A progressive and proven vision for digital transformation

Christopher Paquette, Chief Digital Transformation Officer, Allstate

I have been Chief Digital Transformation Officer at Allstate for over a year. This was a great opportunity for me to refocus on what transformation means and re-baseline what I need for impact. I like to start my mission, “Accelerating Digital Transformation,” with a fun story. As part of the interview process, I asked, “What does this mean for Allstate?” and the response was, “Well, we’d like you to tell us.” For one of the largest insurance companies in the United States, that’s a head-turner. Exciting proposal, but lots of leeway on how to proceed!

When I started, I could have focused on the “new and gorgeous.” I could have started by incubating cutting-edge technology or maximizing the application of generative artificial intelligence. But instead, I started from scratch. I begin by describing the outcomes we are trying to achieve and the pragmatic steps to advance them. That’s because true transformation requires a true rethinking of what creates value—from the ground up. I framed it around the why, the what, and the how; I think this is an evergreen and inspiring way to think about digital transformation.

The “why” of digital transformation often comes down to two things: protecting the core – revenue, expenses, controls, risk, customer and employee experience, and disrupting – new business models, new products and services, new markets, consolidating ecosystems Partner. Protect and destroy. These should flow directly from corporate strategy. Often you have to earn the right to destroy by protecting first, but you at least need a combination of both. It’s no secret that P&C insurance is being hit hard by inflation and loss costs, so improving margins is a key focus for us. But we are also investing in disruptive new technologies, products and services.

“Real transformation requires a true rethinking of what creates value—from the ground up. I framed it around the why, the what, and the how; I think this is an evergreen way to think about digital transformation and in an inspiring way.”

The “what” should directly follow the “why”. “Which” combinations of digital measures will achieve the desired protective and disruptive outcomes? I use a few techniques to make sure we’re pursuing the right things. First, I combined right-brain (i.e., creative, design, experience) and left-brain (i.e., structure, process, organization) thinking to generate a broad set of potential measures.Second, I evaluated and narrowed the set using the powerful feasibility-desirability[1] feasibility framework. This ensures we prioritize the right initiatives that create value for the business (feasibility), truly delight our customers and users (desire), and can be achieved within a reasonable timeframe (feasibility). It also ensures the right voices are represented across the enterprise, including business and product ownership (feasibility), CX/UX (desirability), and technology and data analytics (feasibility). Third, I take a portfolio view – just like an investor – to make sure we balance some near-term sure things with some longer-term bigger bets. Fourth, we are constantly measuring and rebalancing to ensure our “what” portfolios are still delivering the “why” results. Through these technologies, I create a portfolio that balances process optimization and automation with digital experience and long-term digital innovation, all underpinned by consistent tools.

The “how” must support the “why” and the “what.” Digitalization is not just a technology that delivers; This is also a new way of working. Digitization is about providing digitization. Of course, the fundamental technical capabilities that enable agile engineering are: modern, fit-for-purpose platforms, service-based architectures, integrated data, and consistent and powerful tools. In addition, I have invested heavily in talent. Proper talent utilization is a must, including refreshing external talent, clear role definition and ongoing skills development. Much has been written on this topic. New ways of working are another key to getting it right. Agile is a simple buzzword, but it really boils down to an operating model where people focus on results, prioritize the backlog, and collaborate efficiently as an accountable team without any roadblocks and what they need to deliver resource. Every organization looks a little different, but these five things always ring true. Finally, a digital-first culture wraps up all the “how”. Aspects such as customer focus, empowerment, urgency, transparency and external orientation are often key aspects.

There are three words I often use to represent the cultural change we are making: Fruitfulness, Vulnerability, and Grace. Outcomes such as profit and customer experience form our “why,” guide our “what” and inspire our “how.”Admit when we’re wrong or don’t know (and go fix it or learn the answer) and involve our partner[1]creative process. And, give grace to others when we move quickly, pivot, and need to assume the best in others.

We’ve made a lot of progress using this simple why, what, and how framework. If you lack the same rigor, try building your digital transformation journey!