Algorithmic Management in Action: The Reorganization of Allstate's Data Group
Allstate's Data, Discovery, and Decision Making group (D3) had started as a small group of data scientists helping to quantify insurance risk accurately, but by 2017 the group 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. Both 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.