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... than toward them. And, prepare to scale up rapidly from the initial implemen...

...ands of policies. Startups race to scale without proportional cost increases. ...tion aspects, models perpetuate it at scale. Successful systems include regula...

...pression of the entire agency wage scale. This reduces the range between the t...asing rate, perhaps your compensation scale is not competitive. In smaller cit...

... than toward them. And, prepare to scale up rapidly from the initial implement...

...isk Financing Alternatives Rating Scale 1-5: 1 = least favorable; 5 = most f...

...Insurance Plans That Protect Large-Scale Contractor Operations
Construction...een parties. Final Thoughts For large-scale contractor operations, insurance s...

... a company underwriter know what we're talking about. If the transfer of an insurance company contract is instrumental in the decision to do the deal, the buyer will have been involved in discussions with the branch manager at the outset of the negotiations. Companies that are shared by at least two of the agencies involved should also be contacted before closing with regard to the future treatment of contingent calculations and commission scales. Because most companies have a variety of agency contracts, you'll want to lobby for the most advantageous one. When the acquiring agency has an important or preferred relationship with a carrier, find out if this company has a problem with the other agency before you finalize the deal. Is the acquisition worth losing an important market? The other companies involved do not need any special advance contact. ... commission percentage might be in order. When a branch is being acquired and the seller is being retained as a manager for a few years, set up a separate profit center with a bonus arrangement that pays a large percentage of the profits that exceed the plan. This will provide a reward for higher commissions, lower expenses, and/or both. Agree to a guaranteed price, but with installments to be reduced if the commissions do not remain at predetermined minimum levels. Hire the person to perform management functions (company relations, computer installation, training of salespeople or CSRs) and pay a combination of salary and results-oriented bonus based on an increase in contingent income, increase in revenue per employee or commissions per producer or CSR, or some other formula that tracks with the tasks that have ...

... If there are no written contracts spelling it out, is there some question of where the actual ownership of the accounts may rest? After analyzing the agency's book of business, company relationships, and internal management style and procedures, you'll be in a better position to assign a risk factor to this transaction. Weigh all of the information that's been reviewed, and rank this situation according to the following scale: Little risk involved and very good chances of achieving the projected growth rate- 8 An average situation with no extraordinary features- 6 or 7 High level of risk involved, with substantial attrition possible- 4 or 5 Once you've determined the potential growth rate and the risk that this growth might not be achieved, you're ready to address the third key element in valuing a business combination-the anticipated after-tax ... might be in order. When a branch is being acquired and the seller is being retained as a manager for a few years, set up a separate profit center with a bonus arrangement that pays a large percentage of the profits exceeding the earnings plan. This will provide a reward for higher commissions, lower expenses, and/or both. Agree to a slightly higher guaranteed price, but with installments to be reduced if the commissions don't remain at predetermined minimum levels. Hire the former owner to perform management functions (company relations, computer installation, sales or customer-service training, acquisitions) . Pay this individual a combination of salary and results-oriented bonus based on a formula in keeping with the assigned tasks, such as increasing contingent income, revenue per employee, or commission per producer or CSR. ...

... of planning and training. 5. PLAN FROM RIGHT TO LEFT Technology-based tools are a means to an end. To meet your agency's goals, stay focused on the results to be produced, not on the activities to be accomplished. Start your implementation planning as soon as you begin your technology planning. Work back from specific agency targets and deadlines, rather than toward them. And, prepare to scale up rapidly from the initial implementation because once management sees what's really possible they'll want it fully implemented as soon as possible. 6. THINK GLOBALLY AND ACT LOCALLY Think big and set demanding targets so that they'll become key drivers for action. But start small and move quickly so that you can get early successes, maintain momentum, and apply what you learn as you go. 7. UNDERSTAND ... and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Ten Ways To Maximize The Return On Your Technology Investment 4/30/2013 12:00:00 AM by CompleteMarkets Editor , Jack Fries This content has not been rated yet. All too often, installing technology-based tools doesn't produce either the promised payback or the desired results. Instead of delighted customers, you get frustrated customers. Three trends dominate the agency agenda today: Customers, competition, and change. In customer service, these trends have translated themselves into three key areas. To be competitive your agency must provide: One-stop and one-call access for every customer, whether they're using the telephone, ...

... the top of the wage schedule on the basis that older employees, in terms of service, are reaching levels which the agency owner or manager believes are close to a maximum the agency wishes to or can pay; thus, annual increments for these positions become smaller. Meanwhile, starting wages for new agency employees have increased, mostly because of inflation, causing a compression of the entire agency wage scale. This reduces the range between the top and bottom wages, causing dissatisfaction on the part of the older employees, creating morale problems and lower productivity. As a rough rule, there should be at least a 10% differential between those supervising and those who are supervised. This matter of wage compression is quite serious. Loyal, older employees wonder why their years of service and acquired expertise ... or your compensation structure demonstrates insensitivity to the quality of your employees' work, eventually your agency's performance will deteriorate. Agency employees who give more of themselves than is expected and who take pride in doing a job well, soon become disheartened when not compensated for their extra efforts. They realize that extra work makes no difference, and mediocre performance becomes the norm. Have you considered or attempted to install productivity increase incentives? For example, do you pay for employee-provided leads which culminate in sales? Do you permit your licensed inside employees who sell by telephone to participate in the commission earnings gained on their sales? Do you urge your inside staff to constantly think insurance and of insurance sales opportunities and reward them for significant ideas and sales? Does your agency have a profit-sharing plan for all employees ...