Case Study: Road Accident Fund Turnaround Implementation

Short write up that contextualizes the case study.

Ntiyiso Consulting associates lead a strategic turnaround implementation programme for the Road Accident Fund. The aim of the project was to improve the fund’s service to the claimants in a cost effective and process efficient manner. This project involved implementation of a new operating model. The model is made up of an expanded geographic footprint for the customer service network, an efficient and transparent claims processing hub and an IT backbone with links to business partners.

Role on Project  
Ntiyiso Consulting’s role in the project was to setup a Programme Management Office that was going to manage projects/ initiatives in the various components of the organization i.e. customer service network, claims processing, support organization and IT enablement.
The Challenge
The RAF was plagued by systematic and organizational problems that included long turnaround times for claims processing driven by predominant use of the legal system; limited network to service customers; misaligned and passive support organization; archaic information technology systems that lacked transparency; a large backlog of unprocessed claims. The compound effect of this issues manifested in a poor service delivery to claimants; and a large liability that questioned the sustainability of the fund.
The Ntiyiso Solution
Ntiyiso Consulting setup, and staffed with permanent people, a Programme Management Office (“PMO”) with the following responsibilities:-

  • Administration
    • Organizational design and staffing of the PMO
    • Performance management of PMO staff
    • Development of PMO policies and procedures
    • Supply Chain process management for appointment of service providers
    • Budget management (R40m over 24 months for the PMO and about R500m for the customer service network and claims processing implementation
    • Management and payment of PMO service providers
  • Manage Customer Network Projects
    • Roll out of 105 hospital service points (people, process and technology)
    • Opening of an additional Regional office (Mpumalanga)
    • Process integration with Hospitals and ambulance groups
  • Manage Claims Processing Project
    • Re-engineering of the claims administration process
    • Filling of critical vacancies
  • Management Support Organization Project
    • Development of critical and enabling HR policies (job grading, salary equalization etc)
    • Performance management support
  • Support IT in technology project delivery
    • Rationalization of systems
    • Specification development for improvement of the claims system
    • Implementation support
  • Backlog eradication
    • Backlog auditing
    • Backlog eradication
  • Other
    • Organizational design of RAF
    • Participation in Strategy development
The Ntiyiso Effect
Over and above the physical infrastructure that was implemented, the PMO was able to increase the number of direct claims (i.e. where lawyers are not part of the processing) from 15% to 28% with significant savings. Furthermore the team was able to demonstrate that claims processing times for certain type of injuries can be reduced from 300 plus days to 90 days.

Contact: Mandla Mvelase, former Acting CEO of the RAF  Tel. +27 (0) 82 556 4438