Issues Macro Cause Micro Cause Impacted

Subsystems

Undertook huge Poor Organizational Poor Organizational Structural

transformation Diagnosis at Macro Level: Diagnosis at Micro Level: Subsystem, Goals
even during the Bima Insurance Co. should have When the organization was Subsystem,
company’s good carried out the organizational doing well financially, People Subsystem
financial health. diagnosis of the macro factors transformations at such a
Also, the thoroughly before proceeding huge level raise questions on
company was with the transformation. The the micro level diagnosis.
still dealing with question- “Is there a need for The company should have
post-merger such a big transformation in the determined 2-3 areas which
issues when the current economic condition?” required improvement after a
new CEO should have been addressed thorough diagnosis rather
undertook the before executing the huge than initiating change
transformation transformation transformation on such a
huge level. 

OverHead As Bima was unable to align
Structures issue with the constantly changing
market/sector, the traditional
method that it employed for its
operations caused overhead
structures
Micro Issues were the lack of Technology
cost-efficient processes that Subsystem,
Bima employed. Another External Interface
micro issue can be the subsystem
technology that the company
employed. 

Poor Customer Customers are not in a position The non-availability of External Interface
Experience, to invest (Downfall in online stores made it a bit SubSystem.
Customers are Economy), Short-Term Interest cumbersome for employees.
not satisfied Rates, Other cause could be
incompetent sales employees.
The apps designed are not
user-friendly. There is less
transparency and low ease of
process

External Inability to adapt to the Lack of agility, Poor External Interface

Competition changing environment and benchmarking, Poor Subsystem,
economic conditions.  customer service People Subsystem

Poor Market Industry Growth, Number of Practices were not Agile, Goals SubSystem,
Share Competitor, Competitors Poor Adaptability with Technology
Strategy  Changing Environment, Subsystem,
Tasks not aligned with Structural
strategic goals Subsystem

Poor Financial Fluctuating Interest Rates, The Gross Written Premium, Tasks SubSystem,
Benchmarks GDP also plays a significant Claim Incurred, Management Goals Subsystem
role Expense, Poor Choice of
Capital Structure, 

Stagnating Cost Recession in the Economy Non-Optimized Operating Tasks Subsystem,

Position Model Structural
Poor Governance Structures, Subsystem,
Business Complexity, Technology
Mismanaged IT system SubSystem

Lack of Proper Unfair deals  Complex Management Goals SubSystem

Accountability Layers, Poor Strategy, Tasks Sub
Unrealistic Goals, Ineffective System, People
Leadership SubSystem

Poor Decision Lack of analysis on the macro
Making  level. The data should have
been compiled and analysed
thoroughly
Not able to put forth multiple People Subsystem
solutions. This would have Goals Subsystem
enabled them to choose the Task Subsystem
best solution from the lot.
This is an assumption. Apart
from this complex layer in
the organization would have
made it difficult to get a
consensus over a particular
decision

Post-Merger Changing Technological Inadequate pre-close Technological

Integration Environment, GDP Growth planning contributes to the Subsystem,
Issues failures, Lack of Clear and People
Defined M&A Strategy, SubSystem, Goals
Failure to Prioritize SubSystem,
Workstreams, Structural
Communication Challenges Subsystems
Preliminary Analyses
ALTERNATIVES AND ARGUMENTS
Alternatives
 Incorporation of Technology: Increasing the usage of AI, automation, data, RPA
are effective tools so that the company can provide better offerings. 
 Improve Interaction with the Customer: Bima should focus on understanding all
the touchpoints and interaction customers have with the company. This can be done
by mapping out every possible customer interaction point, then working on
designing a customer experience program. The program will include propositions,
treatment strategies, and optimal customer experiences at every possible interaction
point.
 Adopting Enterprise-Wide Agility: Bima should make usage of cross-functional
tribes and self-managed teams to improve agility and thus the customer
experience. A cross-functional, agile tribe structure will be ideal for implementing
change initiatives. They will be in charge of managing the business, as well as
developing and maintaining products and services; however, they are not typically in
charge of day-to-day operations. The Self-Managed Team can do everyday
operations. These flat, multi-skilled teams distribute work among themselves. These
 teams can manage field sales operations, claims operations, underwriting processes,
and customer service.
 Every alternative should be preceded by a thorough organizational diagnosis. This
will enable Bima Insurance Co to determine if the mentioned changes in the
particular option are needed or not. The company should proceed with the respective
alternative and implement the changes only if the Organizational Diagnosis suggests
so.

