Case histories demonstrate value of mentoring
inexperienced insurance producers
By Bud Antrim
Since hiring Andy Kush (standing) in 2000, Dave Saldon, Rue Insurance sales manager, has mentored the young producer as well as devised a nine-month learning plan. In these first two years, Andy has produced a book of nearly $60,000 in revenue.
Next to the hard market, the most common challenge we hear agency principals discussing is how to build and/or strengthen their production staff. They lament that high-quality, experienced producers are almost impossible to recruit. So they are forced to consider hiring inexperienced trainees--recent college graduates or salespeople from other industries.
It is not difficult to recruit talented trainees who have no experience in insurance yet have a high potential for success in production. The greater challenge is in guiding the training and development of these trainees, in helping them realize their high potential. Here is a summary of how three of our clients and the trainees we recruited for them are meeting this challenge.
Rue Insurance Trenton, New Jersey
Bill Rue, principal of Rue Insurance, in Trenton, New Jersey, and Dave Saldon, sales manager, hired Andy Kush in the spring of 2000, shortly after he graduated from Temple University with a major in risk management and insurance. Andy is now starting his third year at Rue with a book he produced of close to $60,000 (revenue), with a 100% hit ratio, and with confidence that he will validate within this year. That confidence comes from a solid foundation that Bill, Dave, and others at Rue helped Andy build over the past two years.
They started with a nine-month learning plan that focused on 1) acquiring technical knowledge, and 2) gaining experience in how clients are serviced and business is processed. While he rode with a producer as an observer about once a week, much of his time was spent working alongside CSRs or with claims and marketing people.
Andy spent his first six months doing basic CSR work. Then he spent the next two months working in claims, learning the claims process and carrier protocols while assisting with incoming calls, follow-up calls, and correspondence. Finally, he worked with Rue's marketing people for a month, learning the marketing process, the appetites of Rue's carriers, how to prepare submissions, etc.
Andy considers this foundation training very valuable. "I learned so much about the business of commercial insurance," he says, "but I've also built relationships with everyone in the office, and these relationships are very important to me now that I'm out producing."
Technical training goals were also on Andy's learning plan during these nine months. He earned a license, attended a three-week carrier school, and achieved the AAI designation (Accredited Advisor in Insurance), which he now proudly displays on his business card.
Jim Phillips (seated) joined JWF Companies last year after graduating from Indiana State University, and already has nine accounts and $30,000 in revenue. John Sahm, JWF's sales manager, has been instrumental in providing a variety of training opportunities for Jim.
Andy began developing his personal sales plan as this initial foundation building phase of his development neared completion. Rue has an attractive program for excavation contractors, and Andy made a proposal to Bill and Dave for penetrating that market in Pittsburgh, his hometown. Bill and Dave approved the plan and Andy went to work on a direct mail campaign. Then he started cold-calling for appointments.
As Andy started setting up initial meetings with prospects Dave stepped in to help him prepare. They role-played the meeting, sometimes twice or three times, with Dave, the prospect, throwing tough questions and obstacles at Andy. "I felt silly doing it at first," Andy says, "but it really helped me prepare and build confidence." That confidence is growing as Andy builds his book, now with the help of client referrals.
Also invaluable to Andy was the structure that Dave provided for his learning program. It included target dates for completing assignments, regular bi-weekly meetings and, eventually, a validation plan. Dave is both a mentor and a coach to Andy--helping him stay on his learning track, debriefing him after sales calls, and helping him to manage difficult situations and deal with discouragements.
JWF Companies Indianapolis, Indiana
Jim Phillips is just starting his second year at JWF Companies, in Indianapolis, and is off to a fast start--he has already produced nine accounts and about $30,000 in revenue. Jim joined the firm after graduating last spring from Indiana State University with a risk management and insurance major and a straight "A" average. In his first few months on the job Jim got his license, started studying for the AAI designation (which he has now achieved), spent time with CSRs, and attended the Chubb (National Alliance) School for Producer Development. "The school provided broad technical and sales training," Jim says, "and it helped build my confidence." Jim also received training in the Sandler Selling System.
But Jim believes that the most valuable training came from accompanying experienced producers on calls. Tom and John Flynn, principals of the firm, and John Sahm, sales manager, made sure that Jim was exposed to a variety of clients and situations. "I've learned a lot just watching how they develop rapport and phrase their questions," Jim says.
