Thread regarding State Farm Insurance layoffs

It's too bad

State Farm is relying too much on outside advice from consultants and it will cause this company to lose more customers than ever, and it may not ever recover from it.

It's really unfortunate that employees are not valued any longer. This is a very old, large, and stable company in a (albeit highly regulated) stable industry, but they've recently decided to be very reckless when it comes to how they run their claims operation. SF admires GEICO and Progressive? So disgusting. Congrats, you did it, and aren't a premium insurer any longer. No personal relationships, no connection to the localities you sell your product in, and no loyalty from your newest employees.

It's also repulsive that SF does not value any knowledge and experience in the handling of claims any longer. These days, if you like what you do, you're just "festering" and "can't make it in management". You'll find out the hard way when no pros are left, and it's all dog eat dog in your crappy HUB cities where everyone will be trying to be a manager without knowing the business or claims, or just quit for something else. You s--- as an insurer and employer.

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Post ID: @OP+OhuJGgj

8 replies (most recent on top)

ChaosConsultant is right. It seems like good explanation for the chaos and bizarre decisions.

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Post ID: @7Ashw+OhuJGgj

Sad, but true.

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Post ID: @5Hqol+OhuJGgj

Realize that outside consultants never have State Farm‘s best interest in mind. They are a cancer that we willing let into our company. Some of them have been with us for YEARS – to the point that we don’t even realize that they are externals – and they overhear, and report back to the their mothership about what is going on within SF, what we are working on, and what we might need (to buy).

They make the most money when they cause complete chaos. The ones that come in and implement a grand new architecture or platform, or even a new tool, that never seems to quite work correctly, needs additional patches, needs additional configurations… requires us to be continually dependent on them, thus making them more money. I have worked with a lot of these technical consultants, and I’ve gotten to know them quite well on a personal level. It has never been in their interest to completely help us. They will implement a little tweak here, or a little fix there, and then say “let’s see what that does over the weekend“. They like to use the size of our company has both a flattering comment and a reason why they’re not able to ever completely implement anything correctly within our company.

The external EOM consultants were even worse. They were inflicted on us by executive management, with the understanding that we were going to implement what they suggested, no matter what. You either implemented EOM, or you were out. The consultants did not differentiate the different kinds of work that comes in, just the types of people. They did their time studies, and came up with the average times the work should be done based on the person/job class doing the work, not the type of work that was coming in. They then went in and implemented EOM each of the offices, hanging the signs that included the “valley of despair” metric which indicated that people would have to eventually “just get over it.” In the evenings the SF managers would all rub elbows with the consultants and get all chummy, and get completely manipulated by the consultants at fancy restaurants over fancy meals. The consultants were very good master manipulators of our SF management to the point that they no longer questioned EOM or anything that the consultants were recommending or doing. Then came the promotions. Just about everyone that worked on the implementation of EOM wind up getting a promotion. They called themselves Six Sigma ninjas, while turning both our income and outflow departments completely upside down (called a “transition period”). It was the most egregious example of the Peter Principal I’ve ever seen.

And now? Now our customers are going through the valley of despair. Unlike other large companies, we don’t sell a product… We sell a promise. We promise to provide outstanding claim service in the time of need, to “make life right“. But in a race to the bottom, we provide no better service than the competition. Which leaves only one deciding factor ... price. (And maybe the ability to interact with us via the Internet, which also lags behind.)

This is not a long-term winning formula, no matter how many employees we let go.

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Post ID: @3Xdpd+OhuJGgj

All true

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Post ID: @3Xvxb+OhuJGgj

I work in Systems. As far as I can see, the last 6 years have been nothing but chaos. And what truly terrifies me is the idea that the managers making the decisions have no idea what they're doing and truly no idea how to measure whether their ideas are successful. Rank and file Systems employees have zero confidence in leadership due to all the bad decisions made over the last 6 years. I probably won't make it here much longer -- they're in the process of gutting head count. The said thing is that this used to be a great place to work, and our projects used to actually complete on time.

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Post ID: @Wijn+OhuJGgj

This is true

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Post ID: @Svvu+OhuJGgj

I agree it was not like this until Michael Tipsord became CEO. Some day a book will be written about the man that killed the greatest insurance company. He really has no clue what is going on. If this was a stock company, he would have already been replaced

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Post ID: @xmcu+OhuJGgj

This is so true and very scary for an agent team member who cares and takes pride in her job!!!

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Post ID: @xzef+OhuJGgj

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