MJ Insurance is Agency of the Year

A focus on the long term keeps this agency vibrant and successful

By Dennis H. Pillsbury

Although he was unable to attend the dinner honoring his agency, MJ Insurance Founder and Chairman Michael M. Bill’s presence was felt. When Michael H. Bill, the agency’s CEO, accepted the 2009 Rough Notes Marketing Agency of the Year Award, he started out by thanking his father for committing to long-term succession for the agency. “His vision made it possible for us to remain independent and strong,” Mike H. told the audience of other Rough Notes cover agents, industry guests and staff of The Rough Notes Company.

Today, that focus on long-term growth continues, as the Indianapolis-based firm established a stock purchase plan in 2008 to bring in additional owners. At present, there are nine other partners in addition to Mike H., who is the controlling owner. “We plan on continuing to increase our ownership within the firm,” Mike H. told Rough Notes, adding that “all the partners are active in the agency. We are really focused on retaining our long-term independence.”

This focus on independence clearly helped to carry the day with the previous Rough Notes cover agents, more of whom cast their votes for MJ Insurance than for any of the other agencies featured on the covers in 2009.

But that was not the only feature that makes MJ special. As Mike H. points out: “We have a great group of people who have made it possible for us to deliver on our promises to our clients. And we recognize their contributions every day. We have made deliberate efforts to focus on the needs of each of our 121 employees so they can focus on the needs of our clients.” (The agency has 111 employees in its headquarters and 10 employees in its branch office in Scottsdale, Arizona. That office was opened in 1995 to take advantage of the rapid growth taking place in the southwestern United States.)

The agency pays careful attention to the work/life balance, with the guiding principle being that it is more about life than it is about work. The environment is one where people have fun and are actually excited about going to work. And that emphasis translated into the agency being recognized as one of the Best Places to Work in Indiana—a recognition that follows an evaluation of workplace policies, practices and demographics, as well as a confidential survey of employees.

Sincere concern

“And it’s not just lip service,” one employee noted. “Mike is really sincere about his concern for all employees. We really are a team in the best sense of the word. We look out for each other, help each other and, in the process, are better stewards for our clients’ needs.”

This caring for employee needs includes a focus on wellness. “Employees have access to an exercise facility and we provide health risk assessment screenings,” Mike H. says. “And we go a step further by having wellness competitions—one of the more recent ones being a pedometer challenge where teams tried to walk the most steps.”

The agency focuses on a number of niche markets, with most new business coming in through referrals, thanks to its strong risk management services. Among the areas of specialization are construction, transportation, energy, and mining operations. Each of these specialties dovetailed nicely with the decision to expand into the Southwest.

Another important niche is Japanese-owned manufacturing firms, an important market in Indiana. The division is headed up by Hideyuki Kawashima, whom the agency snapped up when it learned that this then-president of a Japanese owned manufacturer was about to be transferred back to Japan. “He was looking for an opportunity that would allow him to stay here and we provided it,” Mike H. points out.

Another niche is the Women’s Sorority Division where the agency represents 24 of the 26 national sororities. The division focuses on risk management and insurance for the chapter houses.

Investing in the future

As the agency grew in size (it has reached $22 million in revenue), it became clear that it could no longer be the one-man show it had been when it was founded in 1964. But that meant an investment in the infrastructure and a refocusing of the effort from one where producers did everything for the client to one where a team took care of each client, with the obvious upside of allowing producers more time to do what they do best—produce. Of course, this decision was made at the turn of this century, right when the market entered one of its longest soft phases.

But it had to be done and the agency bit the bullet. A new president, Jon Loftin, was brought in to help create a culture of teamwork. A full-time director of sales, Kevin Ryan, was added to coordinate recruitment, mentoring and training of producer associates. Donna Bender joined as director of operations.

At the same time, a complete agency soul searching took place. A Chairman’s Council for Top Performers was established to look at the best practices of each of its top producers. “Invariably, we found that a focus on the needs of the clients—solving a key problem that may or may not involve an insurance solution—was one of the hallmarks of success,” Mike H. says. “And solving those problems became easier when there was a team of experts standing behind the producer. It always came back to a team effort.”

Walter J. Gdowski, president and CEO of The Rough Notes Company, in highlighting the achievements of MJ Insurance, noted that “the agency’s commitment to its associates, clients and community defines the MJ Insurance culture. Exceeding their clients’ expectations is a lofty goal and one that every associate at MJ strives to deliver.”

In keeping with its focus on the long term, MJ has involved all of its employees in developing a plan through 2015. “We were overwhelmed by the response to interest questionnaires we asked our people to fill out,” Jon Loftin says. “It helped us create a roadmap for our future.” A future that we at Rough Notes firmly believe will be bright and successful, giving further justification for the selection of MJ as the Marketing Agency of the Year.

THE EDITORIAL BOARD MEETING The day after the Marketing Agency of the Year dinner, the Rough Notes Editorial Board gathered for its annual meeting with members of the magazine’s editorial staff. Comprised of former cover agents, the Editorial Board provides insight “from the trenches” about issues that are impacting agencies’ bottom-line results. Among the topics that were discussed and that will be elaborated on in future issues of Rough Notes magazine were: • Recruiting and retaining new talent, including interview techniques that help to guarantee that the prospective hire will fit into the agency culture. • Compensation arrangements for producers and non-producers, including ways to incentivize people for service to clients that goes beyond expectations. • Using social media to market programs. • Ways to increase the personal lines market share of the independent agency system. • Ways to identify and change employee habits that are causing a drag on the agency’s drive to success. • Perpetuation problems, including a discussion of ways principals can recoup the value of their stock without selling to a bank or large broker. At left: Bob Bourdeau of Al Bourdeau Insurance Service, Flint, Michigan. Below: T. Gray McCaskill of Senn Dunn, Greensboro, North Carolina. At left: Michel Drouin of Charlebois Trépanier & Associates, Gatineau, Quebec, Canada. • Technology solutions that have helped agencies grow their business and increase efficiencies. • Capitalizing on the trend toward team selling, including how to change from a producer-dominated sales process to a team-selling approach without incurring the wrath of your top producers, and also the value of using tools like Skype with team members to save on travel time and expense. • The use of flex time to improve morale and actually increase productivity. • The advantages of an open office environment to facilitate team selling and collaboration. • Techniques that allow an agency to differentiate itself from the competition, including integration of workers comp risk management with human resources counsel and injury management. • The growing importance of employee benefits and financial service offerings in the “traditional” property/casualty agency. In addition to the annual meeting, Rough Notes also calls on members of the Editorial Board during the year whenever topics of concern arise