2004 Best Practices Study
AGENCIES WITH REVENUES OVER $25,000,000
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 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
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.
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
SERVICE STAFF INFO
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.
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