I regularly encounter agency owners and managers who have relinquished management of their automation systems and, as a result, don't know how their systems work or how to use them effectively. Because most agency owners and managers are experts in sales, not automation, it makes sense for them to delegate managing the technical aspects of their automation systems, provided they don't give up overall management of them. At a minimum, they should maintain knowledge of and control over the following key areas:

1. Hiring professionals. When switching to a different system or upgrading an existing one, hiring outside help usually is a good idea. Find a consultant or other expert who specializes in information systems (a better term than “automation systems”). I am leery, though, of consultants whose practices cover procedures, operations, valuations, etc., in addition to information systems, since they tend to be “jacks of all trades and masters of none.” For automation, you need a true specialist.

Also, you might need more than one consultant/expert because hardware/ networks and software are quite different. Hardware and networks may not differ much among industries; but software does, so it's best to hire someone familiar with your agency's particular system.

2. Internal support. As an agency grows, the internal support needed for its automation system changes. In small agencies, the automation person often is also the bookkeeper or lead CSR. Large agencies, however, need at least one dedicated automation person. As your agency grows, do not wait too long to replace a part-time automation person with a full-time specialist, or to add a second or third IT person. If you delay, the new person(s) may face months–or even years–of clean-up.

3. Training. Don't ask your agency's automation person to train the rest of the staff. Good technical people are not necessarily good instructors, so someone else–whether from within or from outside the agency–should conduct the training. Also, don't expect to train your staff once and be finished; they likely will need regular, ongoing instruction as software and hardware are upgraded and new features are added. Give employees keyboards and displays to use during their training; students learn more by practicing what they're taught while it's being taught than by simply reading manuals or listening to instructors.

4. Generating reports. Generating reports is a key use of an agency's automation system because reports are used to manage the agency. Of course, accuracy is important, but so is creating the right reports with the correct parameters. Managers who do not know their systems well may not understand how to select report parameters. The person running reports, meanwhile, may not understand which reports are most important and which parameters are most appropriate. Small changes can make big differences in producer management and production reports.

Thus, management and the person running reports must work together. The latter should explain the various reports available, their parameters, report options and the results different parameters yield. Management needs to select the reports they believe are most important and determine the best parameters to accurately portray the agency's results, making sure the parameters are used consistently to provide apples-to-apples comparisons of agency performance.

5. Cleaning up the data. When consulting with agencies, I regularly find that the data provided to me for analysis is incorrect or incomplete. For example, some agencies have dozens or even hundreds of dead policies listed as active on their systems. Those dead policies will lead to wrong conclusions about such matters as average account size. Management needs to know which data categories are most apt to be outdated and to ensure that all data on which they rely is up-to-date and accurate.

6. Enforcing use of the system. In some agencies, producers routinely interrupt CSRs to have them look up or explain items in client files, rather than find and interpret the information themselves. This counterproductive practice should be eliminated. Instead, producers must learn to use an agency's system and, at the least, know how to read files and make notations on them within the system.

I understand that many agency managers relinquish all aspects of managing their automation system to someone else because automation is not their fort? or primary area of interest. But I also realize how frustrating it is when computers crash, inexplicably slow down or experience other problems. So while it makes sense for agency managers to designate someone else to handle technology matters, they should not totally neglect their automation systems. Your agency's system can run more effectively and serve you better if you implement the simple suggestions I've just made. They don't require you to be an automation expert. Just knowing the basics and staying involved in a few key areas will work wonders.

Chris Burand is president of Burand & Associates LLC, an agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates.com.

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For The Manager: Agency owners can't ignore their automation systems

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