Demystify Workflows, Policies and Procedures

In my nearly 30 years of insurance industry experience, I've learned without a doubt that size does not matter. As an employee and later an equity owner in a family-run insurance agency, we never had more than seven people on staff. Even in those days, when computer use was in its infancy and each day we wrestled with several oversized underwriting manuals, complete with rates, for personal lines business, workflows and policies and procedures were great resources for employees and management. Today, with the advent of paperless and semi-paperless environments, with policy data and oral and written communication recorded and stored electronically, well-conceived workflows and policies and procedures are as important as ever.

Some confusion has been noted around the differences between workflows and policies and procedures. Additionally, some may refer to workflows as “procedures,” but it is best to use clear nomenclature to differentiate the two, thus providing less confusion for staff.

The policies and procedures not only set out what is expected and required, but also demonstrate what type of client service the agency provides. Workflows depict how that service is delivered, documented and retained. It is the staff's information guide. When combined, the two tell the employee plainly what to do and how to perform to acceptable standards.

Workflows and policies and procedures should be organized into two different documents, but need to be tailored like a hand in a glove. They work simultaneously, and refer to each other as well as support each other's requirements and philosophies. To a degree, both will be influenced by the agency management system and the agency's desire and willingness to exploit the capabilities of the system. For non-automated agencies, documentation requirements will likely be the same. Regardless of the level of computer use, items such as signed applications, coverage waivers, photos, cost estimators and driver schedules must be obtained and saved. What differs is how everything is recorded, stored and retained.

Workflows

Workflows inform, on a step-by-step basis, how to perform each task deemed important and integral to day-to-day operations within the agency environment. Well-written workflows that are available to guide employees also help management. After an initial training period, it allows employees to research and find their own answers, empowering them to work unimpeded. Well-written workflows can save hours of employees asking management how to properly perform procedures. Workflows also can help limit lost time in an office by minimizing the need for employees to confer with co-workers.

Finally, well-written workflows solidify standardized data capture and entry into the agency's management system or physical files. We have all heard repeatedly at errors and omissions classes about the importance of documentation. Having a standardized process for documentation is highly recommended and considered critical.

Workflows need to be precise and concise. They should allow a user to work unaided after an orientation and initial run-through of the agencies' philosophies and requirements. Good workflows depict work step by step. Great workflows include screen shots as reference and include tie-ins to the policies and procedures manual.

Workflows are ideally separated into the different tasks that are required daily, weekly and monthly in an agency. Some workflows may be different for personal lines versus commercial lines, and for personal lines producers versus commercial lines producers and their support staffs. For example, logging in and out of the system, setting up new prospects, quoting new policies, invoicing, claims handling, photo upload, scanning processes, close day procedure, and so on are performed daily in most personal lines departments. Setting up new prospects should include how to obtain/record/retain all data that are required by the agency: name, address, telephone number, Social Security number, dates of birth and whatever the policies and procedures dictate as being required and important for the agency.

Policies and procedures

Written policies and procedures should reflect the agency's overall philosophy. This is an opportunity for leadership and management to express the goals and expectations. They need to answer questions such as:

o What information is minimally required for the agency to quote personal lines policies?

o Does the agency believe in exemplary customer service?

o Does the agency require that clients' phone calls be returned in a certain amount of time?

o Does the agency require a minimum Section II liability limit for homeowners' policies?

o Does the agency promote education for its staff?

o Does the agency believe in selling higher than statutory liability limits for its personal autos and motorcyles?

o Does it require that all phone conversations and e-mails be electronically documented within a certain amount of time?

o Is the use of new business and renewal checklists mandatory?

o How are they documented?

If you don't think you need written policies and procedures, ask a simple question at the next personal lines staff meeting such as, “What is the agency's specific protocol for handling claims?” or, “What is the agency's accepted number of hours to return a phone call within?” You will likely get several different answers. A written document eliminates guesswork and provides guidance and expectations for employees.

Policies and procedures can include human resource issues such as vacation time and substance abuse, jury duty, military service and so on. A separate HR section is easier to access and manage and should be considered.

Hand in glove

A common management mistake is to think that employees do not want to be managed. That is far from the truth. Worse are the managers who don't want to manage, or say that they just don't have the time. Shame on the owner or manager who does not make proper understanding and use of workflows and policies and procedures part of goal setting with staff. Employees need and deserve good management, and part of good management is providing tools for employees' success, helping them plan for that success and monitoring it.

A management dictum states that everyone eventually leaves you: they find other employment, retire or die. Good management can delay this. A respectful, organized workplace encourages people to stay more often than not. In survey after survey, compensation is always the fourth or fifth reason why people leave a job or stay.

Employees deserve to have a clear understanding of the organization's beliefs and philosophies. This comes from the top down. Ultimately the organization's leaders need to establish the vision and mission behind its existence. Is it profit, service, or a combination of both? Is it treating others as they as individuals would want to be treated? What are the organization's fundamental beliefs? There is great power in putting it to the pen so all employees can understand it.

It also provides a great management tool to have a physical document to refer to if an employee goes astray with the level of customer service delivered, or in cooperation with co-workers or carriers. Otherwise, management's dialogue is reduced to, “Because I say so”–and that is not an effective or legally prudent way to manage.

Once you develop written workflows and policies and procedures for your agency, make sure you give each employee time to review and question them. A shared drive on the agency's computer system is a great location to park these and have them available at all times. A signed statement from the employee indicating that they have read, understand, and have access to copies should be kept in each employee file. Review and acknowledgement should be included in each new employee orientation. The documents should be somewhat fluid. Technology is constantly changing and that means that workflows will change over time.

And if you think the task of creating these documents is daunting, don't try to eat the elephant all at once. The resources you can devote to development depend on your agency size and resources. Consulting firms can help with the development. These important documents provide a strong foundation on which to build your agency's growth, with well informed and empowered employees who understand the agency's goals and direction. Take one bite at a time and you'll accomplish great things.