Page 41 - Insurance Times September 2020

Objectivity of all these benchmarks have to be regularly stuff. The significant one, if any, either remains hidden or
reviewed and reaffirmed. In the past it has been observed gets crowded out by the routine. Therefore the manner and
that only crises drive the changes or improvements. method of presentation is extremely important and needs,
not only be thoroughly thought out but also regular follow
Mostly reactive and rarely proactive. Organistaional up for incremental improvements. Standards / benchmarks
planning does involve setting targets and these targets do should help in identifying the significant ones by easily
act as benchmarks. But they are mostly for internal locating deviations / exceptions, to make them the focus of
consumption. Unrealistic approach towards target setting reporting.
and wide off the mark performance, frequently observed,
is a reflection of scant regard shown for such standards. To sum up, the hustle and bustle of day to day corporate
Benchmarks / standards are always dynamic varying from life focused more on the immediate needs, has no scope for
time to time and place to place. To a great extent they looking back, nor does it leave any scope for finer aspects
emerge from the past performance achieved somewhere. of commoner's interest. Yet, self interest calls for some real
introspection at regular intervals. No opportunity, how so
Technological developments do set the ground for new ever small, which enhances the simplification of processes
standards. Short term, medium term and long term and systems and increases transparency, be wasted. It is
standards may be different. But there has to be consistency several such small incremental improvements in retrospect,
amongst them. Whether the growth has to be in double represent / constitute the achievement of some thing which
digits or single digit, depends on the stage of development once was deemed unachievable / impossible. Irrespective
it has already achieved. Expecting double digit growth in a of the outcome, some churning of ideas is always a welcome
well developed market is not rational. Similarly low growth sign of life. Let us try to live.
rate is a crime in an underdeveloped market. Initially Some action points :
expecting high growth in a startup is not rational, but an
adolescent startup can grow in leaps and bounds. 1. Start to disclose readily available real term service
measures / parameters (To begin with number and type
Mature adult organisation may not have the kind of growth of customers, or sum insured) and simultaneously start
developing mechanisms to extract as many such
displayed by a start-up. But it has the muscles to withstand
additional parameters measures as possible over a
all vicissitudes to deliver sustained growth. Standards of
specified period and make their disclosure a routine
margins depend on the client base. High margins are not
ethical in an organisation serving a poor clientele. Appropriate affair.
standards / benchmarks have to be developed based on 2. Review the manner and format of reporting to increase
various general factors mentioned herein above (and there the intelligibility and transparency. Inter-sector
could be many more). By their very nature the standards comparison of key factors should also be the focus of
cannot be static, hence a mechanism has to be in place to such revision. appropriate comparison. Report on
regularly keep the developed bench marks updated. performance, and Report on state of affairs / status
should focus on exceptions /deviations and exclude the
Elements of operational items for which standards are routine.
needed have to be constantly monitored. Un-monitored 3. A broader institutional frame work (may be Institute of
standards are no standards. The goals an organisation Chartered Accountants of India, has to work towards
wishes to pursue may be the prerogative of each evolving practices which can facilitate inter-sector
organisation. When we are talking of the standards or comparisons. Simultaneously organisations have to
benchmarks we do not mean to interfere with ensure the necessary flexibility in their systems, so that
organisational prerogatives. But we are talking about some it becomes easier to adapt to changes.
guide posts meant for higher purpose having community
4. Performance analysis, and review by an independent,
interest at core and for enhancing readers understanding.
authoritative body other than regular overseeing
In each one of the above areas, “how much is too much ?” authorities. Such a body should have right kind of people.
is question whose answer, can never have consensus. The 5. A body representing the industry has to examine and
issue is of quality over quantity. Very often deluge of work on the theme of evolving benchmarks / standards
information (repeated presentation of the same set) / norms against the backdrop of which the performance
confuses the reader and puts him off. Most of it is routine needs to be reviewed. T

The Insurance Times, September 2020 37