Sample: Agency Business Plan

Profitability: 15% before taxes after all expenses

Market Growth: 20% compounded annually (total revenue)

Customer Service: Set the standard with the client. Have a goal and achievement it. Accomplish this so that service improves and new standards are continually set.

Competitive Position: Set the standard and have as our competition nontraditional means of loss transfer.

Social Commitment: Active involvement in the community by all employees of the agency.

MISSION: To be a Service Department treating departments as clients.

Objectives:

• Elevate level of expertise
• Enhance mutual understanding
• Accounting department will have full control of receivables
• Asset Management
• Budgets
• Set Standards of Performance

MISSION: To support each department.

Objectives:

• Elevate level of Expertise
• Organized Data Base (Usable)
• Interface
• Remain "State of the Art" Software & Hardware

HUMAN RESOURCES

MISSION: To maximize potential of the work force.

Objectives:

• Elevate level of expertise - technical & human relations communications
• Maximize employee influence - let employees have a voice
• Develop career path system
• Situation analysis of work structure
• Develop A Reward System that Promotes Productivity
• Develop Effective Performance Appraisal System

SALES/MARKETING

MISSION: To take the tools Marketing supplies, build and deliver.

Objectives:

• Elevate level of Expertise
• Prospect/Client Development
• Develop Sales Force (Provide Building Blocks for Future Growth)
• Focus Sales Force
• Horizontal Selling
• Setting & Accountability of Goals
• Motivate
• Product Development
• Develop Relationship with Carriers
• Coordinate from finding prospect to presenting proposal

MISSION: To fill the client's needs for mutual profit.

VISION: Expansion & Growth Through Excellence.

STRATEGIC OBJECTIVES

• Market Growth:
  • Grow $4,000,000 in Commission Income from 1997 to 2002.
  • Have New Producers educated to handle all type accounts.
• Competitive Position:
  • Creation of New products within brokerage.
  • Obtain 3 5% market penetration of the niche markets we target.
  • 75% of Commercial Lines Book rounded out with Travel and Life and Health.
  • Create a bond department.
• Customer Service:
  • Develop means of measuring customer satisfaction.
  • Risk Management Service for accounts which we believe require this service.
• Social Commitment:
  • Three (3) seminars per year - sponsored.
  • One (1) seminar per year - taught by agency personnel.
  • Join and actively participate in all associations of niche markets we target.
• Profitability:
  • Net profit before taxes

MISSION:

Quality staff dedicated to producing quality products for mutual profit.

VISION:

A growing department, with innovative service techniques and sales delivery

STRATEGIC OBJECTIVES

• Market Growth:
  • Grow $250.000 in commission income from 1997 to 2002.
• Competitive Position:
  • Have all competitive markets in our geographic area
  • Specialized markets for all personal lines coverages
  • All Producers know all products target classes
  • Obtain 50% of all accounts quoted
  • Obtain 4 new competitive markets
  • Obtain 1 producer for Cordele
  • Have 20 top realtors referring business
  • Have 5 additional attorneys referring business
  • Have 5 CPA's referring business
  • Have 3 referrals from each client
  • Target clients with household incomes $40,000+
  • Roundouts with the department and with other departments
  • Producers (Increase in production staff)
• Customer Service:
  • 24-Hour Claims Service
  • Immediate Quotes
  • Every customer treated with the same superior quality
• Social Commitments:
  • Safety Education
• Profitability:
  • net profit before taxes

MISSION

We are a benefits company, providing expert claims administration, plan designing consulting in all areas of individual and group benefits. We enhance the position of Cannon, Powell & Duggan in client base, profitability, and marketshare

VISION

We enhance the quality of life, give peace of mind and afford prosperity to community. Free enterprise continues to proliferate open markets mission.

STRATEGIC OBJECTIVES

• Market Growth:
  • Increase life sales. Heavily utilizing in house accounts and CNA resources.
  • cross selling with Cannon, Powell & Duggan Producers.
  • Develop brokerage business through association and self insured programs and supplemental products.
  • Increase production staff.
  • Retention rate of 97%.
• Customer Service:
  • Develop standard of excellence
  • Retain all business
• Competitive Position:
  • Produce 15% of total agency business
  • Have a specialized staff with target marketing
  • Acquire other life and health agencies
• Social Commitment:
  • Active in SOWEGA Council on Aging
  • Board of Directors and active in the Georgia Health Care decision process
  • Stress civic responsibility to all employees:
  • Commitment to our employees - To maximize productivity
  • Commitment to our customer - To fulfill their needs
  • Commitment to our stakeholders - To be fair and physically responsible
• Profitability:
  • before taxes, after all expenses

MISSION

• Promotion to Prospective Clients
• Professional Personnel Development
• Provide Superior Service to existing Clients

VISION

Lead, teach & motivate our people, clients & community so we will develop lasting, positive relationships.

