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The Future Of Your Job Might Be In A Word
What we say does matter. Unfortunately, most of us don't listen to the words that we use. They might seem harmless, but what messages are we sending to others about ourselves and how we perform our jobs? In this article, John Graham looks at some of the words and phrases that we all utter on occasion. Very often, we use these phrases as excuses about why something didn't get done. It's the end of a long flight and an even longer day. You're anxious to get home, even though it will be a late dinner. Only two exit lanes are open at the airport garage and drivers are lined up to pay their parking fees. As you wait, one line moves faster than the other. One cashier handles three cars in the time that it takes the other to send one on its way. Figure it out: One is three times as productive as the other. The difference doesn't go unnoticed. A few days later, the slower of the two employees is gone, replaced by a faster cashier. Although getting the job done right is essential, getting it done efficiently is just as important. Fail either test, and a new face appears. Other clear signs that an employee is on thin ice reflect basic attitudes about work and what's expected on the job. When you hear them, take note, because they send the wrong message: “But nobody told me” This is a classic, with a life of its own as it's repeated thousands of times each day. Call this the “I'm not to blame because I didn't know” excuse. Candidly, this is among the worst. There are many variations. For example, “Gee, I'm just the receptionist.” Or, “I don't know what caused it. I'm just the Saturday serviceman,” as one elevator repairman said. In essence, this “anti-responsibility affirmation” reveals how certain employees feel about their relationship to their work. “Nobody told me” reaches to the heart of what a job is all about: Initiative — or in this case, a lack of it. Simply put, “Why not ask?” “I didn't think there was a rush.” This is one of the more revealing responses. The first three words are the key: “I didn't think.” Better yet, “I didn't give it any thought at all.” There are variations on this theme. For example, “I didn't know you wanted it done now.” Once again, what must seem like a perfectly valid excuse for a lack of performance by the person saying it comes across to the supervisor or customer quite differently — as coming from someone who doesn't think about what they are doing. “They haven't gotten back to me.” Whenever you hear this one, you can almost always be sure that the individual is disorganized. It's the “I forgot to follow up” excuse. Or just as likely, it applies to the person who just realized that the meeting is either tomorrow morning or a half-hour from now and dashes off an e-mail or picks up the phone and leaves a hurried message. How else have you attempted to make contact? Mail? E-mail? A personal visit? Have you been as persistent in this task as you would be in getting scarce concert tickets? Let's get real! “They haven't gotten back to me” is a lame excuse because it's simply attempting to blame someone else for your lack of effort. “I left messages” This, of course, is the other side of the “they haven't gotten back to me” coin. Translated, “I left messages” says, “I honestly believe that my responsibility begins and ends with leaving a message. What else can you expect?” Let's get through this quickly: Leaving messages doesn't count. It's nothing. Zero. “I left a message” is an attempt to pass the blame to someone else for your failure to get the job done. “I haven't heard back from my e-mail.” This one is so common that it no longer makes much, if anything, of an impression. Because it's taken for granted, people continue to use it. The response is simple: “OK, you haven't heard. How long are you going to wait? What other steps might you take to complete the communication? A failure to understand the changing nature of work today might well underlie many of these excuses. “In the coming era, jobs will be tasks you do, not something you have,” wrote Price Pritchett, Ph.D. That era is here; we live in a tasks-completed world. A word to the awake: If you don't figure out how to get the needed results, you might not be around to check your e-mail. “How can anyone expect us to” Demands are increasing. No doubt about it. And they aren't about to go away. But if we don't turn it around for the customer, either internal or external, someone else will, and there goes the business. These demands often seem unrealistic and you wonder how anyone can make them so casually. It wasn't so long ago that someone would preface such a request by saying something like, “I'm really sorry to put the pressure on you, but I really need this.” That's all gone. Nowadays, people just cut to the chase. “I thought [insert appropriate person's name here] was going to do it.” There it is, again. Someone's always thinking. Not working. Thinking. Well, not really thinking. Thinking that what they're thinking is thinking isn't really thinking. They just think it is. Thinking involves processing information and evaluating it against objective criteria. So, by anyone's definition, making an excuse for yourself by blaming someone else for your lack of thinking isn't thinking at all. In fact, it illustrates the opposite: An inability to think. And that's not a valued skill on any job. “I'll do it as soon as I can.” This comment would seem to suggest an interest in responding positively to a request. Not so. In fact, it's quite the contrary. Translated, it means something like this: “Look, I'm busy. Don't bother me now with something else.” It also represents something of an “It's all about me” attitude that's expressed particularly to co-workers, although it's used with external customers. A more professional approach would be to