6 Characteristics of the Best Agencies Today

The best way to get to the top fast is to do the same things that those who are already there are doing. Essentially, management should practice and emulate the characteristics those top performing competitors have. The easiest way to do this is to first define the traits and characteristics that make a firm successful.

Here are the top six traits that the best agencies today have in common.

1. Sales Oriented

These agencies stand out from the pack one can feel a sales agency when walking into it. There is activity; noise, bells that go off, accolades given, the conference room has goal sheets posted, including prospects the producers are going after and the staff know what is going on with sales. They support the producers and it is a win-win team approach.

Everyone inside the agency feels that sales are part of their job, too. People even in the customer service roles are rewarded for bringing in new business and cross selling existing accounts. Retention of the business is quite good because of this and customer loyalty is prevalent. Clients regularly send referrals to the agency and are proud to tell their suppliers, distributors, and even competitors who they are insured with.

These are really tough times for all businesses today, and insurance agencies are not insulated from the effects of the national economy. Their clients’ sales and payrolls drive the premiums that turn into agencies’ commission revenue. The best agencies can grow in soft markets, hard markets and/or any economic times. They are sales oriented. “If you ain’t growing, you ain’t going to make it,” we say.

Top performing agencies might be seeing a slip in top line revenue during this economy. However, the astute agencies today are cross selling more, when premiums drop due to lower rating bases. The firm should then look to write additional coverages, such as employment practices liability insurance (EPLI), group health, business interruption coverage, whatever. When the economy turns around they will see exceptional growth in revenue.

2. Appreciated Support Staff

This is key to the whole structure of successful firms. If people feel appreciated, even with little things, a thank you, flowers, a posting on the wall of something great that someone had done, morale will be better.

If people are allowed to use their heads and have authority to make changes, give input on new ideas and ways to do things, they will enjoy their work more.

Often times, new employees are hired and not even asked what they did in the firm they came from that may be something better than what is being done at the agency. They are often intimidated to speak up and say these things. Management should pick their brains and make sure they are asked, while they are learning the ropes of the new firm. Good new ideas are implemented.

3. Team Spirit and Passionate Employees

Employees that really like their job and their coworkers can make a wonderful environment to work in. If management fosters a team spirit and availability for people to use their heads, go with their ideas and not be micromanaged, employees can feel respected, challenged and learn to really like their jobs.

Management needs to hire the right people for the firm and make sure they are knowledgeable, go-getters and not afraid to speak their minds and help the agency improve. Then the office environment can be very good and people can feel passionate about working there.

Management does not operate in a vacuum, making decisions that affect the staff without their opinions. Changes are not made to policies or procedures without having some input from relevant employees. Management has an open door policy for employees’ concerns.

4. Plan Ahead

The business without a plan is like a ship without a rudder; a common cliché heard. However, it is really, really true. Agencies without a plan are totally reactive to their environment and have little control over their future. Firms that incorporate an annual planning process tend to be more efficient, more profitable and highly valued businesses.

Top performing agencies take the time to develop a business plan each year, monitor it and keep the firm on track. Planning sessions are an excellent forum for people in the organization to give their ideas, brainstorm with each other and come up with great solutions to issues brewing in the agency or things they know need to be done to improve the firm. These types of things are critical to help keep a firm from stagnating. Change is important and fosters growth.

5. Higher Paid and Fewer Employees

Employee quality is very important. The top performing firms employ the best employees they can find and challenge them. When an agency has really good people, it needs fewer employees. With this approach, total payroll costs tend to be less, thus productivity is much higher.

Instead of having to place ads in the newspaper or use headhunters, good people come to the firm and ask for a job. They have heard from others that it is a very good place to work and they want to be a part of the organization. This is not a trait that happens overnight. It will take years to get the right staff and build up a great reputation.

6. Good Employees Acknowledged

Most people appreciate being acknowledged and rewarded based on their individual effort. Treating everyone the same will be a demoralizing factor instead of a morale booster! This is because the good employees often resent that their efforts are rewarded at the same level as under-performing employees. The poor performers see that their lack of effort is not penalized.

If people are doing very well, it is important to acknowledge them for what they have done, even if it is just praise or a day off. Owners and managers don’t have to be afraid to give them accolades. Employees need to know when they will be reviewed and what the review and any pay increases are based on. If an employee is better, then everyone should know it and the person should be put on a pedestal, so to speak.

A Final Thought

Great firms focus on the client (through sales and service) and the employee.

Once management organizes and maintains a great staff, the sales and service will take care of itself.

Keep in mind, these characteristics are not easy to obtain, they will require hard work and for some, a change in business philosophy. It is your choice … is the challenge worth the results? We know these things work for the best firms out there.

Schoeffler and Oak are partners at the international consulting firm Oak & Associates, providing services for mergers, acquisitions, management and financial consulting. E-mail at bill@oakandassociates.comt. Phone: 707-935-6565. Web site: www.oakandassociates.com.