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Analysis of Agencies with Revenues
Greater Than $10,000,000
B
USINESS
P
LANNING
“Business planning is one of our
greatest strengths. We don’t try to take
on too much, but what we take on, we
make certain that we accomplish.”
“The employee’s participation in the
planning process is one the most positive
things that they have the opportunity to
do. Not only does it help them to be
informed, but it also gets them involved
and gets them committed to the plan
that they agree to.”
Historically, business planning was something that few firms
invested much time and effort in and something that few firms were
very good at. Well, times have changed and the business practices
of the leading agencies have changed as well. A look at these
Best
Practices
agencies clearly indicates growing commitments to
business planning.
For the most part, these agencies’ principals do not see business
planning as a terribly complex process. As stated by one agency
principal, “It is more fun to get people together, get them informed,
let them decide where you want to go and then get them committed
to accomplishing it.” This type of process does require a willingness
to share information with employees and to allow them to participate
in the decision-making process. It also requires an investment in
time in preparing for planning sessions, the planning sessions
themselves and the follow-up required.
Firms that are successful at business planning recognize that plans
should not only be long-term and strategic, but also should translate
to very specific action steps that identify the actions to be taken, the
responsibility for taking the action and the time table that is
anticipated. Once a business plan is put in place, it must be
reviewed regularly and those assuming responsibilities for
implementation of the plan must be held accountable to execute on
a timely basis. Employees also must be given the latitude, tools,
and resources needed to execute the portions of the plan for which
they are responsible.
L
EADERSHIP
D
EVELOPMENT
As good as these
Best Practices
agencies are, leadership
development is an area where very few consider themselves to be
doing a good job. Very few of them would list this as a core
competency and yet the same time, virtually all of them recognize
how important leadership development is if they are to be in a
position to grow the organization and to support the perpetuation of
its ownership and operations. The biggest challenge faced by most
of these firms is a lack of leadership talent. Experience has shown
many of these firms that the best talent is not going to naturally
gravitate to the insurance agency business, but is going to have to
be recruited. Once recruited, many firms have found it difficult to
develop the talent that they have. Most would recognize that
leadership is a natural ability that either exists or does not exist. At
the same time, people with leadership potential can be taught and
can learn to develop their leadership skills. This occurs most readily
when they have a personal example that they can learn from within
the agency itself.
“The hardest problem we have in
developing leaders is finding the raw
talent.”
“We had a hard time developing leaders.
Our greatest success has come from
hiring people with demonstrated
leadership ability and then giving them
an opportunity to use it.”
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