PRODUCER-RELATED ISSUES
Make-believe economic disaster jolts agents into self-examination
By Michael J. Weinberg
It is critical that all agencies undertake a periodic assessment with their agents of the unique sales processes and cultures that exist (or don't exist!) in each agency.
No matter how well we do in hiring or compensating our producers, nothing is as critical as having them "buy in" to both our agency's mission and their own personal sales goals. As agency owners and/or sales managers, we can assign goals to agents all day long, but they are truly meaningless unless the producer accepts those goals as his or her own and is motivated to accomplish each phase of the annual sales plan.
Through the years, we would sit down with our agents to discuss a "sales strategy" and "goals" for the coming year. Unfortunately, I found this to be a largely unsatisfying exercise because no matter what we agreed on, it seemed that the agent's concurrence came more from what they suspected we wanted to hear than from what they actually believed or desired to accomplish. If our sales plans typically began in January, it wasn't unusual for an agent to begin falling short of the pro-rated goals by February 1.
To "shake up" the sales team and to try and truly make them examine and even justify their roles, we decided a few years ago to play "The Bankruptcy Game." Here's how we played it:
At a regularly scheduled sales meeting, with no advance warning, I opened the meeting by saying, "I regret to inform you that, due to the economic conditions, the agency has been forced into Chapter 11." (I then explained that although we really were quite sound financially and had not filed for creditor protection, for purposes of the exercise we would act as though we truly had resorted to that drastic action.)
I went on to set the stage by explaining: "I have been appointed by the bankruptcy judge to be the agency's trustee in bankruptcy. My primary duty is to assess the agency and determine whether or not it has a viable financial future so that I can recommend to the court whether the greater value to creditors will come from selling the agency's assets (accounts) or from maintaining it as an operating entity. My decision will be based primarily upon the 'why' conclusions as to the viability of the sales force. If I determine that the sales force will do no more than sit on its book and milk it for whatever commissions it can, then it will be my recommendation that we sell the agency. If, on the other hand, I can determine that the agency has both a productive sales team and the necessary business plan and capabilities to grow the assets, then I will not recommend a Chapter 7 liquidation."
We agreed to meet weekly for as long as it might take to make this determination. Each week, the sales force would be given a new task to research and explore and then report on to the "court."
Examining the sales team
The first week, the "task" was for the members of the sales force to examine the agent's resources, markets and unique capabilities to determine whether or not they had what it takes to succeed in the coming years as a vibrant sales machine. This analysis included a breakdown of the sales team, each agent's skills and shortfalls, the agency's market and marketing capabilities, and what additional resources would be required to maintain our competitive market advantage in the future.
As you can imagine, the agents reported back that they were indeed capable of being a productive force in future years, but the exercise did cause them to honestly analyze their shortcomings both as individuals and as a group. One apparent realization was that there was a need for greater organization on their part and a formalized sales plan with constant monitoring and true accountability. From the accountability issue came the development of the pay plan that I shared with readers last month, which rewarded the outstanding sales performers and penalized those who were merely "nursing" a book.
The agents also recognized the need for personal growth, as well as the mandatory training and education that they would have to complete in order to keep pace with a rapidly changing and highly automated market place.
And the last interesting realization was that merely being a knowledgeable insurance agent was not, in and of itself, a sufficient skill that would guarantee success in the real-world sales arena. Attaining sales goals required a formalized business plan that would have to be implemented, documented and monitored on a systematic and frequent basis.
Market plan
The second week we zeroed in on a market plan. With help from an outside consultant, we began to recognize the futility of constantly calling on the same construction clients that every other agency in our area also was calling on, and offering the same three or four markets that our competition represented. In reality, all we were doing was swapping clients each year--depending on which company an agency represented and how competitive that company was in the industry segment in any
given year.
The true winners are those who formulate a unique and well-defined strategy for their success. The results of their planned, proactive sales behaviors are to "beat out" those producers who merely "show up" each day and react to whatever opportunities they might get by default.
In order to create unique sales strategies, we decided that it made a lot more sense to search for prospects and markets that were different than "Main Street" businesses. Targeting clients that were car dealers, roofers, or other hard-to-place risks would greatly reduce the competition on any given account. And coming in the back door (writing the group health first, for example) would make for a more accessible and agreeable prospect than we would find through traditional cold-calling efforts.
As the weeks progressed and we examined each phase of our operation to "justify" its continued existence, an interesting phenomenon occurred. Agents who previously had viewed our business myopically from their own personal perspective suddenly began to see the "big picture." Fortunately, they gained a new understanding and new insights into what was good for the agency as well as for themselves. They also learned that if marketing in a given area was not good for any of the parts (the agent or the agency), then it was not good for the whole. As a result, a great synergy developed between our sales staff and our agency. Instead of the old relationship in which we fed on each other, we were now beginning to work more as a team with a greater sense of a true partnership. (You can implement this strategy/game in your own agency, delving into the topics and areas that you believe require the greatest degree of re-examination and reaffirmation by your sales team.)
As you can imagine, the end result was that as the "trustee" I ultimately recommended to the "judge" that we maintain the agency as a going concern.
Measuring the game's success
Was the game a total success? It depends on your viewpoint. As in any endeavor, this one lost its initial momentum with time; but whatever new sales activity we did create was certainly greater than if we had not begun this initiative at all. The second "fallout" came from the tighter and better-defined employment conditions, and new contracts that ultimately emerged from "the game." It also became clear to a few agents that the goals and needs of the agency were no longer in concert with their own personal goals and needs and they left. But we believe that both those agents and the agency became stronger as a result of their departure.
Regardless of whether you spend weeks playing "The Bankruptcy Game" or merely do a mutual assessment of your sales initiatives with your agents, the process is a meritorious one. I think that it is critical that all agencies/agents undertake a periodic assessment of the unique sales processes and cultures that exist (or don't exist!) in each agency.
The author
Michael J. Weinberg, nationally known columnist, speaker and seminar leader, is the managing director of Gateway Insurance Agency where he spearheads the agency's marketing/sales and automation efforts. He invites reader participation and feedback through his e-mail address (mweinberg@gatewayins.com).