Looking back to embrace the future
There is truly a need for greatness to meet current and future challenges in our industry and beyond. Where do you stand in your journey?
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By Cheryl Koch, CPCU, ARM, AAI, ACSR, AFIS, and Mary Belka, CPCU, ARM, ARe, RPLU, CIC
It’s hard to believe that Stephen Covey’s best-selling book The 7 Habits of Highly Effective People was published nearly 35 years ago and has sold over 40 million copies, yet still offers enduring advice to those who serve as account managers in independent agencies across the country. At this time of year, when we are thankful for the people in our lives and the gifts that we have received and are mindful of how important the work is that we do, we take a few moments to revisit Covey’s timeless classic and reenergize ourselves for the upcoming year.
- Be proactive. We’ve been saying it for years—independent agencies offer phenomenal reactive service. When the client calls, we move into action and solve problems big and small. Often, we try to control that which is not in our control, especially in this turbulent and confusing hard market cycle. But many things are actually in our control, and it would behoove every agency to stop reacting and start “proacting.”
The time to explain to the client what is driving premium increases is before they get their renewal bill, not afterward when they call to express their surprise and frustration. Understanding the dynamic nature of the property and casualty industry, what underlying factors are causing insurance carriers to raise rates, and what must change for the cycle to end are important messages to deliver to the agency’s clients and prospects.
- Begin with the end in mind. One of the things we encourage all account managers to do is to create a written professional development plan. If you don’t take control of your career, someone else will likely do it for you and you may not achieve all that you desire. Your plan should not just include business goals but also your personal, financial, family, educational and spiritual goals. You may share only a portion of this plan with your manager or agency owner, but it’s important that all the aspects of your life are included and in harmony and alignment.
Working in the insurance industry is rewarding in and of itself for most of us, but it’s also a way for us to fund our dreams outside of the industry. Whatever you can imagine, you can achieve. But remember that a plan that is not in writing is really just an idea.
- Put first things first. In past articles, we have featured our CaughtUP™ workflow management system. We think of this as our gift to account managers who feel overwhelmed on a daily basis and unable to fully detach from their seemingly endless to-do list.
The essence of our system is to prioritize incoming items and recognize that some tasks are truly critical in nature—one must drop everything to handle these items immediately or it could have a negative consequence for the agency’s client. Such things as claims, certificates of insurance, and binding coverage are a few examples of critical tasks. But not everything can be critical, or we risk getting nothing done.
Non-critical items, which we refer to as workflow, must also be completed in a timely manner. Workflow items are categorized, such as endorsements or policies to check, renewals, and requests from clients, producers or carriers. Each day, workflow items are processed strictly in the order in which they were received—first come, first served—no exceptions.
- Think win-win. We have all been negotiating since we learned to talk. We asked for more allowance, to stay up past bedtime, and to breach curfew on occasion. Yet, when we have to negotiate at work, it seems to flummox even the boldest among us.
We advocate for respectful negotiation whenever it is in the best interest of the client, the agency and the individuals involved. Most account managers ooze empathy when it comes to clients, and that is certainly one of the most important traits possessed by the best service people. But, to engage in meaningful negotiation, one must also be confident and not afraid to discuss difficult or uncomfortable issues. The best negotiations, of course, are those where both parties walk away feeling they’ve won.
Ours is a dynamic and fluid
business where something changes
every day, be it a recent court decision,
new laws or regulations, or advances in
technology designed to help us
be more efficient or productive.
When it’s important to preserve and protect the relationship, such as when working with producers, managers and underwriters, the best approach is to move to the center and achieve a mutually beneficial outcome. If the issue is important to you and you have the clients’ and the agency’s best interests at heart, you can win without the other party losing.
- Seek first to understand, then to be understood. Communication is one of the most important skills for an account manager and is a daily part of the job. But when we’re busy or under stress, we tend to talk more than listen. Actively listening to people and trying to understand their feelings and emotions is key to having better relationships at work and in your personal life. Since it is a skill, it can be learned, practiced and honed.
