Tracking Staff Performance

TRACKING STAFF PERFORMANCE

Insurance agents have always benefited by tracking performance. Tracking the number of leads generated in a month, sales calls made in a week, and new policies written in a quarter, for example, creates standard-setting measurements for managing sales performance.

As discussed in the book Managing Your Human Resources, standard operating procedures and job descriptions, communicated to the staff, form a basis for measuring performance in all staff positions. Performance tracking involves four interrelated activities:

• Setting goals
• Setting and communicating standards
• Measuring performance against goals and standards
• Managing people, resources, and work based on progress or lack of progress

You can use these same performance-measurement activities in agency operations to monitor the establishment and continued employment of automated, cost-effective workflow procedures.

To incorporate performance measurement and monitoring into both day-to-day supervisory responsibilities and the agency's performance appraisal system, several aspects should be considered.

Your agency's achievement of service goals and its protection from E&O exposure depend on whether staff members conform to standard operating procedures.

Say you want to ensure you're getting the results you want-for example, to increase customer satisfaction through rotational servicing. Monitor for consistent use of system diary notes and suspense. Managing the differences between the standard procedures and individual performance will keep your staff on track to meet service goals.

Another benefit of monitoring for consistent adherence is that it helps ensure that your computer records will be admissible in court. Courts are primarily concerned with the accuracy of procedures for input and processing, because this is where human error may creep in. Proof of database quality-control procedures is the single most important factor in admitting computer records into evidence.

Measurement can be a powerful tool to motivate groups. By publicly tracking progress toward a department's service goals and standards, you can recognize achievement and build enthusiasm. Let's say your agency has set 24 hours or less as the standard turnaround time for all Commercial binders and certificates. Measuring turnaround time for a month will help you track progress toward the service goals. When the department meets or exceeds standards, celebrate the achievement. In problem situations, when turnaround time consistently falls below the goal, tracking may indicate that more realistic targets should be set.

Use action planning in the annual performance appraisal process and interim reviews to monitor and motivate individual performance.

Consistence and follow-through are essential components in conducting performance appraisals, fostering uniformity in the evaluation process. The key to taking the subjectivity out of performance appraisal is to base ratings on observable accomplishments, performance standards, and other measures.

Action planning, with its deadlines and task accountability, also contributes to objective performance measurement because it reveals whether a person has accomplished a task or not. Quality of output or manner of performance can also be more objectively measured if the criteria are spelled out and performance is tied to observable behavior.

Every person in the agency should have a performance appraisal-even the principal! Formally measuring the agency principal's performance is an essential part of overall quality measurement. Agency partners, stockholders, members of the management team, or even subordinates can conduct the appraisal. Honest self-evaluation is always part of the process.

To complete a performance appraisal, compare the staff member's actual performance against the standards that were communicated to the person. Describe observable behaviors and performance in a 'Comments' area.

When conducting a performance appraisal, make two copies of the form. Have the staff member complete one copy as a self-evaluation, and the supervisor or manager complete the other. The supervisor and staff member should then meet to discuss an action plan and agree on improvement opportunities.

Set dates for the next review. In most instances, interim reviews of the action plan are indicated to ensure progress against goals.

The third and most important aspect of performance measurement is to measure overall business results. Your staff might follow procedures to the letter; they might be innovative, dedicated people-but if you don't have positive business results, you won't have a business.

Use your system reports and ACORD's Benchmark Calculator to measure your agency's performance in key areas such as profitability and productivity. These measurements will help you understand what to change to continue performing profitably in the insurance marketplace.

Together with staff, you can adjust your business strategy for the future and actively, continually improve.

Here are sample questions to use in appraising the performance of a Commercial Lines CSA:

New Sales: Does the person generate, recognize, respond to, and close opportunities to expand the agency's client base?

Retention: Does the person maintain and build client relationships through account rounding, quality service, and accurate product delivery?

Marketing: Does the person generate growth through servicing clients and making appropriate referrals to other departments in the agency?

Professional Development: Does the person take the initiative to develop new competencies and strengthen weaknesses?

Operations: Does the person adhere to standard operating procedures? Is the person's work accurate and complete? Does the person understand and meet or exceed agency service standards? Does the person work within the agency's structure to modify standard operating procedures to meet evolving service goals?

Depth of Knowledge: Does the person display technical knowledge at an appropriate level for the assigned position and continually endeavor to improve knowledge?

Reliability: Can the person be relied upon to complete assignments on time without needing reminders, work energetically, and be on time for appointments and meetings?

Innovation: Does the person take the initiative to introduce new ideas, processes, or courses of action? Does the person accept and implement change readily as requested? Does the person strive to improve quality, quantity, and accuracy of work? Does the person participate in decision making as requested and as appropriate?