Thread regarding State Farm Insurance layoffs

I agree with the OP's concerns about first line managers.

In my experience, the vast majority of first line Managers and Directors are grossly incompetent when it comes to understanding anything remotely technical.

Pair that with the lack the leadership courage for any real change, and your left with Kool aid drinkers trying to fake it till they make it!

I disagree that systems didn't have the talent to make CDE happen. Leadership failed systrms employees by not setting priorities and by not trusting them and using their talent appropriately and supporting them and listenimg to their solutions. And it was that way with everything large the entire time i was there. Leadership is way more focused on the how than the what when they should have conveyed the what and let their technically savvy people work out how. More focused on their little work groups and writing stories and playing games than getting the job done amd rewarding for it. Fools.

Speaking of CDE/ISD...did any execs actually lose their jobs over that sh-- show? I know Oakley is still around creating some other debacle, but what about the others?

CDE was the right call-systems did not have the talent to run the play.

I hate to break this to you, sister, but if you don't have the right talent to run the play, it's not the right call. That's pretty simple mathematics there.

Of course you don't care about that because you know your entire premise is horse sh--.

What was your favorite part of CDE? Was it the bedbugs? The million consultants from various parts of the world? The frequent inspections from the fire department because the buildings were nearing capacity? The walls being torn down, then put back up? The removal of desks, then putting them back in?

The complete lack of a plan?

Yea CDE was the right call. Just like the 100M challenge did anything other than delay required maintenance.

CDE was the right call-systems did not have the talent to run the play.

Our industry competitors wake up at night with hardons waiting for that day to arrive.

Kind of like Tipsy when his receptionist walks in.

---Time will tell. A common theme on here is that “success” seems to be defined as “what would currently be most convenient for me.”---

b---s---. For starters, I would define success as not wasting billions of dollars on poor decisions that the company has to undo less than 6 years later. I mean, that's a start. So much money was wasted on CDE that the company could have kept 5 times as many employees on the payroll for the 3 more generations.

The new agent’s agreement will reinforce the value of the agency model albeit a different compensation structure. Emphasis on new business and a significantl reduction for renewal. It will be revenue neutral.

Totally agree that there are many ways to structure an agent/product distribution model as evidenced across the insurance industry, most of them costing significantly more than State Farm’s current agent distribution channel. Bottom line, dump the agent distribution channel and lose an additional 30% or more of the current book of business that stay with SF because of a level of service the agent provides that a service center ( at least ours ) is obviously unwilling and or unable to provide. Our industry competitors wake up at night with hardons waiting for that day to arrive.

Haha, love your knowledge there yjd. There are many ways to structure an employee based agent model which truly benefits the bottom line for the company. To truly believe they would convert all 18k agents and their 40k (its much higher than that btw) agent staff to employees surely would be bonehead. The other structures to support this move are being put in place at the Hubs. Remember , the marketplace is changing; buying patterns are evolving and the agent presence is dwindling. But thanks for your well thought out, tactful response.

Yes sir, that’s exactly what the company is planning, they are going to double our employee head count by converting 18000 agents and an additional 40000 plus agent team members to employees. Should save us a ton of money going forward. Please do a bit of research before posting again.

Could it be possible since our business model is obviously changing, that there soon could be a drastic change in the “Agent model” to an employee based agent model? The next question is: with all this money, why haven’t we given premiums back to our policy holders?

@UISMkUg-lmu remind me again, what is State Farm stock trading at?

the more accounts that Wells Fargo had on the books, the more successful they looked, the more their stock prices went up....so yeah it was all about manipulating the stock price, the more the stock prices went up the bigger the bonuses...

Wells’s stock price soared, and Tolstedt, whose salary was $1.75 million, received more than $20 million in annual bonuses from 2010 to 2015, which was justified in part by the “record cross-sell results” in her division, said Wells in its financial filings. But Stumpf and the rest of the executive team, and soon the board, knew there were issues.

https://www.vanityfair.com/news/2017/05/wells-fargo-corporate-culture-fraud

Um, Wells Fargo was guilty of opening false savings accounts and credit card accounts to meet unrealistic sales quotas for bonus purposes. It was a fake compensation play. It was never about inflating their stock price-and it never did.

Wow, your ignorance is breathtaking. Not sure where to even begin? Maybe go back and get your GED for starters? Or take the meds you skipped this morning?

If you go back and review 2017 results (google it) you will see they ended the year with 97 Billion. They are a lock to end 2018 with over a 100 Billion.....do you believe everything you read on the Internet? Where is the actual evidence, the actual stock portfolio ? Also stocks can be manipulated, you know like Wells Fargo did.

Despite the underwriting losses, State Farm’s net worth in 2017 grew to $97 billion, up from $87.6 billion in 2016. State Farm attributed the growth to gains in its stock portfolio and the revised corporate tax rate.

http://www.bodyshopbusiness.com/state-farms-net-worth-nearly-100-billion-despite-2017-underwriting-loss/

Is State Farm overstating their net worth? That's what Wells Fargo did, you know by all those fake accounts they opened up, they could state their net worth was way more than it actually was to keep their stocks up. So is SF doing something they shouldn't be?

If you go back and review 2017 results (google it) you will see they ended the year with 97 Billion. They are a lock to end 2018 with over a 100 Billion.

Agree if they have more than ever and still running the business like their hair is on fire may need a too big to fail audit. From someone besides them.

99 BILLION....get outta here...99 BILLION no way.

They sure aren't acting like they have 99 BILLION. They are acting like they are losing millions everyday, well they are losing millions, so how is it they have 99 BILLION DOLLARS and still growing?

Something doesn't add up.....they wouldn't be running around like a chicken with it's head cut off if they had 99 BILLION DOLLARS, are you talking real actual money? or monopoly money?

99 billion is simply because of the Trump stock rally causing stocks to be at record highs. A rising tide even lifts rafts that are adrift.

Time will tell. A common theme on here is that “success” seems to be defined as “what would currently be most convenient for me.”

99 billion. The most we have ever had. Leaders must know something.

Auto still losing money, last year they had rate increases along with lowering the discount percentages which caused more customers to flee. Now they are doing rate decreases but the decrease is still smaller than the initial increases that lost customer count. All divisions must be successful to maintain the current business practices. The expect all employees to work in every state even though they have no idea of the rules and regulations of each state. For atonthey day every state can be handled the same which is just not true. Sad that the CEO and company are so far removed from the actual employee they have no idea why we are bleeding customers and truly don’t care as long as they have their golden parachutes they are happy

Don't understand why anyone would choose State Farm...my sister works there enough said.