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... any shareholder in an agency isn't creating value in proportion to the percentage held. Many agency principals suffer from high tax rates' imposed on them by such partners, but they can't quite identify the problem or the way to fix it. Well, it's time for a tax cut! A NEW APPROACH TO AGENCY PLANNING If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate. Put the desired rate of agency growth under that value-and if you don't aspire to growth exceeding 5%, you're in trouble. Then apply that ... to the dollar value of the shareholder's interest. The product is the value creation quota-the amount of value the shareholder needs to develop in the coming year. Assign shareholders to bring ideas for achieving their value creation quota to the planning retreat. If you used this approach as your strategic planning framework, it would create quite a stir! It might be like tossing a hand grenade into your next shareholder meeting-and if it is, so be it. The more disruptive it is, the more it's probably needed and the more your overtaxed partners will thank you. VALUE CREATION QUOTA EXAMPLE Here's what a value creation quota statement would look like for hypothetical agency principal Donna, the 20% shareholder of a $5 million-value agency: Value of Donna's 20% ownership stake: $1.0 million Agency target growth ...

...agency, establish a value creation quota for each shareholder. Here's how: A m... cut by implementing a value creation quota-and let the fireworks begin!

... of publicly-traded companies, but "shareholder demand" is perhaps more accurate. In privately held companies, myopic thinking results from a desire to increase market share or simply beat last month's figures. What's wrong with enhancing shareholder value and increasing sales? Both are valid ideas until short-term thinking kicks in; then a blindness to research, shoot-from-the-hip planning, and constant confusion lead to cutting prices to meet sales quotas, continual crises, and demoralized personnel. Short-term thinking reveals that no plan is the plan. Short-term thinking is so accepted that it has become institutionalized. One popular business saying expresses the short-term view: "Every day, week, month and year, we have to do it all over again." It's as if every day begins again at square one. For example, veteran Life ... the business landscape, and globalization, U.S. companies continue to go down the wrong path. Former U.S. Treasury Department official Michael Jacobs calls it "business myopia." It may be argued that "enhancing shareholder value" drives the myopic vision of publicly-traded companies, but "shareholder demand" is perhaps more accurate. In privately held companies, myopic thinking results from a desire to increase market share or simply beat last month's figures. What's wrong with enhancing shareholder value and increasing sales? Both are valid ideas until short-term thinking kicks in; then a blindness to research, shoot-from-the-hip planning, and constant confusion lead to cutting prices to meet sales quotas, continual crises, and demoralized personnel. Short-term thinking reveals that no plan is the plan. Short-term thinking is so accepted that it has become ...

...tary, Optimists, Lions, Zonta, and Quota Social groups, such as crafters ...ies suggested here. Don't do nothing. Share your expertise with the people and...

...ad to cutting prices to meet sales quotas, continual crises, and demoralized p...lems. Some producers are reluctant to share their knowledge, fearing that pros...

...l be offered in lieu of production quotas or freezing of value at the date of ...y may feel that they are too young to share ownership with others. It is still...

... Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All many agency principals Articles tagged with many agency principals Back Are You A Deadbeat Shareholder? This content has not been rated yet. CompleteMarkets Editor , Kevin Stipe 4/30/2013 12:00:00 AM If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate. All Articles by CompleteMarkets Editor Comments (0 ) Considerations For Hiring A Producer This content has not been rated yet. CompleteMarkets Editor , Kevin Stipe ... /30/2013 12:00:00 AM Here's a quick investment quiz: Which of the following investments will provide the best financial return over the next five years? A.Microsoft stock B.Coca-Cola stock C.Citigroup stock D.A newly hired Property & Casualty producer The answer is D. No kidding. All Articles by CompleteMarkets Editor Comments (0 ) Managing Personal Lines This content has not been rated yet. CompleteMarkets Editor , Carol Hammes 4/30/2013 10:36:15 PM MANAGING PERSONAL LINES by Carol Hammes Continuing fierce competition in commercial lines is making the personal lines niche look much more attractive to those agencies searching for viable growth.. All Articles by CompleteMarkets Editor Comments (0 ) x No Thanks Loading.. Loading.. x No Thanks Loading.. ...

... Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All agency ownership Articles tagged with agency ownership Back Are You A Deadbeat Shareholder? This content has not been rated yet. CompleteMarkets Editor , Kevin Stipe 4/30/2013 12:00:00 AM If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate. All Articles by CompleteMarkets Editor Comments (0 ) Calculating Agency Value 1 Verified Reviews - 5 of 5.0 1 2 3 4 5 CompleteMarkets Editor , ... Phillips 4/30/2013 10:44:36 PM CALCULATING AGENCY VALUE by Roy Phillips When buying or selling an agency, be sure the price is right: base the value on projected pre-tax profit and an expert's opinion. .. All Articles by CompleteMarkets Editor Comments (0 ) Compensation And Motivation This content has not been rated yet. CompleteMarkets Editor , Carol Hammes 6/26/2015 12:00:00 AM Very few employees will leave your agency simply for more money. They will usually have other valid (to them) reasons that, when also combined with a higher salary, push them to seek employment elsewhere. If a review of the compensation survey results (from another Middleton letter) confirmed that your agency is paying people within a reasonable range of average, ...

... agent? Kevin Stipe helps you to determine your effective hourly rate and its potential influence on your daily activities. All Articles by CompleteMarkets Editor Comments (0 ) Are You A Deadbeat Shareholder? This content has not been rated yet. CompleteMarkets Editor , Kevin Stipe 4/30/2013 12:00:00 AM If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate. All Articles by CompleteMarkets Editor Comments (0 ) Avoid The Empathy Trap This content has not been rated yet. CompleteMarkets Editor , Chris Burand 4 ... 30/2013 12:00:00 AM AVOID THE EMPATHY TRAP by Chris Burand The ability to empathize is admirable. It requires listening, understanding, .. All Articles by CompleteMarkets Editor Comments (0 ) Best Partnership This content has not been rated yet. CompleteMarkets Editor 4/30/2013 10:37:32 PM BEST PARTNERSHIP Dear (Customer Name): When a business partner suffers a fatal accident, it's a devastating time for all those concerned. The remaining partners feel a great loss after spending yea.. All Articles by CompleteMarkets Editor Comments (0 ) Can't We All Just Get Along? This content has not been rated yet. Al Diamond , CompleteMarkets Editor 4/30/2013 12:00:00 AM CAN'T WE ALL JUST GET ALONG? by Al Diamond ...

... by Andrew Barile One of the most important responsibilities of agents to themselves and their agencies is to maintain posit.. All Articles by Andrew Barile Comments (0 ) Are You A Deadbeat Shareholder? This content has not been rated yet. CompleteMarkets Editor , Kevin Stipe 4/30/2013 12:00:00 AM If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate. All Articles by CompleteMarkets Editor Comments (0 ) Are You Running In Place — Or Running The Race? This content has not been rated yet ... Al Diamond , CompleteMarkets Editor 4/30/2013 12:00:00 AM ARE YOU RUNNING IN PLACE OR RUNNING THE RACE? by Al Diamond In this document, Al Diamond identifies the four phases of agent activity that define the effectiveness of.. All Articles by Al Diamond Comments (0 ) Business Continuity Planning 1 Verified Reviews - 5 of 5.0 1 2 3 4 5 CompleteMarkets Editor 4/30/2013 12:00:00 AM Each year potential hazards threaten the business community worldwide. Earthquakes, hurricanes, floods, fires, and other disruptive events represent a continuous problem throughout the business community. Many of these threats result in significant exposure to large and small businesses. When business operations are disrupted, companies suffer both tangible and intangible losses. All Articles by CompleteMarkets Editor Comments ...