Building Blocks (April 01, 2009)

In the first part of this two-part series, we discussed the need to establish a culture of success throughout the organization. We then looked at a series of building blocks required to make this happen: Establishing Great Leadership, Creating a Business Plan, Standardizing Procedures and Developing a Client Management Strategy. This second part looks at a number of other key building blocks for producing a high performance brokerage.

INVEST IN THE MARKETING PLAN

Every aspect of business needs to be run with precision and that includes marketing. Once a brokerage is clear about its unique value proposition, once it has established processes, procedures and a clear customer service strategy, it needs to consistently market and package this offering. High performers often embrace many forms of marketing, including advertising, direct mail, corporate literature, public relations, personal contact, education-based marketing and the Internet to consistently brand their value proposition. Even testimonial letters are forms of marketing; sales people can use them effectively for appropriate positioning. Depending on the size of the company, they may have to choose which methods will make the greatest impact; regardless, they must all work together with the same consistent message, look and theme. Marketing plans should be highly strategic, organized and coordinated. They should focus on benefits, not just features. Become a market expert, not just a product expert. You will attract many more buyers if you are offering something of value rather than simply trying to sell them an insurance product.

DEVELOP YOUR PEOPLE STRATEGY

Business is all about people. High-performing companies know that if they have committed and engaged employees, they are more likely to have committed and engaged clients. The “people strategy” of a brokerage should include regular talent audits to assess the skills of the current compliment of people versus what may be needed down the road. Ongoing recruitment is essential, along with a willingness to invest in new hires that might possess the right behaviours even if they do not yet possess the right skills. Use appropriate assessment tools and success profiles with new and existing staff to bring objectivity to the hiring and succession planning process.

Ongoing training and skill development should be a key initiative and investment in your brokerage. It should be mandatory for everyone in the company. Continuous training becomes habit-forming: it is the only way new skills are learned and put into practice. When staff is well-trained, both technically and procedurally, the company as a whole is far more productive and proactive. Ongo- ing training also assists in the development of new and improved procedures, and brings clarity to expected performance standards.

IMPLEMENT WORLD-CLASS SALES PRACTICES

In high-performing entrepreneurial organizations, everyone’s in the game. Everyone is responsible for either driving or contributing to results. These expectations are established early on; they are continuously reinforced with all new employees. Each person in the organization is aware of his or her own contribution and impact on new business, client retention and ongoing client service. Organizations with exceptional ongoing sales and high “return-on-relationship” results recognize that the entire organization needs to be in the game, not just those designated as responsible for new sales.

Ultimately, companies with these attributes, consistently achieve above average results because they are focused on the things that provide the greatest return. They operate productively, everyone is aligned and accountable for results and high standards of consistent client service is the norm. The bottom line then takes care of itself.

Needless to say, when developing a high-performing brokerage with an embedded sales culture, world-class sales practices are critical. There should be documented company procedures and ongoing training for your company’s specific sales processes, along with specific skills training for individuals.

A key component of a company’s recruitment strategy should be directed towards finding, assessing, retaining and developing top performers that are right the company’s culture. The brokerage’s annual plan should include very specific sales objectives and goals. And when we refer to marketing and the company’s competitive advantages, not only should key employees understand what they are, the sales force should be absolutely indoctrinated on them. This is the company’s brand, after all.

REVIEW AND MONITOR FINANCIALS

The financial picture is the ultimate measurement, the backbone of any business. High-performing companies recognize “cash is king” and that good financial management and oversight is paramount. Budget and manage cash flow appropriately and know your company’s key performance indicators, both operating and financial. Review and benchmark them monthly against industry standards, take action where necessary and keep your staff informed on results at a level that’s appropriate.

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BUILDING BLOCKS TO A HIGH-PERFORMING BROKERAGE

Measure, manage and communicate by implementing the following steps:

A. Establish great leadership.

B. Do a reality check.

C. Create the business plan and revisit and update it annually.

D. Establish standardized procedures

E. Develop the client management strategy

F. Invest in the marketing plan

G. Develop the people strategy

H. Implement world class sales practices

I. Review and monitor financials