STRATEGIC OBJECTIVES

• Market Growth:
• Cross Selling with Cannon, Powell & Duggan Insurors 75%
• Group Department established
• Million total sales
• Customer Service:
  • Warm Fuzzies Approach will be perfected
  • Standards of Service are written, monitored, and exceeded
• Competitive Position:
  • Expand agency thru acquisitions/expansions
  • Become involved in bringing 2nd airline to Albany
• Social Commitments:
  • Weekly Radio and TV spots to educate public
  • Employee holds leadership position in a civic organization
• Profitability:
  • Develop, and monitor department budget
  • Achieve 25% profit
  • Database marketing to existing clients is 100% quarterly

Cannon, Powell & Duggan is a professional, innovative sales and service organization, developing and marketing superior insurance, travel, and related products.

We are dynamic and people-oriented, committed to the growth, prosperity, and enrichment of employees, clients, and community.

Profitability: We will achieve a 12% profit before taxes and after all expenses.

Market Growth: Market Growth will be 20% over last year's internal total revenue.

Customer Service: Evaluate, improve and expand client services.

Competitive Position: We will be the leaders of the competition.

Social Commitment: Our commitment is to educate the public through active leadership in the community.

• Re-examine needs of each department (client) and develop plan to meet those needs
• Review and update standards of performance for all involved with the accounting function - to include job descriptions for accounting positions and standard operating procedures
• Develop, Implement, and Monitor plan for full control of receivables by accounting department
• Develop budgets for each department (These will be zero based budgets)
• Continue to review and evaluate asset management
• Conduct periodic benchmark analysis to monitor agency's position relative to industry
• Add an accounts payable person.

• Elevate level of expertise. Each employee will be required to attend a monthly training session lasting 1 hour.
• Develop the talents of Missy Gore. Missy will be responsible for computer system operation and troubleshooting.

• Develop orientation program
  • Assist department managers in flow system - in, through and out.
  • Orientation guidelines
  • Pre-employment physicals.
• Develop a reward and salary administration system
  • Present written compensation policies so that management staff may have consistent reference sources and may take action within the limits of prescribed authority to achieve effective wage and salary administration.
  • Permit authority to be delegated, which will accomplish designated results and facilitate the program.
  • Provide coordinated, consistent wage and salary action throughout the organization.
  • This policy is to be distributed to each department director.
• Maximize employee influence
  • Make everyone believe that they are the organization
  • Develop our uniqueness thru enthusiasm and trust
  • Develop technique and method - build spirit
• Maintain a workplace free of substance abuse without jeopardizing valued employee's job security.
• Develop a substance abuse and drug testing policy.

• Have in place by September 1st a Market Coordinator actively pursuing new businesses with the new sales approach.
• Continue to pursue two aggressive sales people.
• Have current sales staff turning all renewals under $1,000 in commission over to service for processing.
• Work to have all outside sales people to be outside making new calls or processing large renewals outside of the office 50% of the workweek by November 1.
• All sales people to be fully trained in the skills of salesmanship by the end of the second quarter of their employment.
• Have all sales staff on a consistent flow of quality new business.
• Focus on niche marketing.
• Hold periodic meetings with Department Managers to determine their marketing needs.
• Helen will attend CNA's Placer School in 2002.
• Continue to develop stronger relationships with our lead carriers.

• Continued involvement in the following Chambers: Dougherty County, Lee County, Crisp County
• Educational programs for the community: Worker's Compensation. One this year.
• Support of area civic clubs, arts endeavors, community projects ex: Clean Community Commission
• Membership and active involvement in business, civic, and trade associations by all personnel.
• Social Commitments - (2) Functions.
• News Letter/Inter-Office
• Agency Brochure

• Maintain a positive Service Philosophy.
• Update Customer Service Job Descriptions to continue to clearly define each employee's job duties, and to show the relationship to other positions within the organization.
• Consider the use of a survey form to determine the level of service given and ways to improve.
• Analyze and review systems to establish effective parameters from which to work - this will be accomplished through the work of a consultant in the commercial lines department.

