Ten Skills for Broader Opportunities
by Steven J. Stender
One of the key SOA initiatives is to expand actuarial opportunities beyond the traditional technical role. Since I have the responsibility to manage a block of business—our vision block—relatively early in my career, I was asked to share some insights regarding the types of skills that might help others expand their opportunities as well.
With this in mind, here are 10 general principles I have learned to help guide my personal career.
1. Look at the big picture
As actuaries, we tend to be highly focused. We address the problem at hand without necessarily being aware of how this fits into the broader scope of the company’s plan. I remember my first company presentation on a major product feature we developed. I was so proud of the model I built, how we considered all of the risks involved, how we trained our support personnel on this product and the marketing plan we developed. Then a colleague asked me how much this product would contribute to operating gain. Right then I realized how I missed the big picture. I was busy looking at the trees and missed the forest. However, I learned an important lesson—your work impacts others in your organization. Your audience wants to know how your project can help the company succeed. Make sure your results reflect the expected impact … and then tailor the presentation to demonstrate that as well.
2. Include a business focus in your work
A traditional actuarial approach is to focus on the analytical (e.g., experience studies) portion of a project. When managing a block of business, a more holistic approach is needed. For example, when my manager offered me an opportunity to build the vision business, at the time, this block consisted of only a small percentage of the company’s total inforce block. Our first order of business was to get scale. To identify the best approach to growing sales and revenue, we needed to perform a SWOT analysis, which is a detailed look at the strengths, weaknesses, opportunities and threats to the business—both internally and externally. In our case, our clear strengths were our product and our sales force. The opportunities included developing a product focus, improving rate competitiveness and better integration with other products in the portfolio.
The SWOT analysis led us to focus on a three-point growth strategy: lowering rates, developing sales and marketing tools and positioning the product to be sold alongside the other products in our portfolio. Once we realigned our product, we focused on the next year’s strategy: positioning our product as a player in the vision market.
So … how are we doing so far? We exceeded our goals and achieved double-digit growth in revenue and membership.
3. Offer practical solutions
Often a technical approach may lead to the best theoretical answer. However, the theoretical solution is not necessarily the optimal strategy.
An actuarial colleague and I were discussing a pricing model I thought would improve rate accuracy and increase sales. The model would allow our pricing structure to be more dynamic, leading to more flexibility. My colleague asked me to consider the actual impact on a typical policy being sold versus the extra complexity and confusion caused by bringing this to the market. I realized that while the algorithm was mathematically “pure,” it needed simplification. To avoid producing a “black box,” I needed to make the results more transparent. Without simplifying the model, it would not be well-received by non-actuaries.
4. Build negotiation skills
An item often overlooked when planning career growth is negotiation skills. However, we use these skills every day, ranging from setting a contract for consulting services to gaining buy-in of a change in strategy or tactics to more effectively manage risk. When managing a block, negotiation skills are critical—especially when partnering with vendors or clients.
For example, we wanted to cut our expenses. Since we do not pay the claims nor manage a network ourselves, there was little we could influence internally to reduce our expense ratio. Instead we focused on our vendor. Effectively employing negotiating tactics, including developing a sliding fee scale based on volume, we were able to achieve a significant fee reduction from our vendor.
5. Working with non-actuaries
While we are recognized for our analytical skills, we may be fully appreciated for what we can add to general business analysis and decisions. However, as reflected in our brand awareness campaign, we have a lot of untapped potential in this area. We can realize this potential by increasing our interaction with non-actuaries.
In my role of managing our vision block of business, I have many opportunities to expand my general business skills by working with non-actuaries. For example:
· Working with underwriters to identify the risk components of the product
· Helping customer service representatives understand how to address operational issues
· Providing support and guidance to IT
· Assisting sales with product positioning
In addition, the most difficult (and the most enjoyable) non-actuary interaction was managing the relationships with two different vendors. These skills are not taught through the exam process. They are only learned through hands-on experience.
6. Communicating your work
Regardless of how amazing your work may be, if it is not effectively communicated to your key stakeholders, it may fall flat. Here are some items to consider:
· Did you take a narrow actuarial focus, or do you demonstrate how your results impact, and integrate with, your company’s broader game plan?
· Does your report include techno-jargon and acronyms or is it written plainly?
· Is there an executive summary with key conclusions and recommendations?
· Did you include a “next steps” section?
· Can you present your findings orally?
Communicating your work simply allows others to extract the relevant information from their perspective. Those listening will gain value from your work—and they will appreciate you even more.
7. Network
Build relationships outside the actuarial staff. This is important even when one is still in a technical role. People are really interested in what we do and look forward to partnering with us. As actuaries, our professional skills are already respected, but real influence only occurs through personal interaction.
8. Demonstrate leadership through public speaking
An easy way to demonstrate leadership is through public speaking. When given the opportunity to address your peers in a public forum, take advantage of it. You can improve your communication skills as well as becoming a face behind the e-mails. You rarely find a successful executive who is unable to make a presentation before the board or the officers within the organization. Taking advantage of speaking opportunities will help hone the presentation skills needed to move up in the organization.
9. Have a mentor
While some may realize on their own how they are progressing professionally, others may actually be fooling themselves and missing opportunities to improve. I am fortunate enough to have a few excellent mentors who have helped guide my career. They have given me opportunities for continual improvement and growth. They provide feedback, discuss specific next steps for me and generally lead by example. Not all mentors are formal; in fact, often, the best mentors are unofficial. Don’t be afraid to approach someone that you respect and ask them if they would be willing to give you guidance on your career. Generally, people like to help and will rarely turn you down.
10. Be proactive and create your own opportunity
Finally, it is not enough to passively follow the above nine principles and expect your career to take off. This rarely happens. It is critical to be proactive. Take advantage of opportunities even when they may not appear to be readily available. Try to recognize where the next opportunity may be, and be prepared to make a business case for why you would be the best candidate for taking on a new role or responsibility.
Recently, we developed a new product feature and I wanted to take on the responsibility of product design. I reached out to my manager and let him know my desire for the role, and that I was well qualified. We ended up restructuring our resources and I got the opportunity. To bring this product to market, I needed to build many technical and non-technical skills. I needed to design, file, write IT specs, participate in project team meetings, negotiate resources, present findings for management approval, assist in developing marketing and training materials and train the support staff. While my job was not originally product development, by letting my desire be known, it led to this opportunity…and the next one as well.
Steve Stender, FSA, MAAA, is an assistant actuary for The Guardian Life Insurance Company of American in New York City. He can be reached at steven_j._stender@glic.com.