Case
Teaching Notes
Supplementary Resources
Abstract
Allstate’s Data, Discovery, and Decision Science group (D3) had started as a small team of data scientists helping to quantify insurance risk accurately, but by 2017, it had ballooned to 300 employees offering data capabilities to the firm’s business verticals (e.g., Claims or HR). Allstate’s senior leadership team had recently defined the strategic objectives that should be driving D3 projects, but it quickly became apparent that D3’s current structure was incongruent with these strategic goals. D3 members and leadership agreed: A reorganization was necessary. However, an earlier reorganization, which had reassigned employees without their input, had left them feeling burned. Senior leaders didn’t want to make the same mistake twice but knew they didn’t have time to post and review applications for each position in the new structure.
Given that D3 members were data nerds, the leadership team decided to bet on their own data talent by developing and implementing an algorithm to determine which position each manager and employee should fill. This algorithm, designed by one of their own engineers with the goal of “maximizing employee happiness,” allowed for objectivity, employee feedback, and an acceptable timeline. Despite leaders’ attempts at total transparency and clear communication, D3 members encountered some system-gaming, dissatisfaction, and anxiety throughout the process. This case presents an unbiased view of the realignment and prepares students to debate the success of using AI in talent management, as well as discuss how to manage such a process effectively.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: Sample Survey
All D3 team members received an email with the following information:
- Details about all the roles for which they were eligible (as well as the instruction to review those roles carefully)
- An organization chart with all positions/position IDs (which would be used to rank the positions in the survey)
- Instructions on how to rank the realignment opportunities via the online survey
- Affirmation that rankings would be kept anonymous
The following charts were also attached.
In the table, the column headers have drop down buttons. The table is replicated as follows:
| NTID | Rank | Position ID | Job Family | Org Chart Position Title | Team | Mgr | Mgr location | Desc | Specialized Abilities | Number of positions |
| Employee ID | Current | 1 | Alpha | Title for Pos. ID 1 | Team Name for Pos. ID 1 | Mgr Name for Pos. ID 1 | Mgr Loc for Pos. ID 1 | Desc for Pos. ID 1 | blank | 3 |
| Employee ID | blank | 3 | Flexible | Title for Pos. ID 3 | Team Name for Pos. ID 3 | Mgr Name for Pos. ID 3 | Mgr Loc for Pos. ID 3 | Desc for Pos. ID 3 | blank | 1 |
| Employee ID | blank | 39 | Flexible | Title for Pos. ID 39 | Team Name for Pos. ID 39 | Mgr Name for Pos. ID 39 | Mgr Loc for Pos. ID 39 | Desc for Pos. ID 39 | blank | 1 |
| Employee ID | blank | 60 | Flexible | Title for Pos. ID 60 | Team Name for Pos. ID 60 | Mgr Name for Pos. ID 60 | Mgr Loc for Pos. ID 60 | Desc for Pos. ID 60 | blank | 1 |
| Employee ID | blank | 61 | Flexible | Title for Pos. ID 61 | Team Name for Pos. ID 61 | Mgr Name for Pos. ID 61 | Mgr Loc for Pos. ID 61 | Desc for Pos. ID 61 | blank | 1 |
| Employee ID | blank | 63 | Flexible | Title for Pos. ID 63 | Team Name for Pos. ID 63 | Mgr Name for Pos. ID 63 | Mgr Loc for Pos. ID 63 | Desc for Pos. ID 63 | blank | 1 |
