EXL IG Post Integration Revised · Post-Merger Integration Support for a Global Insurer EXL was...
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Insurance Domain Expertise Proprietary Frameworks and Tools (Playbooks and Templates) Credible Implementation Partner Leader and Star Performer Everest Peak Matrix 2020 630+ Insurance Clients 14000+ Insurance Professionals Outcome-focused PMI Framework Golden processes across Insurance operations Target Operating Model High Performing Integration Teams Operations Management Capability Global scale 1 2 Define Target Operating Model • Establish model for the future 3 Redefine Synergy Targets, Goals • Identify Transformational benefits and costs drivers 4 Define Day One Plan 5 Define Methodology for Benefits Tracking • Define what benefit areas will be tracked, and how 6 Develope Plans • Define projects including those with synergy impacts • Budget and resource allocations 7 Establish Detailed Plans • Centrally manage projects • Define new SOPs • Train people on SOPs 8 Implement Plans • Execute projects • Regular RAG status reporting 9 Ongoing Synergy Tracking • processes/track savings • Report benefits gained 10 Measure Success • Migrate application/data to new environment, train users, sunset old application • Revisit objectives on a regular basis and validate success criteria • Integration of synergy targets to individual board members objectives and transparently linked their reward packages BUSINESS AS USUAL EXL has Successfully Delivered Several Post Merger Integrations for its Clients POST-MERGER INTEGRATION “Analysis of one-year relative total shareholder return in 778 transactions involving insurance companies between 1990 and 2014 found that only 51% created value and 49% actually destroyed value. In other words, odds of success are similar to those in a coin toss” *BCG - https://www.bcg.com/publications/2016/creating-value-in-insurance-ma.aspx EXL CASE EXAMPLE Post-Merger Integration Support for a Global Insurer EXL was engaged to support the preparation for Day 1 and subsequent Implementation across various work streams EXL partnered with a leading Insurer to support one of the largest Insurance acquisitions FUNCTIONS SUPPORTED Profit Centers Claims Operations Finance Actuarial Risk Rebranding HR KEY PHASES SUPPORTED Preparation for Day 1 : forces and supported the development of the Target Operating model Integration Readiness: Establish Day 1 requirements and implementation priorities Identification of Initiatives: Defined key initiatives by work stream Implementation Project Management: Managed Initiaves to ensure achievement of synergies Policy Migration: Worked with business functions to determine best fit target system & design migration processes, field to field mapping in source systems and developing SOPs/process maps for execution We Engaged Across These Areas to Support the Program and Initiatives AREA OF ENGAGEMENT Integration Management Business Functions Operations Finance HR IT & Others • Baseline / Synergies Reporting • Initiative and Savings Tracking • PMO and Governance • Program/ Project Management • Product Standardization • Designing Target Operating Model • Synergy Tracking • Migration Plan Creation and Execution • Shared Service Strategy Vision and Execution • Process Transformation/ Operations Consulting • Data Migration • • Standardizing Accounting Practices and Policies • Integrating FP&A • Rationalizing of Finance OPS (O2C, P2P process) • Single Chart of Accounts • Organizational Structure Redesign & Support • Workforce Planning • Training for Impacted Employees • • Data Migration and Strategy • System Retention Evaluation • Real Estate and Co-location • Vendor Selections / Consolidation INTEGRATION INITIATIVES MANAGEMENT 30% 50% of combined workforce corporate function BUSINESS INTEGRATION 1%-5% of combined revenue base FACILITIES RATIONALISATION Up to 5%-25% of real-estate portfolio value OPERATIONS 20%-30% of combined shared services cost base INFORMATION TECHNOLOGY 15%-20% of technology budget VENDOR MANAGEMENT 5%-20% of external spend EXL’s Post-Merger Integration Approach Delivers Value ACROSS KEY ELEMENTS THAT MAKE A DIFFERENCE BETWEEN A WELL MANAGED OR POOR INTEGRATION VALUE-BASED APPROACH AND KEY ELEMENTS Stakeholder Mapping Tools & Templates Project Governance Progress Reporting & Tracking Risks/Issues Management and ways of execution to achieve potential synergies CONTACT US AND LEARN MORE Rohan Regis (Director – Industry Solutions) [email protected] +44. 7535.663.474 Mohit Manchanda (Head of Insurance for UK & Europe) [email protected] +44.7958.400.440 EXLSERVICE.COM | ©2020 EXLSERVICE HOLDINGS, INC. ALL RIGHTS RESERVED TEAM SIZE ~20 MEMBER TEAM How sure are insurers that their deal will unlock desired value? Enabling deal makers to reach their ROI expectations and synergies Ensuring success by implementing strong Project Governance and Change Management Why EXL? Successful integrations formulation and achieving outcomes against Critical Success Factors for a sustainable future state Achievable Integration Timelines Clear Synergy Targets & Value creating Opportunities Cultural & Change Management Leadership Commitment Governance OUR INTEGRATION APPROACH IS BASED ON SYNERGIES THAT INSURERS AIM AT EXTRACTING THROUGH DEALS COST SYNERGIES REVENUE SYNERGIES FINANCIAL SYNERGIES POTENTIAL ESTIMATES OF VALUE CREATION ACROSS CATEGORIES EXL is a ~$1B Company and ~65% of its revenue generated from Insurance For more information go to www.exlservice.com/legal-disclaimer This document has been reviewed and approved by the content compliance team for circulation outside EXL.
Transcript of EXL IG Post Integration Revised · Post-Merger Integration Support for a Global Insurer EXL was...
