Remain diligent and focused on the insurance market and theeconomy as you maneuver the remainder of 2009 and into 2010. Pause,take a step back and listen to what the market is telling you. Ifyou're not paying attention today, you may deeply regret it in thefuture. The status quo is not an option.

The agency-brokerage business remains stable. Well-managed firmswith adequate capital can weather almost any storm. The key word is“almost,” as the perfect storm environment of an insurance marketthat remains relatively soft combined with major economicuncertainty could be problematic.

Some pundits believe the soft market is ending, and they may beright. But that doesn't mean a hard market is imminent. Rather, themarket may have bottomed out and it might linger for some time.Absent a major insured disaster or a series of calamitous events,loss trends resulting from the reckless soft market may need todeteriorate further before we see any measurable rateacceleration.

It's faulty to believe your revenue salvation depends on anear-term market shift.

It's key that a significant segment of commercial premium isdriven by sales and payroll. Barring a miraculous turn of events,both metrics will remain soft into 2010 and beyond. Retail salesare gloomy, the auto industry is iffy and construction in manysectors has come to a halt. Broad economic uncertainty and shortageof capital will continue to place downward pressure on your revenuebase.

The challenge is to push out as much profit margin as possiblefrom your existing platform. Embrace process and technology now–theconundrum is that you can rarely manage down expenses in lockstepwith falling revenue.

Even so, your near-term attention should remain on staffing andpayroll. If you don't have a properly constructed salaryadministration policy and producer profitability model in place,you won't be able to manage your largest single expense–it will bemanaging you.

Now, a word of caution: A miserly siege mentality can ruinemployee morale and client relations. If you haven't embraced aninclusive management style, this may be a good time to start byhaving an all-company, all-hands meeting. Then hold periodic“fireside chats” to keep everyone in the loop. The consequences ofyour actions? Your firm ultimately will be stronger and far betterprepared to navigate the future.