https://fortune.com/2022/07/21/aig-imploded-2008-recession-financial-crisis-turnaround-plan-6000-employees-accenture/
14 replies (most recent on top)
Folks in the industry especially IT know AIG is a dumpster fire. If you trust their financials, I have a leaky boat I’d like to sell you.
https://fortune.com/2022/07/21/aig-imploded-2008-recession-financial-crisis-turnaround-plan-6000-employees-accenture/
This is clearly a fluff piece that someone in corp communications set up with a reporter desperate for a story. There was a similar one of these a few years ago in Reuters “can a numbers guy fix AIG?”. Same reason CEOs go on to talk with Jim Cramer, to promote themselves / the stock.
Reporters basically agree to write a favorable piece in exchange for an “exclusive”. It’s the same reason all these stock analysts remain bullish as long as they can until to keep some amount of credibility they cant - if they don’t give positive ratings, all of a sudden their invites to meet with management go away…
CEO Exam Question 1:
If you want to maximize short term gains to capitalize on stock options with the intension of selling off the business in the near future you?
A. Invest in internal talent and build your systems from the inside out so you can control the quality and manage the issues more efficiently.
B. Outsource every possible employee to shift overhead, regardless of quality, to the third party vendor which in turn reduces expenses and offsets other poor performing matrices in the quarterly report.
- Advise your employees that every action going forward is centered around one objective, stock price. Employee moral, career movement and sustainable living wages will only be offered to a select few executive level employees.
- All of the above
Yes, the correct answer is B. You could be the CEO, but you are not so soon you will be outsourced or sold. It is a pretty simple plan.
That’s a very interesting read. I’m so done with the company. Best of luck for anyone who stay.
Have to hand it to them.
Wow you have a mess but we can fix it.
Not fixed and even more expensive?
You haven't given us enough. The issues and expense are caused by the "other" groups and employees. Give us more and we can fix it.
They will end up with everything. Generating a lot of money for their company. Won't be cheaper or better.
Will either be too deep in to ever change or will become the problem of the next management team.
If you have an apple device, load the article, then turn on reader view. You can see the article that way.
It is more politics than business. PZ is addressing the stakeholders in this article. Most employees will never see this. Not many employees read Fortune Magazine. Cudos to whomever posted it.
When speaking to the stakeholders it is okay to address your employees as liabilities that needed to be outsourced. When speaking to employees you say what a great job they are doing and thank you for your help in making AIG a global leader.
This was a rare slip up for this group. They actually exposed their true feelings here. But again, most of you weren't supposed to read this article.
The Connect page talks about purpose and values. Great humanitarian efforts. What a great company!
At the same time the company releases this article touting how proud they were to off load 6,000 employees to Accenture to cut costs and boost the bottom line for "stakeholders". The amazing thing is that execs see nothing wrong here. Donate some money so we get a photo op with Lucy supporting this month's cause, then sell out your employees. You are nothing more than fodder for this executive team, an expense. It's just business.
The rest of you better shape up or you will be in the next round. Peasants.
lol, the worst tech in the industry so let's let accenture fix it via india. great plan!
Here is an excerpt from the article which is obviously a fluff piece designed to justify the recent outsourcing. This type of propaganda is paid for by marketing.
What I find funny is that PZ and JS had a very "serendipitous" meeting and just decided to get rid of 6,000 employees like they were yesterday's garbage. Probably should have left that part out marketing team.
"The overall turnaround wouldn't have happened if AIG hadn't taken a multipronged approach that included fixing underwriting and designing and executing a global transformation program, which included forging an innovative partnership with Accenture. That partnership began after a serendipitous meeting with Accenture CEO Julie Sweet in December 2019. Together, the two companies worked on several elements of the turnaround, including technology transformation, new digital workflows, and an initiative that resulted in 6,000 AIG employees becoming Accenture employees en masse—“the most people we’ve ever taken on at one time,” Sweet says. Along the way, she recalls, “I had the fun of telling Peter, ‘Our chief technology officer is personally involved, and he has said to me that you have not just the worst tech in the industry, but it may be in the top three he has ever seen.’”
I was only able to access the 1st page, with picture of PZ.
Yes please post the whole article.
Please post the whole article as it requires a subscription. People need to see this to understand what they are dealing with at AIG. You are all cattle for sale as long as it makes the execs rich.