Ftr6 6-reinvigorating yourproductionstaff-jbjw-v2
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High-growth insurance agencies are writing new business at a rate of nearly 20% higher than the previous year. These agencies have implemented effective sales management practices like cutting ties quickly with underperforming producers and focusing resources on top producers. They also use rewards programs to incentivize behaviors that drive new business, such as setting a higher percentage of producers to meet sales goals compared to average agencies. Successful programs recognize achievements regularly and hold all producers accountable to clear expectations.
Ftr6 6-reinvigorating yourproductionstaff-jbjw-v2
- 1. FOR THE RECORD A MarshBerry Publication Volume VI, Issue 6 June, 2012 Reinvigorating Your Production Staff According to a recent MarshBerry study, high-growth agencies are writing new business at a rate of nearly 20% versus prior year commissions & fees. By benchmarking producer behaviors and results, we were able to determine the driving forces behind this high growth. While non-performing producers continue to be the biggest hindrance to agencies that are trying to grow organically, our analysis enabled us to pinpoint what high-growth agencies are doing differently than average agencies to drive revenue. High-growth agencies have implemented sales management best practices that enable a higher percentage of producers to reach their minimum new business goal. Additionally, these agencies cut the cord quickly when producers underperform, permitting them to focus their time and resources on their most capable producers. $100,000 $83,750 $80,000 $53,750 $60,000 61.6% Reached the Minimum $40,000 43.4% Reached $20,000 the Minimum $0 Average High-Growth The common thread inherent in top producers is their will to “win.” Successful agencies harness this will to win by utilizing rewards and recognition programs. There are several programs that agency executives can utilize to help drive the behaviors that win new business: • Contests - A competition for victory between peers with a common goal • Exclusive Celebrations - An invitation to individuals who qualify through certain criteria • Financial Compensation – Additional monetary awards for reaching specific goals • Public Recognition - Attention or favorable notice after achieving a goal • A Combined Approach – Many agencies use a mix of programs to drive desirable behaviors There are several things that agencies should consider when building out the ideal sales program. First, look at the goal. The program must be focused on the end result. The program must incent the behaviors that will achieve the goals. The program design should be reviewed periodically to ensure that the chosen measurements are driving behaviors correlated to the end result. The most successful sales contests measure behaviors such as number of qualified appointments rather than just reaching a sales goal at the end of the year. The program will not be successful unless the agency sets clear expectations at the outset and holds everyone accountable. Rewards and recognition programs often fail because they do not allow for immediate success. Continuously monitor the programs to ensure you are getting the best out of everyone. And finally, have fun with it! Celebrate the measured activities from time to time. “People rarely succeed unless they have fun in what they are doing.” – Dale Carnegie Justin Berry is Vice President of Sales Management at MarshBerry and can be reached at [email protected] or 440-220-5431 Jim Wochele is a Sales Management Analyst at MarshBerry and can be reached at [email protected] or 440-392-6559 MarshBerry • 4420 Sherwin Road • Willoughby, Ohio 44094 • 800-426-2774 • www.MarshBerry.com • [email protected] No portion of this publication may be reproduced without express written consent from Marsh, Berry & Company, Inc. All rights reserved © 2012. For a complete library of reports and newsletter back issues, Learn. Improve. Realize. please visit www.MarshBerry.com/Articles.
- 2. 2012 Market and Financial Survey Included with this month’s newsletter is the Annual Market & Financial Survey. To see how your agency is performing relative to peer agencies, we encourage you to take a few minutes to answer the survey questions. Your responses will provide valuable insight into agency finances and how agencies are managing these turbulent economic times. Only through your active participation can we provide meaningful results that you can use to improve your operation. The results of the Market & Financial Survey will be published in the September, October and November 2012 issues of The MarshBerry Letter All participants will receive complimentary issues of each of these newsletters. To complete the survey, please visit our secure website where all entries will remain confidential. To participate online, please visit: http://www.marshberry.com/marketfinancialsurvey Deadline for participation is July 10, 2012 MarshBerry Solutions Information Services Management Consulting Exchange Networks M&A Advisory Benchmarking Services Sales Management Agency Peak Performance Strategy Perspectives for High Performance (PHP) Cultural Mapping and Alignment EXchange (APPEX) Acquisition Planning Sales Portal – Pipeline / Service Timeline Producer Goal Setting Over 115 Agencies Deal Return Modeling Confidential Employee Morale Indexing Sales Portal – Pipeline / Service Timeline Over $1.1 Billion Revenue Strategic Options Analysis Perpetuation Preparedness Accountability / Compensation Design Alternative Buyer Comparison Operational Assessment Producer and Sales Manager Training Bank Agency NetworK (BANK) Sales Management Benchmark Report Differentiation Design and Execution Over 25 Banks Preparation Over $1.0 Billion Revenue Sale Preparation Management MarshBerry.com Business Planning Offering Memorandum Development Performance Calculators Strategic Business Planning Strategic Pitch Book Design Forms & Documents Execution / Action Plan Management Total Agency Sales Culture Candidate Profile Creation Position Descriptions Strategic Options Analysis (TASC) Network Discussion Groups Over 35 Agencies Representation Research Studies Agency Valuation Over $1.1 Billion Revenue Buy Side Representation Agency Fair Market Valuation Nation’s leading organic growth agencies Market Data (including Search and Screen) Valuation Assessment Enhanced new business production and On-Line Value Estimator Sell Side Representation Published Articles retention strategies Letter of Intent / Negotiation Perpetuation Plans Creative Deal Structure Alternatives Monthly Publications Perpetuation Plan Design Royal Sun Alliance (RSA) The MarshBerry Letter Plan Execution Management Summit Brokers Analytics Transfer Strategies (Stock / Leadership / a. Market & Financial Books of Business) Improvement Network Agency Fair Market Valuation b. Agency Compensation Canadian agencies affiliated with Royal Market Comparables / Benchmarking c. Agency Operations d. Surveys Financial Consulting & Sun Alliance Insurance Company After-Tax Return Optimization Internal Financial Controls IRR, ROI and EPS Analysis For The Record (Statistical Analysis) Dealmaker’s Dialogue (M&A Advisory) Compensation Consulting Standard Partner Services Value Enhancement Planning State of the Industry Research Execution Diagnostic Due Diligence Public Speaking Engagements Contingent/Supplemental Plan Mgmt. CEO Peer Exchange / Networking Semi-annual Conferences Confirmatory Due Diligence Keynote / State of the Industry Topical education Operational Consulting Semi-annual Consultation Intangible Asset Allocation – GAAP Rep. Staff Workload / Comp. Management Regimented Benchmarking Services Fairness Opinion Workflow and Procedures Definitive Agreement (Best Terms / Carrier Services MarshBerry.com Conditions) Distribution System Management E&O Audit, Policies and Procedures The MarshBerry Letter and other Monthly E&O Market Access Publications Field Personnel Training and Development Post-Deal Management Priority Consulting Opportunities Agency Management Symposiums Post-Closing Integration Recruiting Exclusive Programs Position profile, search, screen, hire Distance Learning Groups (DLGs) Goodwill Impairment Testing Compensation development plan Peer to Peer CEO Exchange Technical and sales training year one Earn-Out Maximization Consultation MarshBerry • 4420 Sherwin Road • Willoughby, Ohio 44094 • 800-426-2774 • www.MarshBerry.com