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IAI Actuarial Core Principles · Business Management · Communicating strategy; culture and structure in decision making; strategy case studies

Suraksha Life, an Indian insurer, is rolling out a new strategy to move from traditional savings plans to digital term protection. The CEO wants to brief the branch sales force, who are anxious about their roles. Which approach to communicating the strategy is most likely to secure their commitment?

The best approach is to explain the rationale and the implications for the sales force's roles, and to offer two-way forums for questions. This builds understanding and commitment, whereas one-way, filtered or delayed messages leave uncertainty and resistance.

  1. ASend a single detailed email with the full strategy document and request no feedback
  2. BExplain the reasons for the change and what it means for their roles, and provide forums for two-way questions and discussionCorrect
  3. CShare the strategy only with branch managers and let them decide what to pass on
  4. DAnnounce targets for the new products and delay explaining the rationale until results appear
  5. Wait until the strategy is fully implemented before informing the sales force

Explanation

Commitment is built when people understand the why and their own part in it, and can voice concerns. One-way, partial or delayed communication leaves anxiety and rumour unresolved, so it is less likely to gain buy-in.

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