In my June AA&B column, we looked at major areas where agency management issues exist, and identified five of them: processes, communication, client relationships, employee attitudes and training. Processes--how things are done within your agency--are crucially important, not only in how efficiently you operate, but in how you are perceived by your employees, clients and insurance company underwriters.
This month we'll look at how to improve processing the business.
I never thought the doctrine that "you can't manage what you can't measure" applied to our industry. An insurance agency is not a manufacturing assembly line subject to stop-watch time measurement and items-per-minute evaluations. But I have learned that measurement is an important ingredient of sound management, and that adherence to predetermined steps and timelines can make a world of difference in how processes are carried out.
Process "steps" designate what is to be done and by whom; "timelines" designate when. The use of steps and timelines instills discipline among the staff and, as a side benefit, can be used for job performance evaluation. Let's see how this can work realistically within a new business department.
View a sample form that can be used to track the workflow within the new business department, whether that involves one person or several.
This form uses the input document we discussed in our last column as a starting point and travels with the paper file, or it can be used electronically. It accomplishes several things:
It establishes a "need by" date which is more important, in many ways, than the expiration date itself. The producer knows the competitive situation, the vacation schedule of his prospect and when he wants to present a final proposal. The need-by date is the target on which everyone should be focused.
It establishes all of the tasks that need to be done to end up with a final proposal within the needed time frame and makes clear who is working on what. For example, note step No. 9: "In process letter to client." If we ignore our potential insureds between the time of our information-gathering interview and the time we're ready to present our proposal, they may very well have forgotten who we are. This step makes clear that someone has the responsibility of contacting the prospect and "keeping the embers warm" while we work hard at getting the best quote from our carriers.
It sets deadlines for each task, so that the entire process doesn't lag and nothing gets lost in the shuffle.
It provides for an orderly transition from the new business department to the client services department (some people call it the renewal department), making sure, again, that nothing slips through the cracks--like invoicing the client.
Note step No. 19 on the form: "send claims info kit to insured." People don't buy insurance just to receive those great-looking policies; they buy it for protection if something happens--if they should have a claim. So picture a brand-new client who has taken a leap of faith and put his trust in your agency, crossing his fingers that he's made the right choice. Right off the bat, instead of just getting a binder and a bill, he receives a letter of welcome from the claims manager, introducing him/herself, and enclosing a claims kit with all of the instructions and forms needed in the event of a claim. What a great way to start building customer good will.
When finished, it allows management to see how well new business is being processed, who's falling down on the job, and where part of the process needs to be tweaked.
This is just a sample. You can simplify or expand, depending on your own view of what is important and how you like work to flow in your agency. But however you construct it, use it to make sure you're getting the most out of your marketing efforts.
