STEPS AND CRITICAL FACTORS TO A NEW MANAGER S SUCCESS IN AN INSURANCE AGENCY SPONSORED BY

Transcription

1 STEPS AND CRITICAL FACTORS TO A NEW MANAGER S SUCCESS IN AN INSURANCE AGENCY SPONSORED BY

2 Steps and Critical Factors to a New Manager s Success in an Insurance Agency Innovative Management Solutions, LLC Christine M. Sullivan PO Box 1211 Barre, MA (978) chris@innovativemanagementsolutionsllc.com 1

3 Christine M. Sullivan, CIC Certified Insurance Counselor Fully licensed Broker in all lines of insurance 23 years experience in Insurance Agency Operations Management 29 years experience in the insurance industry Operational Manager of three different insurance agencies Management and Executive Team Coach Workplace Culture Specialist 2

4 Professional Development and Focus Programs: Personal Lines/Commercial Lines Account Manager training and employee development Study and evaluation of Roles and Team with regard to the agency s mission, vision and goals Management mentoring and executive coaching programs Operational restructures evolving the agency s focus from a process-related to a behavioral-related sales/service culture. Producer training and development programs Time Management/Standardized workstation setup Focus on E&O protection with the agency without crippling the sales functions with too many redundant processes Development Procedural manuals Institution of Client Relationship Management programs Loss Ratio Management Program Workplace Culture Program 3

5 Critical Factors and Steps to A New Manager s Success in an Agency Leadership and Time Management Development Identification Process of Selecting and Evaluating an Effectively Functioning Team Book of Business Analysis Perfecting your Operational Processes, Workflows and Procedures Communication with your Team, Prospects and Clients Controlling your loss Ratio Overview of Operational and Management Development 4

6 Critical Factors and Steps to A New Manager s Success in an Agency You must begin with YOU FIRST! Lead by example Walk your talk Don t ask anything of anyone else that you have not or would not engage in yourself. Demonstrate honesty and integrity at ALL TIMES! Next invest in your TEAM! Without an effectively functioning team, Synergy is impossible! 1 + 1=3.= SYNERGY= TEAMWORK 5

7 Key Concerns and Factors with A New Manager.. DO You Know What You DON T Know? Do you have the right team? How do you know? Do you know what accounts are your A accounts? How do you determine them? How often do you re-evaluate? Does your team all operate on the same page with sales, processes, effective use of the management system? How well and how often do you promote open communication? How? Does everyone in the agency understand the impact a loss ratio has on the agency? Do they know what it is? How many team members can recite and demonstrate the agency s mission, vision and value-added propositions.. How often do you Inspect what you Expect! Do you walk your talk? 6

8 Leadership and Time Management Development 1. Lead by Example Never expect your team to do something you would not do yourself. 2. Have Passion for what you do you can inspire so much in others through your own passion and enthusiasm. 3. Be Organized When you re organized you will be much more productive and so will everyone else. 4. Delegate You can t do everything. A great Leader needs to delegate effectively. 5. Take Ownership & Responsibility Your team needs to know that you will be there for them through good and bad times. 7

9 Leadership and Time Management Development Continued 6. Communicate Effectively It s critical that you communicate to employees how their work matters in the bigger picture 7. Be Honest and Demonstrate Integrity You must learn how to present things to your team in an honest but balanced manner. 8. Be a Great Listener Motivating means listening to them, asking them questions, understanding their issues. 9. Know your Team The more you know and understand your team, the more you will be able to identify their strengths and attributes. 10. Be a Follower Being a leader-follower means finding value in your team, getting inspired by your team, encouraging your team to communicate, brainstorm and be open. 8

10 Identification Process of Selecting and Evaluating an Effectively Functioning Team. 1. Absence of Trust Trust your team 2. Fear of Conflict Encourage open communication 3. Lack of Commitment Clarity of expectations and service standards 4. Avoidance of Accountability Create Clear Goals and Expectations 5. Inattention To Results Inspect what you expect Observe, Recognize and Reward 9

11 Identification Process of Selecting and Evaluating an Effectively Functioning Team. How do you measure the level of trust within your team? Open communication is the key to trust in any relationship. Do you receive input for meeting agendas? WOW factors.are important to share If your team fears conflict and the leadership team doesn t promote good, open conflict The team will build walls and communication will diminish Difficult conversations if handled appropriately, are generally great learning experiences for the entire team. 10

