communications – “the development of the holistic … · 2010. 5. 18. · build communication...

COMMUNICATIONS –

“THE DEVELOPMENT OF THE HOLISTIC ACTUARY”

Report of the Communications Taskforce to the Council of the Institute of Actuaries of Australia

for the Year Ended 31 December 2006

“Communication – an important part of the work of actuaries is in communicating the results of their investigations to the decision-maker..... Actuaries need to put more effort into helping the users of their advice understand the difficult concepts involved, and ensure that the uncertainty inherent in projections of future outcomes is properly captured.”

President of the Institute of Actuaries, Nick Dumbreck in his Presidential Address Raising our Game, September 2006

Members of the Taskforce: Peter Barnes, Andrew Brown (convener), Darren Davis (Institute representative), Steve Huppert, Rade Musulin, Sulyn Teh and Lesley Traverso.

Report of the Communications Taskforce

TABLE OF CONTENTS

1 Executive Summary .............................................................................................. 1 1.1 Introduction......................................................................................................... 1

1.2 Findings and recommendations of the Taskforce ............................................... 1

1.3 What the Taskforce seeks from Council ............................................................. 5

2 Background to the Taskforce’s Work................................................................. 6 2.1 Where we are now – Surveys.............................................................................. 6

2.2 Where are we now - assessment and support provided on communication ....... 9

2.3 Where are we now - communication competency development ...................... 10

2.4 Where do we want to go - required communications competency................... 11

2.5 The gap between current state and ideal actuary– what’s causing it? .............. 13

2.6 What does the journey look like – what are the obstacles to overcome? ......... 14

2.7 Recommendations............................................................................................. 15

2.8 Other possible measures to close the gap ......................................................... 17

3 The Communications Toolbox........................................................................... 18 3.1 Review of existing communications tools ........................................................ 18

3.2 Development of the “Communications Tool Box”........................................... 18

Appendix 1....................................................................................................................... 20

Appendix 2....................................................................................................................... 21

Appendix 3....................................................................................................................... 23

Appendix 4....................................................................................................................... 27

Appendix 5....................................................................................................................... 29

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1 Executive Summary

1.1 Introduction

As the actuarial profession evolves, extensive consideration is being given to what the profession may look like in future years and what core capabilities the profession may need to develop to reach its full potential. The Institute of Actuaries of Australia (‘the Institute’) Vision 2020 Taskforce’s October 2006 discussion paper included communication and presentation skills as two capabilities the actuary of the future will need to develop further in order to reach our potential in all work areas and in particular in newer fields.

The Communications Taskforce (‘the Taskforce’) was established by the Institute in December 2005 under the terms of reference set out in Appendix 1. The Taskforce endorses the view of the Vision 2020 Taskforce and believes that we must focus on developing communications competency so that it becomes a core competency of the profession if we are to continue to grow successfully. The work of the Taskforce (1) assesses the level of communication competency through member and employer surveys, (2) considers what best practice communications may look like at each level of actuarial development and (3) recommends measures to support the development of communication competency.

There is virtually unanimous agreement1 that actuaries are highly ethical, are very strong at analysis and quantification and have tremendous understanding of the technical nuances of the businesses they operate in. These are all essential capabilities in the role of trusted adviser. The Taskforce’s research strongly suggests that the perception and competency of actuaries in terms of communications is also essential to the role of trusted adviser, and feedback from employer surveys is that it is not yet a strong competency across the profession.

1.2 Findings and recommendations of the Taskforce

Where are we now – Surveys of members and employers

Surveys were carried out with recent university graduates (Graduate Survey, July 2006), with the broad membership (Pulse Survey, August 2005) and with employers (Employer Survey, August 2006). Discussions were also held with the universities. The key findings of these surveys and discussions are:

• Graduates feel that there is inadequate focus on the development of communications skills, particularly in Part I. The way the syllabus is structured and assessed sends a strong message that the ability to communicate with a broader audience is of low importance. The views of the universities contacted ranged from “university is not the place to teach communications” to “it is essential to integrate the development of communications skills with the teaching of technical skills”.

• According to the Institute’s August 2006 Employer survey, employers rated the importance of communications to business success as being significantly higher than is currently being demonstrated by analysts and recently-qualified actuaries.

• Respondents to the Pulse Survey felt that the greatest communication weakness is in the understanding and appreciation of the client’s perspective, and being able to communicate in a way that was meaningful to the client. Over half the respondents

1 Employers survey carried out by the Society of Actuaries 2001-3 and by the Institute in August 2006

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agreed that actuaries focus insufficient time on communicating the findings of analysis relative to the time invested in carrying out analysis.

Where are we now - assessment and support provided on communications

• The Part I course objectives make no reference to communications.

• While the Part II syllabus does specifically include “communicate methodology and results to stakeholders” as an objective, each university lecturer decides on how they will teach the course. The consequence is that the focus on communications in Part II varies from university to university. Students’ feedback to the Institute office has been “how can we demonstrate communication skills when we are not taught what is expected?”

• The assessment of communications skills in Part III, Modules 1 to 3 is negligible, with no more than one mark on the entire paper being awarded to “formatting and language being appropriate”. There is a much greater focus on communications in Module 4, Commercial Actuarial Practice, with a detailed syllabus and specific sessions dedicated to teaching communication competency.

• There are few CPD events or development opportunities to support the development of communications competency. Relative to the US and UK professions, there are very few tools or guidelines available to Institute members on communications.

Where are we now - communications competency development

• Based on the competency development model in section 2, the level of communications competency across the Institute would be at the “developing” stage.

• There is a growing awareness of the need to develop and demonstrate the competency (Vision 2020 Taskforce, member feedback).

• Employer surveys suggest that some, but not a significant portion of, members demonstrate this competency.

• There are some activities to encourage communications skills development taking place (Communications Taskforce). However they are still separate and not integrated.

• The teaching and assessing of communications across the University curriculum is sporadic.

• The level of importance placed on communications by employers of actuaries in the Employer survey was high for newly qualified actuaries, i.e. fourth highest importance of the eighteen competencies in the survey.

• The extent to which this was demonstrated by newly qualified actuaries was medium, i.e. fourteenth overall.

The Taskforce concludes that the profession should aim to move its communications competency as illustrated in Section two, from “developing” to “mature”.

Where do we want to go - how will we know when we have arrived?

