Set short-term, achievable goals. The partners did not create a five-year plan or any other long-term strategy for the agency. Rather, they focused on short-term, achievable goals. (The problem with a five-year plan is that it takes five years to complete. The Soviet Union lived–and died–using five-year plans.) Except for such matters as perpetuation (which requires a five-year development/ transition plan) and retirement planning, few issues require five years' foresight. Most can be achieved one year at a time. Hiring a producer, realizing 10% annual growth, installing new automation–these are one- or two-year projects. Even a grand plan like doubling an agency's size within five years is best achieved by setting and working toward annual goals. One-year plans provide focus and enable management to concentrate on one goal at a time. By taking such an approach, an agency can achieve a five-year growth goal without a five-year plan.

Address issues openly and quickly. At one meeting I attended, a partner asked if he was grossly overpaid. Asking such a question not only took guts–especially because he knew he was overpaid–but also demonstrated dedication to the agency, its employees and to other partners.

Many other difficult, frank discussions followed. Because an environment of openness and honesty had been established early, partners and favored employees left amicably (even when the choice to leave was not their own) and other tough decisions were made without undue delay.

Consider pay cuts. Initially, the agency was under-capitalized because the partners were overpaid, so they took large pay cuts to finance the agency's improvements. The partners' pay cuts freed up the capital necessary for the improvements, and their sacrifice showed their level of commitment and dedication.

Provide leadership through change. Many agency owners postpone making improvements–or refuse to make them at all–even when faced with E&O claims, because such changes require them to abide by their own agencies' rules. After all, they're owners, and rules are for employees, right?

The agency partners in my example chucked that philosophy, but it was a terrific hurdle for some to overcome. They suffered some setbacks but recognized that reluctance to change the way they did business cost them money and depressed their agency's value. The partners lead the way for the rest of the staff.

Listen and enforce. Failure to enforce rules is a common stumbling block for agencies. When new procedures are implemented, employees sometimes complain and resist complying. Many owners simply give in because they lack the backbone to enforce their agency's rules.

I'm not suggesting that owners and managers ignore employee feedback, because employees often have great ideas and terrific insight. When employees complain about following rules, the key is to differentiate between resistance to change and making a constructive point. At the agency I've been discussing, management listened to employees and explained that, unless they could show that the changes were incorrect and offer better alternatives, the employees should comply. As a result, the employees quickly adopted the proposed changes and even generated some improvements of their own.

Continue to improve. The agency began the improvement process with a full review of its operations. Each year it conducted another review to assess its progress and identify any new issues to be addressed. Then it set new priorities for the upcoming year, again focusing, listening, doing one thing at a time–and doing it well. The partners did not expect, nor did they see, a dramatic turnaround in one year. But with slow, steadfast professionalism, they ultimately enjoyed profits, growth, an agency value most can only dream of, and a solid foundation for continued success.

The seven simple ideas outlined above apply to all types and sizes of agencies. Try them at yours and send me a note when you succeed!

Chris Burand is president of Burand & Associates LLC, an agency consulting firm. Readers may contact Chris at (709) 485-3868 or by e-mail at [email protected].