Harnessing Change Management for Successful Pensions Dashboard Implementation

The Pensions Dashboard has recently been re-prioritised, centering it on the finance agenda and highlighting its potential to revolutionise how individuals manage their pension data. Brighter Consultancy explores the transformational impact of the Pensions Dashboard on the pensions industry and looks at how successful change management practices can facilitate its implementation.

Drivers of Demand for Pricing System Upgrades

IFA magazine, the publication for Independent Financial Advisers, recently posted an article detailing that the developer of the Pensions Dashboard software, Origo, has reported increased connection activity amongst providers as they focus on how the renewed scheduling of onboarding dates will impact their connection with the dashboard.

The Government issued guidance in March of this year on its staged timetable, stating that Pensions Dashboards will enable people to access their personal pension information (including the State Pension) more easily, making it simpler to understand their pension information and easier to plan for retirement. However, the complexities and challenges involved in rolling out the Pensions Dashboard are numerous and multifaceted. How, for example, will diverse pension data from multiple providers be integrated? And how will user-friendly access for all stakeholders be achieved? 

A Government Research Briefing, from August 2023, emphasises the importance of providing clarity to pension providers, pension schemes and dashboard providers about the technical standards they are expected to adhere to in preparation for full roll-out, including how they will interface with the technical architecture and each other. 

Such a huge and complex undertaking can only be implemented by effective change management strategies to address these challenges. Only by emphasising the importance of such strategies will all parties, from pension providers to end-users, be able to adapt smoothly to the new system.

Key Change Management Strategies

There are four fundamental aspects of a change management strategy when it comes to the Pensions Dashboard that we believe must be employed to ensure effective implementation.

1. Stakeholder engagement: Stakeholders (pension providers, dashboard providers and pension holders) must be involved early in the process. Not only does this assist in aligning goals and expectations but it clarifies expectations that can have serious implications for all levels of the pension industry.
2. Communication strategy: a robust communication strategy must be deployed to keep all participants informed and engaged throughout the process. This will mitigate resistance and build support for the initiative.
3. Training and support: Comprehensive training programmes and continuous support structures must be put in place in order to assist and facilitate adaptation amongst both users and providers. This must include technical training for providers and user education for pension holders in order to maximise engagement.
4. Feedback mechanisms: Feedback loops that allow continuous improvement of the Dashboard are crucial to enhance functionality and user satisfaction over time. These must be based on real user experiences from all stakeholders.

The Role of Technology and Innovation

Technological solutions and innovative approaches, such as AI and data analytics, can be used to overcome technical hurdles and enhance the functionality of the Pensions Dashboard. 

AI, for example, can enable providers to better understand and learn from how end-users interact with their on-line accounts, providing a more personalised and specific service. It can also automate processes such as transactions and some customer service activities and encourage engagement. 

Data analytics also have the potential to be quicker and more effective, providing information in real time to allow faster and more efficient decisions to be made. 

Origo estimates that when the Pensions Dashboard is live, pension providers will receive vastly increased volumes of interactions – the company predicts in excess of 200,000 requests for data from end-users per day from one single provider alone. AI has the potential to enhance search capabilities, cleanse datasets and assist in building reliable processes. And when we consider that all schemes and providers are legally required to connect to the Pensions Dashboard by 31 October 2026 a level of automation and assistance may well be required.

The Government initiated the Pensions Dashboard in order to simplify pensions provision and access for pension providers, dashboard providers and pension holders alike. Not only will it provide increased transparency in pension planning but it will also enhance crucial decision-making for pension holders throughout their lives. However, in order for it to be successful it must be managed scrupulously through a series of effective change management processes.

It’s now up to industry leaders to consider exactly how change management can be a pivotal factor in the successful implementation and widespread adoption of the Pensions Dashboard. 

Here at Brighter Consultancy, we have skills and experience to help you.  For more information about how Brighter Consultancy can assist your organisation in managing successful change contact us now.