STRATEGY EXECUTION IN DISCOVERY LIFE AND DISCOVERY INSURE

Abstract

The purpose of this research was to explore the implementation or execution of strategy by the Discovery Group of Companies in its Discovery Life and Discovery Insure subsidiaries using the McKinsey 7-S Model. The research sought to understand how well Discovery Life (an established Life Insurance company) and Discovery Insure (a start up company) are positioned to meet their objectives. The study also analysed whether there are common trends within the strategy implementation adopted by the two businesses that suggest that Discovery adopts a common formula for strategy execution through the Discovery Group. A qualitative study was conducted where 16 indepth interviews were conducted with representatives from the Discovery Group and each of Discovery Insure and Discovery Life. Results revealed both strong similarities and significant discrepancies in terms of the strategy execution between the two companies. Shared values: while the core values of the Discovery Group permeated both businesses, each company focused on specific core values given the stages of their respective life cycles. Strategy: both companies emphasise innovation, product development and product differentiation. Structure: as Discovery Life became more established it moved away from the flat structure that is prevalent in Discovery Insure. Systems: Discovery Life elected to custom develop its own systems. The systems Discovery Insure employed were largely outsourced. This proved to be problematic and the company is now trying to gain more control over its systems. Leadership Style: proved to be transformational in both companies and the importance of being able to articulate a vision is an imperative for Discovery leaders. Staff: roles are clearer and better defined in Discovery Life than in Discovery Insure – of which the latter is on a drive to recruit staff with relevant industry expertise. Skills/Resources: both companies identified research and development (R&D) and product development as key skills or resources. The research has implications for start up businesses in the financial services sector, Discovery‘s international expansion plans and provides an understanding of what drives the Discovery businesses.