Liberty Mutual

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Design Planning Implementation

Institute of Design

Amy Batchu :: Gauri Verma :: Nanqian Xu

Mission: “It's our more than 90-year-old mission of “helping people live safer, more secure lives,” and our employeesʼ dedication to three clearly defined principles”: behave with integrity, treat people with dignity, provide superior products. http://www.libertymutual.com/

“Liberty Mutual purchases Safeco” In september 2008, Liberty Mutual acquired Safeco in a $6.2 billion deal, making them the nation's fifth-largest property and casualty insurer. Safeco becomes a part of Liberty Mutual Group's Agency Markets business unit. Liberty Mutual Agency Markets had revenues of $5.6 billion in 2007. Combined, the organization will have about 15,000 independent agencies.

What does this mean in 2009? • Economic downturn puts high pressure on Safeco to perform • Internal and external structural reorganization • Internal cultural shifts

Culture: Explore these dualities • •

Private vs Public Financials Integration vs. Autonomy Process

Leadership: Identify how the leadership has shifted at multiple levels Note the impact of new leadership People: Identify the impact on various people involved leadership, employees, agents, customers

Understand the reorganization at an employee level am I moving up or out?

Structure: Identify where Safeco fits into Liberty Mutual See how Safeco needs to change in order to fit into Liberty Mutual Process: Learn what Liberty Mutualʼs core competencies are Know why Safeco was purchased, and what further potential it has in products and markets.


Design Planning Implementation Amy Batchu :: Gauri Verma :: Nanqian Xu

Institute of Design


Design Planning Implementation

Institute of Design

Amy Batchu :: Gauri Verma :: Nanqian Xu Following the transaction, Safeco becomes a part of Liberty Mutual Group's Agency Markets business unit. Liberty Mutual Agency Markets had revenues of $5.6 billion in 2007. Combined, the organization will have about 15,000 independent agencies. Both organizations also have surety businesses which when combined will form the second largest surety business in the United States. Liberty Mutual intends to maintain the Safeco name and brand, as it has done with other agencyfocused companies that it has acquired over the years. Even then, what next steps should liberty Mutual take to make this merger into a success? Source: http://online.wsj.com


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