MANAGE & LEAD
STRATEGY IS THE WAY TO A BETTER FUTURE
By : Cheryl KOCH
If you ’ ve ever purchased a new car , you know that one of the last things the salesperson does is sit with you in the vehicle and show you how to operate all those new gadgets and gizmos . You ’ re so enamored of your new car , however , that you don ’ t pay that much attention . So off you drive from the lot , proud as a new parent . You arrive home , pull into your garage , and … wait … how do you turn this thing off ? You search for a button or an icon on your display , not finding anything . Finally , you open the glove box searching for the owner ’ s manual , only to find there isn ’ t one ! Now , what do you do ?
This experience is not very different from what many agency owners face when they take control of their agency for the first time . Hopefully , new owners have been allowed to “ marinate ” within the agency for some time , coached and mentored by the current leadership until they are experienced enough and comfortable with their new role as agency principal . But for others , leadership is thrust upon them when they least expect it , and they are not adequately prepared to take on the myriad things that must be managed to have a growing , profitable organization . They search for the “ owner ’ s manual ,” but it doesn ’ t exist . They do a Google search for “ Independent Insurance Agency Owner Academy ” – zilch ! They contact their state agent ’ s association to see what resources are available and are told that it ’ s a great idea – but unfortunately , nothing currently exists . Now , what do they do ?
Well , if they ’ re like most agency owners who are new to the position , they suck it up and dive into the deep end of the pool . Total immersion . Rely on their innate skills and abilities and figure it out . That method seems to have worked for generations , so why not now ? The short answer is that now isn ’ t like it was for past generations . The world moved on , the insurance industry evolved , and things can ’ t be handled using the same tools and resources that worked well in the past . Today ’ s agency owner needs a well-crafted strategic plan that will move the agency from its current to its future destination , whether that ’ s an external sale , an internal perpetuation , or a merger with another firm . In the words of the great Yogi Berra , “ If you don ’ t know where you ’ re going , you ’ ll end up someplace else .”
Engaging in the strategic planning process may seem daunting to someone who has no previous experience . Like most things , if you take it one step at a time , it ’ s easier than you might think .
Planning to Plan . This first step is crucial and should not be overlooked . It would be best to decide who will be involved , what the timetable will be , the desired outcome of creating the plan , and what information and resources are required to create an executable plan . You should also consider whether or not the organization is ready to plan . It requires a considerable commitment of time and the involvement of everyone in the organization to some extent .
Assemble the Team . Once management is committed to the planning process , the next step is to identify the planning team members . When selecting potential participants , consideration should be given to individuals both inside and outside the organization . While you will likely include someone representing each of your agency ’ s functional areas , key clients , company partners , and
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