Here are a few initial areas where we might begin looking on a long-term strategic basis:

Related: Read “6 Agency Structure Survival Tips“

 1.     Communication 

The Internet continues to change the way we do business, yet most agencies spend $10,000 every 4 or 5 years to “update” their web presence and don't think about it in between. If the Internet had existed in the 1960s, do you think Toyota management would have taken such a cavalier approach to it—or would they have begun brainstorming and strategizing how it could benefit them in the years to come?

Some agencies are still questioning whether social media has any benefit for them. Maybe you are already testing the waters with one or two of the more popular sites like Facebook or LinkedIn, but we need to explore beyond today's social media to get a feel for what may be trending into the future.

2.     Client Nurturing 

It's all about what you're doing for your clients today and planning to do for them tomorrow. An occasional newsletter won't cut it anymore. For instance, many in our industry breathed a sigh of relief when the Affordable Care Act deadline was moved forward a year to 2015. Ironically, before that change, few agents were really working with their clients to help them prepare for the 2014 mandates and penalties. Unfortunately, many of those same agents and agencies will now wait to third- or fourth-quarter 2014 before working with their clients on the changes. 

A recent Thomson Reuters article found that “a 40% non-deductible excise tax will be levied on insurance companies and plan administrators for employer-sponsored health coverage to the extent that annual premiums exceed $10,200 for single coverage and $27,500 for family coverage.” This so-called “Cadillac tax” doesn't become effective until Jan. 1, 2018. That distant date and the high premium levels means most agents will ignore it for now. Yet because the average family plan today is about $20,000, it is highly likely that it could easily surpass the $27,500 level in 5 years, and a 40 percent non-deductible tax is a huge burden. Best practices agencies and agents are already beginning to work with their clients to devise strategies to avoid such penalties, while keeping decent coverage for their employees. Are you doing anything with this, or is it too far into the future to worry about it?

Related: Read “5 Steps to Engage With Social Media“

 3.     Client Involvement

This is  the most critical factor in strategic planning. There is a lot of brainpower contained within the management teams of your best clients. Many of them have been doing strategic long-term planning for a long time and they've seen the benefits. Have you thought of engaging them as partners in your strategizing for the future? Have you considered the benefits of asking them where they're going and what you can do to help them on their journey? Have you invited key clients to join in your planning meetings?

Or, like so many agencies, do you all sit around the conference table and determine what you think your clients want you to be doing? If that's the case, you're betting your future on self-serving assumptions—and we all know how the root word “assume” breaks down.

4.     Recommendations 

I am not naïve enough to think that our industry is ready for 20-year projections, but agencies can start with 5-year planning. As we work through the last quarter of the year, this is an ideal time to set aside a few days for strategic planning—preferably away from the office and perhaps utilizing an outside facilitator. If you agree, look at spending time on both your 1-year plan and 5-year plan. You might not be able to project sales on a 5-year basis, but you can definitely begin looking at communication and Internet issues and begin budgeting for ongoing research and development in that area, as opposed to 4-year updates.

I also strongly urge you to engage at least three good clients from different industries to assist you in the process. Not only will it help you, but they will benefit as well. Everyone likes to help someone—it makes them feel valued. That's not a bad feeling to engender when it comes to their renewals. Finally, don't rest on the laurels of your current “value resources.” Project where you might need to expand those resources into the future.

Strategic planning might not guarantee survival and success, but as Dwight D. Eisenhower once said, “In preparing for battle, I have always found that plans are useless, but planning is indispensable.”

Related: Read “Success With Support“