At an annual insurance industry event, a group discussion among automation vendors, agency principals, and insurance professionals drifted onto the topic of built-in features and functionality versus actual agency management system utilization. At one point, one agent said, "I'll bet our agency uses only about 65% of our agency management system's capability." Others offered differing and lower percentages. Then someone suggested that the rate of product development and software upgrades make it difficult for users to stay current.
In thinking about my own computer utilization and that of people I work with, it occurred to me that many users are actually falling behind in their knowledge about their computers' capability, the software that runs on it, and their ability to effectively use it. Furthermore, I observe that the rate of technological change produces a level of frustration and tension that seems to inhibit some users' desire to learn new skills. Also, since computers are primary pieces of equipment in today's workplace (and even commonplace in the home), owners and managers take it for granted that their workers know how to use them.
Most business people, including insurance agents, have been using computers for 10 to 15 years. You would think that users would have mastered the basics by now and be comfortable with technology. Many have and are, but surprisingly, many still haven't and aren't. For example, I have a client who uses Windows 3.0 and still has difficulty understanding the "Save As" function and needs coaching in moving a file from the hard disk to a floppy. Another user asked how to import a gif file (sent via AOL by a Macintosh user) into Word for Windows. And, believe it or not, I still receive word processing files (on diskette) in which the user hits the return key at the end of every line, as if using a typewriter.
Given these observations, I believe many business owners and managers are in for a big surprise. Too many business people under-utilize their computers because they are under-trained and under-motivated. In short, many computer users are unknowingly falling behind on the technology curve and drifting toward a state of techno-illiteracy.
Techno-illiteracy: A management problem
It is a virtual industry axiom that the effective use of technology in today's agency starts with owner/manager commitment. If owners and managers themselves are only marginally interested in how technology can benefit their agencies, then effective and efficient computer utilization likely will not rank very high on the agency's list of priorities.
Of course, some agency owners and managers are not only techno-literate and savvy, but downright gung-ho. For example, Tony Marino of A.C. Marino and Associates in Woburn, Massachusetts, started his agency from scratch in January 1998 and uses the latest wireless remote Internet technology so his field agents can stay in touch and process business with the home office. What's more, this is no pie-in-the-sky technology experiment. Marino has already achieved revenues in excess of $350,000 per employee and projects $6 million in first-year commission and fee revenues.
Mike Randles, who heads Insurance Center Associates in San Pedro, California, is another agency head who is also techno-literate and savvy. He is quite opinionated about those owners and managers who aren't in tune with technology and says, "Techno-illiteracy will be one of the biggest problems facing agencies over the next five to ten years." Randles notes with disappointment that many owner/managers themselves have few or poor computer skills and are, therefore, unaware of how computer-related work gets done. Without such awareness, he adds, "Owners lack a basic sense of what's going on in the agency. To effectively lead and manage, an owner must be involved in the technology process." He also observes that some owners and managers consider computer-related work as a "menial task for somebody else to do."
Additionally, Al Roberts, an agency management consultant with The St. Paul, notes that some owners and managers are unaware of and do not understand basic automation trends that have proven benefits. For instance, Roberts has found that many owners of agencies employing 30 to 50 employees have e-mail access for only two or three employees. And, in agencies that have a Web page (many still don't, he says), receptionists cannot tell a caller what the Web address is. Roberts views these situations as evidence that many owners and managers are missing opportunities because they lack a basic awareness and understanding of technology.
Multi-dimensional problem
Techno-illiteracy is a multi-dimensional problem. If the owner/manager is not technologically astute or comfortable with computers, he or she should become so--and quickly. (See accompanying sidebar.) Many owners and managers, like people who cannot read or write, are often embarrassed by their lack of computer basics and are afraid to admit it. Check into the various computer training programs offered by technical schools or continuing education programs. More and more educational organizations are offering "computer boot camps" designed especially for business owners and executives. These programs take on the form of a hands-on "crash course" offered on a weekend or two. By the end of the course, you should feel at ease with a computer and have enough basics under your belt to be able to converse intelligently about them and use them for basic and routine functions.
Realistically, however, most agency owners and managers will not be as technically capable as their employees. After all, owners and managers have other responsibilities that do not require the skill sets of account servicing and technical employees. Nevertheless, owners and managers should be techno-savvy enough to deal with the "big picture" of agency automation and have a working knowledge of how work is processed in the agency.
Beyond becoming techno-literate themselves, owners and managers can take steps to assess the level of techno-literacy among the agency staff. If the agency has its own IT manager or similarly qualified automation specialist, this individual is often in a position to know who knows what and can recommend or implement appropriate remedies. An outside consultant and trainer also can be helpful in determining employee computer skills.
Of course, employee computer skills should be assessed in light of the agency's processes and procedures. Wanda Shumaker, the automation manager at Conseco Risk Management in Indianapolis, Indiana, points out that "many agency people are hired not because of their automation skills, but because of their knowledge of the insurance business." Because technology is an integral part of many agencies, she suggests that organizations do some type of computer skills testing when hiring new employees and also that internal testing and training be part of the performance review process.
