‘Groupthink’ Destroys Claims Integrity

On the day that I write this article, it’s 24 hours since the final report of the tainted blood products and transfusions scandal, creating an estimated cost of ￡10b to the public purse.

To save a few pounds of operational expenditure, the enquiry shared premises (and some resources) with the ongoing Post Office miscarriages of justice investigation – where the former CEO is due to give evidence very shortly. How ironic is that?

Whilst every story is unique, these events and their subsequent calls to action are not isolated. The recent enquiry into the failure of maternity services, the Hillsborough tragedy, Grenfell – all of these and more shine a light on the inherent dangers of ‘Groupthink’, where institutions and the individuals within them are seen to have taken truly incredulous decisions to defend the indefensible, to advance the career ambitions of senior executives, and to protect themselves from the scrutiny of the public gaze.

At a surface level, ‘Groupthink’ is a phenomenon that stifles innovation, muzzles freedom of expression, and demands subservience from all but the most determined of individuals, who must usually risk their careers to sound the alarm bells. However, the implications can stretch far and wide.

THE FAILURES OF OBSESSION

So, what does any of this have to do with the claims and insurance industry?

Well, have you ever worked for a business or a claims department that was so obsessed with a singular goal that nothing was allowed to stand in its way? Maybe there’s a projected reduction in FTE at the expense of any real notions of customer centricity, or perhaps you’ve watched as the latest failing IT project has continued to divert resources from more essential services. Maybe the latest piece of FCA regulation (Consumer Duty, anyone?!) has even blindsided the business to such an extent that everything else has had to take second place…

Have you ever despaired for the voices of opposition, stifled behind a veil of ‘Groupthink’ that demands strict adherence to the ’cause’? A sentiment of ‘get with the program or go elsewhere’, with the wording of the latter half of that sentence not always so polite!

Of course, these tiny operational examples around the negative effects of ‘Groupthink’ pale into complete insignificance when compared with the real tragedies outlined above. However, I do wonder how many billions of pounds have been wasted, with maybe thousands of people negatively affected by the insidious demands of corporate ‘Groupthink’ and decision-making in the claims departments and boardrooms of our beloved insurance industry, hidden behind a wall of secrecy and cover-up…

THE SOLUTION TO ALL THIS?

Encourage dissent. Reward original thinking. Support the mavericks. Accept constructive (not destructive) opposition. Conduct research, and find suppliers with interesting things to say despite their track record. Take calculated risks. Bring in outsiders to refresh current strategy and tactics. Continuously review and reconsider. Be aware that failure is a valid option, and more than likely part of the journey towards your eventual outcomes.

Leadership is, of course, essential. We cannot exist in an environment of anarchy and chaos. But we must allow room for real dissent if we are to achieve the very best for our business, our claims department, our clients, and our customers.

I cannot comprehend the astonishing pain and hurt visited upon those people affected by the scandals mentioned. But I have a feeling that ‘Groupthink’ played a substantial part in creating the conditions by which such horrors could be countenanced.

Don’t let it happen in your claims department.

Originally posted on https://www.jelconsulting.co.uk/