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.
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Case Study|
February 05 2021
Algorithmic Management in Action: The Reorganization of Allstate's Data Group
This case was prepared by Kellogg doctoral candidate Kaylene J. McClanahan and Moriah M. Wilson. Special thanks to Diana Yi for gathering relevant data and providing details on the realignment.
Publisher: Emerald Publishing
Received:
April 24 2025
Accepted:
April 24 2025
Online ISSN: 2474-6568
© The Kellogg School of Management at Northwestern University
2021
Northwestern University
Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. This case was based on interviews with company employees. For pedagogical purposes, the authors might have fictionalized individuals, conversations, strategies, assessments, or other details. To order copies or request permission to reproduce materials, call 847.491.5400 or e-mail cases@kellogg.northwestern.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Kellogg Case Publishing.
Kellogg School of Management 1–11.
Article history
Received:
April 24 2025
Accepted:
April 24 2025
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Citation
McClanahan KJ, Wilson MM (2021;), "Algorithmic Management in Action: The Reorganization of Allstate's Data Group". Kellogg School of Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/case.kellogg.2025.000001
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