Supporting and Engaging Stakeholders to Enhance Organizational Capacity

The case study, “Western National Insurance”, provides very insightful information on

the steps taken by Western National Insurance Company to recover from a financial downturn

that faced it in the late 1990s. After being appointed the new company CEO, Stu Henderson took

several steps that were geared towards ensuring that the company recovered from the financial

downturn and consequently help the company recover its position in the market. In the years

leading to the end of the 1990s, Western ran into financial troubles because of the poor

management and leadership techniques used by the company’s CEO in conjunction with the

board of directors. Without the help of the Stu Henderson, the company would have inevitably

gone out of business. George Klouda and the Board of Directors had mismanaged the company

for several years and the effects of their poor leadership and management skills were taking a

heavy toll on the company’s financial performance. However, by taking steps such as solidifying

agent relationships, improving the company’s technology, diversifying the business, branding the

company, mitigating the risks, and becoming the employer of choice, the company was able to

reverse the financial downturn under the leadership of Henderson as the CEO.

As seen above, under the leadership of Henderson, the company took several steps, which

were pivotal in reversing the effects of poor leadership in the previous years. To make a full

recovery, the management had to engage and support all its stakeholders. Western National has

several stakeholders who include the professional agents, reinsurance companies, its employees,

and its management. Henderson’s first step on the job was to meet the top management of the

company. Henderson sought to reassure the company’s management on his commitment to the

betterment of the company and that he would not be taking any drastic changes. By doing this,

Henderson increased the commitment of the manager’s to the company’s vision and strategy….