Unum s Business Rules Journey

Transcription

1 Unum s Business Rules Journey A Case Study Oct 2012

2 Table of Contents u About Unum Group u BEFORE formal rule management > AFTER formal rule management u How we got here u Strategy steps to managing business rules as a corporate asset u Syntax u Governance Process u Technology to support our rules implementation u Benefits of structured rules management u Challenges u Key Learnings u Where do we go from here continuing the maturity model u Q&A 2012 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. 2

3 Speaker Biographies Sherri O Donnell, PMP Director, PMO Background areas: [email protected] Ø Project Management 10 years Ø Business Analysis Discipline Track Lead and Coach for IT 2 years Ø Development of Requirements processes for Unum s Iterative Methodology Ø Resource Management 5 years Bob Whyte Rules Implementation Engineer, Enterprise Architecture Background areas: Ø IT Development 35 years [email protected] Ø Business Rules focus 6 years Ø Rules Technical Lead 4 years Eric Baseler Business Analyst/Lead Rules Analyst Background areas: Ø Rules Governance facilitator 3 years Ø RuleXpress administration and technical support 3 years Ø Rules initiative growth focus 3 years [email protected] 3 3

4 Unum: A leading provider of employee benefits # 1 MARKET LEADERSHIP Group disability 1 Individual disability 2 Whole and universal life 3 # 2 Voluntary benefits 4 Group life 5 HIGHLIGHTS u 36 years as the industry leader in disability insurance 7 u Serve 23 million individuals and nearly 80,000 employers 8 u Paid $5.4 billion in benefits in # 3 Critical illness 6 u Unum and its affiliates serve 37% of Fortune 500 companies 10 All based on inforce cases, except when otherwise noted: 1 Gen Re, 2011 U.S. Group Disability Market Survey, Gen Re, 2011 U.S. Individual Disability Market Survey, Eastbridge, U.S. Worksite Sales Report, Carrier Results for 2011, May Based on new sales. 4 Eastbridge, U.S. Worksite Sales Report, Carrier Results for 2011, April Based on inforce premium. 5 Gen Re, 2011 U.S. Group Life Market Survey, Eastbridge, U.S. Worksite Sales Report, Carrier Results for 2011, May Based on new sales. 7 Gen Re, U.S. Group Disability Market Surveys , and annual survey of the Employee Benefits Research Institute (EBRI) for 21 years prior to ,9 Unum in the U.S. internal data, Total Unum US claims reflect claims paid through Unum US ongoing operations, as well as those paid from legacy businesses now reported in the closed block segment. 10 Fortune magazine, May 2011 and Unum customer database for Unum in the U.S., U.K. and Colonial,

5 BEFORE implementing a standard rules syntax and formalized methodology Inconsistent ownership: Owned, governed and stored by individual business areas Difficult to consume Multiple syntaxes: If/then statements Lengthy lists of criteria Verbose, inconsistent descriptions Automated implementation - Disparate patterns - Procedural code - Embedded in non-rules function - Mixed business and non-business rules Hidden: In various requirements documents 5

6 AFTER implementing a standard rules syntax and formal methodology Rules are a corporate asset Centralized Repository for rules Consistency in rule writing practices Governance process Majority of Business Analysts trained and experienced Business Rules layer in IT strategic architecture Business Rules IT layer abstracted and integrated with data, UI, process Standard implementation patterns & tools 6

7 How we got here Pre No formal enterprise rule management practices IT implements SOA with Business Rules as separate layer IT implements Business Rules with Corticon rule engine Head of Enterprise Architecture determines a change must take place to manage rules more efficiently Business Rules Management project established 2009/ BRM established and incorporates: Consistent Rule Syntax Rules Governance Process Roles Glossary Governance integration Training Classes and Coaching Business begins managing business rules 2012 IT manages rules as distinct architectural layer; Business manages rules as distinct business assets 7

8 Strategic steps to managing business rules as a corporate asset 2. Solidify Methodology (syntax, processes) 4. Recognize rules distinctively in the IT architecture (separate from UI, process, data, etc.) 6. Develop an Enterprise Glossary for common terminology 8. Expect and plan for Change Management 10.Re-factor your roadmap and vision as necessary 8