ask when the person needs the request completed, the package sent, the letter written, the job printed, or the project delivered. And, if necessary, negotiating an agreed-upon time or date. “I'll do it as soon as I can” communicates the message that your priorities might be all that's important to you. “I didn't have time.” This is the classic excuse for everything from failing an exam to not completing a job by the deadline. How anyone dares to use it is beyond understanding. Why is it that no one ever says, “I didn't make time to do it”? Why does it seem justifiable to indicate that no time was available for what someone else considered important, critical, or essential? Why doesn't anyone seem to recognize that there was time for lunch, for chatting, or for leaving at the end of the day before the job was done — and then, in all seriousness saying, “I didn't have time”? Using these words today is entering the danger zone. “I'm working on it.” This one is a step up from “I didn't have time.” Little translation is needed for this particular response. It says, “I haven't finished the job.” Or more likely, “I haven't even thought about it.” And quite possibly, “I forgot all about it.” Frankly, “I'm working on it” has come to be synonymous with “I haven't even touched it.” Not good. “I know there was a deadline, but they held things up.” This is the old college ploy proffered to professors. “Can I have an extension on my term paper? I had to go skiing.” Sound like nonsense? Not really, when you consider that the professor might grant the request! Today, no one gets points, keeps a customer, or holds down a job by not meeting deadlines. Period. “I got interrupted and didn't get back to it.” Variations include “I had computer trouble and fell behind.” Or “I had to attend a meeting that was called on short notice ” The heart of work is managing yourself. This excuse reveals the fact that the worker is unable to manage tasks effectively. And because work is totally about tasks an employee's management skills are a good indication of their value. “I'll try.” It's always best to leave the best for last. And “I'll try” is the very best excuse of all. How anyone who uses these two words could possibly miss their intent is mystifying, to say the least. Work is about doing not trying. There are no points for trying. A similar mindset leads employees to believe that time in grade, in itself, justifies a pay increase. There's no way to avoid the translation of these two words: “I'll give it a shot, but don't blame me if I don't succeed.” Believe it or not, we are accountable, not for what we attempt, but for what we produce. There they are: A baker's dozen of effective ways to terminate your employment. The words we use mean something to us or we wouldn't use them to express our feelings and attitudes. Words tell us about who we are and what we believe is important. In a very practical way, words determine our destiny. ...

Directing Agency Sales Efforts
DIRECTING AGENCY SALES EFFORTS by Carol Hammes Follow this four-step process — and watch your sales and earnings grow. Sales management doesn’t have to be complicated. In fact, unless it’s simple, you probably won’t stick with it — so keep it simple, especially if you’ve never tried it before. Divide the sales management process into pieces. Most agencies have found that there are basically four steps, all revolving around the creation, implementation, and modification of a Sales and Marketing Plan. Conduct an Agency Evaluation Create a Mission Statement Develop a Sales and Marketing Plan Monitor the Plan STEP ONE: CONDUCT AN AGENCY EVALUATION The first step in setting up a sales management program is to conduct a complete evaluation of your agency, its company relationships, and market demographics. This is the most important part of the process and the most time consuming. Because almost all of the internal and external forces impacting your agency relate directly or indirectly to sales, you must leave no stone unturned. Enlist the participation and support of everyone in the agency, but assign the primary responsibility for the evaluation to the Sales Manager. If your agency isn’t large enough to have a full-time Sales Manager, appoint someone (probably one of the principals) to handle this function on a part-time basis. If the agency only has one producer/owner, this person must also be the Sales Manager, directing the overall sales function, as well as their individual efforts. The agency evaluation should provide a list of facts, observations, and opinions relating to internal strengths and weaknesses, insurance company relations, market conditions, and customer needs. The list will contain items over which you have seemingly no control and those which you can change if needed. The agency and marketing analysis should include these questions: What are the demographics of our marketing area? What types of businesses are located there? What’s the average income of the households in the area? How much of the available business does the agency currently write? How much of that which you don’t write do you want to write? Are there contiguous marketing areas that provide greater diversity and additional sales opportunities without significantly adding to expenses? How productive are your employees? Divide total agency revenues (not premiums) by the total number of people, including owners and producers). If this revenue per employee figure is below $100,000 you might be overstaffed; if the figure is more than $150,000, you might be understaffed. Divide total revenues by the number of producers (including owners involved in sales). The average agency has around $300,000 in revenues per producer. Where do you stand in relation to that figure? Do you have producers who have not yet validated but who have been with you longer than 1.5 years? Can they be salvaged? How? What are