Management and Value Analysis of CSAA

There are many household names in car insurance but none so known for customer service and towing as AAA. In California it is a household name for insurance not just maps and towing. Throughout the years they have grown from just handing out maps, they now have car insurance, home insurance, and life insurance. They also have a travel agency, towing, and hotel rating books. They have insinuated themselves into homes all over California, and whether anyone has used or bought AAA before they know the name and many also know the values. Originally AAA focused on towing and that was what people bought them for, and the target market was elderly patrons. Nowadays, any age has AAA but the elderly consumer still make up at least half of the insureds. The target for AAA in regards to insurance is people with decent driving backgrounds or what we call in the industry Preferred and Ultra Preferred. Or in other words no more than 2 tickets or accidents. AAA is definitely not the cheapest insurance out there, but people know if they buy insurance with AAA that they will get high valued customer service. There is story upon story on how AAA has gotten people out of horrible situations and helped them when they were in trouble. In 2005 alone CSAA gained another 576,467 members. This is just in one state mind you, not throughout the US like so many other companies.

In comparison to other insurance companies on a statewide basis AAA has more insureds than any other one insurance company within the state of California. The last two years employees and people insured with CSAA have received money bonuses and dividends because CSAA has done so well in profit they have given back to its people. Not many companies give back to their insureds which just shows how well CSAA has been doing.

The original strategy for AAA was well known and still is. The strategy is to get stranded people back on the road and fast. However this strategy is just for the towing services provided. Since AAA has so many areas of business they have a strategy for each. But they make sure they you can find it on their website along with a plethora of other information. The strategies are very simple and to the point. They all come down to one thing, provide great customer service, and do it with the Values that Jon Poliot has set up with the company. The current strategy for 2005 was very successful. In 2005 alone the amount of people that was helped through AAA towing was over 275,000 which is 30,000 more from the year before. This number is just for battery service not counting gas and other mechanical issues. Their strategy always has a major focus on its famous towing packages however, if CSAA were to focus on the auto insurance aspect more this might help boost insurance sales to even higher amounts then they are currently.

The policies for CSAA are actually what Jon Poliot calls his values. He wants every employee to base their decisions and how they work on the 6 values. The first value is "Members First" this means that when making a decision make sure to make it on the part of the customer, do what is best for them. Instead of finding ways to not cover an insured find some way to make sure we cover our customers. The second value is "Adaptability" meaning change when need to, and open your mind to create changes all around you. The next value is "Integrity" which is just another way of saying be honest with each other and the insureds. If you make a mistake own up to it, there is always a way to fix it if someone knows about the problem. The fourth value is "Accountability" this also falls back to value three. Make sure you're accountable for the good and the bad works that you do. Do not place blame above all else. The fifth value is "Collaboration" which just means this isn't in individual company; everyone works together as a team. Make sure you share your knowledge with others and put the greater good ahead of personal wants. The last value is "Excellence" which speaks for itself. However, a wonderful saying that people say throughout the company embodies this value and that is "Always try to be just a little bit better then you were the day before." The AAA values are a part of internal and external business. In the paperwork an insured gets initially it tells of the values. Within the company they are posted on walls and are also the screen saver on every computer. Although the values were only created when Jon Poliot came on board a few years back, they sync very well with the strategy of the company because all the strategies are centered on "Members First". These values or policies are an integral part of the day to day within the company and how it deals with customers. Every interview for a promotion employees have to state the values of CSAA and explain what they believe they mean. Raises are also partly based on how as employees decisions are made. Each time there is a review and employees have to state how they have embodied the values through the year.

CSAA's mission statement is based on the values as well. The mission statement is this "CSAA believes that a strong culture of shared values is indispensable to our company's success. The six values outlined below, and the behaviors associated with them, are meant to guide employees' actions and shape their relationships with co-workers and Members. These values also guide CSAA as an enterprise as we strengthen and build on our vision of excellence, achievement and industry leadership." I believe the mission statement along with the values is a strong statement. Any company that is willing to put so many detailed statements to guide what they do does resonate with my belief system and morals. The mission statement is really just a foreshadowing of the values which run the company and all decisions made. CSAA comes full circle with their values and decisions.