• The holistic actuary or analyst will be able to do each of the following, to increasing depth and sophistication:

Organise the communication Clarify its purpose and importance

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Maintain audience attention Adjust the communication to the audience Ensure audience understanding Seek opportunities to develop their communications competency.

• We will know we are moving forward on this journey when the feedback from members and employers indicates a shift in perception, and a narrowing of the gap between importance and relative competency.

What does the journey look like – what are the obstacles to overcome?

The journey from developing to mature will take time, and there are likely to be a number of challenges along the way. True communications competency will only reach maturity when it is fully integrated across the whole education, training and development system, ie. from University actuarial degree courses through Part III, CPD and ongoing Institute Initiatives.

• Creating momentum - Quick wins

• Engaging key stakeholders - Overcoming natural resistance to change Recognising what may be outside natural actuarial comfort zone. Involving the Universities in the change process -responsibility

• Implementing – A standing independent “taskforce” to drive the implementation. Involvement of individual practice committees. Build communication development into Institute processes.

• Maintaining - Continual review and survey procedures to ensure competency development on

track and momentum maintained.

How do we get there – key recommendations

The Institute can influence the development of communications competency across the profession in three key ways:

1. By raising awareness of effective communications amongst members, including students enrolled in actuarial courses at university.

2. By supporting members through providing communications tools, aids, references and training resources.

3. By raising the importance of communications to actuarial professionals through either educational or CPD requirements or guidelines

In this context, and considering what may be needed at each stage of the journey, the key recommendations from the Taskforce review are as follows:

Continuation of current Taskforce initiatives:

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• The Taskforce has begun developing a communications toolbox for actuaries. This should include explanations of complex terms and concepts through to the use of simple stories or analogies. It should also include graphical or visual ways of representing data. Similar sites have been developed by our overseas colleagues (refer to Section 3).

• In order to raise the awareness, amongst actuaries in Australia, of the importance of improved communications abilities, the Taskforce commenced the publication of a regular article on this subject in “Actuary Australia”. These articles, so far, have been written by Andrew Brown, Sulyn Teh and Lesley Traverso

Quick win initiatives (actionable over the next 12 months):

• Introduce a university liaison programme, with experienced actuaries making regular presentations or workshops to university students. These presentations and workshops would be focused on bridging the gap between being a student and working as a professional. They would cover topics such as communications, leadership, business acumen and judgement.

• Include in all Institute events a session, presentation or workshop on best practice communications and how it applies in the context of the event. Engage a communications expert to provide a review of the communications competency demonstrated at the event, and suggested areas for development.

• Develop and make available (via the Toolbox or Code of Conduct) sample best practice actuarial reports for key practice areas.

Medium term initiatives (actionable over the next two years):

• Introduce a Guidance Note on Actuarial Communication that would set out the required competency at each level of development.

• Introduce best practice guidelines for communications training and development at university level. While this falls a step short of mandatory training, we believe that it is the most pragmatic way of influencing and supporting the universities to move forward.

Transitional initiatives (introduced while communications competency develops, but to be phased-out as the competency matures and development methods are fully integrated into the educational, CPD and Institute systems)

• Appoint a “communications liaison team” or standing committee to carry on this work. In order to maintain focus, achieve consistency across practice areas and to avoid redundant effort, the Taskforce’s work should be outside the normal Institute committees.

• Introduce, as an interim measure, a certificate of actuarial communications offered at university level. The universities would be required to seek accreditation from the Institute to be able to offer this certification. There may be a sunset clause that would phase this certification out over the period which it would take the universities to integrate communications into the current syllabus.

Longer term initiatives:

• Integrate the teaching and assessment of communications skills into Modules 1 to 3 of the Part III exams. This may include specific assignments and tutorials focusing on

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communications and will be pitched at a level that appropriately recognises the importance of the communications competency to the profession.

• Once a majority of the above initiatives has been bedded down, the Branding and marketing of actuarial communication competency could then be considered.

1.3 What the Taskforce seeks from Council

The Taskforce seeks three things from Council:

• Endorsement of the importance of developing communications as a core competency of the profession.

• In principle approval of the above recommendations of the Taskforce, and the establishment of an implementation taskforce / process to implement these recommendations.

• Support from the Institute office on including a communication focus in initiatives for which they have responsibility.

“Change the perception [of actuaries as communicators] and anything is possible; leave the perception as it is, nothing else the profession does will have much impact”. – Society of Actuaries Market Opportunities Research Report 2001.

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2 Background to the Taskforce’s Work The Taskforce was formed as a result of research carried out in 2004-5 on the perception of actuarial communications competency and the contributing factors to this perception. The full research is detailed in the paper “The Eighth Habit of Highly Effective Actuaries” which was presented at the May 2005 Convention.

Some of the key findings and observations from this research are:

• The perception of actuaries as communicators is consistently weak across the various actuarial professions. In the US and UK, substantial work has already begun to address this perception.

• John Shepherd of Macquarie University carried out research in 2003 into the preferred learning styles of actuarial students and professionals. Using Kolb’s Learning Styles Inventory, he found that learning styles of all classes of membership are highly geared toward modelling and technical problem solving. Less than 15% of members surveyed had learning styles geared towards more interpersonal interaction.

• Separate research has been carried out into thinking preferences of different professions and is set out in “The Whole Brain Business Book” by Ned Hermann. Hermann’s research identified that actuarial thinking preferences are strongly geared towards independent analysis and problem solving (in fact the highest of all professions reviewed), and the least preferred actuarial thinking preferences were in regard to communication and interpersonal relationships.

• The complexity of actuarial subject matters makes it both very difficult and very important for the communications to clients to be put in terms the client can understand.

• Actuarial education has placed only an insignificant focus on communications.

• Actuarial language, so very rich in acronyms, creates a barrier to understanding with the outside world.

The Taskforce has used this work as a starting point. While this work focused on why the communications perception is weak, the Taskforce work focuses on validating the current state (where are we now), identifying the future state (where are we going) and then considering how to get there.

2.1 Where we are now – Surveys

July 2006 Graduate Survey

A recent survey of university graduates by the Taskforce2 revealed a general opinion that the university program does not provide sufficient emphasis on the importance of communications skills. Graduates felt that there was an inadequate focus on the development of communications skills, particularly in Part I. Respondents also generally said that the way the syllabus is structured and assessed sends a strong message that the ability to communicate with a broader audience is of low importance (as evidenced by the low assessment weighting given to presentation and report writing skills).

