Use this powerful offensive weapon to impact your agency’s bottom line.
In the early years of my business career, I served as an Account Executive with Johnson & Higgins (J&H) in Philadelphia. Founded in 1845, J&H was the largest and most admired insurance brokerage in the world. At the age of 30, I had the honor and privilege of participating on an Account Management Team who coordinated the insurance and risk management requirements for some of Philadelphia’s most prestigious institutions -- including Comcast Corporation, Temple University, and the University of Pennsylvania. The J&H model was built upon a foundation of intense customer intimacy, impeccable customer service, and a passion to deliver value added resources outside the boundaries of the insurance transaction. Perfection was the standard: "Referability" and customer loyalty the goal. We took great pride in viewing ourselves as the Ritz Carlton of the insurance brokerage community.
J&H’s client-centric service platform created a unique “customer experience” that included, but wasn’t limited to, such tools and strategies as risk management service timelines, quality insurance protocols, action plans, marketing logs, and much more. While each piece of the J&H service platform had a special purpose, the “jewel” was the Stewardship Review.
The Stewardship Review was conducted six months after the inception of the insurance program. Its purpose was to confirm that J&H’s insurance and risk management strategies, goals, and objectives were aligned with those of our client. Beginning 30 days before the scheduled Stewardship meeting, we would begin a labor intensive process of assembling and analyzing volumes of information ranging from claims management reports through risk mitigation initiatives to insurance program design accomplishments. Charts and graphs were prepared. Schedules of insurance were updated. Industry trends were studied and our client’s performance was benchmarked.
Countless hours were spent on these prized clients in gathering and researching data, crafting the report, and preparing for the Stewardship Meeting with the Risk Manager and his or her Executive Management Team. A few days before the presentation, the J&H Account Management Team met to make final adjustments to the report and rehearse our presentation. Everything had to be prefect. The performance had to be impactful and memorable. This was our moment to shine, because we knew that the Stewardship Review was our special weapon in communicating our value proposition, building enduring relationships, and enhancing J&H’s brand identity. Put simply, the Stewardship Review was a “big deal”!
Why was the Stewardship Review process so important? Why was J&H willing to invest so much time and energy on this strategy? The reasons are plentiful:
- The Stewardship Review demonstrated our knowledge of the client’s business and risk issues.
- It gave us the opportunity to reinforce the quality and integrity of our work product.
- We had a captive audience, consisting of the Risk Manager and his or her Executive Management Team, including the CEO, COO, and CFO.
- The process was strategic, diagnostic and consultative – the Review reaffirmed our business partnership with the client.
It’s been nearly 20 years since I worked on my last Stewardship Review for Comcast Corp, Temple University, and the University of Pennsylvania. However, I now have an increased understanding of the financial rewards of the process. The Stewardship Review improved retention, cross-selling opportunities, and referability, as well as our ability to charge more for our services. The Review enhanced the organization’s brand and value – an amazing strategy to impact J&H’s bottom line.
The dictionary defines stewardship as “managing for others, one who directs affairs. Guardian. Manager.”
After leaving J&H and starting The Addis Group in 1990, I blended key components of J&H’s large account service platform to create the Addis Process™ which includes risk management service plans, claims management systems, quality assurance protocols, pre- renewal strategy sessions, and a stakeholder intimacy system. After careful consideration, I decided not to include the Stewardship Review in The Addis Group’s “original,” middle- market-focused business model. I viewed the Stewardship Review as:
- Most appropriate for larger businesses.
- Tedious and time consuming.
- Expensive to deliver to the middle market business segment on a consistent basis. The ROI could not be justified solely as a client retention tool.
- Duplicative. The risk management service plan and quality assurance protocols were already ingredients in the Addis Process™.
Through the 1990s, The Addis Group demonstrated positive organic growth, profitability, and brand differentiation without the Stewardship Review. However, we were beginning to see outside competition target our key accounts. We also believed that our cross-selling strategy needed creativity and structure. In 1999 Bill Rhodes, Founding Partner and Executive Vice President of The Addis Group, questioned the strength of the Addis Process™ without Stewardship Reviews. He made the staff rethink our position when he offered this curious comment: “The Stewardship Review must be seen as the first and most important piece of our insurance renewal process”. What was he thinking?
Historically, The Addis Group had viewed the insurance renewal process as starting 90 days in front of the expiration date, not 180 days. As the staff pondered Bill’s comment, we soon realized the brilliance and potential impact of his thought process. With his guidance and foresight, The Addis Group created a streamlined Stewardship Review process focused on deepening client relationships, differentiating ourselves in the marketplace, and enhancing our referability and retention results. If done properly, the Stewardship Review would:
- Reduce outside competition on key accounts
- Create more referrals
- Enhance cross selling opportunities
- Improve our reputation and brand
We designed a significantly different formula from Johnson & Higgins. The Stewardship Review would not be a strategy to “tell our story.” Rather, we concluded that a thoughtful lunch or dinner meeting focused on listening to our client talk about their visions and goals – personal and professional – would be most impactful. We encouraged the client to speak about the strengths of their business, opportunities for growth and potential risk issues which may impact optimum performance. Instead of spending countless hours gathering and analyzing data, preparing reports and strategizing about the meeting, we focused on sharpening our listening skills.
The impact of the Stewardship Review was greater than we imagined. The return on investment was immense, as measured by reduced competition on outside accounts, together with more cross-selling and referral opportunities. Thanks to Bill Rhodes’ enlightened comment, we learned first hand that the Stewardship Review is the first and most essential piece of the insurance renewal process.
The Stewardship Review: An inefficient and costly strategy or an essential weapon to impact your agency’s bottom line? You decide.