the professional growth needs of your current or prospective employees? Can you meet these training needs in-house? What types of programs do your associations have to offer? Can you take advantage of insurance company programs to train producers? Are producers geared to handle a high volume of new business effectively? There’s no sense bringing in business if you can’t process it efficiently. Make a complete review of all procedures to determine where there might be a duplication of efforts or unnecessary steps. What do your carriers want to write? Many companies are providing guidelines for agents to direct them into writing preferred types of business. Review these guidelines and contact your branch managers and underwriters to find out what they can and will write on a competitive basis. Do all your companies want the same thing? Should you be looking for other companies that have facilities for other types of business? What kind of commitments must you make to your current carriers? Will you be able to produce enough new business to keep them all satisfied, or must you consolidate to meet the commitments? Are there some good markets available that will be content with less premium volume? What kinds and size of accounts you can write the most profitably? Most agents can’t afford to write all types of business for all types of clients. Don’t assume automatically that your most profitable accounts will be the largest ones. Count the number of transactions handled per commission dollar received by line of business and size of account. Include claims, certificates, audits, bonds, and non-premium bearing endorsement activity in the total count of transactions. Where do the producers and service personnel spend the least amount of time for the most commission dollars produced? This is the type of business you should target. Is your advertising program reaching your targeted business? You might have set up the program years ago when you wanted to write Personal Lines or when you simply needed name recognition. Review advertising and public relations activities every couple of years to make sure that they’re in sync with your marketing plan. STEP TWO: CREATE A MISSION STATEMENT Once you’ve completed the agency review and know what you have to work with, it’s time to proceed to the second step: Deciding what you want to have. Each owner must review their goals before you can jointly determine overall long-term agency objectives. Develop an agency mission statement that defines these objectives. Create written statements of overall financial, operational, and personnel policies. These statements basically set the parameters within which other decisions will be made. For example: “In the interest of maintaining private ownership and to maintain a financially stable organization, we will maintain average annual earnings of 10% over the next five years.” STEP THREE: DEVELOP A SALES AND MARKETING PLAN Once you know what you have and what you want to have, you can determine how to get from where you are to where you want to be. This third step in the sales management process will result in a Sales and Marketing Plan. The opportunities and weaknesses identified in the first step and the long-and short-term objectives defined in the second step need to be translated into specific strategies and goals. These goals will then follow certain broad strategies. The strategies state what has to be done, while the goals and objectives outline how this will be accomplished. An agency will usually have one or two major sales and marketing strategies, with other growth needs addressed in strategies that relate to the financial operation and support mechanism. These categories that should form the framework for your agency’s specific list of goals and objectives: Sales and Marketing Sales Support Services External Communications Company Relations Financial Stability Personnel Development Automation Internal Communications Space Planning Perpetuation Set the specific goals in a format that facilitates monitoring their completion. Each goal must be measurable, time bound, and have someone with the ultimate responsibility for carrying it out. List all of the goals that apply to a particular strategy; then put them in chronological order, assign responsibilities, and determine due dates. For example, a goal of the Sales and Marketing Strategy might be: “Prepare a list of all lumberyards in our marketing area. Assigned to Sally. Due by February 1.” For every goal that has more than one step, the responsible individual should develop a specific action plan with interim tasks and completion dates. The format for the action plan would be similar to that for the overall goals. Let’s say that management has determined that it wants the agency to grow 10% next year, net of new business, attrition, account expansion, rate increases/decreases, etc. The responsibility for this goal is placed with the Sales Manager and they have until December 31 to complete it. The first step is to translate the percentage growth rate into commission dollars and figure out how much each producer is going to have to produce. Every salesperson should complete a Growth Analysis Sheet such the one shown below for each type of business that they’re responsible for producing (Personal, Commercial, Life) and then combine them into one. GROWTH ANALYSIS AND NEW BUSINESS ACTIVITY PRODUCER: __________________________ Step 1: Total Commissions Last Year $_____________ Step 2: Subtract Expected Attrition -$_____________ Step 3: Renewal Commissions $_____________ Step 4: Calculate Decrease/Increase Due to Rate Change $_____________ Step 5: Net Renewal Commissions Expected $_____________ Step 6: Total Level of Commissions Desired at Year End $_____________ Step 7: Total New Business Production Needed (Step 6 minus 5) $_____________ Step 8: New Accounts Needed (Divide Step 7 by