Getting things right the first time depends largely on developing a program to review and audit procedures on a continuous basis in all areas of the office. These areas include accounting, administration, catastrophe, claims, Commercial Lines, employee benefits and policy, Life and Health, marketing, Personal Lines, receptionist, and sales. The program should include four steps: (1) a thorough and careful review of all procedures, (2) an evaluation of each and every procedure, (3) an auditing program, and (4) a continuous review process.
The first step is to make sure all procedures are written and carefully reviewed by management and all employees in the department concerned. This employee participation will make your procedures more comprehensive, since your employees are the people most involved in what they do day in and day out. They should have an opportunity to express ideas on how their jobs could be made easier. This participation will give them a feeling of ownership, thereby increasing their morale and giving them a better feeling about their duties. A clear understanding of their responsibilities will enhance their performance.
In starting a procedural review, first create an outline of each major responsibility in the department chosen. Next, make sub-listings, describing in detail the procedures to be followed for each major responsibility. It is extremely important that these steps are written down on a how-to (not a what-to) basis-for instance, 'retrieve the auto identification card from the General Work Area, enter R for Renewal, and press the Enter key on the computer terminal,' or 'file the day's transactional filing in the File Room in the second file drawer, beside the previous day's transactional file folder.' This how-to process is extremely important in evaluating your procedures as well as for training a new employee and making sure everyone is performing consistently.
Once the process of documenting procedures has been completed, it is time to evaluate the procedures by major responsibility and sub-area. The main areas of improvement are: saving time, increasing efficiency, increasing productivity, increasing profits, and ensuring security and peace of mind.
In the area of 'saving time,' an agency may need to consider an upgrade or purchase of a new agency management system because of the existing computer system's slow response time or inability to process information efficiently and in a timely manner. Under 'efficiency,' you may want to consider claims follow-up-to increase customer service and possibly gain an opportunity to ask for referrals when customers tell how pleased they were with the timeliness of their payment or service.
In the area of 'productivity,' an agency may consider regularly meeting with all employees to discuss areas of importance and objectives for its departments. These meetings would give all employees direction and make sure goals are being followed.
Probably the most important area in 'increasing profits' in an agency is developing an annual account review program to round and develop accounts within the agency. (Renewal time is the best time to protect insureds thoroughly and sell additional coverages if necessary.)
Finally, in the area of 'ensuring security and peace of mind,' an agency may, again, want to set up a checking mechanism for processing all renewals in a timely manner or consider transactional filing. Unless there are duplicate files off-premises, transactional filing will assure you that all files are in the computer system and at any time can be backed up and taken off premises to a secure place.
The next step is to develop an audit program within your agency to review and evaluate employees. An audit evaluation form should be developed, and an individual within each department should be designated to audit his or her department's employees. This audit program should be performed every six months. This process assures the agency that all goals and objectives (as well as the procedures themselves) are being followed efficiently on a daily basis.
The final step, of course, includes an ongoing review (completing this process again) every year. Procedures, goals, and objectives within the agency are constantly changing, and it is essential to review all procedures for accuracy and compatibility with the agency's direction.
Although this process is quite detailed and will take a considerable amount of agency time to complete, a thorough and careful review, evaluation, semiannual audit, and continuing process will guarantee that all procedures, goals, and objectives of the agency are being followed-and that all processing is correctly done the first time.