Some pension systems take a pragmatic approach to becoming digital enterprises, but others adopt digital capabilities without looking at the underlying construction. Rather than rushing into the next best thing in digital, getting some of the ‘old’ business basics right will be what separates the houses of brick from the houses of straw.
The Accenture Pensions group is benchmarking the operational performance of pension agencies against their peers, measuring how agencies stack up in terms of efficiency, legitimacy and outcomes focus—areas we believe to be the “bricks” that enable high performance. The initial findings have been interesting in that the inhibitors of high performance tend to be few and basic.
For example, many pension systems don’t know the cost of day-to-day processes, or the time they take. It’s critical to eliminate the contact that you don’t need.
Legitimacy is another important measure of high performance as it helps pension systems to gauge whether they are secure, accurate and tightly in control of operations—and in terms of both public perception and reality.
Pension systems—like many government organizations—are in the business of enabling outcomes. But the only true way track your outcomes is to measure them. Yet while 40 percent of pension administrators surveyed record the number of appeals they are subject to, only 28 percent record the outcome of those appeals.1
It’s time to “blow the house in” and get to a core construction that is based on solid business principles. Break down internal and external barriers to communication and interaction. Tear down delivery silos. Deconstruct old ways. Because to deliver public service for the future in pensions, agencies must know what they do, how much it costs and how well it meets the needs of citizens.