MARKETING AGENCY OF THE MONTH
Change and individual initiative spring from a solid center
By Dennis H. Pillsbury
Chuck Miller, president and CEO, Bratrud Middleton Insurance, Tacoma, Washington.
To the casual observer, Bratrud Middleton Insurance (BMI), Tacoma, Washington, probably looks a bit chaotic. Management structure is relatively informal. Individual initiative is nurtured and encouraged. Ideas, suggestions and even corporate direction and strategy are as likely to come from staff as from management. At BMI's core, however, is a central group of values that remain constant and give a solid hub out of which numerous spokes of change spring--the "ever-whirling wheel of Change" written about by Edmund Spenser in The Faerie Queene, a wheel that sways mortals and lets them keep pace with times that "change and move continually."
"Our core values remain constant and unswerving, but everything else is up for grabs," Chuck Miller, JD, president and CEO, explains. Those core values include: continuing the agency's local, independent ownership; respect and encouragement of individual initiative; "The Rule of RAA" (responsibility, accountability, authority); adherence to the 10 habits (see sidebar); and support for and commitment to the community. The constant whirl of change can include: the agency's strategic direction, operating methods, structure; compensation; and product line. In fact, the agency currently is going through one of those major changes as it pares down the number of offices from seven fully staffed locations to three main profit centers: Tacoma, Vancouver and Bremerton. Longview and Olympia will become sales centers. The Auburn and Puyallup offices will consolidate with Tacoma.
BMI has long been a presence in Greater Puget Sound and Western Washington, tracing its roots back to 1923 when the E.O. Bratrud Agency was opened. Today, it is the largest independently owned insurance brokerage in the Northwest region and the 76th largest U.S. broker, according to Business Insurance. Its total revenues for 2002 hit $24.1 million with 60% coming from commercial property/casualty; 20% from personal lines; 15% from life and employee benefits, and 5% from miscellaneous business. BMI employs 190 people. The agency has grown both organically and through acquisitions, but about eight years ago moved to organic growth as the principal method. "Our producers are bringing in about $2 million in revenue each year in new business since we started this new emphasis in 1995," Chuck reports. "Part of that change in emphasis involved moving from an 'entitlement' type of compensation arrangement toward a merit-based system."
Chuck took over as president in 1995. "I started out as a producer
13 years ago and became sales manager in 1992. In 1995, I missed a board meeting and they elected me president. When I took over, we were at $11 million in revenue. We've had two mergers since then, contributing about $2 million in revenue, but all the rest has been due to all of the employee's efforts at producing real, organic growth."
Recognition
"We started The President's Club as recognition and an incentive for producers to bring in new business," Chuck continues. "The club is for the top 10 sales people based on new production. We have 42 producers,
34 of whom are equity partners, and they're tripping all over each other to get into the club. The 10 who make it and their spouses get to spend four or five days at a resort together. It's also a great time to share ideas about ways to increase new sales even more effectively."
BMI also offers numerous incentives for employees, including the chance to win the coveted BRAT (Bratrud Recognition for over and Above Tremendous service) Award. BRAT Awards are given monthly and are based on nominations from employees. The winner receives a gift certificate. The BRAT of the Quarter receives the gift certificate, plaque recognition and an additional personal day leave. The BRAT of the Year is featured on a plaque in the main lobby.
Willa N. McCarthy, corporate secretary and controller, meets with Chuck.
"The BRAT Awards were established by the agency's Lighthouse Committee," Delene Losch, Chuck's administrative assistant and chairperson of the committee, says. "The committee is our (the employees) vehicle for expressing ideas, concerns, and questions. It includes a broad cross-section of employees representing each branch and business line. It was set up after Chuck took over in response to his open door policy. The committee gives everyone a direct voice to management. Chuck actually comes in and listens to the committee at its monthly meetings. He's very open and honest and we really feel like we're part of everything. Everybody is part of the team."
Delene continues: "Chuck really listens to staff needs and works with management to enhance the working environment for all employees. Since he took over and the Lighthouse Committee was established, we've added a large list of benefits, including in-house massages, bagels on Friday, dry cleaning services, flex time, a summer picnic, stress management workshops, a scholarship program, an extra personal day, a quarterly wellness bonus, and numerous others. It's all served to create a reality where each employee has an opportunity to contribute and be recognized."