Evaluation of the alternatives:

 Since the health insurance sector is basically going through a digital transformation,
using AI and chatbots, MR for enhanced customer experience, handling customer
queries, educating customers would give BIMA a major competitive advantage.

 Since the areas where customer value is given a lot of importance, customer
interaction has also increased. In the insurance industry, customer service and the
customer experience are becoming important competitive differentiators. Bima focus
on meeting consumer demands at each stage of the customer journey in order to
establish a successful relationship between insurers and customers.

 The hierarchical operating models are failing to deliver strategies set by their
executive committees. The enterprise agility will give the upper hand in meeting
customer expectations, improving time to market, creating efficiency, and increasing
employee engagement.

 These alternative solutions would be prudent to incorporate based on the major issues
the company was facing like poor customer satisfaction, lack of accountability,
complex layer of management, ineffective cost structures and also in improving the
position among competitors.

DIAGNOSTIC MODEL

Our team would have used the Force Field Analysis diagnostic model given by Kurt Lewin.
According to this model, there are two types of forces acting on a system, which are driving
forces and restraining forces. The driving forces push for change whereas the restraining
forces resist change in the current system. The change is characterised by imbalance between
these two types of forces. The driving and restraining forces can be both internal and
external. In the merged Bima Insurance Co. the preliminary diagnosis reveals following
driving and restraining forces:
Internal driving forces:
(a) Poor efficiency as company had large overhead structures
(b) Change of leadership, as new CEO Dr. A took charge in 2018.

External driving Forces:

 (a) Increased competition from competitors as they were successful in improving their
service in a market where prices are fixed.
(b) Customers desired best overall experience in addition to the products offered.

Restraining forces:
(a) The resistance by employees to whole process of delayering can be a restraining
force.
(b) Shareholders can be averse to any change because of company’s relatively good
financial health. This can act as restraining force.

The methods our team would use in conducting diagnosis will be questionnaires which will
be given to employees to fill; interviews of selected employees that were working in Bima
and Janbima before the merger and interviews of customers; analysis of hard data of the
organisation; reporting and examining critical incidents pertaining to customer experience.
Type of Data
 Hard Data
1) Annual financial statements and budget of the company will be required to
analyze the operating cost, insurance prices, employees’ expenditure, sales and
marketing expenditure etc. This data will help to improve the cost position of the
company and will give insights where the company can reduce its expenditure.
2) Annual financial statements of competitors will be required to analyze the areas
where they are doing better job in comparison to Bima.
3) Sales or profit per employee needs to be collected which will give direct insights
about employees’ performance and indirect insights about customer relationships.
4) Secondary research on best client service models in the industry.
5) Government reports like census, Reserve Bank of India reports, reports on
international organsations like World Bank and IMF to analyse the trends in
demographics and income levels of the population. This will help in optimizing
products and services according to the needs of customers of Bima. This will also
help in analyzing the density of the company branches and how easily accessible
they are for the customers living in different locations.
 Soft Data
1) Customer surveys and interviews will be taken to take into account their
experiences with company’s products, whether the current insurance plans are
simple to understand and to get insights on their buying pattern.
2) Employee surveys and interviews will be taken to find out if there is any
communication gap in the organization.
3) Collecting critical incidents pertaining to customer experience.

Plan for collecting Data

a) Setting objectives: In this phase the purpose of data collection will be clarified. This
will help in selecting the methods and standards for data collection. In the Bima case,
 the purpose is to improve the overall customer experience. To achieve this purpose,
direct surveys and interviews of customers will be taken. Employees’ interviews and
questionnaires will also be used to get useful insights. In addition to it, reliable
resources will be used for collection of hard data like government reports, published
financial reports, etc.
b) Selection of key factors: This involves following steps:
1) To determine the kind of data that is available. This step will involve in
identification of key variables. In Bima case, the variables are like market share,
customer experience, operating costs, etc.
2) To determine what amount of data to be collected. Whether to cover a sample
population or whole population. In Bima case, a sample population from different
geographies will be covered.
3) Next step will be to determine who will collect data. The data collection
responsibility will be given to a person not directly involved with the respective
field to negate the chance of any bias.

