Reducing Attrition for Improved Sales
With the objective of achieving and exceeding insurance sales targets, a Lean Six Sigma improvement project opportunity was identified to tackle high attrition among sales staff. The voice of the business emphasized, “High impact due to attrition in terms of business meeting its sales target.”
The Challenge:
The success of an insurance company significantly depends on its ability to sell policies effectively, among various other factors. High attrition rates among sales staff can disrupt the sales pipeline, making it challenging to consistently achieve business goals and meet revenue targets. Additionally, a high turnover rate in this segment incurs substantial costs in training and certification, impacting the quality of services.
In response to the identified challenge, a Black Belt was appointed to spearhead the project, and a cross-functional team comprising members from HR and MIS was assembled.
Approach:
Define phase involved quantifying the impact and scope of attrition. The team quantified the impact of high attrition, revealing an annual cost of around 10 Cr. The project’s scope was meticulously defined, spanning from raising a hiring request to the completion of the initial 6 months in the system. In-depth mapping of selection and induction processes led to the identification and implementation of certain initial quick wins. The targeted reduction in attrition was set at 30% from the current baseline.
Measure phase involved addressing discrepancies and analyzing influential factors. An issue emerged during preliminary analysis, as data from two sources presented different numbers due to varying calculation methods. To rectify this, CTQ characteristics were defined, encompassing standardized calculation, operational definitions, and baseline/target numbers. A Measurement System Analysis was conducted post-standardization to ensure the adequacy of the measurement system.
The team delved into ‘Reasons for Leaving’ data from HR exit interviews and conducted telephonic surveys of ex-employees. Potential variables such as past experience, recruitment source, salary, incentives, and age were identified for further analysis.
In the Analyze phase to prioritize factors, tools like Pareto, Control, and Impact matrix were utilized. Statistical validation tools were applied to the identified variables, providing a data-driven understanding of the problem.
The Improve phase involved crafting solutions for sustainable reduction. Long-term solutions were developed based on key variables identified and validated during the Improve phase. Brainstorming, Control Impact Matrix, and piloting solutions were integral to this phase. Measures included re-evaluating the selection process, restructuring incentives, introducing performance improvement plans, implementing mentoring and buddy systems, and rolling out new dashboards. Attrition accountabilities were established, and a rule-based allocation system was incorporated.
This resulted a remarkable reduction of attrition beyond the desired reduction level.
To sustain these improvements, the team entered the Control phase, defining an escalation plan, fixing SLAs, and rolling out dashboards to top management. Statistical validation was applied to confirm the success of the implemented solutions.
Conclusion: Lean Six Sigma project successfully addressed the challenge of attrition among sales staff, leading to a significant reduction and subsequent improvements in the insurance sales target met ratio. This success underscores the importance of a systematic and data-driven approach in Lean Six Sigma projects, showcasing its efficacy in achieving meaningful and sustained improvements in business outcomes.
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