CASE STUDY
An in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education)
Working Paper: Case Study
Allstate’s Digital Operating Model: Think Big, Act Small
Allstate simplified its operations and improved customer experiences by setting the right decision rights guardrails for its empowered cross-functional teams.
Abstract
In 2021, the Claims division of Allstate Insurance Company aimed to simplify operations in order to deliver frictionless digital experiences to its customers. At the heart of this effort was a new operating model that pushed operational decision rights down to durable cross-functional teams that were focused on achieving strategic objectives by continuously solving business and customer problems. This case describes how Claims turned its traditional project-based way of working—rooted in prescriptive annual plans—into a continuous and iterative agile process that kept empowered teams moving cohesively toward its shared purpose.
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About the Researchers
Nick van der Meulen, Research Scientist, MIT Center for Information Systems Research (CISR)
Cynthia M. Beath, Professor Emerita, University of Texas and Research Collaborator, MIT CISR
MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)
Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.
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