Out of little ole Mayfield Village, Ohio a group of actual operational experts are breaking the industry trend. Progressive, with their clear strategy and generationally talented CEO, are posting phenomenal results.
Key differences between PGR and ALL…
- Progressive had to scrape and claw their way to near the top. Allstate floated and coasted there. Hence the numerous layers of fat, bloat, and an inability to execute in this climate. We are being ground by iron right now - the question is : are we being sharpened? Seems our soft alloy is being simply reduced.
- Tricia G. Is paid a fraction of what Tom Wilson makes in terms of salary. The board should be ashamed. In fact, nearly every exec (Tom’s DRG) makes more than Tricia. Is the exec team here to execute or to create great wealth for themselves? This matters. The exec team at Progressive are ruthlessly focused on data, results and challenging themselves. Can we say the same about our leadership?
- Progressive has a clear strategy they spent time and effort to define and refine. Most importantly they’ve painstakingly connected it to every single business unit. Sam’s, Diane’s, Robinsons, Wrights. Simple terms, but they have meaning to all in those halls. They want to provide protection products for any customer and allow for easy graduation to other products as lives become more complex. Lifelong customers. Allstate has “affordable simple connected” as a tag line, but does not have the backing tactics to support that line. Seriously - it doesn’t exist. Ask multiple senior leaders. You will not get a consistent answer. If you walk the halls of Progressive, even individuals in entry level positions know the strategy and how their work supports it.
- Commitment to excellent experiences. The difference between PGR and ALL here is perhaps the biggest gap. The PRIMARY and most important interface between an insurance company and an individual is when claims are filed. When they need us to complete our end of the bargain. Whether home or auto, Progressive demands quick, transparent claims. They’ve built process and interrogated the value stream to the Nth degree. People rave about the experience. They get paid fairly and quicker than they expect. Allstate is the opposite. Look at the net promoter scores. Look at the data. Slow claims times. Low payouts and negative experiences. We even laugh in meetings about how homeowners don’t understand that roof claims are not fully covered. Look back at an early 2022 communication meeting and see our claims senior leader laughing at that. Belly laughing that our customers don’t understand the agreement. Disgusting. Simply a microcosm of how our execs value these experiences and the values they hold.
Simply put, Allstate has enjoyed 40-50 years of easy growth and has not needed to become sharp in nearly any way. You see it expressed in our leadership and the way our orgs are designed. This can be turned around, but it will take new leadership and laser focus on strategies that matter, and commitment to drive clear tactics down to the people doing the line level work.
Trian, I hope you read this.
If you want more detail,
GoodHandsGreatHands@proton.me