Thread regarding State Farm Insurance layoffs

Once upon a time

Once upon a time, State Farm was a company I was proud to work for. I can tell you I was drinking the kool aid, and the kool aid was good.

I worked customer service, sales, training, and claims over a period of roughly 15 years. I started when State Farm was the "Good Neighbor" and it really felt that way. I started working there when they opened what once was known as the "CRCs" in Bloomington, Jacksonville, Woodberry, and El Paso. It was when we were "State Farm Nice" to each other, we learned all about the company history in training, and training actually felt like a right of passage to become part of this big State Farm Family. It seemed like the perfect company to work hard for, advance, and retire from. Employees seemed happy, therefore, customers seemed happy. Our sales pitch included the fact that we were #1 in various JD Power ratings, etc... etc... et...

Founder's day was a day of celebration, with good food, fun, and games. Working was fun! One would work hard, but one would also have fun. I can understand how some of these things may not have been sustainable (because we live in a post employee appreciation world).

I clearly remember an employee who had been with the company longer, and worked out of Bloomington, ILL, that he told me "my fear is that Michael Tipsord will become the CEO, and everything will change." I asked him what he meant, and he said "He is all about the Bottom line."

Booooy, was he on to something!! Even before Tips became CEO, you can pretty much tell he was already running the show, and I don't know for a fact, but I'm sure EOM was his baby.

EOM, is what turned the State Farm Family into practically a factory. Some people have even described the Hubs as "jail." I remember the early days, some members of leadership literally saying "we were told the days of State Farm Nice" are over."

And they were right. It all became about the "metrics".

Now this is my personal opinion, but metrics and "Good neighbor service" don't mix. Metrics, at least in the way in which they are handled/managed, are meant for a factory/production environment in which a certain amount if "items" need to be created in a certain amount of time to meet demand. But in a world in which you are providing a service, customers are not static materials going through a conveyor belt while employees drop, insert, apply, or assemble parts, to have a final product at the end. Each customer is different, each demographic group within SF is different, each story is different, and each claim related situation is different, therefore, each final product, whether it is a closed claim, a sold policy, a review, etc.. is meant to be different. But SF has decided to become just another insurance company, and the customers are feeling it, just as employees and agents (and their staff) are.

One would be blind not to realize that change was/is needed, but change for the sake of change is not necessarily good. The right kind of change is what's needed, and you don't get that from hiring a group of consultants that may have never done the jobs they are making decisions over. Now I know the process is deeper than that, but in the end, that's exactly what it was... a group of consultants teaching the company that certain areas of the job can be "standardized" to produce a specific desired result in terms of time and numbers, certain steps are not necessary, and certain people not needed... and the winds of change blew, and continue to blow.

Do I have the perfect solution? of course not.. I don't think anybody does, but one can now see the consequences of the solutions currently being implemented. I remember hearing from an agent who has been with the company many years say "State Farm Lost its way"... and I agree. The agency force, and employees in general now stand between the customer, and a company that once sold a relationship. Agents and employees are standing trying to keep that 'relationship' alive, while the company is worried about numbers only.

Do we blame State Farm? I don't know. But one can blame State Farm for their lack of leadership in being innovative, and seeking to continue to meet and exceed the customer's expectations. These moves are meant to save State Farm Millions, but in the process, State Farm might just loose billions. Only time will tell, while some of us can always look back, and remember the good ole' days, when family was family.

My best wishes to all who are still there, and those who have left. In the end, it is all a journey, a journey that will take some of you elsewhere, and a journey that others will survive and overcome.

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| 3311 views | | 15 replies (last March 24, 2018) | Reply
Post ID: @OP+Skiz1uN

15 replies (most recent on top)

This is the best post I've read in a while here. SF had to change. The way they are executing change is wrong though. Right now you have all of Bank in the edge of their seats trying to understand their fate. You have Underwriting in limbo till Modernization finishes, Claims is a cluster. HR is now a call center and then there is ET, that slowly is getting clarity. Basically every major branch of the business in turmoil. And we wonder why we are losing policies hand over first. I hope we will pull through but the way we r going when we do pull through the loyalty, work ethic and culture of this company will be forever gone. And then what..... Then it's a different company like all the rest. And that's when it will be swallowed whole and rendered obsolete.

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Post ID: @1wki+Skiz1uN

It’s sad, some decisions unjust. But for those of us who are staying because you by no rhyme or reason got s job offer and you are too old to leave, it’s scary! Claims use to be about customers. We all realize times have changed along with customers expectations, however, customers want more. Customers do not care about cycle time, auto process, pending etc. Customers would like to be contacted. They want empathy and their check in the mail ASAP. They want text, email and phone all in same day like Progressive did to me. So these are scary times. Glad i have a job. Thankful for that. But people are about price and service. I hope i make the next cut.

