Engaging Stakeholders Through Leadership : Western National Insurance

1547 WordsSep 14, 20147 Pages
Engaging Stakeholders through Leadership: Western National Insurance Successful leaders understand the importance of stakeholder engagement. In fact, the ability to engage stakeholders in a shared vision for the organization’s future is a key indicator of successful leadership (Patrizia & Gianluca, 2013). The following case of Western National Insurance is a study in how leaders can effectively engage stakeholders in order to increase organizational capacity and success. Overview of the Case Pesch, Eide, and Moorthy (2012) presented the case of Western National Insurance, a long-standing company nearing financial disaster in the 1990s. Known as a low-rate insurance provider, Western had failed to increase rates enough to adequately cover current and future loss claims. The CEO was not an active leader, and other company leaders had conflicting opinions on the best course of action. Further, the company did not engage in formal financial planning or budgeting. It lacked the technological resources to analyze business data or process client information. Western’s industry ratings fell, hastening the company’s failure. New CEO Stuart Henderson took on the company’s challenges in late 2001. By 2009, Henderson had led Western National Insurance to becoming a top insurance company with premier industry ratings in terms of performance and financial strength (Pesch, Eide, & Moorthy, 2012). Evaluation of the Leadership at Western National Insurance As new CEO of Western,
Open Document