Now is the Time to Update Process & Control Documentation

Has your organization’s human capital pipeline and structure been shifted recently due to the pandemic or new capabilities in remote working? You are not alone. The pace of human capital turnover and change continues to accelerate across many industries, including insurance, and while it creates short-term obstacles, it also creates opportunities for improvement over the long term.

The Great Resignation Creates Obstacles

Organizations impacted by the Great Resignation should consider the long term impacts to knowledge retention, morale, and operations. High employee turnover can create confusion, as remaining employees may struggle to complete operational activities efficiently and effectively, leading to lower engagement and employee satisfaction. The Great Resignation presents an opportunity for organizations to improve or establish operational and process documentation to combat the effects of the changing work environment. The opportunity is not as simple as it seems, because an organization must first identify the characteristics found in quality operational and process documentation.

 What Does Quality Documentation Look Like?

Organizations with quality operational and process documentation typically exhibit the following characteristics:

• Process documentation is established, formalized, agreed upon between management and the Board (if necessary), and matches the current processes in place
• Process documentation, policies, and guidelines are defined and communicated to all levels in the relevant parts of the organization 
• Process documentation, policies, and guidelines are periodically reviewed and updated with interim updates as roles and responsibilities change
• Employees out of the office or moving to a new position can easily transfer their responsibilities to another employee as their job responsibilities and required processes are documented 
• Automated processes are implemented where possible and applicable 

What Risks are Lurking in the Shadows?

Suboptimal operational and process documentation may expose an organization to additional risks such as:

• Inefficient processes or controls when documented processes and controls do not align with current activities 
• Employees that are not aware of current operational policies and guidelines 
• Loss of knowledge when employees move to a new role or are out of the office 
• Inefficient or ineffective use of organizational resources overall 

Improving Process Documentation

Periodic reviews and updates applied to process and control documentation may be the most important characteristic of an organization with high quality documentation in place. Periodic reviews allow the organization to determine what internal areas require attention and prioritize them accordingly. 

Furthermore, consider allowing the process owners to participate in the periodic reviews and updates to create buy-in from those employees as they have input into the process and are more familiar with all aspects. Employees that buy-in often perform at a higher level and may lead to improved operations and ultimately a competitive advantage for your organization.  

Final Thoughts

Getting started and developing a cadence of process and control documentation review presents another set of challenges in itself. Johnson Lambert has resources and information available to assist. Our webinars provide excellent commentary from industry leaders while the Johnson Lambert Consulting and advisory staff can provide hands-on support to your organization.