Global Insurance Leader, Aon Corporation, Realizes Vision of Customer-Centric Organization

BUSINESS REQUIREMENTS | A world leader in the insurance and risk management industry, Aon Corporation’s London operations faced difficulty in creating sustainable business differentiation in its highly competitive marketplace. The company felt that its lack of differentiation was constraining its ability to grow profitably and was placing the business model under threat from industry competitors and new market entrants. Being a customer-centric business that strived to deliver custom-tailored solutions for its clients, Aon understood that effective Customer Relationship Management (CRM) was an essential component of a profitable business strategy. However, with growing disillusionment of the return-on-investment from CRM programs, Aon wanted to have a better understanding of both the potential pitfalls and key measures of success before embarking on a CRM initiative. The project objectives were specified as follows:

• Validate the positive influence that a successful CRM program would have on the business
• Create a customized CRM framework for Aon, linking CRM to overall business objectives and identifying key components and capabilities that would maximize business impact
• Specify CRM program options and modules to be implemented and quantify their business potential
• Align and mobilize the firm wide support required to launch a successful CRM program within Aon

HEADSTRONG SOLUTION | Headstrong took a very holistic view of the organization to achieve a rapid understanding of the key opportunity areas that would create value for Aon and its customers. Of key importance was an understanding of the ideal customer experience from both an internal and customer perspective and identifying current deficits across all touch points. To accomplish this, Headstrong utilized its methodology for analyzing business processes and customer experience mapping and evaluation. A critical component of understanding the business issues from all perspectives was the engagement of individuals across business functions and organizational levels - from staff employees to executives. This process provided an accelerated understanding of Aon’s specific issues across all key CRM component areas and created momentum through the commitment and project support of senior executives.

Next, Headstrong undertook a range of different probes to understand and quantify the improvement potential for the key business areas identified. Using Headstrong’s activity-based approach, the in-depth analyses included a sampling of customer profitability, a study of the customer data capture process, an evaluation of workflow patterns for customer-facing employees and the identification of Aon’s current level of performance support. These measures were then reviewed within Headstrong’s performance framework to understand the relationship between individual opportunities and their impact on customer acquisition, retention and optimization.

Once the shortfalls in the customer experience were understood, Headstrong evaluated the role technology could play in enabling the business to achieve its objectives. A full review of the current and planned information architecture was undertaken and recommendations were put forward to detail various technology solutions ranging from packaged applications to components. Headstrong also recommended an implementation approach that would ensure customer information was available, data was accurate and organizational process changes were put in place to support Aon’s CRM strategy.

The success of the project can be attributed to a number of factors:

• Engagement of individuals across business functions and organizational levels — including those in customer facing roles — was key to achieving a rapid, full-perspective view of Aon’s business issues
• Executive ownership and support for the project
• Creation of a customized framework that clearly relates opportunities back to business objectives, with a clear understanding of the business impact
• Understanding of the business issues coupled with a technology perspective to illustrate maximum business potential
• A phased implementation approach utilizing small piloted steps that are repeatable and measurable
• An understanding of the ideal customer experience and processes that would enable it

BENEFIT TO CUSTOMER | Based on a solid business case and successful implementation approach, Aon’s CRM model, vision and framework were realized. The integration of the optimized customer experience into Aon’s business model will create a customer-focused organization where fact-based decisions can be made to better manage customer relationships. The solution designed promises to enhance communications, interaction and collaboration among employees, partners, suppliers and customers. Operational efficiencies will be created through the integration of common processes with suppliers, strategic partners and customers across the value chain. Most importantly, Aon believes that new customer opportunities identified as a result of its CRM program will potentially generate an additional £2m of profit annually for the firm.