Institutions around the globe are anchored on key strategies for them to prosper and grow in their various market niches. Marketing gurus aver that the full utilization of the four P’s - Product, Price, Promotion and Place - are fundamental in propelling organizations into growth and profitability. However, since the prevalence of the COVID-19 pandemic, marketing dynamics have changed and those not willing to join the tide of change are either losing business or going under altogether. Insurance and Reinsurance brokers such as Minet are no exception. However, despite all the aforementioned, there furthermore exists one essential impetus for growth and profitability: the application of Monitoring and Evaluation (herein after referred to as M&E) principles in managing existing clients, prospective clients, and operations.
M&E is derived from results-based monitoring and evaluation systems commonly applied in projects and programmes in the public sector and non-governmental organizations. Monitoring is a continuous function that uses the systematic collection of data on specified indicators to provide management and other main stakeholders with indications of the extent of progress and achievement of a programme. Furthermore, monitoring routinely collects qualitative and quantitative data on the specified indicators and ultimately report progress to the internal line and staff. In this view, monitoring is undoubtedly a key driver; if applied effectively, not only does it increase profitability but also efficiency and economies of scale.
Conversely, Evaluation is the systematic and objective assessment of an on-going or completed programme including its design, implementation, and results. Several aims can be apparent in this realm, however essential for this discussion is that either formative or summative evaluation should provide information that is credible and useful, thereby enabling the incorporation of lessons learned into the decision-making process of operations and staff. In this light, evaluation analyses why intended results were or were not achieved, assesses specific causal contributions of activities to the results and examines the implementation process. In addition, evaluation explores unintended results, provides lessons, and offers recommendations for improvement. This quietly speaks volumes of how these complementary tools are fundamental key drivers of Minet operations in 2021 and beyond.
The following principles are also coined as 10 steps in M&E:
Conducting a readiness assessment
A readiness assessment is an essential preparatory step as it looks at three crucial areas of concern: 1. the capacity to build, use and sustain this approach in everyday operations, 2. the roles and responsibilities of those that would take part and 3. reciprocal incentives. Common questions during this assessment would be “Why this approach?”, “Who will champion this forward in a competitive environment?”, “How will management deal with information generated?” and “Does the approach support the overall goals and strategies in place?”
Choosing outcomes to monitor and evaluate
Outcomes are important in that they show what success looks like or whether success has been achieved. Usually, qualitative, and quantitative details will reveal success in the process of implementing this approach.
Selecting Key Performance Indicators to Monitor Outcomes
Indicators should be clear, relevant, economic, adequate and monitorable. They can be qualitative or quantitative in nature. Vital feedback will be obtained either on certain areas of success or possible areas that need improvements, thereby contributing towards the achievement of the overall desired objectives.
Selecting Baselines and Gathering Data on Indicators.
Baselines are derived from outcomes and indicators A base-line study is an analysis that describes the situation prior to a development intervention, against which progress can be assessed. The importance of a baseline study is learning about a problem or situation before intervention. Questions may arise on how data will be collected and analysed, thus allowing for a comparative study before and after the intervention.
Selecting Results Targets
Targets are steps that act as a guide towards achievement of long-term outcomes and should indicate the number, timing, and location of what should be realized. Therefore, a clear understanding of the baseline information is fundamental so that past performance can be used to set new targets.
Monitoring for Results
This stage is characterized by collecting data on specified indicators to monitor results. There are two main types of monitoring: implementation monitoring (monitoring inputs, activities and outputs that are used to achieve the desired outcomes through the support of management tools such as budgets, staffing and activity planning) and results monitoring (monitoring the effects of the outputs on the beneficiaries and long-term improvement in society).
Evaluation
Evaluation is the systematic and objective assessment of an on-going or completed project, programme, or policy framework, by focusing on how the results are generated by looking at efficiency, effectiveness, impact, sustainability, and relevance of the intervention. Evaluation during or at the end of the intervention is important as it assists in making resource allocation decisions, stimulating causes of problems and their solutions, identifying emerging problems and establishing lessons for future planning.
Reporting the Findings
The aim of the reporting step is to inform the ideal audience, while using detailed reports and oral presentations, about the findings and conclusions from the entire intervention.
Using the Findings
Management practitioners argue that the main use of findings obtained from M&E is to inform decision-makers how to improve performance in current and future programmes (e.g., promotion of transparency, accountability, and responsibilities among other uses).
Sustaining M&E within the Organization
Sustainability is focused on long-term utilization and survival of the system. The six critical components of sustaining a results-based M&E system are the consistent demand for such systems, clear roles and responsibilities, trustworthy and credible information, accountability, availability of technical capacity and incentives meant to encourage use of performance information.
Application to existing and prospective clients
A robust M&E system breeds brand loyalty and confidence from clients through continuous improvement of service provision and information sharing. Furthermore, through timely service provisions, clients may snowball the specific brand as reliable and efficient, thereby making the brand in question a pole leader in Africa and beyond.
Any consumer is a prospective client in one way or the other, hence there is a critical need for brand visibility in (social) media platforms aiming to attract new clients. Besides targeting new clients using traditional approaches, M&E will provide a sustainable paradigm shift towards new ways of marketing products and services.
Application to operations (risk and reinsurance)
An M&E system should not be ambiguous in nature and should clearly state roles and responsibilities to avoid confusion and conflicts and to generate improved relationships with partnering insurers and stakeholders.
It is arguably true that the application of the M&E principles in Minet’s insurance and reinsurance operations will undoubtedly usher in growth and profitability, while at the same time fostering the added benefit of reinforcing the Honesty – Expertise – Agility - Respect - Teamwork (HEART) values among its employees and stakeholders.
Bernard Banda ǀ Client Manager ǀ Minet Malawi
References:
- Kusek and Rist (2004)
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