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Post ID: @1xod+Skiz1uN

Bloomington is facing so many cuts because, 7 years ago, the executives bloated Systems beyond any reasonable size. Look at the roles being cut. Most of them are roles either introduced or rendered ineffective by the organizational changes of CDE.

The employees tried to warn leadership from day one that this would destroy systems, but no one up top was willing to listen.

So yeah, this is all on leadership.

Yes, Systems has been wasteful for years. No, those years of waste are NOT what is causing this round of layoffs. This all ties directly back to the stupidity of CDE. If not for CDE, it would be a FAR SMALLER pool of effected roles, and most could be accomplished via attrition. The only exception I can think of would be in the management ranks, which were bloated 17 years ago when the executives dumped a bunch of non-systems people into systems management roles.

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Post ID: @cux+Skiz1uN

Green lanyard got it right.

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Post ID: @duq+Skiz1uN

I agree to this wonderfully written tomb. As I read, my text is surrounded by GEICO ads...I left SF after thirty years ( a difficult decision) and now work for a Warren Buffet Insurance company. (No, not Geico, there are many other WB Insurance companies) We have old fashioned paper, old fashioned values and old fashioned manners. It's refreshing after being treated like a subpar machine with conversations only on metrics and bathroom breaks scheduled and meetings with supervisor interrupted because metrics say "Get back on Make Ready." Agree we need to not be a dinosaur (remember that?) but our Good Neighbors moved to a wrong neighborhood that is in dis-repair.

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Post ID: @lhj+Skiz1uN

Well stated!

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Post ID: @vbm+Skiz1uN

While I agree with some of the points of the OP, I think some things are twisted. A comply MUST worry about numbers when it doesn't have a quick fix. The lack of evolving over the last 30 years is precisely why such drastic measures are now occurring, especially in Bloomington. So while some employees wax nostalgic over "the good SF", some realize that was an illusion built upon easy money without hard effort or strategy needed. Baby boomers needed insurance for cars, houses and whatever else. Technology didn't exist. As technology encroached, SF didn't change and lost its market share because yes, younger people don't have the nostalgia baby boomers have over certain expectations of customer service. Younger people don't need to talk face to face. SF didn't evolve to the newer generations fast enough. Is that leadership or the employees fault? Who actually runs a company? Who is hired to provide a service to help the company succeed and serve customers? It's not leadership. You could say it's all leadership's fault, but then you'd be passing the buck too. It's both leadership and the employees for this fail. Leadership pandered to employees too long and made bad choices from likely bad advice of consultants. BUT Employees couldn't handle change either and couldn't take the bad advice and make it good through hard work and tweaking. So ultimately, SF is in this predicament because it was "good ole SF" and not making the hard choices when it should've, 25 years ago. The agents have evolved because they must to serve their business and customers, but complacency is the devil for everyone else. If you're not actually serving the customer in a direct way, and how they want to be served, you're dead weight. Companies are now demanding employees show tangible value for their output and if they can't, those jobs are cut. It really is that simple, and that difficult. There's no magic bullet, especially when turning the Giant SF ship takes time. For Bloomington, all the many systems BAs aren't directly helping customers. The highly qualified technical folks are when they create new technology improvements. Being a middle man is no longer showing value to SF, because it simply doesn't in this brave new economy. The OP gets it right in that the customer does matter, that's why Bloomington is facing so many cuts.

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Post ID: @dor+Skiz1uN

Well said. State Farm executive management will never retreat and ever admit mistakes were made. I miss the good old days when I was a person with a heart that made our customers feel better even in a bad situation.

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Post ID: @qed+Skiz1uN

Very well written and worth reading.

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Post ID: @kgl+Skiz1uN

What I mind is the dehumanization and unethical targeting, unreasonable workload and termination or forced early retirement to reduce numbers severance will need to be paid to. Very maniacal behavior.

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Post ID: @ixc+Skiz1uN

I concur with the writer, I worked for the company for 30 years, had a great career. Three years prior to my retirement I saw the shift from Customer Focus, to PROCESS, along with EOM.

What a wild downhill slide since that time.

Problem is, the company did need to refocus, the new customers are millennial with no loyalty to anything, couldn't care less about history or traditions. All they care about is price of the product and where can I buy it cheaper, and what on earth do I need with an agent?

Many of my friends and former co-workers are facing forced early retirements, or severance this year, they devoted their professional lives to the company, and now are being told, thanks for your service, but we don't need your skills going forward. Truly sad to see the once great company going through this painful and disastrous path to mediocrity, now just another Progessive or Geico.

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Post ID: @hlw+Skiz1uN

I couldn’t read it all because I have already started drinking. I’ll come back and read it later.

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Post ID: @mmz+Skiz1uN

It was worth the read. I agree, well said.

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Post ID: @acx+Skiz1uN

Well said! I will always cherish the better days when you were treated like the professional you are.

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Post ID: @xsu+Skiz1uN

I couldn't read all of this. Too long

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Post ID: @vnj+Skiz1uN

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