Insurance Domain
Expertise
Proprietary Frameworks and Tools
(Playbooks and Templates)
Credible Implementation
Partner
Leader and Star Performer Everest Peak Matrix 2020
630+ Insurance Clients
14000+ Insurance Professionals
Outcome-focused PMI Framework
Golden processes across Insurance operations
Target Operating Model
High Performing Integration Teams
Operations Management Capability
Global scale
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2 Define Target Operating Model• Establish model for the future
3 Redefine Synergy Targets, Goals • Identify Transformational benefits and costs drivers
4 Define Day One Plan
5 Define Methodology for Benefits Tracking• Define what benefit areas will be tracked, and how
6 Develope Plans• Define projects including those with synergy impacts• Budget and resource allocations
7 Establish Detailed Plans• Centrally manage projects• Define new SOPs• Train people on SOPs
8 Implement Plans• Execute projects• Regular RAG status reporting
9 Ongoing Synergy Tracking• processes/track savings• Report benefits gained
10 Measure Success • Migrate application/data to new environment,
train users, sunset old application• Revisit objectives on a regular basis and validate
success criteria• Integration of synergy targets to individual board
members objectives and transparently linked theirreward packages
BUSINESS AS USUAL
EXL has Successfully Delivered Several Post Merger Integrations for its Clients
POST-MERGER INTEGRATION
“Analysis of one-year relative total shareholder return in 778 transactions involving insurance companies between 1990 and 2014 found that only 51% created value and 49% actually
destroyed value. In other words, odds of success are similar to those in a coin toss”*BCG - https://www.bcg.com/publications/2016/creating-value-in-insurance-ma.aspx
EXL CASE EXAMPLE Post-Merger Integration Support for a Global Insurer
EXL was engaged to support the preparation for Day 1 and subsequent Implementation across various work streams
EXL partnered with a leading Insurer to support one of the largest Insurance acquisitions
FUNCTIONS SUPPORTED
Profit Centers
Claims
Operations
Finance
Actuarial
Risk
Rebranding
HR
KEY PHASES SUPPORTED
Preparation for Day 1 : forces and supported the development of the Target Operating model
Integration Readiness: Establish Day 1 requirements and implementation priorities
Identification of Initiatives: Defined key initiatives by work stream
Implementation Project Management: Managed Initiaves to ensure achievement of synergies
Policy Migration: Worked with business functions to determine best fit target system & design migration processes, field to field mapping in source systems and developing SOPs/process maps for execution
We Engaged Across These Areas to Support the Program and Initiatives
AREA OF
ENGAGEMENT
Integration Management
Business Functions
Operations
Finance
HR
IT & Others
• Baseline / Synergies Reporting• Initiative and Savings Tracking• PMO and Governance• Program/ Project Management
• Product Standardization• Designing Target
Operating Model• Synergy Tracking• Migration Plan
Creation and Execution
• Shared Service StrategyVision and Execution
• ProcessTransformation/Operations Consulting
• Data Migration•
• Standardizing Accounting Practices and Policies• Integrating FP&A• Rationalizing of Finance OPS (O2C, P2P process)• Single Chart of Accounts
• Organizational StructureRedesign & Support
• Workforce Planning• Training for Impacted
Employees•
• Data Migration and Strategy• System Retention
Evaluation• Real Estate and Co-location• Vendor Selections /
Consolidation
INTEGRATION INITIATIVES
MANAGEMENT
30% 50%of combined workforce
corporate function
BUSINESS INTEGRATION
1%-5%of combined revenue base
FACILITIES RATIONALISATION
Up to 5%-25%of real-estate
portfolio value
OPERATIONS
20%-30%of combined shared
services cost base
INFORMATION TECHNOLOGY
15%-20%of technology budget
VENDOR MANAGEMENT
5%-20%of external spend
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EXL’s Post-Merger Integration Approach Delivers Value ACROSS KEY ELEMENTS THAT MAKE A DIFFERENCE BETWEEN A WELL MANAGED OR POOR INTEGRATION
VALUE-BASED APPROACH AND KEY ELEMENTS
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Stakeholder Mapping
Tools & Templates
Project Governance
Progress Reporting & Tracking
Risks/Issues Management
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and ways of execution to achieve potential synergies
CONTACT US AND LEARN MORERohan Regis (Director – Industry Solutions) [email protected] +44. 7535.663.474
Mohit Manchanda (Head of Insurance for UK & Europe) [email protected] +44.7958.400.440
EXLSERVICE.COM | ©2020 EXLSERVICE HOLDINGS, INC. ALL RIGHTS RESERVED
TEAM SIZE
~20 MEMBER TEAM
How sure are insurers that their deal will unlock desired value?
Enabling deal makers to reach their ROI expectations and synergies
Ensuring success by implementing strong Project Governance and Change Management
Why EXL?
Successful integrations
formulation and achieving outcomes
against Critical Success Factors for a sustainable
future state
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Achievable Integration Timelines
???360
Clear Synergy Targets &
Value creating Opportunities
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Cultural & Change
Management
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Leadership Commitment
Governance
OUR INTEGRATION APPROACH IS BASED ON SYNERGIES THAT INSURERS AIM AT EXTRACTING THROUGH DEALS
COST SYNERGIES REVENUE SYNERGIES FINANCIAL SYNERGIES
POTENTIAL ESTIMATES OF VALUE CREATION ACROSS CATEGORIES
EXL is a ~$1B Company and ~65% of its revenue generated from Insurance
For more information go to www.exlservice.com/legal-disclaimer
This document has been reviewed and approved by the content compliance team for circulation outside EXL.