2 See Appendix 2

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Interviews with University Professors

Interviews with university professors revealed a range of attitudes towards communications skills. Some believe that university is not the place to teach communications, while others believe it is essential to integrate the development of communications skills with the teaching of technical skills.

The Institute of Actuaries of Australia, August 2006 Employer Survey

The Institute’s Education Committee commissioned a survey of employers in August 2006, seeking feedback in relation to actuarial competency in 18 different areas, ranging from quantitative modelling skills through to leadership. The survey focused on actuarial analysts studying for the Part III exams and newly qualified actuaries. It was completed by 22 companies.

Communications is perceived as becoming more important with a greater need to provide commercial solutions and communicate with people with limited industry knowledge.

For analysts, employers rated the importance of communications in business success as medium to high (seventh in overall importance) and ranked the extent to which this competency is demonstrated as medium to low (eighteenth overall).

The following chart illustrates the separation between the importance of and current communications capability of analysts.

Actuarial Students

Quantitative (modelling) skillsAbility to solve complex problems

Attention to detail

Knowledge of financial institutionsand markets

Industry & regulatory knowledge

Business acumen

Financial assessment andreporting skills

Business communication skills

Leadership skillsAdvisory skills

Proactive

Ethical

Team player

Innovative thinker

Project management skills

Risk management skills

Ability to focus on big picture

Ability to take informed risks

Importance Capability

High

Medium

Low

For recently-qualified actuaries, employers rated the importance of communications in business success as high to very high (fourth in overall importance) and ranked the extent to which this competency is demonstrated as medium (equal fourteenth overall). The following chart illustrates the separation between the importance of and current communications capability of newly-qualified actuaries.

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Newly Qualified Actuaries

Quantitative (modelling) skillsAbility to solve complex problems

Attention to detail

Knowledge of financial institutionsand markets

Industry & regulatory knowledge

Business acumen

Financial assessment andreporting skills

Business communication skills

Leadership skillsAdvisory skills

Proactive

Ethical

Team player

Innovative thinker

Project management skills

Risk management skills

Ability to focus on big picture

Ability to take informed risks

Importance Capability

High

Medium

Low

This demonstrates a clear and significant gap between competency and importance of communications skills relative to other actuarial competencies.

The Institute of Actuaries of Australia August 2005 Pulse Member Survey3

The August 2005 Pulse Member Survey (278 participants) surveyed members to determine their perceptions of actuaries as communicators. The key findings were:

• Communications competency varies enormously across the profession. While it is not a weakness of all members, the lack of consistency across the membership leads to a relatively poor perception overall.

• The greatest weakness identified was in the understanding and appreciation of the client’s perspective, and being able to communicate in a way that was meaningful to the client.

• Over half the respondents either agree or agree strongly that, as a profession, we use too many acronyms.

• Fewer than 25% of respondents disagreed or disagreed strongly with the statement that actuaries spend too much time calculating and not enough time communicating.

There was insufficient data from Australian surveys to draw any conclusions about the quality of actuarial communications relative to other professions. However, the Society of Actuaries (SOA) carried out market research and produced a Report in 20044 that found that relative to other competitors (MBAs, accountants, financial analysts and risk managers):

“Both actuaries and employers agree that the profession needs to improve in the same four skills: business communications, ability to focus on the big

3 Pulse Survey published in September 2005 edition of Actuary Australia 4 Sanford, S.J. A moving image – ‘Reflecting the future of the actuarial profession’ published by the SOA

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picture, business acumen and being pro-active…. With regard to business communications, competitors were ranked substantially higher”.

2.2 Where are we now - assessment and support provided on communication

Part I and II Education

A study of course outlines suggests that most courses do not focus on the need to communicate concepts to a broader audience. However, the Part II syllabus does specifically include “communicate methodology and results to stakeholders” as an objective. Ultimately, it comes down to a particular decision by the university lecturers on how they will teach the course.

For the purposes of considering communications attributes, Part III can be discussed separately as Modules 1 to 3 (specialist subjects) and Module 4 (Commercial Actuarial Practice)

Part III Education

• Modules 1 to 3 A number of course outlines refer to communications skills in some way. There is typically an exam question for each course where the candidate is expected to make some consideration of the need to communicate to a non-actuarial audience. In reality the assessment of communications skills is negligible with no more than one mark on the entire paper being awarded to “formatting and language being appropriate”.

• Module 4 The CAP course is the only place in the education of an actuary where communications skills are addressed in detail. The CAP course focuses on improving the ability of students to apply actuarial skills and approaches in a range of different business contexts and then to effectively communicate the solutions to a wide audience. The teaching and assessment of communications skills is included throughout the course.

Continuing Professional Development (CPD)

• CPD is governed by Professional Standard 1 (PS1). The only reference to communication skills in PS1 is in Appendix A that shows an example of a CPD Record Form. One of the examples is “XYZ Consulting Presentations Course – Attend presentation course on effective communications to Boards and Senior Management”.

• While this acknowledges that working on communications skills could be counted towards CPD by members of the Institute, it is obscure and does not give communications skills sufficient direct emphasis.

The Approach in the UK

The UK has shown its commitment to “leading practice” in communications by providing for a specific Communications paper as part of the exam process. While there may be merit in the short to medium term in having a separate communications subject, the Taskforce is of the view that if communications is considered to be a core competency, it should be integrated into all aspects of the curriculum. If it is kept separate, this can create a perception of communications as being outside the required core competencies of the actuary.

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2.3 Where are we now - communication competency development

The Taskforce has considered the following model in order to understand how well communication is developed as a competency across the profession and what a highly developed competency and framework for development would look like.

Professional Competency Development Model Phase 1 – Underdeveloped Phase 2 - Developing Phase 3 – Mature

Little or no awareness of the need to develop or the value of the competency.

No acceptance of responsibility for poor perception or poor outcomes.

Profession by and large has members who do not exhibit the desired competency.

Perception of profession’s competency lags similar professions and is a strategic or tactical weakness for the profession.

Recognition of need to develop the competency.

Competency development is dealt with in a “dissociated”, non-integrated way.

Profession has many members who exhibit the competency, and many members who do not!

Separate taskforces, committees and reviews set up to find ways to support development of the competency.

Integrated into each step of the education system, professional development and ongoing professional behaviour. Explicit in educational outcomes and professional standards.

