Legacy books – the elephant in the room

Almost every business has to accept that some of their products or services will reach a “legacy” status at some point – where they are closed for new business – and the focus has moved on to other live products.  Few organisations deal with the legacy book effectively or efficiently, which is unlikely to be a suitable outcome for clients.

Tackling a closed book is a challenge…designing an appropriate solution and assessing the impact on those affected; understanding the cost; planning the approach; and securing resources to execute on it.  The regulator will take a keen interest – existing clients will need careful management to ensure they understand their options or choices.  Even with the best preparation, no major product or proposition change is risk-free – so all too often the challenge is ducked for far too long.

To ignore the elephant in the room, and avoid taking action is, however, not a smart approach.  A problem ignored rarely resolves itself, and burying the issue raises the risk of later, greater cost; including potentially – worst case – a regulatory fine.  Dealing with the problem early has clear, immediate benefits for the business, reducing future risk and overall, gives the clients the best outcome.

It’s time for a Spring-clean!

Note: This opinion piece was first published by Knadel Limited prior to acquisition by Catalyst Development Limited

About the author

George Kirby

Managing consultant

My experience covers project management – delivering significant client business initiatives – operating model design and process analysis and change.