The Times They Are A-Changin’

How Agents Can Manage Technology Change

Changes in technology such as real-time processing and more competition coming from every side are spurring agency owners to change their operations in order to survive and thrive. But implementing change is never easy.

Managing change requires two highly developed capabilities: smart decision-making and sound implementation. Deciding to make a change in the agency is usually the easy part. You gather up all the information you need and make an informed decision.

Smooth and effective implementation, however, can be more challenging because you’re dealing with people issues. You must understand how the change will affect your staff and communicate with them before, during and after the process. You must gain support and commitment from those who are affected by the change.

Let’s say Tom, owner of Tom’s Insurance Agency, needs to make major changes to increase his revenue per employee. He has done his due diligence by conducting research and studying best practices.

Tom researches each possibility and decides that he can increase productivity, decrease expenses and reduce his E&O exposure and become more efficient by switching agency management systems. He believes this will boost revenue per employee. This is the decision-making phase.

Tom holds a staff meeting and informs the staff that the agency is going to purchase a new agency management system. The new system has the capability for real time, upload and download, integrates with rating, and has many other features that will help everyone become more efficient.

Tom expects everyone to be excited and happy. Instead, there are a lot of sour faces. People feel that the rug has been pulled out from under them.

How can Tom implement this decision and help the staff through this transition? These four steps are a great start: Show the big picture; Sell the solution; Involve people in the planning; and Celebrate success

Show the Big Picture

Many agencies share their financial picture with employees monthly. It’s a very valuable tool. You don’t need to provide every detail, but giving a snapshot of the financial health of the agency creates an environment for understanding and teambuilding. In our example above, Tom would explain to the staff that he pays $1,000 per month for the current agency management system and the switch to the new system will save more than $6,000 per year. People understand saving money and also realize that – in the long run – it can free up more money for salaries and benefits.

Sell the Solution

Take the time to highlight how this will benefit the staff. Present a positive vision for their everyday workflow. Getting a new system will allow the staff to be more organized, not having to jump up and down to get file. They’ll be able to access carrier info with a click of a button, and binders and certificates will be much easier to create. This helps create buy-in.

Involved Planning

Whether you have five or 50 employees, get them involved in the planning phase of the project. Schedule a brainstorming session. What needs to be done to prepare for the new system coming in? Who will do it? When? What’s the deadline? Having a broad agenda and allowing folks to give their ideas and comments creates a feeling of ownership of the project. You’ll be surprised how many of the grumblers will end up happily volunteering for a part of the preparatory work to help implement change.

Celebrate Success

Don’t wait until the change has been completed. Bring in coffee and donuts, take people out to lunch, tell them how much you appreciate what they’ve done and celebrate all the little milestones along the way.

Making major changes can cause employee resistance. Understanding the process of change and how important it is to get staff on board by complete communication, selling the solution, involving them in planning and celebrating successes will ensure a smooth transition that will allow for the desired results.

Topics Agencies Tech