A Case in Point: Acme Inc.

Acme Inc., a prominent insurance company, is a perfect example. Following a comprehensive audit of tasks performed by its senior  claims adjusters, the company discovered numerous opportunities for optimization. For example, it can automate tasks such as data entry, standardized correspondence, and basic claims paperwork. Simultaneously, junior adjusters were trained to handle more complex yet repetitive claims decisions.

The result? Enhanced efficiency, elevated roles for senior staff, and considerable cost savings.

The Business Benefits

1. Operational Efficiency: Automation and task redistribution enable employees to focus on higher-impact activities, which often increases customer service and reduces time to market.
2. Cost Savings: Efficient task delegation results in significant cost reductions, enabling capital to be reallocated to growth initiatives.
3. Competitive Advantage: Organizations that pioneer efficient operational models through task-level analysis are better positioned to dominate the market.
4. Employee Satisfaction: Elevating roles by removing routine tasks can dramatically improve job satisfaction, reducing turnover rates.
5. Scalability: The framework allows operations to grow without a substantial cost increase.
6. Focus on Core Competencies: Task-level analysis frees up human capital and enables companies to focus on their core activities.

A Methodical Approach

1. Task Identification: Catalog all tasks for each job role. To ensure comprehensiveness, involve all stakeholders (leaders and employees).
2. Classification and Assessment: Classify tasks based on impact and evaluate their time, list of technical and power skills and levels, and associated costs.
3. Automation and Offshoring Feasibility: Assess tasks for automation or offshoring potential.
4. Decision Matrix: Use a decision matrix to weigh the pros and cons of in-house automation, offshoring, or retaining tasks (see template link below).
5. Beta Test: Implement a trial phase to assess the effectiveness of your strategy.
6. Review and Reassessment: Periodically revise your list to account for changes in technology and business objectives.

Cautionary Notes

While task-level analysis offers many benefits, it also comes with its own set of caution. The initial investment required for implementing automation or offshoring solutions can be substantial and may not yield immediate returns. Additionally, offshoring can introduce managerial complexities, potentially leading to a loss of control and affecting output quality. It's also critical to consider the social and reputational implications; automation and offshoring could result in domestic job losses, impacting your brand's reputation. Lastly, an over-reliance on technology or specific geopolitical regions can introduce operational vulnerabilities, making the business susceptible to software glitches, outages, or​ geopolitical instability​.

Evidence-Based Validation

Leading consultancy firms, such as McKinsey and Deloitte, have published research substantiating the effectiveness of task-level analysis and endorsing its value as a tool for operational optimization.

Task-level analysis isn't merely a cost-cutting tool; it's a multifaceted strategy that offers extensive benefits and presents challenges and risks. Achieving balanced execution and committing to regular reassessment can unlock sustainable growth and resilience for any forward-thinking organization.

Those interested in executing task-level analysis can make a copy of my Task Analysis Spreadsheet template​ here​.

Links to Research:

• McKinsey Global Institute, 2017: Building workforce skills at scale to thrive during—and after—the COVID-19 crisis:​ https://www.mckinsey.com/~/media/mckinsey/featured%20insights/mckinsey%20global%20surveys/mckinsey-global-surveys-2021-a-year-in-review.pdf​
• Deloitte Global Outsourcing Survey, 2020: 2020 Global Outsourcing Survey | Deloitte US:​ https://www.deloitte.com/global/en/services/consulting/perspectives/gx-global-outsourcing-survey.html​
• Deloitte Global Shared Services Survey, 2017: Global Shared Services 2017 Survey Report - Deloitte:​ https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/us-global-shared-services-report.pdf