Helping your employees keep up
It's one thing to assess your employees' technical capability, but it's another thing to keep them current and on top of the techno-literacy curve. Added to their basic computer knowledge, most agency employees need both system-specific and general third-party software training.
Presumably, when your agency bought its agency management system, you also bought a training package with it. Each vendor of agency management systems offers training. If you are considering a new system or a major upgrade to your present one, you should consider training. To be blunt, it's foolish to spend that kind of money on an agency system without getting the know-how-to-use-it information that vendor training provides.
For additional and ongoing system training and to stay abreast of system upgrades, join and attend your vendor's user group activities. All user groups develop and conduct user education at their respective annual national conferences and through various regional training programs. But user group training is not just for the techno-illiterate. It is also for those who want to learn more about their system. Kathy Ginkel, executive director of Delphi Partners International Association, observes that employees of the higher performing agencies are the ones who regularly attend training programs. Some groups even conduct special programs for agency owners. Cindy Peebles, director of communications for the AMS Users' Group, says that owner programs are among that group's most popular offerings.
Sources for general and third-party software training are everywhere--free or nominal cost continuing education programs, community and technical college programs, and even online courses. But don't discount the user groups, as most offer basic training in Windows, Word, Excel, and other programs that agencies are likely to use.
Longer term agency solutions
Overcoming techno-illiteracy is a long-term proposition. Agency owners and managers can develop and implement strategies for making sure their technology resources are being optimized. Consider these options:
1. Keep current with upgrades. Yes, software upgrades generally do cost money and sometimes seem unnecessary. But for the most part, from a monetary, training, and efficiency perspective, it is better to make small incremental upgrades that are of minor consequence than one giant leap to major changes and upgrades that may be time-consuming and disruptive.
2. Budget for upgrades and upgrade training. It goes without saying that if you're going to spend the money on the software, spend the money on learning how to use it and benefit from it.
3. Consider developing incentive programs that motivate users to improve their technical skills and reward those who do. It's fairly common to offer tuition assistance or partially reimburse tuition fees for employees who voluntarily advance their education. Monetary bonuses and other tangible forms of employee recognition are worthwhile.
4. Consider hiring an IT manager. Depending on your agency's size and technical complexity, an IT manager or similarly qualified person may be a wise personnel investment. This individual should have the technical know-how, managerial skills, and leadership capabilities to 1) assist owners and managers in making intelligent, informed decisions about agency technology, 2) manage the agency's technology resources, and 3) assess and ensure technically qualified employees.
Finally...
Put simply, the problem of techno-illiteracy is "the nature of the beast" for anyone who uses technology. Techno-illiteracy can be overcome, and, considering the extent to which technology infiltrates the typical agency, it must be dealt with, not ignored. The obvious benefits of overcoming techno-illiteracy include: improved efficiency and productivity, a higher return on your automation and personnel investment, fewer errors, happier and more satisfied employees, better customer service, and potentially a more successful agency. *
The author
Steven Brightbill is the editor of The Automated Agency Report, a monthly publication about agency automation, and owner of Betagraph Design Associates, specializing in creative and technical solutions in publishing and marketing communication.
Imagine this: Your agency has its annual picnic one beautiful Sunday afternoon in July. Your entire staff of 34 employees and their families all have a great time, and everyone has his or her fill of hamburgers, hot dogs, potato salad, and watermelon.
The following morning as you pull into your agency's parking lot, you notice that many of the cars you normally see are not in their parking spots. Then, as you walk into your office suite, you see that a number of people aren't in their usual places either. As you walk by the receptionist's desk, the phone rings and you frantically try to determine which button to push to take the call. It's one of your employees calling in with more than just a bad stomach ache--it's food poisoning from yesterday's potato salad. Within minutes you discover that nearly three-quarters of your staff will be out sick for the day, maybe for two or three days.
What are you going to do? Can you cope? Do you--the head of the agency--know enough about how your agency actually works and processes business so that you can roll up your sleeves and effectively help the few others who made it in?
For example do you know how to turn on your agency's computer system and get things up and running? If you needed to, would you know how to access a customer file, look up an account balance, make a change to a vehicle schedule, or print a certificate? If not, why not? These are simple tasks that your CSRs handle routinely every day. We're not talking about installing a software program or running network diagnostics.
There are other things you should probably know about using your computer. Can you access your e-mail program, retrieve messages, and send replies? Could you, if necessary, access your agency's word processing program and write some business letters and format them properly? Could you generate a proposal by pulling in charts, photos, and data stored elsewhere in your agency management system? Again, if not, why not? These are fairly basic tasks performed by your employees everyday.
Does this scenario--downtime caused by some unforeseen event--seem far-fetched? Don't answer "no" too quickly. After all, you're in the insurance business and sell policies that protect people from downtime caused by unforeseen events. In this case, however, your best insurance may be to be techno-savvy and have a healthy understanding of how your agency's technology resources work and how to use them. You pay good people good money to take care of your business. Don't you think it would be a good idea to know more about what they do and how they do it--just in case?
©COPYRIGHT: The Rough Notes Magazine, 1998