BOTTOM-UP PLANNING
by Ted Silver
When an agency understands what individual agency employees want to accomplish from a production standpoint in terms of new and renewal business as well as their objectives in the profit center they are associated with (Personal Lines, Commercial Lines, or Life insurance), a business plan as well as a risk-management plan my be implemented.
These accomplishments tie into the goals of overall agency objectives and the role of a company marketing manager.
Agencies can be broken down into three basic life cycles: the aspirers, the arrivers, and the decliners. These adjectives describe performance in relationship to a marketing manager. For marketing managers to be truly effective, they must deal with the workables-those who are receptive to assistance. This is where marketing managers are going to attain their highest degree of probable success.
I have long advocated that, in the '90s and beyond, a marketing manager's role is to be a 'business consultant.' As a business consultant, a marketing manager can help draft agency marketing plans if agency employees believe: 1) a marketing manager understands the planning process, and 2) how individual agencies function.
Not every agency is going to allow a marketing manager to get involved in its operations; however, aspirers and arrivers will be receptive if they believe a marketing manager has the qualifications that are required to make a significant contribution.
The first step is to make an arrangement with the agencies where you are well-received by the principal(s). Make an appointment to spend three to five days working and understanding their functions for Personal, Commercial, or Life insurance profit centers. Only by truly understanding how an agency operates can the marketing manager become a 'business consultant.'
Ask the principal(s) for a position on their management committee that meets on a monthly basis. Again, this is an effort to learn more about agency operations and problems. The contributions you bring are valuable because of your market awareness and your objective external viewpoint.
Every agency does not allow a marketing manager to get involved to this extent. Marketing managers will have to deal with the 80-20 rule: 80% of production is going to come from 20% of the producers. Marketing managers need to identify those agencies that allow them to work as 'business consultants.' It is only going to happen with a few of the aspirers and some of the arrivers.
The maximum number that you can really expect to work on this in-depth basis will be about seven to 10. Nobody expects marketing managers to totally understand the planning process overnight. Your relationship with your agencies and the company will strengthen and productivity will improve.