REPORT

Continental Life has long been a recognized leader in the life insurance industry. The fifth largest stock company in terms of assets, it has been able to maintain a pattern of continued growth in premium income over the past decade in the face of increasing competitive pressures. However, the company's historic marketing environment is undergoing significant change that is having a major impact on its position: buyer interest is shifting from industrial to ordinary insurance, methods of payment are changing from debit collection to premium notice, and competition is becoming much stronger and more broadly based.

Management clearly recognizes that its Field organization suffers from chronic operating problems that stand in the way of improving performance. It also recognizes that organization and management problems in the Home Office keep it from supplying the leadership and guidance to the Field necessary to deal with these problems. Thus, it has appropriately recognized that it would be short-sighted to attempt to correct the problems in the field without having first strengthened the Home Office organization structure and management process. This report spells out how to achieve that objective.