Attempting to maintain the same old business practices in a changing environment is as futile as trying to sit stationary in a rising tide. As independent agents confront the evolving economic and industry conditions of the 21st century, the wise ones learn to ride the waves rather than drown in them.
Change isn't bad or good-it's simply inevitable. And it can be hard to weather. Businesses experiencing failure and performance-related losses may have an easier time with it-change to correct weakness is easier to accept, even though it can be difficult to implement. Changing from a position of strength is harder.
High-performance agencies have different strengths, yet all are similar in that they are growth- and profit-oriented and proud of their position and results. This pride can become a weakness in an otherwise strong organization. A history of success makes it easy to cling to the systems and procedures that were once so innovative and that enabled the company to surpass the competition. But innovations soon become ordinary practice, and adhering to ordinary practice prevents the agency from benefiting from the systems, procedures, workflows, marketing, and service that come with the next wave of change.
The most successful agencies in the United States share two common traits-a philosophy of continuous change and a feeling of celebrated discontent.
Continuous change is easy to define and difficult to implement. An agency can never stay in place. It's like a vehicle on an incline with no brakes: If it doesn't get enough energy to advance, it will roll back. The tricky part is knowing how much energy you need to keep moving forward. You can't exert maximum effort every day, or you'll burn out your staff-but you must nurture change to move your business forward. In addition, the results must be monitored continuously to determine whether your ongoing changes are advancing your business. Making these determinations is the very difficult task of professional management.
Agency owners who understand the philosophy of continuous change also understand the important role of management, which is as important as production and retention. An agency usually uses insurance professionals as part-time managers to rise from Level 1 (under $1 million revenue) to Level Two ($1 million to $2 million revenue). Professional management is key to implementing the changes needed to move a successful agency from Level Two to Level Three ($2 million to $3 million revenue) and accomplish the agency's long-term goals. The producers and service staff work hard to increase the bottom line. They rarely view change favorably, even though they'll benefit from it in the long term. The owners and managers are responsible for spearheading continuous change.
Celebrated discontent is the feeling that the growth and profits, while desirable, are never enough. The best people and organizations always strive toward the next level of performance, using past successes as rungs to the future. Owners who are tired of changes in the industry preserve the status quo to achieve their immediate financial goals and look forward to that buyer at the end of the rainbow who will pay a fat lump sum for the agency. Owners who are excited by the challenge of change use money as a measuring stick of their success. They combine celebrated discontent with continuous change to run successful agencies.
Every agency owner needs to ponder, 'Am I here to make a living, or am I here to grow a business?' The answer is the difference between a successful business person and a successful entrepreneur.