|
Marketing Agency of the Month TREATING PEOPLE WITH DIGNITY AND RESPECT MHBT’s culture fuels growth while having fun By Dennis H. Pillsbury
McQueary Henry Bowles Troy, LLP (MHBT), Dallas, is one of those new old agencies that seem to dot the landscape these days. Agencies are continually reinventing themselves in order to be competitive in an increasingly sophisticated marketplace where even the smallest clients seem to be aware of the many options available to them from both the traditional and the alternative insurance markets. Although MHBT was formed in 1996 in order to “jointly afford services that the big brokers were able to provide clients,” according to Bill Henry, chairman and CEO, it traces its history back to 1926 when Shelton & Loving opened its doors. MHBT was created through the merger of Bowles/Troy and Associates, Inc., and McQueary & Henry, Inc., two agencies that had been competing for years for the number one spot as the leading independent agency in Dallas/Fort Worth. McQueary & Henry was formed in 1983 to write large accounts by two senior executives from Employers Insurance of Texas—Joe McQueary and Bill Henry. The two served as senior vice president of sales and manager of national accounts, respectively, at Employers and handled most of the Fortune 1000 accounts for the insurer. At those positions, Joe (now deceased) and Bill developed considerable experience in “creative” underwriting programs such as captives, alternative risk transfer, and other non-traditional approaches to risk funding. Bowles/Troy specialized in risk management and insurance solutions for professionals, the retail industry, not-for-profit corporations, real estate interests, and financial institutions. It also had well-developed books of personal lines, employee benefits, and life insurance business.
“We had been competitors, but also friends,” Bill Henry says of Bowles/Troy. “Don (Bowles, now president of MHBT) and I decided that a merger would allow us to better provide sophisticated risk management, loss control, and other services to our clients. We also wanted to create an environment that would promote growth by letting our people have fun. Apparently it worked. When we merged in 1996, we had 73 employees and under $9 million in revenue. Today, we have 180 people and more than $36 million in revenue.” In addition to the main office in Dallas, MHBT also has offices in Austin and Fort Worth. The culture “Don and I wanted to create an environment where integrity is the watch word and people are treated with dignity and respect. We wanted a place that would attract really good people so we could build an all-star team in our part of the country.” Carla Sans, chief operating officer, affirms that they have succeeded. Carla was one of the first people Bill hired in 1983 when he set up McQueary & Henry. She left several years later to set up her own advertising business. “Bill prepared me to own my own business,” she says, adding “and that prepared me to come back. There’s not another company that I would have joined. Bill offered me a great opportunity and, thanks to the time spent running my own business, I was ready for the challenge.”
Carla’s leaving and coming back tells Bill that he is doing something right. “One of the things that I’m proudest of,” he says, “is that, in the last 15 years, we have lost only three key people and two of them (including Carla) rejoined us. I’m really proud of the people I work with.” “The culture of respect and caring starts at the top with Bill,” Carla observes. “I’m really proud of what this agency represents. As COO, it’s my job to make sure this runs in the direction we want it to go and a big part of that starts with the people we hire. As Bill puts it, ‘We hire only PLUs (people like us).’ That means when we interview a person, we’re interested not only in their experience, but we also care deeply about what’s in his or her heart. In return, we show attention to them that goes way beyond business. We focus on how they are doing as a person. All our managers are like that, and that comes from the respect they in turn receive from the top.
“From my perspective, the one thing that sets us apart,” she continues, “is the commitment we get from our people. I am familiar with other agencies and they don’t generate the same commitment. When people are happy and have fun doing what they are doing, they take care of each other and of their clients. It’s an honor to work here.” Of course, a strong, positive culture is the sine qua non on which much of MHBT’s success counts, but it is not the sole factor that has led to such tremendous loyalty and to MHBT being recognized as one of the “Best Places to Work” in Dallas/Fort Worth by the Dallas Business Journal. In 2005, MHBT ranked fourth among medium-sized businesses. MHBT also rewards its people monetarily for their efforts. “Number one, we try to keep our pay grades above the norm for non-producers,” Bill says. “We also introduced a bonus plan for the last two years with bonuses paid at Thanksgiving and Christmas. We also have a 50% match for 401(k) contributions up to the maximum allowed by law. “For producers, we offer the higher end on commissions and have a sweat equity program that provides them with possible ownership after they reach $750,000 in revenue. The other partners make the decision to offer ownership to a producer, and they’re tough critics. Once they are accepted by the partners, producers can continue to earn equity in the agency. If they exceed $1 million in revenue, there is a 5% bonus in equity. The producers can really do quite well,” Bill continues. “The distributions coming off the partnership units have been substantial and the growth in value is tax deferred. Since 1997, the units have appreciated more than four times.”
Value-added services MHBT focuses on becoming the “outsourced risk management department for our customers,” Bill says. “We want to provide the necessary disciplines as part of our agreement with our customers, including claims reviews, loss control, and other risk management services. We actually have three former corporate risk managers on our staff. We work with our clients to help them decide which risks to retain and which risks to transfer. And we don’t just focus on insurance as the only risk transfer mechanism. We also assist clients in interpreting and understanding non-insurance contracts with the potential to decrease or increase risk. “In addition, we have a D&O liability department that includes three experts in this field. We also have captive management capabilities through a sister company in Bermuda and can provide other alternative risk financing options. We look to create smarter clients who understand that the best way to keep the cost of risk down is to reduce or eliminate losses. That’s what they control.
“We are proactive in our approach to risk,” he continues, “For example, back in 1985, there was a workers comp crisis and we set up Signal Mutual Indemnity Association with Charles Taylor (Hamilton) Ltd., Bermuda, to handle a group self-insurance program for companies subject to the U.S. Longshore and Harbor Workers’ Compensation Act.” The program today has 200 members representing more than $180 million in premium. Signal Mutual is the largest provider of Longshore coverage in the United States. Bill continues to serve on Signal’s board, and MHBT is the largest producer of business for Signal. Although the agency is principally focused on commercial lines, the agency also offers personal lines and benefits. “We have a large and growing benefits department,” Bill says. “In April, we opened our Austin office with 17 employee benefits specialists who collectively represent about $3 million in employee benefit revenue. We have been providing employee benefits services to our customers, but we expect this new office to help us enhance our employee benefits offerings and to help us build a bigger presence in the Austin market.” Caring for the community
In addition to caring for employees and customers, MHBT also is an outstanding corporate citizen and is heavily involved in helping the community of Dallas/Fort Worth and beyond. “There are probably 10 to 15 events a year in which everyone participates,” Carla says. “We built a house in the community as part of Habitat for Humanity. A group of employees from MHBT recently received the 2005 Outstanding Volunteer Award for their work with VNA Eldercare. We’ve raised money to help a colleague who was stricken by cancer. When any of our employees or their family members are sick, we do whatever is necessary to help them through the tough times. We view ourselves as part of their work family and that carries with it a responsibility to help.” And that doesn’t stop at the Dallas/Fort Worth border. When the tsunamis hit last year, MHBT raised more than $20,000 for the victims—including $15,000 from individual employees, plus a $5,000 matching contribution from the agency—in less than a week. “In the final analysis,” Bill concludes, “it’s really all about the people. They are the reason for our success today. And the young people who grow to become partners will assure our success in the future.” By putting people first, MHBT has achieved success and set the framework for continued growth in the future. It is for that reason that we are proud to honor the firm as our Marketing Agency of the Month. * |
||||||||||||||||
| ||||||||||||||||
