Allstate Insurance Company Goal Setting

Allstate Insurance Company

Goal Setting Process

Challenge:

Allstate's goal setting process is described in terms of its diversity strategy. The difficulty level of this goal does not appear to be extremely high, as the company has been involved in improving diversity for a long time. The challenge is however to bring together the existing workforce, which is widely diverse, in a powerful way to impact business results.

As the questions surrounding the specific goals of the company are very clear, the clarity level of the goal itself is also very clear. Firstly, to ensure that the company's diversity strategy is not so much based upon political or legal obligations, but rather upon creating a competitive advantage by leveraging differences. This broad goal has been specified by a dual focus: internal and external. The internal focus is upon all employees and the opportunity they are given to become the best in their work at Allstate. Externally, the focus is upon the market and ensuring that the workforce is a good match for the experience, background, and sensitivity of specific markets in which the company provides its services.

Moderators:

This also shows an excellent focus on the moderator component of goal setting, where the company shows a high level of commitment to its goals. Allstate has excellent capabilities to fulfill its goals, and is also committed to solicit feedback to this effect from its workers by means of survey questions. This heightens the probability that the company will remain on the right track in its continuous efforts to reach its goal.

Further clarifying the goals of the company are the surrounding ideals and philosophies that mangers hold. Diversity is for example not viewed so much as a static goal as a dynamic process, by means of which the company's daily life reflects continuous effort to refine its internal and external focus upon diversity. The self-efficacy level of the strategy is also high, as the company has identified existing shortcomings in achieving its diversity goals, and is working to remedy this by means of specific actions and steps. Working on the goals on a daily basis raises the self-efficacy of the strategy, because it is an integrated process and not a separate, distant ideal.

Mediators:

Allstate has a very clear direction for setting and attaining its goals of increasing not only the level of its diversity, but using this as a leverage for its business prowess. Allstate continues to make an effort towards this goal by means of a variety of tasks, divided into four steps. These steps ensure not only that the company provides excellent services to its customers, but also that employees experience a sense of work satisfaction in a company where they are treated as important persons.

In the light of the above, it is therefore clear that Allstate's goal setting strategy is very effective; having identified the goal, the strategy is to continuously engage in a process of implementation and evaluation in order to ensure the efficacy of the strategies identified as necessary.

2.

Competitive Advantage

Allstate has created an important competitive advantage with its Diversity Index, a survey that asks four questions generally relating to the experience of employees in the workplace. One of the questions focus upon the employees' experience of the company's relationship with customers. This is important in terms of creating an open channel of communication between management and employees, especially as it relates to the business prowess of the company.

Questioning employees about the company's effectiveness in the business world is important, as employees could have valuable input, insight and ideas to improve this important component of the business. It also shows a recognition that employees are valued for the fact that they are the ones who work directly with the public and can therefore identify important gaps and needs in the current service. This provides a competitive edge in that the company not only caters to a widely diverse public, but also in that they can understand and meet the needs of this public. Customer satisfaction would then lead to increased customers and better business.

The other three questions, relating to the employees' experience in the workplace, provide employees with the opportunity to voice any concerns or trouble they have, while also ensuring that the company not only remains diverse, but also truly integrated within this diversity. This leads to worker satisfaction, which would in turn mean a higher level of worker retention. The company therefore saves significantly in terms of recruiting new employees or using worker hours to train these employees.

The open communication platform created by the Diversity Index cultivates a sense of trust between employees and managers, which is further conducive to companywide excellence. Employees who trust their employers to deliver the best tools they can to help them achieve their best level of excellence are most likely driven to give their best to their employers.

3.

High Performance Reward System

Allstate could use both external and internal systems to reward high performance. Such rewards would also serve as motivators for employees to do their best. Bonuses are a very good motivator for excellent work, because they are very flexible. Each department could for example have three high performance bonus rewards per year or every six months. There could for example be three levels of bonuses: the highest for the best performance, while the second and third are lower bonuses for second- and third-best performances.

Paid vacations are another good idea to provide an internal reward. Employees who win this type of bonus could be provided with a choice of two or three destinations, which should include room for a family of up to four or five persons. This is however a somewhat difficult reward, as not all employees would appreciate all destinations. Perhaps a better idea is to provide a choice between a paid vacation and cash bonus reward for employees at the best level of performance per year.

Internal rewards include a sense of achievement, pride in accomplishments and feelings of success. Employees should at all times be made to feel that they are highly valued for their work with customers. Having created a platform for open and honest communication, Allstate should also then provide the opportunity to tell the company if at any time they do not feel valued or successful. Line managers should then also be trained in skills to encourage feelings of success in their subordinates.