12 Identification Process of Selecting and Evaluating an Effectively Functioning Team. Do you feel that your team could improve on its functionality and efficiencies? Working smarter so they don t have to work harder.. Do you feel that it is more important to focus on an individual s strengths or their challenges to promote both personal and professional growth? Don t sacrifice the Good for the Perfect! Every team has Roadblocks, but the key is to identify, communicate them and together learn how to overcome these. 11

13 Human Resources Objectives The Hiring Process Every agency should have a process Application Prequalification The Interview Process Offer of Employment What is your process? The Training Process First day, week, year Importance of a new employee checklist Dedicating trainer and training outline Have a timeline Set goals Benchmark 12

14 HR Objectives (cont.) The Employee Review Process Inspecting what you expect daily, weekly, monthly, quarterly, annually Mentor your team members Set the stage for success with goals, objectives and key priority initiatives Annual reviews are not enough. Use quarterly road maps, they work very well. 13

15 Book of Business Analysis Process Critical /Key Factors: Mono-line versus full account ratio Is it measured? Can you report on it? How? Management System Marketing Programs Client Files Involve your Carriers, they have great reporting functions When? Monthly/quarterly/annually 14

16 Book of Business Analysis (cont.) Personal vs. Commercial Account Ratio Identifying accounts not profitable to agency How are they identified? What is done to communicate this to your staff? What factors do you use to determine? SDIP points? Mono-line no chance for cross sell Losses Credit score Non-pay canc. Low premium high activity Chronic Complainers (life drainers)! Constant focus on pricing only No Potential for Cross Sales Tenure with the agency 15

17 Book of Business Analysis (cont.) Do you know your carrier s key factors for voluntary business? Pre-screen the accounts 120 days prior to renewal Develop a proactive process Identify those the current carrier will not renew Is it worth saving? Can you find another home? How is this all communicated between departments and to account managers? Are you ok with MAIP/Surplus business? How will you service it? Do you identify it? Remember on MAIP, when it is clean and 3 you own it! 16

18 Perfecting Your Operational Procedures and Workflows Is everyone on the same page and doing things the same way? How do you know? Procedures /Training Manual who updates and when? System Documentation - Activity(Notes) and Suspense (follow-up) Note or Activity: when performing any service for or on behalf of any client. No note means it never happened! Use codes that as specific as possible to the actual service or workflow you are completing. Avoid generic codes Ex: Telephone in or Telephone out Document as if you will never be the one to read it again and not for 2 years. Write the most important information in the first 20 characters If you need to write a book write it at the end! Proof-read before saving! 17

19 Perfecting Your Operational Procedures and Workflows..Cont. What reports are being done? Inspect what you expect Activity (Note) reports Suspense (follow-up) reports What analysis is done? Workstation Audits Who performs, when and what is the process? Allow your team to hold themselves responsible at times! Mentor and monitor.. Don t babysit! 18

20 Excellent Oral and Written Communication Skills Are A Must! Communication is the key to any successful agency, service, sales and/or management team. Without this, the foundation of all the relationships will crack. How well do you communicate with your Team, Carriers, Clients, or Prospects? If you don t know, you need to figure it out and soon! Ask them 19

21 Communication with Your Team How do you communicate the importance and create awareness about controlling loss ratios to your team/staff? Staff meetings? Inter-office memos? Small group learning discussions? Does your staff have the opportunity to make suggestions on how to effectively manage this process? If they take time to offer, take time to listen! How often are their suggestions put into action? Demonstrates that they are heard! Are processes and procedures updated to reflect these? THE FOLLOW-THROUGH PROCESS! 20

22 It s ALL about Expectations Eliminate the Fear of the Unknown 1. Ask the clients and prospects what they expect from the agency. 2. Ask why they left their prior agency? 3. You may not be able to deliver what they want or need, but at least you have opportunity to let them know. 4. Outline your expectations of them as clients. 5. Watch their reaction to the questions and that you care enough to ask what is important to them. 6. It s powerful! 21

23 Be a Good Listener If you ask the question, listen to the answer. Let them open up to you. You can choose later what you will file in your memory. Empathic listening is a major key to earning trust and credibility. Let them get a word in. Stop, breathe, open the door for listening. Me professionally/personally 22

