurable in terms of security, such as who can access, approve, sign, or delete documents, and which pages various types of users are permitted to view?
• Underwritten completely in standard Web services so you can integrate any and all of its functionality with other legacy and line-of-business systems you use so you can fully leverage your stored data?
• Complete with detailed reporting and audit trails for easier compliance?
• Easy for end users to understand and use, with drop-down menus, online help, and detailed user documentation?

3. Study the Statement of Work/contract carefully

Spell out expectations clearly in the vendor’s Statement of Work (SOW). Don’t leave any details to assumption or verbal agreement. Written documentation benefits all parties involved. Make sure the SOW includes:

• What you, as a client, must have in place before the project can begin so your vendor doesn’t waste time and run up your costs. Consider equipment or upgrades of existing software that may be needed, staff who must be available for the vendor to consult with, etc.;
• The vendor’s deliverables (including timelines, milestones/ benchmarks, and dates for collaborative project review if the project is complex); and
• Recourse in the event that any objectives, timelines, or expectations are unmet by either party.

Involve members of the team who will be instrumental in implementing the project so they can review the contractual expectations, timelines, etc. before everyone signs. If everything is spelled out in a logical order and all parties agree to the terms, there should be no surprises.

4. Know where you can compromise

Although a well-laid and detailed plan should leave no guesswork behind, sometimes unforeseen obstacles occur, such as a major downswing in company revenue that affects your project implementation or the loss of staff members who are critical to its implementation.

Prioritize project goals so you remain focused in the event there is an economic setback, merger, or other unexpected challenge. If you have to make hasty decisions amid major organizational change such as an unanticipated merger or massive turnover, you may not exercise the best judgment, so it’s wise to have backup plans in place. Keep several people up to speed regarding project details so your project stays on time, on task and on budget if a person critical to your project moves on. Remember that significant delays in a project can result in an implementation that loses its relevancy. Keeping on schedule is essential to ensuring the right fit. Anticipate problems before they occur. Think ahead.

5. Know where you can’t compromise

For any solution to be successful and to be thoroughly embraced, there are several areas you must never compromise:

• Allowing sufficient time for document and process analysis;
• Establishing regular meeting times to plan project segments and review progress as milestones are approached and reached;
• Communicating regularly and thoroughly with your vendor during and after implementation so issues can be handled promptly and your implementation will deliver the results you expect;
• Providing adequate end-user training so staff can be confident and succeed.

ECM provides benefits that aren’t possible in a paper-based office, including multiple levels of document security that are enforced, and rules-based control that reduces data inaccuracy by enforcing consistency and re-using information intelligently. Never compromise what you buy – or how you implement it – if the compromise will negatively affect the integrity or security of your information.

Say hello to success

Don’t let your project become like hazardous drywall that everyone wants to get rid of, but can’t. Know what you need; understand what you’re getting; have solid backup plans; allow time for your staff to carefully evaluate your project every step of the way; and only compromise when it makes sense and won’t negatively affect your project.

Don’t look for a cheap solution – look for the right solution. If funds are tight, seek a vendor who will work with you on pricing that fits your budget or one who offers alternative models such as subscription pricing so you can move forward without a major one-time investment. With care, your ECM implementation will be the cornerstone for the management of your documents, content, and business processes. Once you’re accustomed to finding everything you need to manage your policies, claims, and other areas of your business – wherever you are, 100% of the time – you’ll wonder how you ever lived without it.

For more information or to schedule a demonstration, please Contact DocFinity now.