Market Growth

• The combined efforts of the commercial lines department will increase the commercial commission by $642,000.
• The procedures will target specialized markets in the following means: CAM, and other niche markets which we are competitive.
• All producers will be accountable for their personal objectives and follow guidelines set for their benefit.
• Rick Doherty, Eddy Kilman and Leonard Duggan will work on accounts over $75,000 in premium. Karla Dunlap, Carlisle Metts, and Madhu Kuntawala will work accounts under $75,000 in premium. Tommy Cannon and Jim Norris to work the logging program exclusively.

Competitive Position

• Work to make current programs successful.
• Ask each new prospect for Health Insurance
• Work to educate underwriters of our carriers they must be competitive in this marketplace

Customer Service

• By 9/1/97, each CSA will go through and listen to the CSR Survival Kit from Applied to reinforce work procedures and to help train the new employees. This will be done with the overall goal of transactional filing in commercial lines.
• Towards this, Julia Van Horne and Helen Silva will begin studying towards P&C licensing. This will be accomplished by 1/1/98.
• By September 15, 1997, all details on accounts that have come over from Duggan Agency will be loaded. This will be accomplished by the CSA's and Helen Murphy on the next four to five weekends.
• CSA's will, at their weekly meeting, review suggestions and information from the Group 500 Service Manual. We have completed a service checklist and have identified areas that need work. This will be reviewed again on 10/1/98.
• CSA's will continue to keep all service level work off of the producers. This will require a team effort between the CSA's and the producers.
• We will implement a new thank you letter which will be in the form of a postcard instead of the letter now used. This will still introduce the CSA to the client. This was recommended by Leonard Duggan and we all feel that it will have more impact on the insured.
• Expirations will be reviewed more thoroughly as to the necessity of remarketing and each client will be contacted by letter or phone call prior to renewal date for updated information and to keep the personal touch.
• Commercial Lines will present an inhouse seminar on taking control of your workday. This will be open to all departments.
• As of February 1, 2002, Commercial Lines will be on transactional filing and completely operational.

Social Commitment

• Have two (2) sales oriented seminars for future clients
• Work to educate the customer price is not everything and explain which services are given by the agency and carrier.

Market Growth

• Kim Morrison and Bob Shell will have a combined new commission growth of $78,000. This volume is a combination of the following goals:
  • Kim Morrison $30,000 New Commission Income
  • Bob Shell $48,000 New Commission Income

-- This is a 13% increase over last year's production.

Customer Service

• Continue to maintain relationships with carriers currently interfacing -- Auto Owners, Safeco. Continue to seek interface with other carriers as opportunities to present themselves: Southern Heritage and USF&G.
• Revise Job Descriptions to meet current work flow standards.
• 100% loaded data base of all Duggan files and a movement to transactional filing.
• Assist producers in their efforts to round-out accounts and solicit referrals.
• Considering the use of cubical workspace.
• Implementation of a renewal questionnaire for the purpose of updating home construction information.
• Community outreach -- considering a Child ID program.

Competitive Position

To increase Production by competitive position, we will emphasize the following during the course of the year.

1st Quarter: REFERRALS

• Letters to current clients asking for referrals.
• Work with Travel-Life-Commercial Departments to beef-up referrals.

2nd Quarter: DIRECT MARKETING

• Mailings
  • Realtors - Flyers
  • Coupons Mailer
  • Special Package letters to targeted neighbors
• Co-ordinated media
  • Print
  • Herald
  • Shopper
• Television
• Walk-in ads welcome

3rd Quarter: SPECIALTY MARKETING

• Door Hangers
  • Rates in targeted neighborhoods
• Billboards
• Signs in yards
  • Insured by Cannon, Powell & Duggan, etc.
• Walk-Ins
  • Banners out front
  • Various activities to get clients in office
• "Wash Your Car For Your Expiration Date"
• Map...Flashlight that Customer comes into office to pick up

4th Quarter: ROUND OUTS

• Special emphasis on the Duggan accounts.
• Work X dates received from other clients.

Social Commitments

Continue to be active in community through organizational membership.

Profitability -- 30% before taxes, after expenses.