Competency exhibited right across the profession.

Acceptance of the need for ongoing development, in the same way as other competencies.

Perception of profession’s competency leads similar professions.

The presence of the competency is a strategic or tactical strength of the profession.

Unconscious Incompetence

Conscious Incompetence

Conscious Competence

Unconscious Competence

Conscious Professionalism

There is a growing awareness of the need to develop and demonstrate communication competency (Vision 2020 Taskforce, member feedback). The employer surveys and Pulse Survey suggest that some but not a significant portion of members demonstrate this competency. While various activities are beginning to take place (Communications Taskforce) they are still separate and not integrated. The teaching and assessing of communication across the curriculum is also sporadic. The Taskforce concluded that, based on this model and this profile of the profession, the communications competency across the profession is developing rather than mature.

We suggest the following principles would be consistent with setting up a framework that will support moving the profession's communications competency from developing to mature.

• In the longer term, communication development should be embedded and integrated across the learning cycle.

• Core competencies need to be targeted until 80% of the profession exhibits this competency consistently; anything less than this is out of alignment with its importance.

• What gets measured gets managed; having clear and specific objectives or methods of assessment reinforces that communications is important.

• Perception is reality; if the perception of our communications competency is poor we should work to enhance our competency in order to shift this perception.

• Creating real change means changing the value placed on communications over and above changing processes and requirements (ie unless people value communications, all the harassing and monitoring in the world will not achieve the desired outcome or will get only short-term attention).

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2.4 Where do we want to go - required communications competency

The required communications competency of the actuarial professional will vary depending on the nature of the work or study, the audience being communicated to, the purpose of the communication and the context of the communication. The required communications ability of the actuarial professional will increase in line with developments members’ experience and knowledge. The Taskforce has used a competency model based on one developed by Development Directions International (DDI)5, a leading human resources consultancy, as a basis for considering what is leading practice in communications at various stages of professional development.

The ideal graduate / new entrant to the workforce

An ideal actuarial analyst (assumed to have completed Parts I and II) entering the workforce should be able to:

• Organise the communication: Clarify its purpose and importance Organise and present in a logical manner Express ideas clearly and concisely Develop documents that are clear and concise

• Maintain audience attention, present with confidence.

• Adjust to the audience: Present in line with audience experience and background Write/present at the appropriate level for the audience

• Ensure understanding by: Using appropriate terminology Responding with accurate and complete answers

• Proactively seek opportunities to develop communications competency.

The audiences for this person are normally actuarial peers and managers.

• Key communication tasks / milestones / opportunities / stepping stones for the new graduate are:

Expressing self adequately in exams Expressing self clearly in interviews Expressing self in use of actuarial terminology with fellow students and actuaries

on entry to the workforce.

The ideal newly qualified actuary

By the time the analysts complete their final exam, they ideally would have the same capabilities of the new entrant PLUS the following:

• Can review and edit documents of others.

5 Byham, W.C. Mayer, R.P. ‘Using Competencies to Build Successful Organisations’ and ‘Developing competency based HR Systems’ published by DDI

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• Can use terms, examples and analogies that are meaningful to the audience.

• Can check own understanding of other’s communications.

• Can appreciate and acknowledge the other’s point of view.

• Can respond with accurate and complete answers.

The audiences for this person are business peers, senior managers and actuarial analysts the newly qualified actuary may be managing.

Key communications tasks / milestones / opportunities / stepping stones for the newly qualified actuary are:

• Writing actuarial reports that meet professional standards and can be readily understood by a non-actuarial audience.

• Representing the actuarial division both within the company and in external meetings or forums.

• Applying actuarial terminology and concepts in the broader business context.

The ideal experienced actuary

An ideal experienced actuary (assumed to have at least 7 years post qualification experience and be in a senior management or senior advising position) would have the capabilities of a newly qualified actuary PLUS

• Maintains audience attention, presents with impact and confidence: Keeps audience engaged through analogies, illustrations, humour and an appealing

style.

Uses congruent and appropriate non-verbal communications. Demonstrates a sophisticated use of visual aids and other communications devices

to maintain attention.

• Adjusts to the audience: Researches audience needs prior to preparing a communications. Presents in line with audience experience and background.

• Ensures understanding: Varies presentation style to enhance understanding. Picks up subtle non-verbal cues.

Audience - senior managers, regulators, key external stakeholders, largely a non-actuarial audience.

Key communications tasks / milestones / opportunities / stepping stones for the senior actuary are:

• Influencing Board, executive and client decisions.

• Setting policy and gaining acceptance by leadership teams and clients.

• Negotiating with and influencing key industry bodies such as regulators.

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For the actuarial profession to develop its communication competency towards this ideal state, it will go through each of the following stages:

2.5 The gap between current state and ideal actuary– what’s causing it? The member and employer surveys all suggest a gap between the current and the ideal competency. From the taskforce’s research, we believe the key reasons are:

• Students: Students do not necessarily listen to and absorb everything a lecturer says – if

something is mentioned only once or twice throughout their time at university, they are unlikely to even remember it, let alone put it into practice.

Universities that do encourage communications skills feel that students do not proactively seek opportunities – student focus is on getting enough marks to obtain their exemptions.

• Universities: Some universities do not believe there is a need to do more to develop

communications skills.

Universities are chosen by students based on the overarching university brand rather than a course brand, so there is no perceived value in including communications.

Universities are not usually equipped to teach communications, as lecturers typically do not have the necessary competency to formally teach communications skills. Lecturers may be doing things to integrate communications into the courses, but may be ineffective despite their good intentions.

• Institute: Courses, based on feedback from some universities, are already overcrowded with

content, leaving little room for extra activities and assessments with a communications focus.

The accreditation process, in the way it is currently applied, has not influenced university behaviour regarding communications.

Communications skills are not explicitly included in the training of future actuaries until the very last stage in the process (Module 4). The way communications skills are

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examined in Modules 1 to 3 is likely to send the message that they are not really important. Students struggle to understand the complex technical concepts themselves, let alone explain them to non-actuaries.

Few of the CPD events currently run by the Institute are related to communications skills. While there have been previous events dedicated to communication, these have been poorly attended. The newly qualified actuary is moving from communicating within the profession to communicating more broadly across the business. This requires a shift in the way that concepts are communicated throughout the formative stages of the actuary’s career..

• Members: It is really hard to communicate complex concepts in simple terms; mastery is

required.

