2018 Best Practices Study

The magic of benchmarking is that it provides a current context for performance assessment. As one Best Practices (“ BP ”) agent noted, “Just knowing we grew at 9% isn’t that useful, but when it is compared to a group growing at 7% or 11%, it tells us a lot more about what 9% really means.” Without context – without benchmarks – agency leaders are still, as they were in 1993, managing in a vacuum, unable to truly discern whether they are front-runners in the industry or whether they are missing the mark.

“Just knowing we grew at 9% isn’t that useful, but when it is compared to a group growing at 7% or 11%, it tells us a lot more about what 9% really means.”

A BP agent on the importance of context

Peter Drucker said it best: “What gets measured gets managed.” If agents and brokers can measure their performance versus best-in-class standards, they can then manage their agencies to improve execution and ultimately increase shareholder value. This facilitation of continuous improvement continues to be the primary value proposition of the Best Practices Study today. “When I talk to small business owners in other industries,” notes one agent, “and tell them about the importance of knowing your numbers, metrics and having guidelines to benchmark against, they are often shocked about what we have access to with the Best Practices Study .”

Traditional benchmarking often delivers a single shot of information that ages quickly and has limited lasting value. But the Best Practices Study takes a different approach - it is designed to provide continuous and immediate access to current information. As one BP agent stated, “I find the benchmarking very useful as a tool. It equips me to look at our past results and then adjust my strategy or direction for the agency. I can compare my results with others in the industry and know where we are performing well and areas we need to improve.”

“When I talk to small business owners in other industries,” notes one agent, “and tell them about the importance of knowing your numbers, metrics and having guidelines to benchmark against, they are often shocked about what we have access to with Best Practices Study .”

A BP agent on benchmarking

A review of historical Study results shows performance can change significantly over time. Chasing old benchmarks is futile. The annual updates to the Best Practices Study deliver fresh data that capture performance changes in real time. Additionally, consistently reported metrics enable repeatable analysis. New Best Practices metrics are added when warranted, but traditional metrics are maintained, enabling agencies to use a consistent performance baseline. In addition, Best Practices Study data and metrics cover the entire agency organization to address both macro-level issues, such as organic growth and profitability, and the more granular analyses critical to agency operations.

“I find the benchmarking very useful as a tool. It equips me to look at our past results and then adjust my strategy or direction for the agency. I can compare my results with others in the industry and know where we are performing well and areas we need to improve.”

A BP agent on the benefits of benchmarking

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