Jim started making solo calls in his eighth month, when the firm gave him some small business accounts to renew and cross-sell. "I'm finding that calling on clients is easier than calling on prospects," Jim says, "and working with these accounts helped me prepare for the more difficult sales calls." As Jim began calling on prospects, John Sahm made sure he was prepared. Like Dave and Andy, they role-played before each call. "John's a tough questioner," Jim says. "I think he likes to see if he can stump me."
Johnson, Kendall & Johnson Langhorne, Pennsylvania
Bruce White, sales manager and a principal at Johnson, Kendall & Johnson, in Langhorne, Pennsylvania, is emphasizing on-the-job sales training with Pat Mullen. Pat joined the firm last summer after receiving a master's degree in international marketing from Saint Joseph's University. He got his license and attended a three-week carrier school within his first two months.
Since then, Pat has been working closely with Bruce (he is also pursuing the CPCU in his spare time). Johnson, Kendall & Johnson targets larger accounts with a highly consultative style, and Bruce wants Pat to become a consultant as well as a salesman. So Bruce is teaching him the consulting approach personally, and both are benefiting from the relationship.
Bruce makes about 75% of his calls jointly with Pat, and they work as a team on call preparation and follow-up. "Pat provides another set of eyes and ears to see and hear what the client's risk management needs and goals are," Bruce says, "and another mind to participate in our team to develop strong long-term solutions for the client." We asked Bruce if he felt Pat was earning his salary working as a team member.
"Definitely," Bruce replied, "and for a lot of reasons, not the least of which is that the work he does frees me up to focus on other revenue opportunities."
Pat has no doubt that he is training to be a consultative broker and he enjoys his job. He particularly enjoys knowing that he is making valuable contributions while he is learning.
Recipes for success
Three young men with high potential on the pathway to success; three dedicated mentors/coaches; let's look now at the themes that are common to these success stories.
A major theme is on-the-job sales training. All the schools and workshops in the world will not provide trainees with the learning that a good mentor/coach can provide. Workshops teach theory and concepts; do this, don't do that. But trainees need to convert the dos and don'ts into behaviors and skills. That takes on-the-job practice, ideally with a good coach.
It's like learning to play golf. You need to learn the theories and concepts to play the game, but you can't develop skills without a club in your hand. And how much faster will your skills develop if a pro is at your side, showing you how, then correcting you as you try?
Trainees develop their sales skills--and their confidence--by: 1) observing how their coaches handle situations with prospects and clients, 2) practicing in realistic role plays with their coaches, 3) receiving corrective feedback. Our clients' trainees are unanimous in telling us that this coaching is the most important component of their training.
Trainees are also telling us that they want a structured learning program. They want to know what is expected of them; they want a simple plan with objectives and target dates to guide their learning activities. They want to meet with their mentor/coach on a regular basis to review their objectives and the progress they are making. And, when they start building their book of business, trainees need a sales plan to guide them to their primary objective: validation.
Mentor/coaches like Dave, John and Bruce provide this structure. But they are very busy. How do they find the time? Bruce says: "It doesn't take that much time, maybe a few hours a week. But most of that time we're focusing on work-related activities, not just on Pat's development program."
Another point these mentors make is that the trainees add value to them and to the firm well before they are producing business. At Rue, the supervisors of account services, claims, and marketing were sorry to see Andy leave when his training tour in their departments was over.
A final common theme in these success stories is commitment. Dave, John, and Bruce are committed to helping their trainees succeed. They want to share what they have learned and help guide their trainees through the rough times as well as the good times with wisdom and encouragement. They are committed to helping their trainees achieve a solid foundation of learning and skills, a foundation for success in consultative sales. And that commitment yields high rewards to the mentor/coach as well as to the trainee and the firm. *
The author
Doron (Bud) Antrim is managing partner of Woodgate Partners, LLC, a firm that works exclusively with agents and brokers in recruiting, training, and retaining highly talented producer trainees. Woodgate recruits both recent college graduates and alumni with one to five years' experience in other industries. They also provide a structured training program that includes workshops and Web conferences. More information is available at their Web site: www.woodgatepartners.com, by e-mailing Bud at mail@woodgatepartners.com or by phone: (410) 833-6468.