Sibyla Helped Us Unify Data and Simplify Planning, Says Jiří Drahoš from Kooperativa

November 9, 2023

Transitioning from planning in Excel, used by two hundred people across three operational systems and two merging insurance companies, is a big task. Nevertheless, Kooperativa embarked on the project and, together with Adastra, implemented the IBM Planning Analytics tool during the pandemic. “All planners are working with a unified data base. In the past, we struggled to maintain consistency, but now we have everything under control,” says Jiří Drahoš, head of life insurance controlling at Kooperativa.

• What convinced the majority of employees to switch to the new tool and abandon old practices?
• What benefits has IBM Planning Analytics brought to Kooperativa?
• What challenges did the project encounter along the way?
• What changes does Jiří Drahoš see in the planning and management of insurance companies in the coming years?

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Ivana Karhanová: Changing planning from Excel – when planning involves two hundred people, three operating systems, and two merging insurance companies – was a challenge. This was the situation faced by Jiří Drahoš, head of life insurance controlling at Kooperativa in 2019. What is the result of the project in 2023? Jiří came to tell us about it in the studio. Hello.

Jiří Drahoš: Hello.

Ivana Karhanová: What led you to abandon Excel at that time?

Jiří Drahoš: As you mentioned in the introduction, in 2019, Pojišťovna České spořitelny merged with Kooperativa. At the same time, a decision was made to establish a joint financial controlling unit for Kooperativa and its sister insurance company, Česká podnikatelská pojišťovna. So suddenly, there were not three independent insurance companies where plans had previously been made independently. Now, however, it was necessary to plan together for two insurance companies at once, within a specified deadline. All of this was connected to various source systems and it became increasingly challenging for us. When we discussed it with management, we talked about “Excel Hell.” Indeed, working in interconnected Excel files and sending information via emails was sometimes hellish.

Ivana Karhanová: So you tried to merge all three planning systems in Excel?

Jiří Drahoš: Yes, we tried that. In the first year, in 2019, we planned for the 2020, 2021, and 2022 periods using Excel. We encountered a number of problems. Many people were involved in this process, and we often changed data. Another problem was that the insurance company’s planning process required cooperation from many professional units. It was not just about central controlling, but about coordinating various partial plans and inputs from different professional units. Different units used their own data sources, which complicated data unification.

Ivana Karhanová: And you had to present this entire concept to management?

Jiří Drahoš: Yes, and fortunately, we started thinking about this in the summer of 2019, during an economic boom. The numbers were positive, so it wasn’t so difficult to convince the management of both insurance companies.

Ivana Karhanová: Do you think management understood the problem with Excel? Or did you just hit a good time?

Jiří Drahoš: I think some managers, who were not completely detached from everyday reality, understood this problem. So it was not difficult to convince them.

Ivana Karhanová: When you say it was approved in the summer or fall of 2019, what followed after that? The project essentially took two to three years to complete.

Jiří Drahoš: Yes, it was not easy. We didn’t just want to transfer the existing planning process to a new application. We wanted to advance this process, improve it, and unify data. So we started by describing the current state, we found out what changes would be appropriate, and then we started looking for suitable technologies on the market. The selection process took place around March or April 2020.

Ivana Karhanová: So you spent several months mapping the current state at Kooperativa?

Jiří Drahoš: Yes, we mapped the current state. Specifically, it was about two to three months. During this period, we looked at what we really expected from the new software, what we needed, and what we wanted to improve. After we were clear on our requirements, we held a tender for the software and chose IBM Planning Analytics. Of course, once we had the software, we also had to choose a supplier to work with. And from July, we started with the implementation. The first meetings with the supplier took place in July, and then we gradually began with the next steps.

Ivana Karhanová: And who was the main project leader from your side? Your company, Kooperativa, is not small, but from your story, it sounds so simple.

Jiří Drahoš: You’re right, Kooperativa is a large company. In the area where I work, which is the planning and controlling sector, more than 20 people are dedicated to the planning process. I am the deputy business owner of the project, which means I had the main responsibility for how the project developed from our side. I coordinated the work of our team, communicated with the supplier, and helped with organization and project management.

Ivana Karhanová: How did you proceed after completing this initial phase? Was there a moment when you were really surprised or disagreed with how something was proceeding?

