Be Successful by Modeling Success

One key element that differentiates humans from other animals is our ability to copy traits and skills from each other. Most animals are born with instinct that provides them with many of the skills that they need to survive. Humans—on the other hand—develop survival skills throughout our lives.

As we grow up we observe the behavior of others all the time. We notice what works and what does not work. We then copy the behavior that we believe will work best for us. Human beings are essentially a mosaic and blending of traits and behavior that is modeled from others.

Most personal growth experts use this modeling concept to help others become successful. Motivational speaker Anthony Robbins once said, “If you want to be successful, find someone who achieved the results you want and copy what they do, and you’ll achieve the same results.”

Clearly, the concept of modeling successful people works at the personal level. It also works at the business level. It’s a common sense approach that never fails to work. Why try to re-invent the wheel when you can model proven business tactics that are guaranteed to develop success?

Steps to modeling
There are three initial steps that must be done. First, seek out successful firms and find out what they are doing right. These can be local firms or national brokers.

Next, analyze their business model. What makes them successful? Also, see what, if anything, they have in common. Are there common elements to success?

Now, determine the key business characteristics from these firms that should be modeled. One firm might have exceptional sales technique. Another might have great services for its clients.

The next step is to really dive into understanding exactly what these business characteristics and traits are and how they work. Since most businesses will not readily disclose the secrets to their success, keen observation is important in this process.

The final step is to actually integrate and model these characteristics. Implementation needs to be done as a group effort, so that the ideas become part of each individual in the firm. Modeling some characteristics will be more difficult then others.

In our work with hundreds of firms over the years, we have noticed that there are some common traits in successful firms. The following five traits can be found in all successful firms.

Vision and planning
Great firms don’t just happen. First, someone has a vision for a successful firm and then a plan is created to implement that vision. That is why planning the firm’s sales activities and business goals is extremely important.

A business without a plan is like a ship without a rudder; it can only go where the prevailing winds are blowing. A business plan should be short and concise. This makes the creation and implementation of the plan more practical and palatable. Without an organized plan the firm lacks direction and purpose. It will have a hard time attaining needed growth, capitalizing on the firm’s strengths and minimizing weaknesses.

Great people want to work there
Instead of having to place ads in the newspaper or use headhunters, good people go to successful firms and ask for a job. They have heard from others that it is a very good place to work and they want to be a part of the organization.

Also, turnover is very low and people feel that their efforts are recognized by getting raises and promotions when they are deserved, without having to make threats or beg for mobility. People like what they see and feel a part of the team.

The employees feel their work is challenging and that the compensation is great. Good workers don’t stay in organizations where they are not challenged and where they don’t feel they are fairly compensated.

The firm is growing and going
Successful firms have internal growth of at least 10 percent per year on a long term basis. Growth during a hard market should be much more—perhaps 20 percent to 30 percent. Everyone inside feels that sales is their job, too. All people, even in the customer service roles, are rewarded for bringing in new business and cross-selling existing accounts.

Retention of the business is quite good because of this and customer loyalty is prevalent. Clients regularly send referrals to the agency and are proud to tell their suppliers, distributors and even competitors who they are insured with.

Usually an inability to grow the firm through its own new business efforts is a reflection of poor management. A firm that cannot grow itself should not acquire another book or firm to attain needed growth. Owners need to be able to first manage growth of their own firm before they should acquire someone else’s book, which often has some problems that might drain valuable resources.

Management, employees work together
Management does not operate in a vacuum, making decisions that affect the staff without their opinions. This is the most important element for management, since all other aspects of managing people are a subset of open communication.

Keep in mind open communication does not mean full disclosure. It does mean keeping the staff informed of vital information so that they can perform with confidence. The vacuum of no communication will be filled with rumors and misunderstandings.

Also, personnel handle a wider variety of tasks by using teams to simplify processes. Quality is a result of teamwork, not individual effort. Clients often respond positively knowing that there is a team working on their account. Firms that utilize teams require less management. The new model for an agency should be “a complex job for smart people.”

Continuous improvement
Everyone in successful organizations is dedicated to continuous improvement, personally and collectively. They continuously examine and correct any flaws that they might have in their systems.

Firms that succeed are proactive, not reactive. They survey clients and research customers’ needs and expectations. They also do the same with their markets and prospective markets. Most businesses are too busy reacting to the market leaders to actually be a market leader.

These successful firms find out what others are doing that works and then make the necessary internal adjustments—they model success.

Characteristics not to be emulated
On the flip side, successful business modeling also looks at areas to avoid. The purpose is to see how others fail and then rid your firm of these undesir-able characteristics. What can easily be done is look at the opposite of the characteristics previously described, such as: A lack of vision and planning; the firm has mediocre employees; the firm is not growing; management and the staff do not work well together; management and the firm are slow to adjust and make changes.

Also, look at the sales and marketing failures that others have had. Perhaps a local competitor launched a large campaign for a new niche, but it was a failure. Evaluate whether it was the product, the approach, timing, etc. that caused the failure.

Summary
It is very rare that a business is successful on a completely novel idea. Even in those rare exceptions, long-term success is only achieved by knowing what works and what does not work. Since long-term success is built on experience, why not capture the experience of other firms? Take advantage of the success and failure of others. Modeling is the fastest way to long-term success.

Bill Schoeffler and Catherine Oak are partners in the international consulting firm Oak & Associates based in Northern California. The firm specializes in financial and management consulting for national and international agencies, including valuations, mergers, acquisitions, sales and marketing planning. For more information, call (707) 935-6565, or e-mail catoak@sonic.net.