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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.
CASE STUDY

An in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education)

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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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.

MIT CISR Patrons
AlixPartners
Avanade
Axway, Inc.
Collibra
IFS
Pegasystems Inc.
The Ogilvy Group
MIT CISR Sponsors
Alcon Vision
Allstate Insurance Company
Amcor
ANZ Banking Group (Australia)
AustralianSuper
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of Queensland (Australia)
Barclays (UK)
BlueScope Steel (Australia)
BNP Paribas (France)
Bupa
CarMax
Caterpillar, Inc.
Cemex (Mexico)
Cencora
Cochlear Limited (Australia)
Commonwealth Superannuation Corp. (Australia)
Cuscal Limited (Australia)
CVS Health
Dawn Foods
DBS Bank Ltd. (Singapore)
Doosan Corporation (Korea)
Fidelity Investments
Fomento Economico Mexicano, S.A.B., de C.V.
Fortum (Finland)
Genentech
Gilbane Building Co.
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Koç Holding (Turkey)
Mercer
Nasdaq, Inc.
NN Insurance Eurasia NV
Nomura Holdings, Inc. (Japan)
Nomura Research Institute, Ltd. Systems Consulting Division (Japan)
Novo Nordisk A/S (Denmark)
OCP Group
Pacific Life Insurance Company
Posten Bring AS (Norway)
Principal Life Insurance Company
QBE
Ramsay Health Care (Australia)
Raytheon Technologies
Scentre Group Limited (Australia)
Schneider Electric Industries SAS (France)
Stockland (Australia)
Tabcorp Holdings (Australia)
Telstra Limited (Australia)
Terumo Corporation (Japan)
Tetra Pak (Sweden)
Truist Financial Corporation
UniSuper Management Pty Ltd (Australia)
Uniting (Australia)
USAA
Webster Bank, N.A.
Westpac Banking Corporation (Australia)
WestRock Company
Wolters Kluwer
Xenco Medical
Zoetis Services LLC

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