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Reward Programs Integrated with the Strategic Plan


The health care unit of a top insurance company wanted to assess how well its human resources programs supported its long-term business strategy to become a dominant leader in the HMO and Preferred Provider Network industry. Like many of its competitors, health care was just one business line for this multiline insurer. The health care unit’s business heads were convinced that they needed to modify the “cookie cutter” human resources programs that were in place across all of the company’s business lines.


The D.G. McDermott Associates team interviewed the top 15 executives of the health care business to understand its strengths and weaknesses, competitive advantages, specific three- and five-year business goals, underlying assumptions driving those goals, and the human capital requirements for achieving long-range goals.



DGM delivered a comprehensive report including an overview of the health care industry citing trends, key operating assumptions and critical success factors; an overview of each of the key functional areas vis-a-vis the industry trend and analysis of each of their human resources capabilities to achieve stated business objectives; and an analysis of the current human resources programs, especially compensation design and practices that were no longer relevant.



The client sought and received approval for modifications to the corporate human resources policies and submitted and received approval for a customized compensation program that tied current and future strategic performance criteria into a new reward system that incorporated incentives.


Learn more about our compensation consulting and organization design services.