2001 Best Practices Study

Analysis of Agencies with Revenues Greater Than $10,000,000

internet as a source to generate leads, particularly as it relates to specialty programs and niches. For these firms, revenue growth can not only come organically or internally, but also through acquisitions. Many of these firms have developed growth strategies that involve acquisitions of other insurance agencies as well as producers with books of business. T ECHNOLOGY U TILIZATION Although virtually all of the Best Practices agencies recognize the importance that technology will play in their future success, few of them feel that they are currently using technology as fully as it can or should be used. Most of these firms feel that they have selected the best agency automation systems available, but generally feel that even the best leaves a lot to be desired. Most have made commitments in the development of websites with the initial focus being “E-brochures” but with a transitioning focus on customer service, sales, lead development and communication. At this point, most of these firms feel that the biggest payback they get from technology is in the area of productivity. Technology is recognized as being the key to their ability to significantly increase their revenues while maintaining or even reducing the staff required to generate the revenues. Despite their frustrations with technology, the principals of these firms recognize the importance of making ongoing investments in the area of technology. This includes investments in not only hardware and software, but also investments in the training and development of their people. Recognizing how quickly technology is being developed, a number of these agencies have recognized that the most important objective for them to accomplish is having employees that are capable of – and open to – embracing new technology when it is available. These principals also recognize the importance of making ongoing investments in finding new technology. For most, this does not mean hiring programmers and developing their own applications. Even the largest agencies have drawn the conclusion that developing their own solutions can not only be very expensive, but can also be a huge distraction to their primary objective of being a sales organization. As such, the focus of many of these firms is on finding applications and partnering with others that have applications that will work for their benefit. E FFECTIVE P ROCEDURES /P ROCESSES Few of the Best Practices firms would identify effective procedures and processes as one of their most critical success factors. At the same time, all of these firms would recognize this as a core competency without which they would have a very difficult time effectively serving their customers and doing so with a reasonable level of efficiency. In all of these organizations, they have come to recognize that the implementation of technology and the

“As frustrating as it may be, we have to make ongoing investments to continually upgrade our capabilities as it respects technology.” “Document management systems have had a huge impact on our ability to increase our productivity.” “The motivations for our investments in technology are both defensive and offensive. We have seen where it can put us at a competitive disadvantage. We are seeking ways where it can put us at a competitive advantage.”

“There is natural resistance to standardize processes and procedures. This is an area that we constantly have to reinforce.”

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