24 Why Walking Your Talk is So Critical Walking your talk demonstrates your dedication and buy-in to the changes and evolution of the agency. It also builds trust and leadership in your company. If you make a change or decision follow it yourself until you decide to change it. Do what you say you are going to do; don t make a promise you can t keep. This diminishes the trust! Act as if you are PART of the team, not always ahead of it. Help people achieve the goals that are important to them, as well as the goals that are important to you and the company. 23

25 Controlling your Loss Ratio Staff Communication and Awareness Benchmarking and Tracking Results Carrier Communications 24

26 Staff Communication Agency Underwriting Guidelines Do you have them? Do you pre-qualify your prospects? Do you re-evaluate current clients? Does your staff know these guidelines and are they able to communicate them to clients/prospects? 25

27 Staff Communication (cont.) Claim Processes Who handles the claims? The agency, or are the clients sent directly to the carriers? How are open and closed claims tracked? Who in the agency monitors open reserves and discusses them with the carriers? When? Are Account Managers/CSR s trained to risk manage through claims? Seek higher deductibles, discussion of potential loss amounts vs. surcharges? Educate the clients on when to self insure a loss Insuring for catastrophic reasons vs. need to insure for every incident or loss This economy is promoting more loss frequency Property policies should not be used to fund maintenance and upkeep. 26

28 Tracking Loss Ratio Results How often are the loss ratios reviewed? By whom and how? With Principals and Marketing reps only? Do you involve department managers/key staff in some of the meetings with the company marketing reps? Are the reserves reviewed regularly to ensure that takedowns are controlled? Do you do this at certain times of the year? Quarterly? And absolutely in late September, early October to be sure they are adjusted prior to year end figures. Do you offer incentives to your team to keep the claim info up to date and reserves at a minimum? 27

29 Overview of Operational and Management Development Why is a Business Plan Important? Agency Mission and Vision Aligned with the Agency s Goals Account Review Process/Procedures Human Resource Objectives Risk Management and Discovery Tools Agency Underwriting Guidelines Service Standard Importance Account Review Template 28

30 Business Plan Importance and Development Why is a Business Plan Important? A plan that that allows a business to look ahead allocate resources focus on key points prepare for problems and opportunities. It is a road map for the agency s evolution and new direction. It must be clearly defined to the entire staff where you are going how you intend to get there. This will promote communication, goal-setting and benchmarking. 29

31 Agency Vision The direction your company is going. Your vision statement is your inspiration. The framework for all your strategic planning. You are articulating your dreams and hopes for your business. It reminds you of what you are trying to build. Should be brief, clear and inspirational. 30

32 Agency Mission Why do we exist? Mission: is a brief description of an agency s fundamental purpose. It answers the question, Why do we exist? The mission statement articulates the agency s purpose for: o the organization and for the public. Ideally only 2-3 sentences in length. o Make sure that everyone can memorize it and communicate it without reservation or hesitation. o Must be clear, concise, easily communicated and understood by: Your staff Your carriers And your clients o Must be able to be effectively communicated in your advertising. 31

33 Importance of Inspecting What You Expect and How Your staff must have clearly defined, written expectations and goals. What needs to be done, when and what are the standards. This is not micro-management If communicated correctly Monitored correctly It is simply good business practice Once the tasks are delegated, they must be monitored Set up a system of reporting - Don t just assume! Communicate the results Create a learning environment. Promote open communication and discussion. 32

34 Risk Management Processes and Discovery Tools Agency Underwriting Guidelines Develop Guidelines Involve your entire team in this process, if possible. Put the guidelines in writing for the management, sales and service teams. Distribute them and communicate the importance of these. Your survival depends on it! Be sure you can inspect what you expect with these guidelines develop a tracking method with management system. Review these quarterly with your team and benchmark against them with your new business and attrition results. 33

35 Risk Management Processes and Discovery Tools Cont. Service Standard Importance Promotes professionalism, awareness and communication between clients, carriers and coworkers. What can their clients expect from your team and services? Communication services Products and Services Risk Management Services Claim Services Agency Contacts Customer Feedback Procedures Account Review Template Use a Risk Analysis Questionnaire 34

36 Red Priority Folder GREAT tool for Management and your Team Great visual avoid out of sight, out of mind urgencies. Allows you to gain piece of mind when you have a sudden need to be out of the office. Management can jump in and redistribute if needed. Rules for the RED folder: Only place high priority items to be completed within the same business day in the folder. You must commit to that. You can t leave the office until it has been emptied. Alternate the work in the folder with your daily work. Allows you to accomplish both priority and daily work throughout the day.