average account size) _____________ Step 9: Number of Quotes Needed (Divide 8 by expected hit ratio) _____________ Step 10: Monthly Goals # Quotes _____________ # Accounts _____________ $ Commissions $____________ Once each producer has completed the form, it’s easy to add them together for each department and then for the entire agency. If it turns out that the total is well below what the owners had planned to add in new business the next year, negotiations must begin. Can the producers do more? Will it be necessary to add another producer or two? Or should the original growth plan be modified? It’s easy to decide that the agency will grow 15% next year — but when you translate that growth into dollars the reality often proves this goal to be too ambitious. An agency with $1 million in commissions would have to add $150,000 in commissions to grow by that percentage. Since most agencies will have at least 10% attrition ($100,000) from lost accounts, the actual amount of new commissions that must be produced is $250,000. For those of you who haven’t gotten used to thinking in terms of commissions yet, this is roughly $1,750,000 in premium. If rates are on the way up, this might not be too much of a problem, but in the current market it’s a pretty hefty goal. After the numerical goals have been set, the Sales Manager should develop an Action Plan for each producer with specific interim goals that, if accomplished, will help meet the required production objectives. These interim goals might be to attend certain training courses, develop a stipulated number of X-dates, make an average of two calls a day, pass a CIC or AAI course, etc. The various Action Plans developed from the original set of goals provide the framework within which to measure the individual performance of each person in the agency, as well as of the agency itself. STEP FOUR: MONITOR GOALS The fourth step in the sales management process is to set up a system to monitor the accomplishment of the goals. Schedule regular meetings to review the goals and Action Plans and discuss progress. Find out why a due date hasn’t been met. Is it a personnel problem? Was the goal inappropriate? Or was the due date too ambitious? The monitoring process will impose discipline on the participants and facilitate the updating of the Sales and Marketing Plan. It’s critical to the success of the Plan to get all employees (not just the salespeople) involved in the rewards. Producers will receive compensation that will reflect the accomplishment of their individual goals. But it’s important to have them, as well as the service staff, have a vested interest in how well the entire agency does. Set monthly or quarterly bonuses, parties, or other incentives that will be provided if the agency goals are met for the period. When administered fairly, these programs generate ongoing enthusiasm and team spirit that make supporting the Sales Plan a positive experience for everyone. While monitoring the results of the Plan, agency principals and managers will often find that they have to re-evaluate internal operations, company relationships, personnel, or other factors that are making it difficult to meet the predetermined objectives. Those factors that are within the control of the agency can be altered. Those due to outside forces that can’t be changed must be taken into account in the plan — ignoring them won’t make them go away. CONCLUSION Thus, the fourth step will throw you back to the first step and the exercise becomes cyclical. You’re never done with the plan because it’s the focal point of the ongoing sales management process. The discipline imposed by the Plan itself makes it far easier for a novice Sales Manager to do their job effectively. A clear set of written objectives and guidelines can make the difference between being an average agency with a 7.4% pretax profit margin — and being one of those that have a profit margin of more than 20%. Carol Hammes, CPCU, of the Middleton Group was one of the most knowledegable and effective agency management consultants in the business. She will be sorely missed. ...

... Develop an agency mission statement that defines these objectives. Create written statements of overall financial, operational, and personnel policies. These statements basically set the parameters within which other decisions will be made. For example: "In the interest of maintaining private ownership and to maintain a financially stable organization, we will maintain average annual earnings of 10% over the next five years." STEP THREE: DEVELOP A SALES AND MARKETING PLAN Once you know what you have and what you want to have, you can determine how to get from where you are to where you want to be. This third step in the sales management process will result in a Sales and Marketing Plan. The opportunities and weaknesses identified in the first step and the long-and short-term objectives defined in the second step need to be translated into specific strategies and goals. These goals will then follow certain broad strategies. The strategies state what has to be done, while the goals and objectives outline how this will be accomplished. An agency will usually have one or two major sales and marketing strategies, with other growth needs addressed in strategies that relate to the financial operation and support mechanism. These categories that should form the framework for your agency's specific list of goals and objectives: Sales and Marketing Sales Support Services External Communications Company Relations Financial Stability Personnel Development Automation Internal Communications Space Planning Perpetuation Set the specific goals in a format that facilitates monitoring their completion. Each goal must be measurable, time bound, and have someone with the ultimate responsibility for carrying it out. List all of the goals that apply to a particular strategy ...

