The leadership of Allstate only has two cards in that negligent hand that they hold…
- Raise rates
- Cut staff
This is the sign of a corporation in a death spiral..
No real ideas on product, employee engagement, thinking outside the box.
No answers to tell investors other than “full speed ahead. Trust us we know this will work long term.”
Tommy has never been overly concerned with retention..always about “margins.”
But now he has to be concerned because customers are leaving at such a fast clip, and new business is not keeping up. Profitable margins no longer exist and will exist because the more you raise rates…the more your retention is impacted by shipping customers.
Customer word of mouth is cancerous and the marketing team can’t decide whether Allstate should be marketed as “one of those low cost carriers” or “come to us because low cost carriers s@@k.” …so you see both in advertising…
The customer service infrastructure has ceased to exist and employees being pressured to pinch every dime underpaying customers paying some of the highest rates in the industry,
The BOD is asleep at the helm and absolutely abysmal…terrible corporate results…are compensated with millions of dollars with no accountability on leadership.
What are the answers? As long as Tommy and this leadership team is in charge and making decisions….NONE..
Their answer is dehumanizing treatment of employees with excess oversight thinking it is employee execution when the plan is rotted at its core….
The architect of the plan, Shapiro, that was gleefully signed off on by Wilson… wisely jumped ship cashing his chips leaving Wilson to steer this sinking ship…an egotist way over his head.
So…Allstate is left to circle the drain. Employees are left to be frustrated, demoralized and warned constantly that their job is always at risk if they do not improve themselves while leadership destroys the environment that they work in.
Sad state of affairs for this former industry leader. Personal greed, ego and competence issues put another American corporation on life support.
I fear that this will not end well…particularly for employees that remain…but I also have no doubt that Tommy and the rest will cash out right before the end…leaving even incredibly richer…leaving any remaining Allstate employees, investors and customers…and possibly American taxpayers holding the bag…..