127 / 148
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.
“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.”
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.
“There is natural resistance to standardize
processes and procedures. This is an area
that we constantly have to reinforce.”
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
127