Active listening involves really focusing on what people are saying, trying to assess the emotion they are feeling, and confirming that you have it right by responding with your understanding of what they said—without parroting their words. Too many people only hear the words being said by others and rather than truly listening, spend that time trying to formulate their next question or answer. People just want to be heard and have their feelings acknowledged, but often we are so quick to go into solution mode that we bypass the emotion, causing them to wonder why they bothered to tell you how they felt.
- Synergize. We tend to use the word “synergy” when talking about relationships and collaboration, but most of us don’t completely harness the power of this concept. Synergy is literally about the old adage that two heads are better than one—a concept we definitely embrace since it takes both of our brains to come up with our monthly Rough Notes column! Left to our own devices, most of us would reach an appropriate solution but that’s not the way to drive true innovation.
When we collaborate and cooperate, we have the possibility of the sum being greater than the individual parts. If you factor in diversity and unique life experiences, there are nearly endless possibilities of how to approach any problem or issue. We sometimes hear that managers and owners seek “consensus” or “buy-in” before they implement changes, but aren’t those just euphemisms for “group think”?
To quote Margaret Thatcher, “Consensus is the absence of leadership.” We may not all agree, but we might just come up with a breakthrough idea.
- Sharpen the saw. Unfortunately, not nearly enough time, energy or money is being devoted to professional development and education at a time when it is needed most in our industry. The world gets more and more complex, our clients are constantly re-inventing themselves and their businesses just to survive, yet the insurance industry seems to want to short-cut training and education.
Mandatory continuing education (CE) is a poor substitute for true knowledge, but many people feel once they are compliant with their state’s CE requirement, there’s nothing else to know until their license renews. Think how much more of an asset you would be to your clients and your agency if you made it a point to learn something new each and every day.
Some people think insurance is boring, but nothing could be further from the truth. Ours is a dynamic and fluid business where something changes every day, be it a recent court decision, new laws or regulations, or advances in technology designed to help us be more efficient or productive. If you’re standing still, it won’t take long for the industry and the world to pass you by.
- Find your voice and inspire others to find theirs. For those who may be unaware, nearly 20 years ago, Stephen Covey devoted an entire book to The 8th Habit. It is arguably more relevant today than when it was first written—challenging us to learn, then harness and apply the lessons of the first seven habits to our ongoing personal and professional lives, in a worthy quest to achieve true greatness.
John R. Wooden (the amazing UCLA Coach Emeritus) said, “The 8th Habit provides the key to unlocking a wondrous gift—namely, the greatness within each of us.” There is truly a need for greatness to meet current and future challenges in our industry and beyond. Where do you stand in your journey? Have you found your voice—your unique personal significance? Are you helping and inspiring others to find theirs?
We have both spent our (long) professional careers learning and teaching others, and it has truly been a joy. We like to think we have been effective at both and, yet, there is still so much to share with so many. Our journey continues! So as 2024 begins, consider spending some quality time in introspection around these eight powerful habits and see how you can put each into practice for yourself, your clients and your agency this year.
The authors
Cheryl Koch is the owner of Agency Management Resource Group, a California firm providing training, education and consulting to producers, account managers and owners of independent agencies. She has a BA in Economics from UCLA and an MBA from Sacramento State University. She has also earned several insurance professional designations: CPCU, CIC, ARM, AAI, AAI-M, API, AIS, AAM, AIM, ARP, AINS, ACSR, AFIS, and MLIS.
Mary M. Belka is owner and CEO of Eisenhart Consulting Group, Inc., providing management and operations consulting to the insurance industry. She also is an endorsed agency E&O auditor for Swiss Re/Westport. A graduate of the University of Nebraska, Mary holds the CPCU, ARM, ARe, RPLU, CIC, and CPIW designations.