Ownership in the agency also is an incentive that is available to those in sales and management who contribute. "We have 34 people who own stock to some degree," Chuck notes. "No one has more than 10% of the outstanding shares. That's all part of our perpetuation plan that will assure our independence going forward. People are invited to buy stock, usually after they've been here for at least a year. Basically, if someone in sales/management is seen as the type of quality individual deserving of ownership, he or she is invited to purchase stock. Ownership is by invitation only."
Bringing in new blood
"We instituted an IMS (insurance management specialist) program about a year ago to bring in entry-level sales people," Chuck says. "Under the program, we bring in people who are new or relatively new to the insurance industry and set them up almost in the same way as many direct writers. They bring in new clients and cross-sell them. We've hired one person from Central Washington University, one from Country Companies and another from a St. Paul office that was closed down. We look at it as the start of a farm system to grow our own producers.
"We also aggressively seek experienced producers. People know who we are and we get a lot of calls from people asking us about openings. We use the Caliper test as part of the hiring process. Our gut plays a big part as well. We also try our best to attract successful competitors," Chuck continues. "If we go toe-to-toe with another broker and he or she does a very professional job, we call them."
A wide array of clients
BMI provides coverage for more than 50,000 individuals and businesses, writing virtually every type of coverage. However, it does have a number of specialty areas in which it has developed an expertise.
"Our largest specialty is construction and surety bonds," Chuck says. "We have long-term, stable relationships with all of our surety carriers and are a member of the National Association of Surety Bond Producers. In addition, we participate in the Association of Builders and Contractors, Master Builders Association, and Associated General Contractors."
Chuck, an accomplished artist, stands in front of his painting of legendary Chicago Bears linebacker Dick Butkus. Chuck will be donating his artwork to this year's Festival of Trees gala auction and dinner that benefits the Mary Bridge Children's Hospital. Bratrud Middleton is a long-time supporter of the Festival.
Other specialties are assisted living, light to heavy manufacturing, high-tech business and financial institutions.
Recently, BMI also began offering risk management and human resources services to its clients. These include The Watch Program which offers clients a method to address employee manuals, management forms, workers compensation, fraud/retaliation, discrimination, harassment, violence, theft, and other human resources issues. In addition, the agency offers its clients a broad "menu" of risk management services, education and training tools. Everything is designed to protect clients and their bottom line.
As noted above, support for the community is one of the agency's core values. BMI supports numerous charitable organizations including the American Heart Association, American Cancer Society, Boys' and Girls' Club, Junior Achievement, March of Dimes, Humane Society, Northwest Burn Foundation, Mary Bridge Children's Hospital, Rotary, Salvation Army, Tacoma-Pierce County Chamber of Commerce, YMCA, YWCA, and many others.
Chuck serves on the boards of the University of Washington/Tacoma Branch, Mary Bridge Children's Hospital and Intersure.
Bratrud Middleton Insurance exemplifies what is best about independent agencies--local ownership, perpetuation, integrity, innovation, adaptability, and, most important, concern for its employees, its customers and its carriers. Its success is built on the energy and ideas of its people and has positively impacted the communities that it serves.
Bratrud Middleton is highly deserving of recognition as our Marketing Agency of the Month. *
* NEVER BREAK RANKS. Always be supportive of a fellow employee.
* While we don't have to like each other, we will respect each other and each other's roles. EACH of us has value. Each contributes according to his/her skills and abilities. The sum of those contributions is Bratrud Middleton.
* ALWAYS KEEP CONFIDENCES. Corollary: SPEAK RESPONSIBLY.
* Remember, "MORALE IS EVERYBODY'S BUSINESS." Conduct yourself accordingly. The others will follow the example YOU set.
* KEEP YOUR PROMISES AND COMMITMENTS. Corporate decisions are made based on them.
* ALWAYS treat each other POLITELY AND WITH RESPECT. Act with CLASS and DIGNITY.
* Talk TO each other, NOT ABOUT EACH OTHER.
* Continuously display your commitment to BMI and be certain your actions POSITIVELY and MATERIALLY impact our continued success.
* BE involved, GET involved. When asked to participate, do it. If you DON'T, you're NOT needed.
* STAND TOGETHER ALWAYS, IN UNITY.
X ROUGH NOTES