How Does Agency Culture Affect Best Practices?

An important first consideration is the potential effect of agency cultures and procedures on the definition and implementation and use of systems in defining Best Practices. What should be alike and what can be different between departments and locations? What impact do mergers and multiple locations have? Remember, a single-location agency can often have multiple cultures and procedures within a single department. It’s important to recognize how these play into change, no matter the size or structure of the agency.

In my career I have worked for or consulted with agencies in all of these situations. I have also worked for a couple of insurance carriers, and found similar situations exist there, as well. While I am no longer surprised by these issues, I continue to be amazed that our industry tolerates employees who do not follow rules established by the employer. I am similarly amazed that employers do not do a better job of defining, implementing, monitoring and enforcing rules.

A number of agency owners have told me that making and enforcing rules causes morale problems. Others say that because it is so difficult to find good staff, they don’t always enforce the rules or, worse yet, they enforce the rules selectively. Any owner that thinks staff is not aware of these situations is fooling himself or herself. Agencies located in areas where experienced insurance professionals are hard to come by are most often guilty of having no rules or of not enforcing them. In areas where jobs aren’t plentiful, staff knows they have few options. In these cases, they become disgruntled and fail to provide good client service. They fail to do their best work, because they don’t believe in the organization.

Employees in such agencies know that everyone in the organization is not treated equally; this grates on them consistently and their attitude is transmitted to clients. Stop and listen to a phone greeting or conversation between staff members and clients or insurance carrier personnel from time to time. This is a great way to monitor the pulse of the staff. Listen to the tone of their voice. Listen to the words. To often, staff relates negative attitudes and messages to the client. Sometimes, they tell everyone who will listen how far behind they are in their work. This can lead clients and prospects to believe your agency may not able to really handle their account.

Experience tells me that making and enforcing rules properly creates staff with great morale. I have managed small groups of staff, I’ve led managers with staff, and I’ve been responsible for the entire agency staff as well. On occasion, I’ve had to be told when there was a problem with morale, because I was too busy to pay attention, and I have certainly made my share of mistakes. But I learned from these. What I learned was in order to create a positive atmosphere, I needed to establish rules, explain the rules, train the rules and implement and enforce them in a timely, consistent and fair manner. What do I mean by implement the rules?

Too often, managers believe that putting out a memo, e-mail or manual gets the job done. Wrong. Successful implementation of rules, standards, procedures and workflows requires personal, verbal communication. In a single-location agency, this can be done at a mandatory meeting. Attendance of everyone—including all owners, producers, managers and staff (even part-timers)—is essential. If you are a multi- location agency, accomplish this by conference call or an online meeting or a live meeting at each location. Everyone must hear the same message, and they must hear it from the top. The message is rather simple:

• These are the rules.
• These are the results when you do follow the rules.
• This is what happens when you don’t follow the rules.
• The rules apply to everyone. (Even the owner and management)
• The rules are effective today or at a defined date in the very near future.

This may sound tough to some of you. But remember, the agency is a business. The agency operates to serve its clients and make a profit. Consider businesses in industries close to insurance, such as banking and the mortgage industry. They have very rigid operating rules. If you work in these industries and don’t follow the rules, you don’t have a job. Why are insurance agencies so willing to not make or enforce rules?

What issues are you facing in your agency? How are you going to deal with them?

Topics Leadership