Thread regarding State Farm Insurance layoffs

Lean Six Sigma a.k.a "EOM" failure -- claims is not an assembly line

Leadership can't seem to figure out why we are losing billions. It's because the employees know the company doesn't care about them, so the favor is returned. All anyone cares about in claims is trying to get their unrealistic numbers/metrics that they post on the silly huddle boards so they don't get a bad review and land the late shift getting stuck working to 8pm. Just throw money at claims to make them go away faster. No time for negotiations or to argue about paying something we may not owe.....just pay it and move on! The metrics have removed any incentive to do good work. Just "get the click" for your number count, cut corners, kick the can and get out of the claim as fast as you can so you can get more numbers. Lots of cheating and working the system going on just to get the numbers. Seems like we are heading down the same path that Wells Fargo took....give employees impossible goals/numbers to meet and people will do what ever it takes to get them. The lean six sigma, a.k.a. EOM model has failed miserably. Our CEO thinks the solution is just to cut more costs to get us out of this mess. Too bad he sees the employees as a cost to be eliminated rather then as assets that are needed to take care of our customers.

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Post ID: @OP+RzaNY55

11 replies (most recent on top)

But, but the latest “industry” publications extolled the synergy driven paradigm of six smegma application n to energize productivity and become a new ideas factory which will transport the business to the next level.

These ”leaders” that have sunk this company read crap like that and then form a consensus around which parts sound like the most impressive while regurgitating it at Medici’s. Next month, another fount of meaningless idiocy will be extolled as Original Wisdom and it’s back to the swirl.

This is what happens when you put incapable low medium intelligence in charge

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Post ID: @1qlo+RzaNY55

Six Sigma was invented by Motorola in 1989. Lean is all about eliminating waste. It works well in manufacturing when you are building the exact same product over and over. Metrics let you know when something is "off" so you can adjust your processes to be more efficient. Unfortunately, every claim and every customer aren't identical to the others so time measurements are pointless and metrics based on them even more pointless. There is too much variability in all but the most simple claims. But to get good numbers, you have to squeeze the square peg into the round hole by cutting the corners off of it! Sure would hate to be the customer that has a claim that doesn't fit into the standard claim processes (SCP)!!

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Post ID: @1rlx+RzaNY55

I just want to chime in regarding IBM's Watson. It is absolute garbage. I've seen what that thing looks like from the inside. I wouldn't trust it to do anything. It is a perfect case of a product being sold to know-nothing executives on completely fallacious grounds.

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Post ID: @1qhg+RzaNY55

just where did lean sigma come from? If you think lean sigma is working, ask someone who is. Its no more than a virus on the american workforce.

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Post ID: @1ggt+RzaNY55

I couldn't agree more with this post.

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Post ID: @1oay+RzaNY55

I have said from the start people will stomach EOM, but start messing with their home life and they will not stand for it. Pretty bad when you hear good employees say things like “SF does not care about me, so I don’t care about this next customer”. I understand that some will says that is just a bad employee now and I get that, but when you can only get Tuesday and Wednesday off for vacation then the message is clear. We don’t care about you!

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Post ID: @tog+RzaNY55

I have said from the start people will stomach EOM, but start messing with their home life and they will not stand for it. Pretty bad when you hear good employees say things like “SF does not care about me, so I don’t care about this next customer”. I understand that some will says that is just a bad employee now and I get that, but when you can only get Tuesday and Wednesday off for vacation then the message is clear. We don’t care about you!

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Post ID: @mhs+RzaNY55

Majority of the work in Insurance has become a COMMODITY and most of it is automated especially in Pnc, this is because it is highly regulated by State and have standard processes. Products like Guidewire, duck creek ECS and many more are already doing that all across the industry in Insurance.

So, yes, Claims, Policy administration, and many more jobs have become an assembly line, IBM Watson, Salesforce Einstien is already in line to take the call center jobs of those headset guys.

One has to keep improving all the time to be relevant in today's environment.

If one thinks I have 30-years experience and I am relevant today, then they may be wrong. They have experience and knowledge but is that experience and knowledge is relevant and employers will need that or not! that's a different story.

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Post ID: @csb+RzaNY55

All of this!!

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Post ID: @prt+RzaNY55

There are so many examples of companies not implementing Six Sigma correctly. Home Depot terminated their CEO when they realized it was failing their company. Hope our board members realize what the employees are seeing and do their job like Home Depot's.

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Post ID: @wqf+RzaNY55

Amen!!

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Post ID: @dcx+RzaNY55

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