Jiří Drahoš: After completing the initial phase, we started with implementation, but of course, there were several surprises during the project. Especially in 2020, when the pandemic occurred, we had to reorganize some parts of the project and adapt to online work. We also faced some technical challenges with the implementation of the application itself. Our original expectations were that the entire software would be fully functional and implemented by May 2021, but due to various complications, we had to make additional adjustments and testing.

Ivana Karhanová: So how much did the entire project get delayed compared to the original plan?

Jiří Drahoš: Originally, we planned to have everything done by September, but due to various challenges and complications, we ended up finishing in October or maybe even November. Although we completed the application and it was functional, there were still some areas that needed further adjustments and optimization. In such a complex project as this, there will always be some unexpected challenges.

Ivana Karhanová: How did you convince those 200 people to switch to the new tool when they were used to the old procedures?

Jiří Drahoš: We had support from management, which helped. Most users – about 70% – were not against it. Only 10-20% were strongly resistant in the first phase.

Ivana Karhanová: But you need all of them for the tool to be functional, right?

Jiří Drahoš: Exactly. We prepared educational videos, manuals, training, and had colleagues available to help planners directly. We explained to them the advantages of the new tool, how it is faster, and how it allows us to do various scenarios and risk analyses for the business. What also helped – and I think this came from colleagues at Adastra – was naming the application. Instead of calling it “IBM Planning Analytics,” we named it “Sibyla.” We created a logo, stickers, and other promotional items and distributed them to the planners. Having the application’s own “name” helped users identify with it.

Ivana Karhanová: So you basically did an internal launch of a new product, is that right?

Jiří Drahoš: Yes, it’s a bit of an exaggeration, but yes. It was part of our internal marketing. We regularly wrote articles for the company magazine to inform even those who usually do not get involved in the planning process. We published information on the intranet and participated in various project days, where we presented our project along with other projects.

Ivana Karhanová: Looking back, what has the new system brought to your daily work?

Jiří Drahoš: Personally, I see the unification of data and the basis for planning as the main benefit. All planners are working with a unified data base. In the past, we struggled to maintain consistency, but now we have everything under control.

Ivana Karhanová: Did you encounter any problems?

Jiří Drahoš: It is unrealistic to think that we could implement an application and then not modify it for 5 to 10 years. The world changes, requirements change. We need to continually adjust and modify the application to meet current needs.

Ivana Karhanová: But you made similar adjustments with Excel, right?

Jiří Drahoš: Yes, but the requirements for detail in outputs are constantly increasing. It was no longer possible to effectively manage that in Excel.

Ivana Karhanová: When you mentioned that initially about 20% of colleagues were disagreeing with the new tool, what does it look like now?

Jiří Drahoš: Now it’s about 5%. They are not avoiding us or the tool, but they are working with it without special enthusiasm. I believe that is common in most companies. If the team is large, we cannot expect 100% engagement from everyone.

Ivana Karhanová: If you think about future trends in the insurance industry, what changes do you see in the planning and management of insurance companies?

Jiří Drahoš: I have already hinted at the direction of standardization. I expect that the IFRS 17 and IFRS 9 standards will be considered national standards in the Czech Republic in the next two years. We will thus move away from traditional Czech accounting standards in favor of these international ones. We are already reporting to shareholders in these standards, but we will need to increase the details in reporting. The key will not only be to create reports, but also to understand their idea and use them in decision-making and management. This is not just about the economic sector, but especially about leading and motivating sales teams. In addition, I see two main areas: digitization and online communication with the client, where we have some catching up to do compared to banks, and also the need to have a unified view of the client – both data-wise and communication-wise.

Ivana Karhanová: If I have household insurance and something else with you, do you see it comprehensively?

Jiří Drahoš: In our system, we see several different contracts for Ivana Karhanová. What we lack is a unified view of the client. We lack a complete picture – how profitable the client is, what other activities they have, etc. Besides individuals, we also have corporate clients, which complicates the situation. Many of our clients, whom we have registered under their birth number, may own or be connected with companies.

Ivana Karhanová: So you have a separate view of individuals and companies?

Jiří Drahoš: Yes, currently that is the case, but we are working on it. The client should expect that we, as their insurer, have a complete picture of them. We should be able to communicate comprehensively and offer discounts. Our goal is to improve access to clients and have the necessary data.

Ivana Karhanová: Jiří Drahoš, head of life insurance controlling at Kooperativa, introduced us to the future of insurance in the Czech Republic. Thank you for the interview.

Jiří Drahoš: Goodbye.

The text was edited by ChatGPT for better flow of the discussion.