9 Management of Business Rules A business rule is a statement that defines or constrains some aspect of the business Business rules can be identified through several sources A Centralized function that is comprised of a business rule architect and one lead rule analyst, known as the Rule Quality team. This function provides coordination of stewardship activities, quality assurance and consultation. A network of domain rule analysts to support all business analysts within each domain as they write rules. The business architect provides guidance for business content and any term definitions originating in the domain. Rules identified through Project sessions Business Rule Management Function Business Rules and Repository Domain Rule Analyst Quote & Proposal Business Architect Rules harvested from existing systems Consistent Syntax Status Ensure appropriate stakeholder approval Domain Rule Analyst iservices Business Architect Education Domain Rule Analyst Enrollment Business Architect Rules submitted by SMEs Improvement & Adoption Domain Rule Analyst Etc., etc., etc. Business Architect 9

10 Write Rules in Plain English! Business Owners and Subject Matter Experts understand what they are approving Tools and Techniques: BR Solutions, RuleSpeak and the BRSolutions methodology Example: Subject + Keyword + Constraint A group anniversary must be effective on the 10 th business day of the month. 10

11 Governance Process Enterprise Asset Business Governance Rule Analyst, Rule Architect, Technical Rule Analyst Underwriting Quote & Proposal Billing Claims 11

12 Technology to support our rules implementation RuleXpress: Ø Rules are stored in a centralized location regardless of implementation or source. Ø The repository must be designed to share business rules across areas for maximum re-use. Ø Visibility and traceability of impact assessment when changing rules 12

13 Automating Rules Architecture Service Oriented Architecture (SOA) Layer 13

14 Automating Rules Technology 14

15 Benefits Realized at this point in our journey 1. Put business 2. Rules are documented in, not code or confusing context 3. Apply expressions across organizations 4. Categorization and 5. Visibility and for change 6. Allows and specialization of rules within the SOA architecture 15

16 Staging for Success HIGH Creates a platform for.. Speed to Market/Agility LOW Quality HIGH rules implemented by the business future analytics decision management reuse of rules 16

17 Challenges 1. Transitioning from the old way of writing rules to the new way (change management) 2. Understanding the difference between a business rule, other rules (process, UI, etc.) and a requirement 3. Lack of consistent champion/advocate 4. Transitioning to decision management 5. Inability to capitalize on the agility of our BRM process and implementation due to unrelated constraints (eg; environments, culture, integrated architecture) 17

18 Key Learnings 1. Be Flexible - the goal is to implement the change 2. Don t underestimate change management 3. Rule management is tightly integrated with the SDLC and changes need to be thoroughly assessed for impacts on both ends 4. Have a reasonably complete glossary in place before you start writing the rules 5. Create and continually redefine your roadmap - keep the vision fresh 6. Determine metrics for success and benchmark 7. Very important to have a SOA architecture with rules separate 8. You need champions at all levels 18

19 Road Junction Where do we go from here? Extreme agility Training, Education and expanded adoption Decision Management 19

20 Unum s Business Rules Journey Q & A Unum is happy to support the efforts of BBC and is a proud partner. While I am happy to give of my time and share my experiences and expertise, my comments and opinions are my own and don t necessarily reflect those of Unum. In addition, what works for us, may not work for you. Every situation is different and requires its own thoughtful analysis. Our hope is that you can take something useful from these discussions and apply it to what you do. 20

21 APPENDIX 21

22 Methodology 22

23 Unum: A partner with financial strength Despite the economic climate, analysts have made positive upgrades and affirmed Unum s financial stability during the past few years. u Unum in the U.S total operating revenue: $5.369 billion u Unum Group Well-positioned corporate investment portfolio: Strong capital position No sub-prime mortgage exposure Diversified, quality investments Agency Rating Outlook A.M. Best A Excellent Stable Fitch A Strong Stable Moody s A2 Good Stable S&P A- Strong Positive Capital Management Criteria Q12 Risk-based capital ratio for traditional U.S. 398% 405% 404% insurance companies Leverage 24.0% 23.5% 23.3% Holding company liquidity $1.219b $756m $564m Ratings are given to the insuring subsidiaries of Unum Group and are current as of August 17, Additional information is available in the Investors section of the company s website: Data related to the company s quarterly financials can be found in the Statistical Supplement located under the Quarterly Financials link in this section. All other values and comments are representative of Unum Group. 23

24 Defined Roles in the SDLC Business Analysts Elicit and document rules Business Architects Own the rules Rule Quality Team Governs the rule quality and syntax Technical Rule Architect Manages Use Case realization Rule Developer Implements the rules Testing Center of Excellence Validates the rules 24