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...cilities, equipment, and people; computer dependence; valuable papers, designs...his database. There are reasons, and systems available, for generating this in...

... Leading agencies develop a focused and balanced approach to automation. These firms regularly find themselves on the leading edge of technology that works. The purpose of automation is to create improvements in productivity, client service, and information management. Some principals make the initial investment in computer technology, but don't change their way of doing business to maximize the value of this outlay. Many firms have made automation purchases only to be ensnared in a maze of duplicate systems and procedures. The lack of standards for operating in an electronic environment leads to ... , if any, improvement in the way they do business or serve their clients. An agency in the Southeast recently bought a new automation system. The purchase required new hardware and software, as well as a substantial amount of training to standardize workflow procedures. The firm's stress on consistency and standards allowed it to maintain revenue growth rate without hiring new staff. The result: an increase in revenue per employee in the year of the automation conversion. High-value agencies run their business like a business. Most local and regional agencies are ... best agencies. Owners and managers of these high-value firms are making decisions today that will maximize the value of their businesses. This article originally appeared in The National Underwriter, Property/Casualty Edition, and is reproduced by permission. Robert Smith is a Principal with Reagan Consulting, Inc., an Atlanta-based management consulting firm that serves insurance agents, brokers and companies, as well as financial institutions. Please send your comments to [email protected] . Login or Register (for FREE) to gain access to thousands of other great ...

...s make the initial investment in computer technology, but don’t change t...peared in The National Underwriter, Property/Casualty Edition, and is reproduc...

... solutions to those factors, and implement and monitor the agreed procedures. A risk management analysis will consider all aspects of the operation including: cash management; just-in-time' inventory management; availability of alternate suppliers; key customers; key facilities, equipment, and people; computer dependence; valuable papers, designs, and intellectual property; quality control; loss prevention to real and personal property; transit exposures; foreign contract evaluation; internal and external crime audit; product liability; hiring and firing practices; safety committee review; employee and ... be evident that a supplier will be unable to deliver an integrated, comprehensive review, and that insurance consultants will be too narrowly focused. After considering identified exposures and agreeing on the best methods to address them, review existing and future insurance needs. The industry delivery system was created 100 years ago, and the selling of products has changed little since then. There's some justification for this lack of innovation. The legal system, which will always have the last word on a policy's intent and performance, has specific interpretations from which ... not something to leave to a supplier, since missed exposures will always be possible, particularly if the supplier does not have a product to fit a certain area of risk. If the corporation does not possess the necessary expertise, seek the services of a risk management consultant. Let's define the function of a risk management consultant. Many insurance consultants are available whose primary function is to monitor existing insurance programs, analyze policy wordings and liaise with the selected insurance broker; this should not be the primary role of a risk management consultant ...

... would be treated as profit if this were a publicly held corporation. Start with actual income and expense ratios for 1997 and add to the bottom line the expenses that could more accurately be classified as profit. (Note: as far as the IRS is concerned this computation never took place.) The most crucial decisions will revolve around the appropriate classification of agency principals' W-2 compensation. Honestly assessing the actual contributions of each owner and putting a price tag on them can be difficult and often emotionally charged. Figure out what each ... family transfer or for estate tax computation. MAXIMIZING FUTURE RETURN Most agency principals, however, would rather maintain a reasonable annual return without relinquishing a substantial portion of the future value. They're willing to plow some of the profits back into the operation to develop people and systems that ideally will enhance the return from an external or internal sale and end up putting them financially ahead in the long run. Developing a good balance between current and future return is not easy. A detailed plan must be in place to allocate resources effectively, ... The picture that's presented can mean the difference between a value of 1 X revenues and 1.5 X revenues, or even more. The late Carol Hammes, principal of The Middleton Group, was one of the Independent Agency System’s most widely respected management consultants. She will be sorely missed. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole ...

...e operation to develop people and systems that ideally will enhance the return...s most widely respected management consultants. She will be sorely missed.