Mountain West Health Plan Case Analysis
MOUNTAIN WEST HEALTH PLANS, INC.
PROBLEM STATEMENT
a. FACTS OF THE CASE:
Mountain West Health Plans, Inc. – Denver-based health insurance company
Martin Quinn – Senior Vice-President for Service and Operations
Evelyn Gustafson – Former and retired Director of Mountain West Customer Service Department. Her motto “always put yourself in the subscriber’s shoes”. In her time, there were only 10% turnover rates in the department compared to the typical 25% to 45% rate for customer service representative. She firmly resisted all attempts to increase efficiency and lower cost in the department where salaries accounted for close to 70% of the budget.
Erik Rasmussen – newly hired Director of Customer Service, the replacement of Ms. Evelyn. He is a young man in his late twenties with a shiny new bachelor’s degree in business administration. The management tasked him to bring down the cost on the department.
Under Mr. Erick, the company, for the first time measured the representatives’ performance and used software that generated automated work schedules based on historical information and projected need. Also, the company cut back on training. The department cost was finally heading downward, though department morale was downward, with the current turnover rate climbing at 30%. Also receiving more complaints from subscribers of inaccurate information from inexperienced or representative who sounded rushed.
b. KEY PROBLEMS
How Mr. Quinn will address the issue of low morale among the employees in the customer service department and its high turnover rate, while keeping and meeting the goal of the company to increase efficiency and lower the cost incurred in the department?
KEY OBJECTIVES
To meet the company goal to increase the efficiency of the customer service department and lower its cost.
To uphold the morale of the employees and to reduce turnover rate from 30% to 10%.
ANALYSIS OF CAUSES
A. Analyzing the leadership and management style of Ms. Evelyn
PROBLEM STATEMENT
a. FACTS OF THE CASE:
Mountain West Health Plans, Inc. – Denver-based health insurance company
Martin Quinn – Senior Vice-President for Service and Operations
Evelyn Gustafson – Former and retired Director of Mountain West Customer Service Department. Her motto “always put yourself in the subscriber’s shoes”. In her time, there were only 10% turnover rates in the department compared to the typical 25% to 45% rate for customer service representative. She firmly resisted all attempts to increase efficiency and lower cost in the department where salaries accounted for close to 70% of the budget.
Erik Rasmussen – newly hired Director of Customer Service, the replacement of Ms. Evelyn. He is a young man in his late twenties with a shiny new bachelor’s degree in business administration. The management tasked him to bring down the cost on the department.
Under Mr. Erick, the company, for the first time measured the representatives’ performance and used software that generated automated work schedules based on historical information and projected need. Also, the company cut back on training. The department cost was finally heading downward, though department morale was downward, with the current turnover rate climbing at 30%. Also receiving more complaints from subscribers of inaccurate information from inexperienced or representative who sounded rushed.
b. KEY PROBLEMS
How Mr. Quinn will address the issue of low morale among the employees in the customer service department and its high turnover rate, while keeping and meeting the goal of the company to increase efficiency and lower the cost incurred in the department?
KEY OBJECTIVES
To meet the company goal to increase the efficiency of the customer service department and lower its cost.
To uphold the morale of the employees and to reduce turnover rate from 30% to 10%.
ANALYSIS OF CAUSES
A. Analyzing the leadership and management style of Ms. Evelyn