This document presents a discussion about the Allstate goal setting process. With goals that are vague or poorly thought out, it is easy to work hard to achieve an outcome that you dislike once you get it. Or you might succeed, but not notice that you did. Plenty of workaholics have that problem.
Societies make these mistakes too. Traffic jams make cars slower than the trolleys they replaced. Citizens overthrow oppressive governments, only to install worse ones. Automation reduces toil but throws millions out of work.
On the other hand, some people and groups do a great job of wanting things worth having, and getting what they want in ways that really work. This isn’t magic. These people are doing something different that helps them succeed. You too can learn to set goals in ways that work.
Allstate Goal Setting Process
The Allstate Corporation is the second-largest personal lines insurer in the United States (behind State Farm) and the largest that is publicly held. The company also has personal lines insurance operations in Canada. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993. The company has its headquarters in Northfield Township, Illinois, near Northbrook. Its current advertising campaign, in use since 2004, asks, “Are you in good hands?”
Allstate has developed a four stage program for personal development. These stages are:
Step One. – Succession Programming: Many candidates are identified and developed for each key position. This system enables to track more than 36,000 employees, ensuring that the company’s future will be diverse at all levels.
Step Two. – Development: All employees receive an assessment of their current job skills and a road map for developing the critical skills necessary for advancement. Options include education, coaching and mentoring and classroom training.
Step Three. – Measurement: Twice a year the company makes a survey amongst all the employees using the Diversity Index and the QLMS (Quarterly Leadership Measurement System).
Step Four. – Accountability and Reward: To link compensation to the company’s diversity goals, 25 percent of each manager’s merit pay is based on the Diversity Index and the QLMS.
Allstate’s Competitive Advantage
In Allstate, the keyword is “Diversity”. Allstate was the only Illinois based company to make it to the Top 10 list for African Americans and one of two Illinois based companies to make it to the Top 10 list for Recruitment and Retention. Allstate was one of four Illinois based companies to make it to the Top 50 list.
Women make up 60.4% and minorities 28.6% of Allstate’s 40,000-employee workforce. Of notable significance to Diversity Inc. magazine was Allstate’s ability to recruit and retain a diverse workforce.
At Allstate, diversity is a business strategy to gain a competitive advantage in the marketplace and workplace, By leveraging differences, Allstate would be are able to attract and retain the best talent, drive high performance, provide tailored service to a diverse customer base and strengthen our corporate brand in the marketplace and labor market.
Also, Allstate demonstrates their commitment to diversity in several ways such as diversity training is mandatory for all employees. The employee perceptions on diversity and the work environment are measured through an annual employee survey. Allstate’s CEO regularly communicates the importance of diversity through Allstate publications, videos and employee meetings.
Affirmative action is integrated into employee processes such as succession management, recruitment and leadership development. Senior leadership is held accountable for affirmative action results through performance management. Besides that, Allstate has a strong recruitment program for minorities working closely with higher education institutions that have a diverse student enrollment. Allstate executives also take active roles on the boards of some of these institutions.
Adoption assistance, flexible hours, the ability to work at home and/or telecommute, on-site child care and dependent care benefits are some of the work life programs that help Allstate to recruit and retain a diverse workforce. In addition, Allstate’s diverse workforce helps it to better serve and attract its diverse customer base. Allstate is one of the first property & casualty insurance companies to aggressively seek growth in the emerging markets.
There are now more than 3200 Allstate agencies that speak languages other than English (a total of 62 different languages), over 300 point of sale collateral materials that are culturally relevant to African-American, Asian-American and Hispanic consumers, customer service lines for Spanish-speaking customers, product information in Spanish on www.allstate.com/spanish/ and an in-language website for Chinese consumers at www.chinese.allstate.com.
Recommendations for Allstate Reward System
Unfortunately, not everything is working out at Allstate, In July 2008, the American Association for Justice ranked Allstate No. 1 among nation’s worst insurers. This ranking was given because: “While Allstate publicly touts its ‘good hands’ approach, it has instead privately instructed its agents to employ a ‘boxing gloves’ strategy against its policyholders,” said American Association for Justice CEO Jon Haber. So, the first task is improving the customer service.
Also, this company is well known to be focused on profits instead of service. For many insurance experts, Allstate dodges and weaves to avoid paying claims to increase its profits. Another common practice for Allstate is offering low-ball claims so that desperate customers in dire straits would be more likely to accept a settlement offer while Allstate continued to make a profit and collect interest on the insurance payment. Allstate would offer its “good hands” in the way of a low-ball claim and, if the customer did not accept, to get out “boxing gloves.
How my motivation would be influenced by Diversity Index and QLMS
A diversity index is a statistic which is intended to measure the local members of a set consisting of various types of objects. Diversity indices can be used in many fields of study to assess the diversity of any population in which each member belongs to a unique group, type or species.
For instance, it is used in ecology to measure biodiversity in an ecosystem, in demography to measure the distribution of population of various demographic groups, in economics to measure the distribution over sectors of economic activity in a region, and in information science to describe the complexity of a set of information.
Allstate’s annual Quality Leadership Measurement Survey (QLMS) is a detailed survey that drills down to the unit level with specific measures as to how the individual manager is performing on leadership aspects of the job, including diversity execution. Questions range from whether people are treated with “dignity and respect” and if individuals are allowed to advance “regardless of race or gender” in that manager’s unit. All levels of managers are held accountable for diversity through the QLMS and organizational success factors, which is part of their annual performance review that determines pay decisions.
When it comes to creating accountability for diversity and inclusion, experts suggests:
– Keep the process clear, simple and understandable. Make sure that the idea of scorecards and accountability is aligned with the culture of your organization, like a manager said. “If you don’t have metrics and scorecards for other things you can’t just have them for diversity.”
– Think carefully about the behaviors that you want. An X company first focused heavily on outcome or “quota” metrics such as recruiting, retention and promotion, when in retrospect, another financial manager said: “We should have focused more on the qualitative measures because those are the behavior changers.”
– Remember that measures are fine, to a point. “We have certainly learned over time that you can have too many measures,” said a CEO. “Although as a financial services company results are everything, and we measure everything, having too many can be overwhelming.”