Based on what I am seeing in this vague, wordy nonsense this points to more mass layoffs in 2021, 2022, and beyond :(
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What is your point? A strategy is a strategy and just that. Old ones, new ones, whatever. If successfully implemented (generates the expected outcome) then it's a positive outcome for the company. Understanding your role in the execution of any strategy (and this company has years of attempted strategies) will keep you on the payroll. This is not the state run employees of the DOT/DMV or a tenured educator in the social service chain of life. There are no guarantees. This is private enterprise and nobody hid that from anyone. You get what you put into to it. Never were guarantees other than customer's need service just like the delivery of the mail. I don't have an ending for this other than a crumpled up, discarded, twenty dollar bill is still worth 20 dollars no matter what! Know your worth and recognize your value.
A strategy that is outdated and written 15 years ago from an academic and theoretical perspective. There is absolutely no current proof that a practical application exists in our industry. This is leaderships method of trying to look smart, adopt a strategy without being able to come up with its own strategy. Instead, TW, GS, and TW have to copy and paste from foreign academic authors because they are incapable of generating a solution of their own. Some would say that is incompetence. Check out the author’s bio’s.
Self service is the new trend. People want less interaction with others, and the assurance that needs are systematically handled. No need to adjust your schedule to meet somebody, simply upload and wait for a notification of next steps.
It would be interesting to know the percentage of customers that will be willing to handle their own claim for “free.”
I can tell you I will not be with an insurance company who charges me for service and then expects me to serve myself and quite a few folks likely feel the same way...
In order to make that desirable Allstate will need to move to one of the cheapest carriers in regards to price and even then I am not sure that they will beat Geico at its own game.
Sears tried a similar diversification with the financial network and we know how that worked out.
Review the "Blue Ocean Strategy" PDF presentation online. The last line of the available presentation is (something to the effect of) reducing your resources (exp $) in the areas of your business that are "overserved". "Overserved" is high expense cost with minimal increase in overall customer growth. What is the largest division in this company? What costs the most to provide service the premium customer? What was mentioned multiple times in the video conferences by the CEO and multiple vice president officers? The claim department (not overlooking the sales management team) is an "overserved" customer offering and must have expenses cut. A minimal amount of our customers have claims a year. We loose 2-4 times that number of customers a year to cancellations that never have claims. THE Largest reason for cancellations? Indifference. Premium cost is not the number one reason why customers leave us at renewal. "Blue Ocean" presents a strategy in providing low cost offerings not seen in the market (identity protection, appliance warranties. etc) to increase profit. Basically one strategy is to add low cost app services that add revenue from your established app connections. Why would you pay $ for the best and most expensive department in the industry when retention of current customers (growth plan) is a minimal exposure for a less performing claim department? Now add more low cost web apps for customer self policy management and some positive feedback by the app for doing "a great job" in saving your insurance company expense money. Big example here is the customer provided claim damage photos (home or car) that in pre-transformation era cost expense $ with adjuster in-person visits. Now the customer provides their claim support for almost FREE. Stay on the path with me and you can see how company involved employees are not as important to the customer retention. Customers are willing to provide service requests (changing cars, adding/changing coverage) all online in an app that even smiles and thanks them with such positive attitude every... single... time. No variables in those service offerings and all measured constantly with feedback. My opinion is work on those things that have an effect on customer retention. Be involved in those areas and you will always have employment. Look for "underserved" services that add value and be positioned to take advantage of that opportunity. You can stay with your employer as long as you want however, understand never have "job security". I've had that constant "transformation" with my career here. Hope y'all do well.
Government health care every body
Between daily outages, tech support issues, poor claim service, and customer service issues all day long how can this business model survive. This trans plan is so long overdue to clean house.
I don’t know how they will keep the shareholders happy when this company will have customers dropping like flies when all this is outsourced to cheap labor happens. I know several “customers “ who are already hearing rumors and are checking out other carriers. I thought Trump was going to make sure companies did not outsource their services to other countries....,,yeah right.
The $ billions in profit this company is earning each quarter is NEVER enough. Human beings are a financial liability to Allstate. It is following the path of the leading Silicon Valley companies: profit over people, no such thing as loyalty, live to work, greed is good, burn 'em out and boot 'em, etc....This is the future of Corporate America. I would not be surprised if they outsource nearly every job function and categorize everyone as "independent contractors", and watch out for A.I. software that will serve as the leaders of the future.
“Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players.“
The company literally has people in jobs developing more bots and automated processes. Allstate is employing people for the sole purpose of making human need within the organization obsolete.
They will chase low cost labor wherever it goes. TX, AZ, India, Africa, South America. It makes no difference to them. People and jobs in the USA are not what is driving them. Making big money for shareholders is key. Soon, AI will be able to speak English for every aspect of the claim. There will be no need for relationships with an insurance company. That is the past. We are “transforming”. It’s kind of like walking in to the bank to ask the teller to withdraw $20 from your account. Those days are gone. The machine can do it for you. Allstate will cut every service labor cost possible.