The approach may seem a bit odd, but taking a hard look at successful, growing, profitable agencies shows a stream of commonality within them. These agencies focus on key areas to assure their processes and procedures are integrated into the total agency effort. Those areas include:

1. Taking historic long-term reviews. Vision takes into account not only a 2-, 3-, and 5-year look at historical data and performance, but also a view into the future for the same timeframes to create a clear vision of the agency's short- and medium-term goals. Examining the past gives us an accurate view of what the organization or career will resemble in the future. There is an old saying that “Those who do what they have always done will have what they have always had.” When you look into your past and you're not impressed with its performance, the odds are high that if you don't change the behaviors in your future, the view will remain the same.
2. Planning future activities. You may refer to it as your business plan or budget, but when we look at the typical producer with a credible book of business, we see that with the typical holidays, vacation, training and development, sick days, etc., we only have a precious few weeks each year for new business sales. The older and larger the book, the less time is available for new business. Having an activity budget is as important as a financial one. Understand how many days it takes to keep the promises we make to current clients, handle claims service and resolve relationship issues. 

   Know that each account needs a budgeted amount of time to service and renew. These days are deducted from the overall available time for new clients. Having an understanding of actual available time, the number of visits it takes to create a new relationship, the average revenue per new relationship and the cost associated with the activity makes that new business dream a reality. Plan your activities and break them down into “bite-sized” accomplishable pieces.

3. Budgeting to fund marketing and sales efforts. Servicing existing accounts and creating new relationships takes time. Time dedicated to new and renewal business takes cash to fund. Know the cost involved in servicing and renewing current accounts and equate the effort, resources and overhead involved in the sales of new accounts. The average agency spends $250 on a new personal lines account and almost $1,000 on a new commercial account of any size in the attempt to earn the prospect's trust and create a desire to purchase. When we don't budget for both activities, the first thing we run short of is cash reserves to fund the business. Growth takes money.
4. Building consistency into the sales process. Adhere to a known successful model with all employees and departments within the agency. Sale and renewal processes and work flows for service personnel are needed, because without them, it is difficult to coach and manage the sales and service team. We lose operations efficiency and most importantly, we lose the credibility in being able to forecast results. 
5. Creating designated activity that routinely includes cross selling, up-selling and obtaining referrals. This one remains a mystery. The average person buys five to seven lines of insurance coverage each year. The average agency salesperson sells a national average of 2.5 lines of coverage per household. This is simple: Why don't we sell everyone everything we have access to in the agency?  They already are spending the money, but with your competitor. If you're serious about your future, take the “order takers” in your office and turn them into sales people.
6. Structuring reviews and high levels of accountability for the sales and service staff. With a structured sales process, specific renewal and new business activity budgets, and a known book of business that will need renewing, we can predict, manage and measure each activity within the process on each individual. This is based on their individual goals; they are each accountable to daily, weekly and monthly activity necessary to accomplish their goals. If we don't forecast the activity and break it down into a manageable daily routine, we have a hard time accomplishing targeted revenues. “Picking a number” with no predictability is not a serious business strategy; it's the profession of a hobbyist.
7. Leveraging incentives that reward new business production. Insurance is a profession based on incentives. We often hear the painful remarks of agency managers who have become locked into the annual review and discussions on raises, benefit enhancements and increasing agency overhead. When you reward based on performance as it related to their established goals, you are paying people based on success. If the success isn't accomplished, then they aren't rewarded. Get away from fixed overhead and move toward incentives based on leveraging future revenues. It's fair to everyone and is awarded based on performance.
8. Opening communication with the entire staff on company goals, direction and progress. Clearly understand the roles and activities needed to accomplish tasks or goals. Develop this into a team goal for everyone and communicate it on a regular basis. Communication assures everyone is included and engaged; understand the effort needed to accomplish the overall goal and what they need to do weekly to keep the team on track. If you're serious about a strong agency culture, you should communicate, communicate and communicate.
9. Creating strategic alignment with carriers specifically matching their appetite, growth goals, targeted loss ratios, profitability and policy count. Your clients and prospects should not be in a reactive order-taking environment, but should be specifically chosen in all lines. An “all things to all people” agency is a dying fantasy. Choose those with whom you want to do business. If you don't, be prepared to build an agency of “throwbacks” that the other agencies are smart enough not to deal with. Building an agency on these clients assures low profit, high turnover, low volume and miserable existence. Here again—predictable.
10. Developing strong leadership to create a defined culture and a forward-looking perspective. You owe your business, carriers, clients, employees and family the leadership necessary to build a well-positioned business. Have the courage to learn and act on those things crucial to business success.

Related: Read the article “NU Waves” by Tom Barrett.

Good luck and good selling!