Addresses Latest Allstate Changes, Explains How KPI Will Be Measured
October 23, 2009
Many questions have arisen since Allstate announced late last week
that it would develop a Distinguished Performer program within its
auto glass network, and that participation in the program would
be based on Key Performance Indicators (KPI). Chris Umble, vice
president, strategic initiatives, for LYNX Services, which administers
glass claims for the Northbrook, Ill.-based insurer, provided answers
to some of the many questions glassBYTEs.com/AGRR magazine
readers have had about the program.
GB: How will the Key Performance Indicators be measuredspecifically
the Customer Service Index (CSI)?
Umble: Customer surveys are conducted on a sample size that
includes over 50 percent of all Allstate auto glass claims. Historically,
the CSI program generates a 30 percent average response rate, allowing
sufficient data to distinguish the CSI performance of one Glass
Claims Express (GCE) Participant versus another. Survey ratings
received during the measurement period will be used to calculate
a company's CSI score. Individual company CSI scores will be evaluated
against the consistently high overall Allstate program score.
GB: The notice mentions that for both Warranty Performance
and the Customer Service Index, participants must be at the "established
KPI level." How will this level be determined?
Umble: Allstate completed an analysis based on years of
data and established benchmarks for each KPI. The benchmarks are
broad enough to ensure high participation at Tier 1; indeed 98.9
percent of our historical replacement claims will covered by two
or more Tier 1 GCE participants. Allstate will not communicate the
KPI benchmarks for competitive reasons, but through
Services, and the METRYX registry, [it] will take meaningful steps
to help each GCE company understand how they are performing against
GB: There has been some concern expressed among readers that
pricing competitiveness is a very important part of the Distinguished
Performer programhow would you respond to those concerns?
Also, how will this be measured?
Umble: Allstate realizes that price is an important component
of value in any purchasing transaction. It should be clear with
this initiative that Allstate will utilize non-price KPIs actively
to recognize best in class performance. Our best-in-class performers
will comprise our Tier 1 participants.
GB: Some shop owners may be part of Allstate's network (and
may have been for some time), but might not have received 60 jobs.
How can these businesses become Distinguished Performers? What is
the time period to complete the 60 jobs?
Umble: In order to ensure that a broad cross section of GCE
Participants have the opportunity to participate in the Tier 1 level,
companies with [fewer] than 60 jobs in the past 180 days will be
evaluated on the 60 jobs preceding the evaluation date. The data
search will go back as far as three years if needed to include the
minimum 60 jobs required for an assessment of performance. If a
company has not performed 60 participant jobs in the previous three
years, there is not adequate relevant data to be considered for
the Tier 1 level.
GB: What brought about these changes?
Umble: While the GCE Program is designed to treat all participants
uniformly and with consistency, there are important differences
that distinguish GCE Participant companies one from another. Such
differences include KPIs such as CSI and Warranty Frequency/Performance.
Such measures, and others, comprise a set of KPIs that differentiate
Tier 1 performers from the at-large industry participants.
Allstate also recognizes that the performance of any one company
may change over time. For example, today's Tier 1 performer may
not sustain a distinguished level of performance or commitment to
Allstate. Likewise, Tier 2 GCE Participants may improve their results
over time, qualifying them for Tier 1 designation. In short, the
Tier 1 designation is one that must be continually demonstrated
by consistent delivery of services that provide a "Best in
Class" claims experience for Allstate policyholders and claimants.
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