The Times They Are A-Changin’

Many agency owners are changing their operations to survive and thrive. But change is never easy. Managing change requires two capabilities: smart decision-making and sound implementation.

Deciding to make a change in the agency is usually easy. You gather all the information and make an informed decision.

Smooth and effective implementation can be more challenging because you must understand how the change will affect your staff and communicate with them before, during and after the process. To achieve success, people affected by the change must support it.

Tom’s Insurance Agency

Let’s say Tom, owner of Tom’s Insurance Agency, needs to make changes to increase revenue per employee. After researching and studying best practices, Tom decides that he can increase productivity, decrease expenses, reduce errors and omisssions (E&O) exposure and become more efficient by switching agency management systems. This is the decision-making phase.

Tom informs the staff that the agency will purchase a new agency management system that has real time, upload and download, integrates with rating, and has other efficiency features.

Tom expects everyone to be excited. Instead, there are a lot of sour faces. People feel that the rug has been pulled out from under them.

The following four steps are a great start to help the transition:

• Show the big picture;
• Sell the solution;
• Involve people in the planning; and
• Celebrate success.

Show the Big Picture

Many agencies share their financial picture with employees monthly. A snapshot of the agency’s financial health creates an environment for understanding and team building. In the example, Tom would explain to the staff that he pays $1,000 per month for the current agency management system and the switch will save more than $6,000 per year. People understand saving frees up money for salaries and benefits.

Sell the Solution

Highlight how the change will benefit the staff. Present a positive vision for their everyday workflow. A new system will allow the staff to be more organized. They’ll be able to access carrier info with a click of a button, and binders and certificates will be easier to create.

Involve People in the Planning

Whether you have five or 50 employees, get them involved in the planning phase.

What needs to be done to prepare for the new system? Who will do it? What’s the deadline?

A broad agenda and allowing folks to share ideas and comments creates ownership of the project.

Celebrate Success

Don’t wait until the change has been completed. Bring in coffee and donuts, take people out to lunch, and tell them how much you appreciate what they’ve done and celebrate milestones.

Making major changes can cause employee resistance. Understanding the process of change and how important it is to get staff on board will ensure a smooth transition.