Is There A Purple Cow

In Your Agencys Future?

Now that I have your attention, what the heck does this headline mean, and what relevance does it have to agents and brokers?

Actually, it could mean a lot because it references several concepts that I would consider critical to success in the agency/brokerage business. It also references the basic theme of three different books that have carefully studied the success of businesses in a number of different industries and have identified the business practices that have led to their success.

As we have studied the leading agents and brokers, it is clear that these are also business practices that have been most critical to their success. These are good books that I would recommend you read. But more importantly, my purpose is to promote the adoption of the business concepts underlying these books.

So as not to keep you in suspense, I was introduced by a client last year to a book that could teach agents a lot about distinguishing themselves in a crowded, competitive industry: “Purple Cow: Transforming Your Business By Being Remarkable.” Seth Godin, the author, starts with the five “P's” of marketing: product, pricing, promotion, positioning and publicity.

However, he states that in today's world, there's another “P”purple cow. He uses a purple cow not only because it begins with P, but also because of the fact that if you saw one, you would never forget it. It stands out from the herd.

Mr. Godin recognizes that the world has changed. We all have far more choices and less time to sort them all out. He states that the old premise was to “create safe, ordinary products and services and combine them with great marketing.” He further states that in today's marketplace, the new rule is “create remarkable products that the right people actually seek out.”

What is the application of purple cows to the agency/brokerage insurance business? It says to me that you are not going to be great by being a “black and white” cow (that is, doing the same thing everybody else does, in the same way). You want to give yourself a competitive advantage.

How do you do that? You play to your strengths. You are more focused and strategic. You have better people, you give them better tools, and you focus your attention on your target client base.

A second book “Good to Great” has been out for several years, but the concepts that are laid out are as relevant today as they were when it was written several years ago by Jim Collins. I like the premise on which the book is written.

Through extensive research, Mr. Collins identified a group of companies that had made the leap to great results and had sustained those results over an extended period of time. On a cumulative basis, these 11 companies generated stock returns that beat the market by an average of seven times over a period of 15 years.

Through his research, he identified the business practices that distinguish these companies from their good, but not great peers. His results focused on three particular areas: disciplined people, disciplined thought and disciplined action.

? The concept of disciplined people begins with leadership and a style that is most characterized by the unique combination of drive and humility. Some would term this “servant leadership.” These great companies also have great people, and they know how to treat them.

? The concept of disciplined thought really speaks to strategy, focus and competitive advantage. These great companies know what their strengths are, and they know how to play to those strengths.

? Disciplined action speaks to the ability of these great companies to get things done. It recognizes that there are many organizations that develop superb strategic plans, but a much smaller number of organizations that are able to effectively accomplish those plans.

If you wanted to look closer at the concept of disciplined action, I would recommend a third book I was introduced to by a client “Execution: The Discipline of Getting Things Done,” by Larry Bossidy and Ram Charan. The authors suggest that “unless you translate big thoughts into concrete steps for action, they are pointless. Without execution, the breakthrough thinking breaks down, learning adds no value, people don't meet their stretch goals, and the revolution stops dead in its tracks.”

They go on to say that “execution is a specific set of behaviors and techniques that companies need to master in order to have competitive advantage. It is a discipline of its own. In big companies and small ones, it is the critical discipline for success now.”

I would agree with their assessment, as it is clear that the most successful agents and brokers have, as a core competency, the ability to get done the things that they want to do. The majority of the book focuses on the “building blocks of execution.” It may be a worthwhile process to consider how you and your organization, whatever its size, can create the ability to consistently execute.

One of the best things about the agency/brokerage business today is that there is a lot of room for improvement. Although there may not be any “purple cows” in our industry today, there are some that look a lot different than your typical black and white cow and, as a result, these agents and brokers are gaining significant competitive advantage.

I would encourage you to incorporate some of these thoughts into your strategic planning process. If your desire is to be great or to be an organization that would be described as truly remarkable, it is unlikely that it will happen without disciplined people, disciplined thought and disciplined action, as well as a few “purple cows.”

Bobby Reagan (bobby@reaganconsulting.com) is chairman and CEO of Reagan Consulting, an Atlanta-based management consulting firm that serves the insurance distribution system. For more information, check www.reaganconsulting.com.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, March 19, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.

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Is There A Purple Cow In Your Agencys Future?

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