The newly qualified actuary needs to move from communicating within the profession to communicating more broadly across the business, and to external stakeholders or clients. This requires a shift in the way that concepts are communicated throughout the formative stages of the actuary’s career. There is little specific formal training for this type of development, and actuaries are left to learn “from experience” or from the (often poor) example set by others”.

There has not historically been a driving need – “demand exceeds supply so take me as I am”.

Lack of appreciation that actuarial careers may be at stake if communications skills are lacking.

2.6 What does the journey look like – what are the obstacles to overcome?

As can be seen from the previous section, the journey from developing to mature will take time, and there are likely to be a number of challenges along the way:

Creating momentum: The first step is to create the momentum for change, and to bring the membership along the journey. To create the momentum will require some relative quick initiatives to raise initial awareness and enthusiasm. To this end, the Taskforce has commenced two initiatives in 2006 – a regular column in The Actuary and the Actuarial Toolbox (see section 3).

Engaging key stakeholders: Over the initial stages there are likely to be pockets of resistance and cynicism. For students who may be trained and assessed for the first time on communication, there may be some anxiety. The universities are essential to support the development of a communication culture but are not altogether willing with varying degrees of ability. Potential changes to university curriculum and assessment could take several years to influence.

Implementing: Much of the development work may be driven by a central taskforce in this stage, yet the competency will only reach maturity when it is fully integrated across the whole system. So a significant effort will be needed in the penultimate stage to ensure that the various committees and policies of the Institute fully reflect and have communication development built into their normal processes.

Maintaining: At the maturity stage, there will need to be ongoing reviews and surveys to ensure that the competency is maintained at the mature level and that it remains pitched at an appropriate level for the profession.

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2.7 Recommendations

The Institute can influence the development of communications competency across the profession in three key ways:

1. By raising awareness of effective communications amongst members, including students enrolled in actuarial courses at university. It is essential that communications be integrated and incorporated from as early a stage as possible in the education system, so that it becomes a natural and habituated process.

2. By supporting members through providing communications tools, aids, references and training resources. These will need to allow for the development of the actuary through the various stages of a career.

3. By raising the importance of communications to actuarial professionals through either educational or CPD requirements or guidelines

In this context, and considering what may be needed at each stage of the journey, the key recommendations from the Taskforce review are as follows:

Continuation of current Taskforce initiatives:

• The Taskforce has begun developing a communications toolbox for actuaries. The next step is to develop an easy-to-access section under the library link on the website which will be used to store electronic links, such as those provided above, as well as .PDF versions of articles and recommended readings for use as a resource by actuaries to enable communications skills development. This link should be maintained to provide a continually updated and improved resource with contributions from members regularly solicited (the Institute Secretariat should have control over the content). Similar sites have been developed by our overseas colleagues (refer to Section 3).

• In order to raise the awareness amongst actuaries in Australia of the importance of improved communications abilities, the Taskforce commenced the publication of a regular column in “Actuary Australia”. This column should be continued so that articles and information of relevance can be brought to the attention of the readership and contributions continually solicited.

Quick win initiatives (actionable over the next 12 months):

• Broaden University Liaison Program to cover areas such as communications, leadership, business acumen and judgement:

Leverage off successful program of CAS in USA. Invite experienced business actuaries to formally work with Universities for one or

two year terms.

Early point of contact with profession for students. Institute would provide “speaker kits” with presentations and literature.

• Include in Institute events a session, presentation or workshop on best practice communications and how it applies in the context of the event. Engage a communications expert to provide a review of the communications competency demonstrated at the event, and suggested areas for development.

• Develop and make available (in the Toolbox or Code of Conduct) sample best practice actuarial reports for key practice areas.

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Medium term initiatives (actionable over the next two years):

• Introduce a Guidance Note on Actuarial Communications that would set out the required competency at each level of development. This would provide an outline of what would be needed in each part of the education curriculum, and in each part of an actuary’s or analyst’s written or verbal professional communication.

• Introduce best practice guidelines for communications training and development at university level. While this falls a step short of mandatory training, we believe that it is the most pragmatic way of influencing and supporting the universities to move forward.

• Encourage elective coursework in fields requiring communications (such as graphical analysis). The coursework available would vary from university to university so would need to be driven by the universities or through communications from the Institute, customised to each university.

• Integrate the teaching and assessment of communications skills into Modules 1 to 3 to ensure candidates have the ability to present fundamental actuarial ideas and arguments to those outside the profession.

• Possible assessment tasks include: Introducing an assignment that requires a presentation to the tutorial group, Introducing questions on assignments and exams that test whether candidates have

the ability to present fundamental actuarial ideas and arguments to those outside the profession.

Dedicate an assignment or tutorial, such as a debate, to communications.

Transitional initiatives (introduced while communication competency develops and phased out as the competency matures and development methods are fully integrated into the educational, CPD and Institute systems).

• Appoint a "communications liaison taskforce" or standing committee to carry on this work. In order to maintain focus, achieve consistency across practice areas and to avoid redundant effort, the Taskforce’s work should be outside the normal Institute committees.

• Introduce a certificate of actuarial communications offered at university level. The universities would be required to seek accreditation from the Institute to be able to offer this certification. There may be a sunset clause that would phase this certification out over the period which it would take the universities to integrate communications throughout the current syllabus.

• Offer communication courses through alternative methods such as Business schools attached to the universities or through Rostrum / Toastmasters. It would be necessary to ensure that there is integration back into the broader university curriculum – ie, assessing communications.

Longer term initiatives:

• Incorporate communications into university coursework (presentations, papers).

• Introduce a low cost “student membership”. Current membership is not taken up by many students in Part I. Introducing a low

cost membership would open a communications channel to Part I student, which

16


could include monthly e-mails, a regular newsletter and a bulletin board or “study group” opportunities. From an Institute perspective, signing up students at an early stage should increase the conversion rate to members.

• Once a majority of the above initiatives has been bedded down, the decision around timing of branding should be reviewed.

2.8 Other possible measures to close the gap • Pamphlets or brochures, setting out core capabilities of actuarial professional, including

communications.

• Have actuarial courses externally evaluated and ranked for communications content.

• Consider separate Communications subject (as done by IA/FA). The Taskforce believes that were this to be adopted it should be an interim measure and over the longer term should be integrated into each subject.

• Include both core and non-core reading material across the entire actuarial education system to cover these skills.