COMMUNICATION AND FEEDBACK STRATEGY

Stakeholder Mapping

Stakeholder Concerns, Socio - Impact

s expectations, and dynamic
general attitude position 
towards change

Customers Better Service Golden Although Bima has launched many

Standards Triangle initiatives targeted to maximize
Increased customer satisfaction, many of them
Satisfaction will be skeptical of the new changes
Hassle free service and their satisfaction depends on the
success of the new strategies. They
Positive attitude will have high synergy and medium
(Not Convinced) level antagonism towards the changes.

Employees Job Security  The company reduced workforce in

Job Satisfaction some areas and increased the number
Competitive salary of customer-facing employees. It also
and remuneration appointed specialised administrators
for more efficiency. This will have a
Negative attitude mixed reaction among the employees.
(seem to support on Some employees will have concern for
superficial layer) Waverers job security while others will have a
positive attitude towards new
opportunities of job growth. They will
have medium synergy and medium
antagonism.
 Shareholders Income/Profit As the financial conditions were good
Increased capital so some of the shareholders might not
accept the change. On the other hand
Negative attitude many will have faith on the new CEO
(Support on and will support him in his decision.
superficial layer) So they will have medium synergy and
medium antagonism.

Competitor Greater market share Opponent The initiatives to increase the number
Customer Loyalty of customers through improved
Development and customer satisfaction will capture the
growth market share from a particular rival or
reinforce the loyalty of the customers.
Negative attitude They will have high antagonism and
low synergy. 

Managers Freedom to make Zealots The streamlining process will increase

decisions accountability and improve decision
Status, making. This will provide more
acknowledgement autonomy to the managers. Thus they
will have strong synergy and no
Positive attitude antagonism.

Resistance is a natural part of the change process and there would be challenges in
communicating the change during the process. Similar challenges is faced by Bima, and it
requires effective communication to drive change in the company and reduce resistance.

CONFRONT ARTICULATE DEMONSTRATE

REALITY VISION FAITH

Rational individuals will question the change need and process, but here the role of senior
management becomes very vital to tackle resistance. They need to confront the reality,
articulate a compelling need for change and demonstrate faith. Leadership team of Bima,
should first identify people who can drive a change and have a positive impact on the people.
Then they identifies people have to come up with a strong and honest business case that
change is the only way to keep the business viable. They then need to craft a compelling
vision to give direction to the company. By confronting reality and helping employees,
leadership team can motivate employees to follow new direction in the midst of delayering
and other transformational processes. This case for change and vision should be developed by
the top management, but they need to identify change agents in the middle management, who
will design company wide change programs.
Communication challenge can be handled in a better way, if the company does contextual
analysis and audience analysis. Contextual analysis is important to understand the history of
past internal communications, readiness etc. On the other hand, programs should be
customised as per audiences and for that the company needs to do audience analysis.
Company should follow simple, clear and consistent mechanism to communicate change to
customers and shareholders. Multiple forums should be used to communicate and more
formal forums like webinars, meetings and newsletters etc must be used for shareholders.
Following communication strategy should also be adopted
1) Communicate 2) Communicate as early as 3) Reinforce and build upon
frequently possible the trust
- Repetition will reduce - Early communication to - Employees trust their
resistance and increase the provide relevant information direct heads more, leverage
likelihood of retention and and reduce uncertainty as this relationship to
demonstrate importance of early as possible. communicate change.
change to all stakeholders. - Formal dialogue is vital, - Focus on reducing
- Take time to communicate and grapevine information uncertainty and
how the change will benefit sharing must be reduced for communicate on facts
stakeholders change information - Speak the truth and change
- What’s in it for me factor - Rumours need to be agents must design
must be explained stopped customised communication
programs

After implementing plans, company should collect feedbacks to validate that messages are
received and understood by stakeholders. Feedback supports 2-way communication and
increases effectiveness. Feedback can be collected through small online surveys and special
review measures must be developed as per programs. Exchange of dialogues is vital.
Company should use a community discussion group for customers to share all the relevant
information about the change and invite customer feedback if any. The views can be positive
or negative but company should take all the points into consideration. Meetings can be held
and also surveys can be conducted so that the information is passed onto the shareholders,
and their feedback can be taken. The communication with all the stakeholders must be
constant, so that change communication progress can be monitored.
Thus a proactive communication and feedback strategy should be adopted by the company
and they should also keep in mind the emotional state of stakeholders like anger, stability,
denial, depression etc.
APPENDIX

SUBSYSTEMS

AGILE ORGANIZATION
Stakeholder Mapping
References
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