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Keys to Maximizing Productivity
With average revenues per employee of just under $160,000, these firms have demonstrated their
ability to achieve outstanding levels of productivity. Where the principals were asked what the
keys were to achieving those levels of productiv-
ity, the most prevalent answers, were effective
management; use of technology; providing incen-
tive-based employee compensation plans; and
being very focused and strategic in the business
written. The most prevalent technology platform
utilized was Sagitta, with seven of the 15 firms
using that system. The next most prevalent was
Applied with four of the agencies using the
Agency Manager (TAM) system. The principals
felt that their technology platforms were equally
helping them to address productivity, manage-
ment information, customer service and prof-
itability.
Keys to Achieving a Competitive Advantage
On average, these firms renewed 92.9% of their prior year's revenues and generated new business
revenues equal to 18.9% of their prior year's revenues. This led to an organic, or internal, growth
rate of 11.8%. These kinds of results can only be achieved with firms finding ways to gain a com-
petitive advantage. When asked what the keys were to their ability to gain competitive advantage,
the most frequent responses included the quality and depth of their staff; a client focus; the capa-
bilities and services offered; the strength of their carrier relationships; and private ownership and
the incentives that it provided to employ-
ees to do their best.
The compiled operating statistics of these
15 organizations point to an outstanding
group of firms that are doing a lot of things
quite well. At the same time, if you talk to
any of the executives of these organiza-
tions, they are anything but complacent,
recognizing the significant challenges and
opportunities that they face.
AGENCIES WITH REVENUES OVER $25,000,000
152
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
Keys to Achieving a Competitive Advantage
(Top 5 Listed in Order of Frequency Mentioned)
1. High quality staff / depth of knowledge and
expertise
2. Client focus / service commitment
3. Diversity of capabilities and services available
to clients and prospects / risk management
services
4. Strong carrier relationships / access to quality
markets
5. Willingness to share agency ownership to
attract top talent
Keys to Maximizing Productivity
(Top 5 Listed in Order of Frequency Mentioned)
1. Effective management (of agency’s
relationships, resources, work)
2. Greater/better use of technology
3. Incentive-based compensation methods
4. Strategic, clear focus on goals and
standards for business written,
customers served, results needed
5. Effective and continuous employee
development and training