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IAI Actuarial Core Principles · Business Management · Using data, company functions, people skills, influence and clear communication

An actuary leads a project to change a valuation process. The operations manager, whose team is affected, publicly supports the project but delays providing data. Stakeholder analysis shows the manager fears job losses. Which action best addresses the underlying issue while maintaining the actuary's professional integrity?

The actuary should talk privately with the manager to understand the fear, be honest about what is known on role impacts, and involve the team in shaping the change. This tackles the cause of resistance while staying truthful, unlike false reassurance, escalation or exclusion.

  1. AHold a private conversation to understand the concerns, share honestly what is known about role impacts, and agree how the team can contribute to the new processCorrect
  2. BAssure the manager that no jobs will be affected, whatever the facts
  3. CReport the delay to senior management as insubordination without discussion
  4. DBypass the manager and obtain data from junior staff secretly
  5. Cut the manager out of the project to remove the resistance

Explanation

Passive resistance stems from an unmet concern. Honest, private engagement addresses the cause and keeps trust. A false assurance is dishonest, while escalation, bypassing or exclusion worsen the relationship and ignore the cause.

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