Is the latest tech always the right choice?

You won’t find it in a thesaurus but, to me, technology is a synonym for evolution.

Refusing to use tools that can help your brokerage perform better and create efficiencies is essentially refusing to evolve — and that’s a situation in which I never want our business to be.

I’ve always been passionate about technology and the opportunities it presents. But I’ve learned to be more deliberate and strategic about the tools we integrate into our operations.

Technology is alluring, making it easy to lose sight of what outcomes you’re trying to achieve, along with project costs and timelines.

At our brokerage, we’ve simplified the process of choosing new technology by deciding we’re a Microsoft shop. Since we predominantly use Microsoft software and solutions, if they offer a tool we need, we start with that option to get the full benefits of platform integration. This helps streamline decision-making so we can quickly start testing and learning.

Occasionally, we build our own custom solutions. But we have learned how expensive this can become. Years ago, we had a broker who was passionate about coding and developing tools. They wanted the chance to do more of this and became our in-house developer.

We were having problems with the lead management tool we’d been using, so we decided to create our own. Alas, it had to be rebuilt each time new code stacks came out — which was often — and our technology had to adapt. Ongoing maintenance required a significant amount of work and cost.

One day, I spoke with a very smart CFO about our technology builds. He asked me questions I could not answer about what our developer was creating and when it would be finished. That conversation made me realize why it was necessary to be more disciplined about technology and whether projects made economic sense.

As our brokerage has grown, our thinking and business modelling matured across all of our operations — especially around technology.

We used to get excited about being an early implementer of new tech solutions from other companies. We later discovered this often came with empty promises about the tool’s capabilities, and led to us paying to beta-test and troubleshoot it for them.

We now aim to be second-wave adopters and wait to see testimonials from other brokers who have implemented the product, fully tested it, and are seeing a positive return on their investment.

As an industry, I wish we were better at producing white papers that either validate or disprove technology vendor claims and gather peer reviews. These could provide clarity for everyone about what they’re purchasing and whether it actually improves processes, increases productivity, lowers costs or generates revenue. 

Embracing technology is essential to evolve and grow. It’s important to be open to new tools while simultaneously being critical of whether their true costs outweigh the benefits. Avoid shiny object syndrome and do the work to ensure the technology you choose provides real value to your business.

Adam Mitchell is CEO of Mitch Insurance, a Whitby, Ont.-based insurance brokerage.