• Specify a minimum number of hours of CPD that must be related to improving communications skills.

• Give double CPD points, for a period of time, for exposure to communications.

• Media training for experienced actuaries or Institute employees with media-facing roles directly relating to the activities of the Institute.

• Provide support to develop communications competency through mentoring.

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3 The Communications Toolbox

3.1 Review of existing communications tools

United Kingdom

There has been some input to the UK profession carried out over the years both by the UK Institute itself, via working parties, and by individual members, with a passion for the subject, acting independently.

Examples are:

Report of the Clearer Communications working party 2003: http://www.actuaries.org.uk/files/pdf/proceedings/giro2003/Cresswell.pdf

Communication – ensuring your message is heard: http://www.actuaries.org.uk/files/pdf/proceedings/ymc2004/Johnson.pdf

Actuaries and communication skills 1997: http://www.actuaries.org.uk/files/pdf/library/SIAS-1997/communication.pdf

United States

There is a strong emphasis on continuing professional development and career development in both US Societies. A number of publications and papers are focused on the enhancement of communications skills.

Examples are:

The ‘Stepping Stone’ newsletter of the Management and Personal Development section of the SOA regularly contains articles on communications skills: http://library.soa.org/library-pdf/SSN0407.pdf

“The Actuary” magazine article on understanding your own management style to enable you to communicate better with others: http://library.soa.org/library/actuary/1990-99/ACT9504.pdf

A 57-page guide specifically written for Actuaries on how to communicate. It includes material on media relations and publicity encounters, but it also contains a good deal of other relevant information: http://www.actuary.org/pdf/comm/eye_05.pdf

3.2 Development of the “Communications Tool Box”

The development of a toolbox of resources for Australian actuaries to refer to when self-learning on the subject of communications has been explored in Taskforce discussions and via the Actuary Australia magazine article.

• Audience Recent university graduates, Those going into consulting for the first time, Those who are facing a challenging project, All members of the Actuarial profession who wish to improve.

• Accessibility

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http://www.actuaries.org.uk/files/pdf/proceedings/giro2003/Cresswell.pdfhttp://www.actuaries.org.uk/files/pdf/proceedings/giro2003/Cresswell.pdfhttp://www.actuaries.org.uk/files/pdf/proceedings/ymc2004/Johnson.pdfhttp://library.soa.org/library-pdf/SSN0407.pdfhttp://library.soa.org/library-pdf/SSN0407.pdfhttp://library.soa.org/library/actuary/1990-99/ACT9504.pdf


Via the Institute website under ‘Library’ new tab “communications resources”.

• Contents Generic information on presentation skills, How to write reports, letters, etc, How to stand up in front of an audience, Analytical tools and business analogies for the Actuary, Presenting technical numerical information graphically, How to structure a specific report, Communicating with non-actuarial clients, A “speaker’s kit”, Links/references to books, Links/references/downloads academic articles, Links/downloads industry publication articles, A specific section for Parts I and II students, Upcoming communications courses/events (which will also be elsewhere), A public discussion site.

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Appendix 1 Terms of reference for the communications taskforce Governance Structure

The Taskforce reports through to the Executive Committee of the Institute of Actuaries of Australia. There would be reports prepared at the 4 month, 8 month and 12 month point during 2006. These reports would be reviewed by Graham Rogers and David Knox. The Taskforce will deliver recommendations within 12 months.

The terms of reference for the Taskforce are to:

• Carry out an audit of employers and members to identify any gaps in actuarial communications.

• Investigate best practice in overseas actuarial communications and in particular USA and UK.

• Recommend actions that would support the branding of the actuarial profession in terms of its communications competency.

• Recommend for each stage of professional development (entry into the profession, Part 1 education, Part 2 education, Part 3 education, Commercial Actuarial Practice, Professionalism Course, Continuing Professional Development).

• The required level of competency in communications.

• Changes required in course objectives, if any, to support the development of the competency.

• Changes required to the course syllabus, if any, to support the development of the competency.

• Changes required in assessment, if any, to support the development of the competency.

• Develop a communications toolbox for actuaries, which would include explanations of complex terms and concepts through the use of simple stories or analogies. This could also include graphical or visual ways of representing data.

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Appendix 2 Survey of final-year students and recent actuarial graduates

The Institute is aware of the need for actuaries to have sound communications and presentation skills. To this end, we are considering the most effective method of:

• Developing a communications-oriented mindset within the profession (ie, the job is not done until it is communicated adequately),

• Training actuaries to communicate at the appropriate level needed by their target audience, and

• Developing the necessary skills in the various methods of communication.

This survey is being circulated to recent actuarial graduates in Australia. Our aim is to use the feedback we receive from this survey to help us develop effective ways to enhance the communications capabilities of actuaries through the education process.

We greatly appreciate the time you are taking to complete this survey.

Confidentiality is assured. In completing the survey below, please note that we are interested in all aspects of communications skills, including any of the following: • Preparing reports / writing letters – especially to non-actuaries • Verbal explanation and/or discussion of actuarial concepts • Presentation skills • Visual display of information

Which University did you study at? -____________________________________________________________

In what year did you graduate? ____________

Were you an international student? Yes / No

Not at all Completely 1 2 3 4 5 Based on your personal experience, how valuable is it for a graduate to have studied and practiced communications prior to entering the workforce?

ρ ρ ρ ρ ρ

To what extent do you believe that employers place much more value on technical skills in actuarial students than communications skills?

ρ ρ ρ ρ ρ

To what extent do you believe that employers who hire actuaries with weak communications skills will provide training to address this skill deficiency?

ρ ρ ρ ρ ρ

To what extent do you believe that the actuarial education program helped you develop communications skills for the workplace?

