Problem Identification
The major problem in this case is that the recovery attained by the company (presently $55 million) should be equal to the total casual activity recovery in the market (presently $550-$600 million).
This includes 20,000 unresolved recovery cases with values averaging $7500 each; this meant that Western Casualty was behind in its recovery process and that it was supposed to increase its speed in order to hit the target. There was also a concern of Casualty’s legal department and lawyers about bring MCG onboard. In the beginning of the contracting phase, MCG planned to remain onsite for 18 months, to see more on organization culture and know day-to-day operations.
Beginning the restructuring, the consultant selected the method of collaborate role with the clients. Collaborative relationship promises maximum people resources – both the consultants and the clients. They stated cleared that the consultants are not there for helping downsizing of OPL but they are helping to apply their technical skill to make it more productive in the future.
Discovery phase begins; they started of layer of analysis on initial problem
They found fear of employees over workload in the capacity of current workforce and downsizing of OPL. There is no benchmarking in the department. This reduces the morale that would have otherwise. Employees felt that they had to do everything and they don’t have time to do anything well.
Identify the Causes of the Problem
Western Casualty specialized in processing of casualty and properties. Western Casualty was in the early 1980’s the dominant company in the western region. By early 1990’s casualty’s market share dropped significantly to below 20% from above 65%. This was as national property/ casualty insurers threatened to take over.
Perhaps the greatest test for western casualty was during the catastrophe that rocked California which rendered business in the state unattainable to most of the insurance companies. However, western casualty viewed this as an opportunity to advance itself in the market by being more aggressive and taking over the market in a bid to increase revenue and therefore widen the profit margin. This sat well for the company as it was viewed as the remaining reliable insurance company in the region.
However that was until national property/ casualty insurers came into the picture and technological advancement or lack of it almost brought western casualty to its knees. The early 1990’s was characterized with technological development and sprouting of insurance companies.
Western casualty didn’t embrace technology in processing of claims as fast as its competitors had. During this paradigm shift, western casualty sat comfortably without interest in the developing means. This was until the figures began dwindling prompting a restructuring program.
Alternative Solutions
An alternative solution is important in the ensuring of a well analyzed case. For this, the department will need to be divided. Four task-base teams: Negotiation, Telephone, Written Correspondence and Recovery.
Employees will no longer be doing dozen of things; they will focus on certain parts of the process an idea which leads to specialization and development of acute skills in the respective area in which the employee is responsible for. The employee tends to be faster and more effective at their responsibilities. They can then focus more time on each department: the more time focused on the department is got from the specialized activity on the departments activities.
More time to improve managerial skills. The employees are left with more time to work on their managerial skills. These managerial skills are essential in helping the employees to hold themselves responsible and do all in their powers to getting things done.
Developing skills “Think outside the box.” The employees are left to do whatever they have to in helping the department achieve its goals. This in turn horns the employees skills in such a manner that they tend to be responsible in their own respective areas and develop a sense of ownership of the company.
The MCG shifted away for their individual functions to the department’s ultimate objectives as a team. The pre-organization structure meant that one would follow the same case until it ends while the new structured required the employees to only focus on particular parts of the whole process. This meant that employees could no longer be gauged by the number of cases they solved but rather by the achievement of the departmental overall goals.
Foster projects by newsletter, social events and others that motivate within human capital. This is to motivate both the clients and the employees making their work easier.
Technology, the embracement of technology meant faster and more efficient means and ways of achieving departmental goals. Having technology ensures that time is on your side and efficiency too.
Best Alternative
Communication strategy within organization, the organization’s communication with its clients should be improved and should enable convenience in communication. Clients should not feel as though reaching the company to process claims is more difficult than getting them to compensate you in case of a claim of any other consultations.
The telephone and the written units were not very impressed with their new responsibilities in the company. They felt as though the company had reduced their responsibilities and hence their morale for the jobs. Those in the telephone unit preferred the older structure where they were to follow a single case to the point where they could determine or get to know the progress of the cases they were handling.
This is contrary to the new structure where they just handle phone calls for all the cases without knowing the eventuality of any of the cases. The employees in the two units also felt that their departments tend to receive more problems than other units in the organization.
The management and the consultants should emphasize that however much personal pride and accomplishment are important; they should not be put before the departments’ goals. The employees should be reminded of the department’s goals and that the same should form their primary objective in the company’s activities. However, employees’ views on how this could be changed to make it better should be welcomed.
Implementation Steps
Four task-base teams: Negotiation, Telephone, Written Correspondence and Recovery. The restructuring of the department ensures that time is saved as employees of the different departments concentrate on specific aspects of the whole process.
Selecting team leaders responsible for the different units and ensuring that the teams adhere to the set departmental goals.
Improvement of the communication between departments and between the employees and their supervisors improves the effectiveness of the employees. They tend to have similar agendas and goals that are propagated by the department heads thus ensuring a common goal.