1. What symptom(s) exist in this case to suggest that something has gone wrong?
2. What are the root causes that have led to these symptoms?
3. What actions should the company take to correct these problems?

TransAct Insurance Corporation (TIC) provides automobile insurance throughout the southeastern United States. Last year, a new president was hired by TIC’s board of directors to improve the company’s competitiveness and customer service. After spending several months assessing the situation, the new president introduced a strategic plan to strengthen TIC’s competitive position. He also replaced three vice presidents. Jim Leon was hired as vice president of claims, TIC’s largest division, with 1,500 employees, 50 claims center managers, and 5 regional directors.
Jim immediately met with all claims managers and directors, and he visited employees at TIC’s 50 claims centers. As an outsider, this was a formidable task, but his strong interpersonal skills and uncanny ability to remember names and ideas helped him through the process. Through these visits and discussions, Jim discovered that the claims division had been managed in a relatively authoritarian, top down manner. He could also see that morale was very low and employee- management relations were guarded. High workloads and isolation (adjusters work in tiny cubicles) were two other common complaints. Several managers acknowledged that the high turnover among claims adjusters was partly due to these conditions.