ρ ρ ρ ρ ρ

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What types of activities / assessments in the actuarial education program provided you with the opportunity to develop communications skills? Please rate the usefulness of each activity, and provide any additional comments in the space provided below. Activity Very Poor Excellent N/A 1 2 3 4 5 Group discussion

ρ ρ ρ ρ ρ

Verbal presentations

ρ ρ ρ ρ ρ

Visual display of data

ρ ρ ρ ρ ρ

Working in small groups

ρ ρ ρ ρ ρ

Report / letter writing

ρ ρ ρ ρ ρ

Other (please specify):

______________________________________

ρ ρ ρ ρ ρ

______________________________________

ρ ρ ρ ρ ρ

______________________________________

ρ ρ ρ ρ ρ

______________________________________

ρ ρ ρ ρ ρ

Additional comments ________________________________________________________________

Were there any courses that you found particularly helpful in developing your communications skills? ________________________________________________________________

Do you have any suggestions for activities / assessments that would help develop communications skills for actuarial students? ________________________________________________________________

What, if any, extra curricular activities did you participate in during your university years that may have helped develop your communications skills? ________________________________________________________________ Did you make use of generic communications skills courses available at university? Yes / No

Do you have any other general comments or suggestions regarding the development of communications skills within the actuarial education program? ________________________________________________________________

Please include your contact details if you would like to participate in further discussion regarding communications skills in the actuarial education program. ________________________________________________________________

Thank you for completing this survey.

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Appendix 3 Survey of recent graduates’ views of communications education

Introduction

The Taskforce surveyed recent graduates on communications and the Actuarial Education Program at university (“the education program”).

The aim of the survey was to elicit feedback on the effectiveness of the education program in equipping students with the necessary level of communications skills for the workforce.

A total of 105 out of approximately 700 recent graduates responded (15%). This is a good response rate, compared with the response rate for the Institute’s regular survey, the Pulse, which is generally around 10%.

This report summarises the results of the survey, and draws out the key themes in the responses.

Summary of Key Themes Most respondents placed a high value on having studied and practiced communications prior to entering the workforce, but stated that the education program provided minimal training or instruction in this area. They felt that focus on communications skills was almost completely lacking in Part I of the education program, but that Part II (Actuarial Control Cycle) provided more exposure through group discussion, presentations and style of examination questions (answers required in report or letter format). The respondents were generally supportive of an increase in focus on communications skills throughout the education program. Many felt that students need to be made aware of the importance of communications earlier, and that the more practice they can get, the better. Many also felt that the best way to engage students is to make communications assessable. Those who had some form of actuarial work experience found it valuable, and some felt that work experience should somehow be made compulsory! Only one person said that the education program is not the right place to teach communication, and only one person said that the current program is sufficient. Both of these respondents offered the opinion that communications skills would be best acquired in a broader context, rather than specifically within the actuarial education program.

Conclusion

Overall, the graduates who responded were in favour of a greater, and earlier, emphasis on communications skills in the education program. The lack of focus on communications, particularly through the structure of the syllabus and the way it is assessed, sends a message that communications is of low importance.

The importance of communications skills vs the level of support received

The following provides a very telling story: graduates perceive that the ability to communicate is important and valued, but that they are not provided with sufficient support to develop this key skill.

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Importance of communications skills

0

10

20

30

40

50

Not at all Little Somew hat A lot Completely N/A

Value placed by employers on communications skills

0

10

20

30

40

50


Communications training received in the workplace

0

10

20

30

40

50


Effectiveness of education program in developing communication skills

0

10

20

30

40

50

Not at all Little Somewhat A lot Completely N/A

Rating of effectiveness of various activities in developing communication skills

Graduates rated the exposure they received in developing communication skills through the education program mostly “average” or “good” for effectiveness.

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Group discussion

0

10

20

30

40

Very Poor Poor Average Good Excellent N/A

Verbal presentations

0

10

20

30

40

50


Visual display of information

0

10

20

30

40


Working in small groups

0

10

20

30

40

50


Report / letter writing

0

10

20

30

40


Courses that were considered particularly helpful in developing communication skills

Almost two thirds of respondents said there was not any particular course that stood out in terms of communication skills.

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Of those that did specify a particular course or program, the overwhelming response was the Actuarial Control Cycle. In many cases, the comment was that this was the first time the course had included presentations and group discussions.

Graphical Data Analysis at ANU and ACST344 / ACST345 at Macquarie University were also specifically mentioned by some, and it would be worthwhile considering what elements of these courses are transferable to the education program in general. Course 3.1 University 3.2 Number of

Responses Actuarial Control Cycle All 23 Graphical Data Analysis ANU 4 ACST344 or ACST345 Macquarie 4 Generic communications / presentation skills course 4 Other degrees / programs at university 5 Nothing at university 67

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Appendix 4 Samples of proposed communications “tool box” contents

Boiarsky, C. – The Relationship Between Cultural & Rhetorical Conventions: Engaging in International Communication – Technical Communication Quarterly – Vol 4, No 3 – Summer 1995

Brown, A – The Eighth Habit of Highly Effective Actuaries – Institute of Actuaries of Australia – May 2005

Card, N. & Robichaux, C. – Winning in the Public Eye, American Academy of Actuaries

Clark, P. N. S. – Communication, Culture & Companionship – Institute of Actuaries – Sep 2000

Clemons, J.G. – How to Add Value in 30 Days – SCM – Volume 9, Issue 2 – Feb/Mar 2005

Coopers & Lybrand – Making Sense of MOS – Sep 1997

Duklan, K & Martin, M – Communicating effectively with Words, numbers and pictures, ANU research Paper – 2001 – ecocomm.anu.edu.au/research/papers/pdf/2002-01.pdf

Dumbreck, N – Raising our Game – Institute of Actuaries – Sep 2006

Duncan, I. – Entire Publication, The Independent Consultant – Issue No 6 – Oct 2004

Fisher L. & Bennion L. – Fostering Communities of Practice in the Workplace Technical Communication – Volume 52, No. 3 – Aug 2005

Flaherty, M. – Subject CA3 – Communications – Examiners Report, Faculty of Actuaries – Sep 2005

Frees, E. W. & Miller, R. B. – Designing Effective Graphs, North American Actuarial Journal – Vol 2, No 2

Godin, S. – Really Bad PowerPoint – http://www.sethgodin.com/freeprize/reallybad-1.pdf

Goldman, R. – A look at E&E: From the Past to the Future – The Actuary – Vol. 29, No 4 – Apr 1995

Gothard, A. M. – Improving Business Literacy & Profitability at Aetna – SCM – Volume 9, Issue 4 – Jun/Jul 2005

Ham, A. – Who Says Change Starts at the Top? – SCM – Volume 9, Issue 6 – Oct/Nov 2005

Isakina, V. A., Konsky C., Ostaszewski K. M. – Communication & Other Skills Critical for the – Success of The Profession in the Future Record – Volume 30, No. 1 – May 2004

27

http://www.sethgodin.com/freeprize/reallybad-1.pdfhttp://www.sethgodin.com/freeprize/reallybad-1.pdf