| Employee ID | blank | 64 | Alpha | Title for Pos. ID 64 | Team Name for Pos. ID 64 | Mgr Name for Pos. ID 64 | Mgr Loc for Pos. ID 64 | Desc for Pos. ID 64 | blank | 1 |
| Employee ID | blank | 67 | Alpha | Title for Pos. ID 67 | Team Name for Pos. ID 67 | Mgr Name for Pos. ID 67 | Mgr Loc for Pos. ID 67 | Desc for Pos. ID 67 | blank | 2 |
| Employee ID | blank | 68 | Alpha | Title for Pos. ID 68 | Team Name for Pos. ID 68 | Mgr Name for Pos. ID 68 | Mgr Loc for Pos. ID 68 | Desc for Pos. ID 68 | blank | 1 |
| Employee ID | blank | 69 | Alpha | Title for Pos. ID 69 | Team Name for Pos. ID 69 | Mgr Name for Pos. ID 69 | Mgr Loc for Pos. ID 69 | Desc for Pos. ID 69 | blank | 1 |
| Employee ID | blank | 74 | Alpha | Title for Pos. ID 74 | Team Name for Pos. ID 74 | Mgr Name for Pos. ID 74 | Mgr Loc for Pos. ID 74 | Desc for Pos. ID 74 | blank | 1 |
| Employee ID | blank | 77 | Alpha | Title for Pos. ID 77 | Team Name for Pos. ID 77 | Mgr Name for Pos. ID 77 | Mgr Loc for Pos. ID 77 | Desc for Pos. ID 77 | blank | 1 |
| Employee ID | blank | 80 | Alpha | Title for Pos. ID 80 | Team Name for Pos. ID 80 | Mgr Name for Pos. ID 80 | Mgr Loc for Pos. ID 80 | Desc for Pos. ID 80 | blank | 1 |
| Employee ID | blank | 81 | Alpha | Title for Pos. ID 81 | Team Name for Pos. ID 81 | Mgr Name for Pos. ID 81 | Mgr Loc for Pos. ID 81 | Desc for Pos. ID 81 | blank | 1 |
| Employee ID | blank | 82 | Alpha | Title for Pos. ID 82 | Team Name for Pos. ID 82 | Mgr Name for Pos. ID 82 | Mgr Loc for Pos. ID 82 | Desc for Pos. ID 82 | blank | 1 |
| Employee ID | blank | 83 | Alpha | Title for Pos. ID 83 | Team Name for Pos. ID 83 | Mgr Name for Pos. ID 83 | Mgr Loc for Pos. ID 83 | Desc for Pos. ID 83 | blank | 1 |
| Employee ID | blank | 84 | Alpha | Title for Pos. ID 84 | Team Name for Pos. ID 84 | Mgr Name for Pos. ID 84 | Mgr Loc for Pos. ID 84 | Desc for Pos. ID 84 | blank | 1 |
| Employee ID | blank | 86 | Alpha | Title for Pos. ID 86 | Team Name for Pos. ID 86 | Mgr Name for Pos. ID 86 | Mgr Loc for Pos. ID 86 | Desc for Pos. ID 86 | blank | 1 |
| Employee ID | blank | 87 | Alpha | Title for Pos. ID 87 | Team Name for Pos. ID 87 | Mgr Name for Pos. ID 87 | Mgr Loc for Pos. ID 87 | Desc for Pos. ID 87 | blank | 4 |
| Employee ID | blank | 90 | Alpha | Title for Pos. ID 90 | Team Name for Pos. ID 90 | Mgr Name for Pos. ID 90 | Mgr Loc for Pos. ID 90 | Desc for Pos. ID 90 | blank | 1 |
| Employee ID | blank | 91 | Alpha | Title for Pos. ID 91 | Team Name for Pos. ID 91 | Mgr Name for Pos. ID 91 | Mgr Loc for Pos. ID 91 | Desc for Pos. ID 91 | blank | 1 |
| Employee ID | blank | 92 | Alpha | Title for Pos. ID 92 | Team Name for Pos. ID 92 | Mgr Name for Pos. ID 92 | Mgr Loc for Pos. ID 92 | Desc for Pos. ID 92 | blank | 1 |
| Employee ID | blank | 93 | Alpha | Title for Pos. ID 93 | Team Name for Pos. ID 93 | Mgr Name for Pos. ID 93 | Mgr Loc for Pos. ID 93 | Desc for Pos. ID 93 | blank | 1 |
| Employee ID | blank | 94 | Alpha | Title for Pos. ID 94 | Team Name for Pos. ID 94 | Mgr Name for Pos. ID 94 | Mgr Loc for Pos. ID 94 | Desc for Pos. ID 94 | blank | 1 |
| Employee ID | blank | 98 | Alpha | Title for Pos. ID 98 | Team Name for Pos. ID 98 | Mgr Name for Pos. ID 98 | Mgr Loc for Pos. ID 98 | Desc for Pos. ID 98 | blank | 1 |
| Employee ID | blank | 103 | Alpha | Title for Pos. ID 103 | Team Name for Pos. ID 103 | Mgr Name for Pos. ID 103 | Mgr Loc for Pos. ID 103 | Desc for Pos. ID 103 | blank | 1 |
| Employee ID | blank | 116 | Alpha | Title for Pos. ID 116 | Team Name for Pos. ID 116 | Mgr Name for Pos. ID 116 | Mgr Loc for Pos. ID 116 | Desc for Pos. ID 116 | blank | 1 |