Market Growth

• Once a quarter have a Life Insurance guest speaker at sales meetings to encourage cross selling.
• Encourage and participate in cross selling by referring two to three prospects from our department weekly.
• Through existing business, achieve the following:
  • Solicit policy holders for cancer expense plans and hospital indemnity
    • Use direct market with special brochures
  • Offer coverages that offset the deductibles.
    • Use the direct market approach
    • Utilize our existing group business as they raise their deductibles.
    • Use this coverage to offset out of pocket expenses for employees
  • Improve advertising and marketing; utilizing Agency Resources.
  • Institute monitoring for new calls.
• Producers should make five new contacts a week. These should be cold, visual contacts.
• Weekly meetings to review these contacts.
  • Where was the call?
  • Who was the contact?
  • What happened?
  -- Fifteen minutes per week will be set aside for this process.
• Develop staff.
• Produce $187,500 in new commission income.
• Develop life business; emphasizing the referral system with additional first year commission incentives.

Customer Service

• Improve office communications making sure that everyone at Cannon, Powell & Duggan understands what our department offers.
• Develop a supplemental insurance marketing strategy letting customers know that we have products to fit needs such as, high deductible plans, hospital cash policies, specialize coverages for specific illnesses.
• Service staff to contact clients more often on a "hello basis."

Competitive Position

• Develop and obtain carrier that will develop specialty and regional markets.
• Through the TPA, offer ancillary products that will totally round out employee benefits

Social Commitment

• Present staff would continue their activity with the SOWEGA Council on Aging, the Georgia Health Care Decisions, and the Albany Chamber of Commerce.
• Mayor's Task Force, Georgia Association of Health Underwriters.

Market Growth

• The combined efforts of personnel to increase commission by $72,000.
• This will be accomplished by:
  • Frank Thurmond:
    • Continue to solicit new commercial accounts with concentration on workers compensation self-insured funds
    • Contact CNA referrals in our area
    • Contact by letter and phone 25 new prospects per week
    • Present at least 5 proposals per month
  • Joyce Pilcher
    • Solicit previously lost commercial accounts
    • Write walk-in and call-in commercial new accounts
    • Round out current commercial accounts
  • Linda Turner
    • Write walk-in and call-in personal lines accounts
    • Round out current accounts
    • Solicit new upper income accounts
    • Request all lines of coverage including life
• Contact realtors, loan closing attorneys, and banks regarding our services and markets
• Contact Cordele Industrial Development Council regarding our services and markets

Competitive Position

• Search for competitive homeowners program for protection class 6 through 9
• Ask each prospect and customer about all lines - personal, commercial, life and health

Customer Service

• Educate customers regarding service versus price
• Strive to stop taking cash payments
• Provide prompt and courteous service to customers, claimants and prospects
• Thank you letters to all new customers

Social Commitment

• Stay active in Chamber-sponsored events
• Attend Board of Realty luncheon monthly
• stay active in civic club
• Be visible in community

Claims Brochure -- Create a brochure to be given to customers which will advise them what procedures to take when involved in an accident (Auto Customers).

Job Descriptions -- Revise Claim Representative Job Description.

Community Service -- Attend and Assist with workers' compensation seminar held by commercial lines department.

• Educate the public on Insurance related matters, like safety, claims prevention, adequacy of insurance (Home, Life, Auto, Etc ).

Transactional Filing -- Continue transition to paperless filing.

Customer Survey -- Develop survey to be sent out to insureds and claimants after a claim is closed to rate the service mof the agency and the company.

Growth and Retention

Cannon & Powell Travels will retain business through superior customer service. Develop new sales strategy to contact and establish new clients. Continue to improve our leisure department and grow in leisure market. Projected growth of 23%, total income of $182,329.00

Financial Stability

Continue to improve cash flow by use of credit card for all clients. Monitoring accounts receivables. Establish and adhere to department budget. Cruise and group travel targeted to increase income. Duggan client base as source of new clients.

Personnel & Management

Hire one new agent this year. Personnel meeting twice a month for training, industry updates and motivation. Off-site continued education for leisure and international travel, and industry changes. In-house education with use of Uniglobe material, CLIA certifications and leisure material, destination certifications. Provide agents with at least two FAM trips this year to vacation destinations.

Administration Systems

Update all profiles for existing clients and develop profiles for each new client. Develop service and sales procedures manual for consistency within department.

Marketing

Areas to target to generate new income:

• Groups
• Business travel, local and regional
• Cruise
• Newletter