Johnson, H., Cresswell, C., Hilary, N., Malone, M. & Wong, J. – Communication: Ensuring Your Message is Heard – The Clearer Communication Working Party – General Insurance Convention, Oct 2003

Larkin, Dr T.J. & Larkin S. – Vital Statistics to Put to Work – SCM – Volume 10, Issue 1 – Dec/Jan 2006

Martin, G. & Tsui, D. – Fair Value Liability Valuations – Australian Actuarial Journal – Vol. 5, Issue 3 – 1999

Martin, M. – “It’s Like…You Know”: The Use of Analogies and Heuristics in Teaching Introductory Statistical Methods, Journal of Statistics Education – Vol 11, No 2 – 2003

Miller, D. C. – Entire Publication, The Stepping Stone – Issue No 18 – Apr 2005

Nolte, C. – Delivering the Brand Promise at Hollard Insurance – SCM – Volume 8, Issue 3 – Apr/May 2004

Norvig, P. - http://www.norvig.com/Gettysburg

Oliver, D. – Leading a Cultural Revolution at Royal & Sun Alliance – SCM – Volume 7, Issue 2 – Feb/Mar 2003

Poe, S. D. – Technical Communication Consulting as a Business – Technical Communication – Volume 49, No. 2 – May 2002

Pollard A.H. – An Introduction to the Mathematics of Finance – 2nd Edition – 1977

Segal, S. – Entire Publication, The Stepping Stone – Issue No 15 – Jul 2004

Segal, S. – Entire Publication, The Stepping Stone – Issue No 16 – Oct 2004

Short, E. – Actuaries & Communication Skills, Staple Inn Actuarial Society – Nov 1997

St. Germaine- Madison, N. – Book Review – Intercultural Communication In the Global Workplace –Technical Communication – Volume 53, No. 1 – Feb 06

Trefz, J. – Entire Publication, The Stepping Stone – Issue No 7 – Sep 2001

Tufte, E. R. – Beautiful Evidence – Jul 2006

Tufte, E. R. – The Visual Display of Quantitative Information – May 2001

Tufte, E. R. – The Cognitive Style of Power Point – Jul 2003

Vision 2020 Taskforce – Discussion Paper – October 2006

Wilson M. & Solie C. – Maintaining Financial Transparency at Ford Credit – SCM – Volume 6, Issue 6 – Oct/Nov 2002

Reading List: Communications – The Faculty of Actuaries & Institute of Actuaries

Economic Valuation Concepts – Institute Economic Valuation Taskforce – Australian Actuarial Journal – Vol. 8, Issue – 2002

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http://www.norvig.com/Gettysburg


Appendix 5 Communication Components of other courses Curtin University

All students doing a Science degree (includes Actuarial Studies) are required to complete this course.

Science Communications 101

Covers key aspects of research and written communication in academic and professional contexts, as well as working to develop students' skills in oral communication. Emphasis will be placed on students' ability to work collaboratively in research and oral work. Students learn to locate, understand and critically evaluate information from books, journals, the Internet and primary sources in order to research relevant scientific topics. Using these sources of information, students then produce an extended piece of analytical writing and an oral presentation to their peers. Skills in accessing information, synthesising and paraphrasing information, argument development, the Harvard referencing system, principles of effective communication and the professional presentation of documents are all covered during the development of the key assignments.

Melbourne Business School

All applicants for postgraduate study undergo a selection process. One of the criteria for selection is to demonstrate strong verbal and written communication skills. A variety of subjects include objectives of enhancing oral, written or group communication skills. The subject ‘Organisational Consulting and Analytical Methods’ bases a proportion of assessment on presentations (10%) and written submissions (30%)

A full description of each subject with objectives and assessments is located at http://www.mbs.edu/go/degree-programs/mba-and-general-management-programs/full-time-mba/subjects

University of New South Wales

All students studying Masters in Commerce are required to complete this course.

Business Communication, Ethics and Practice - COMM5001

This is a core course for the MCom and you should complete it in your first Session of study. Knowledge and skills developed in this course are fundamental to many other MCom courses. This course addresses learning and communication skills that impact on academic and professional performance. A major component of the course is devoted to communication, teamwork and conflict resolution skills and the capacity to apply them, including in cross-cultural contexts. Specific attention is paid to ethical frameworks and the opportunity for informed self-reflection in applying ethical perspectives in a business context.

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http://www.mbs.edu/go/degree-programs/mba-and-general-management-programs/full-time-mba/subjectshttp://www.mbs.edu/go/degree-programs/mba-and-general-management-programs/full-time-mba/subjects

Executive SummaryIntroductionFindings and recommendations of the TaskforceWhere are we now – Surveys of members and employersWhere are we now - assessment and support provided on communWhere are we now - communications competency developmentWhere do we want to go - how will we know when we have arrivWhat does the journey look like – what are the obstacles to How do we get there – key recommendations

What the Taskforce seeks from Council

Background to the Taskforce’s WorkWhere we are now – SurveysJuly 2006 Graduate SurveyInterviews with University ProfessorsThe Institute of Actuaries of Australia, August 2006 EmployeThe Institute of Actuaries of Australia August 2005 Pulse Me

Where are we now - assessment and support provided on communPart I and II EducationPart III EducationContinuing Professional Development (CPD)The Approach in the UK

Where are we now - communication competency developmentWhere do we want to go - required communications competencyThe ideal graduate / new entrant to the workforceThe ideal newly qualified actuaryThe ideal experienced actuary

The gap between current state and ideal actuary– what’s causWhat does the journey look like – what are the obstacles to RecommendationsOther possible measures to close the gap

The Communications ToolboxReview of existing communications toolsUnited KingdomUnited States

Development of the “Communications Tool Box”Terms of reference for the communications taskforceGovernance StructureThe terms of reference for the Taskforce are to:Survey of final-year students and recent actuarial graduates

Confidentiality is assured.Survey of recent graduates’ views of communications educatio

IntroductionSummary of Key ThemesConclusionThe importance of communications skills vs the level of suppRating of effectiveness of various activities in developing Courses that were considered particularly helpful in developUniversityNumber of Responses

Samples of proposed communications “tool box” contentsCommunication Components of other courses

Curtin UniversityMelbourne Business SchoolUniversity of New South Wales

communications – “the development of the holistic … · 2010. 5. 18. · build communication...

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