| Employee ID | blank | 117 | Alpha | Title for Pos. ID 117 | Team Name for Pos. ID 117 | Mgr Name for Pos. ID 117 | Mgr Loc for Pos. ID 117 | Desc for Pos. ID 117 | blank | 1 |
| Employee ID | blank | 118 | Alpha | Title for Pos. ID 118 | Team Name for Pos. ID 118 | Mgr Name for Pos. ID 118 | Mgr Loc for Pos. ID 118 | Desc for Pos. ID 118 | blank | 1 |
| Employee ID | blank | 119 | Alpha | Title for Pos. ID 119 | Team Name for Pos. ID 119 | Mgr Name for Pos. ID 119 | Mgr Loc for Pos. ID 119 | Desc for Pos. ID 119 | blank | 1 |
| Employee ID | blank | 120 | Alpha | Title for Pos. ID 120 | Team Name for Pos. ID 120 | Mgr Name for Pos. ID 120 | Mgr Loc for Pos. ID 120 | Desc for Pos. ID 120 | blank | 1 |
| Employee ID | blank | 124 | Alpha | Title for Pos. ID 124 | Team Name for Pos. ID 124 | Mgr Name for Pos. ID 124 | Mgr Loc for Pos. ID 124 | Desc for Pos. ID 124 | blank | 1 |
| Employee ID | blank | 127 | Alpha | Title for Pos. ID 127 | Team Name for Pos. ID 127 | Mgr Name for Pos. ID 127 | Mgr Loc for Pos. ID 127 | Desc for Pos. ID 127 | blank | 1 |
| Employee ID | blank | 131 | Alpha | Title for Pos. ID 131 | Team Name for Pos. ID 131 | Mgr Name for Pos. ID 131 | Mgr Loc for Pos. ID 131 | Desc for Pos. ID 131 | blank | 2 |
The table is as follows:
| Q1 – Rank Order All Your Positions | |
| Rank | Position ID |
| blank | 1 |
| blank | 3 |
| blank | 39 |
| blank | 60 |
| blank | 61 |
| blank | 63 |
| blank | 64 |
| blank | 67 |
| blank | 68 |
| blank | 69 |
| blank | 74 |
| blank | 77 |
| blank | 80 |
| blank | 81 |
| blank | 82 |
| blank | 83 |
| blank | 84 |
| blank | 86 |
| blank | 87 |
| blank | 90 |
| blank | 91 |
| blank | 92 |
| blank | 93 |
| blank | 94 |
| blank | 98 |
| blank | 103 |
| blank | 116 |
| blank | 117 |
| blank | 118 |
| blank | 119 |
| blank | 120 |
| blank | 124 |
| blank | 127 |
| blank | 131 |
| blank | blank |
| Q2 – Are you ready to submit your preferences? | |
| — Yes, I have reviewed my preferences and am ready to submit | |
| — No, I would like to review my preferences | |
Source: Allstate company documents.
Exhibit 2: Algorithm Output Data
| Open Positions | Employees to Fill | 1st Choice | Mutual 1st Choice (Manager + Employee Ranked #1) | Top 3 Choice | Stayed Under Same Leader | |
| Individual contributor phase | 201 | 173 | 136 (79%) | 126 (73%) | 157 (91%) | 148 (86%) |
| Manager level phase | 73 | 63 | 57 (90%) | 56 (89%) | 57 (90%) | 55 (87%) |
Source: Allstate company documents.
Exhibit 3: Attrition Data
| Turnover Data for D3 | |
|---|---|
| Year | Rate |
| 2017 | 9.5% |
| 2018 | 17.9% |
| 2019 | 16.7% (approximate) |
Turnover is defined as: (# terminations during year)/(average headcount beginning of year and end of year). External benchmark data targets expected turnover at 20–25%.
Takes into account all full-time employees, including directors, vice presidents, unique-role employees, and those with extenuating circumstances, who were not part of rotation algorithm.
Note: In June 2019, 21 employees transferred to another department as part of a restructure. These transferred employees are included in all reported numbers, except for turnover rate in 2019.
| Attrition Data for Employees Involved in Restructure | |||
|---|---|---|---|
| < Top 3 | Top 3 | Didn’t Participate | |
| Total (individual contributors and managers) | 22 | 214 | 22 |
| # who left | 7 | 73 | 12 |
| # who stayed | 15 | 141 | 10 |
Source: Allstate company documents.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
