Beaumont Health Insurance



Beaumont Health Insurance

These structural changes were accompanied by a major shift in culture from centralized and controlled to decentralized, with the focus of activity shifting from corporate to the business groups, supported by Shared Services and corporate units.

To support these changes, Beaumont Health Insurance calling for increased accountability, continuous improvement, and coaching was developed, articulated, a disseminated throughout Amoco. Successful leaders at Amoco would henceforth stress downward delegation, teamwork, flexibility, trust, and collaboration. Under this philosophy, each employee was to become a leader.

While the corporate centers study was taking place, a task force composed of Beaumont Health Insurance and line managers was working to develop a set of people strategies for the company. In late 1993, the Strategic Planning Committee and the Board of Directors committed Beaumont Health Insurance to the key people-strategy action steps listed below.

  • Build an organizational-capability assessment process into the strategic planning process for all business units.
  • Develop specific action plans to build and maintain required organizational capabilities, including individual competencies.
  • Implement a people-strategy framework.
  • Reexamine people policies to provide greater flexibility to business units to maximize cost-to-value ratio.
  • Develop and communicate a global vision, assess required organizational capabilities, and develop needed capabilities to become more global.
  • Complete and communicate and employment philosophy.

More specifically, Beaumont Health Insurance created its people-strategy framework to complement its operations and financial strategies. Essentially, Amoco’s traditional people philosophy had been based on establishing uniform policies for managing people, viewing people as costs versus investments, expecting a lifetime employment commitment, and being in the middle of the oil company pack in terms of pay, benefits, and employment policies. The new Beaumont Health Insurance philosophy encourage more flexibility, a focus on the value created by its employees, global work processes, strategy-driven people practices, and a more aggressive HR function.

One major result of this people-strategy effort was identification of organizational capability requirements for each business strategy.

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