How To Stop Handing Business To The Competition
Use these seven principles to stay ahead of the pack in any market. Most businesses fail to achieve their potential because of faulty thinking — which happens when business executives, owners, and managers don’t like news that runs contrary to the pictures inside their heads. Although people delivering disagreeable messages to a manager or executive no longer lose their heads, as they did centuries ago, they can lose their jobs. As a result, those who need to know the truth first are often the last to get it. No one in business should ever forget the classic case of the Sears catalogue — 30 years of dramatic losses were hidden by top executives until a courageous new CEO closed the operation. Why does it take so long for negative news to reach the top? Why do the people sitting around the table fail to speak up? No one wants to hear bad news. In fact, we tune it out. Rather than processing it, we get rid of it — “Sure, sales have gone down, but just wait until next quarter.” Then the next quarter arrives, and we hear, “We took a hit with the bad weather.” Pitney Bowes introduced the Personal Post Office-postage meters for individuals and home-based businesses. But is this a good idea now that the world is sending messages by e-mail? Does everyone in the company believe this to be a wise strategy, or are they reticent to express contrary views? General Motors provides another example of rejecting information that goes against what they wanted to believe, and consequently going down dangerous paths. Until recently, Apple was another example — and there are many others. When producers complain that it’s almost impossible to get appointments with prospects, the head of an insurance organization might say, “That’s just an excuse. You people are lazy. Hit the street earlier, and work later. They’re out there. Go get em!” What this boss should do is purge his mind of a faulty “corporate reality,” particularly when it comes to new business development, and replace it with “factual reality.” Look at the world as it is rather than as you would like it to be — and stop handing business to the competition. Here are some principles for doing this: Adding more salespeople won’t necessarily result in more sales. This should be obvious, yet somehow it isn’t. For example, the highly-regarded Life Insurance Market Research Association (LIMRA) issued a report suggesting that adding more sales agents won’t turn around the decade-long decline in Life insurance sales. The problem, as LIMRA points out, isn’t selling — it’s marketing. Yet, when most businesses want to grow sales, they long for more salespeople, when what’s really needed are more customers. Focus carefully and precisely on prospective customers, not on merely having more feet on the street. As the LIMRA researcher said, “[You] can do a heck of a lot more by identifying who is likely to buy.” Unfortunately, macho-minded sales executives tend to want to storm the marketplace with foot soldiers — a strategy the military has long abandoned — and one that has run its course in business, too, because it’s inefficient and ineffective. Start being customer-focused. Many of the companies that take pride in being customer-focused are only deluding themselves. The first step to letting the customer in is to stop all the self-serving nonsense that obscures or distorts reality. Here are a few examples of the nonsense spouted by professionals who should know better: “We’re the best.” (Who says so?) “We have 12 service centers.” (So what?) “Let our experts help.” (Who says they’re “experts”?) “Thirty years in the same location.” (What’s the value to the customer?) Phrases like this are designed to bolster the way the company sees itself, not to attract or hold customers. The same is true with much of today’s advertising. The largest type in an ad, for example, is often the company name. This sends no message to a prospect. These ads focus on features, rather than benefits. How does that translate into helping the customer? Becoming customer-focused requires more than a mushy mission statement on the back of a business card. Sell ideas, not just products or services. Xerox takes the lead with its digital multi-task equipment’s networking capability. These devices combine a good digital copier with a fax machine — yet that isn’t enough anymore. Having a network is the benefit that makes the equipment different. The idea that you can copy and fax from your desk, increasing productivity, makes the sale. Today’s customer isn’t captured by the latest model, but by the powerful and persuasive idea. From a marketing perspective, differentiating a business from its competitors makes the difference — not the brochures, logos, ads, or direct mail. Be committed. Even though “commitment” is one of the big buzzwords in the current business vocabulary, other popular phrases tend to point to a different mindset. “We like to keep our options open,” states one executive; using the term “agility” to describe his approach. Another talks about “remaining flexible” or expresses pride in his firm’s “opportunistic posture.” Although these terms express useful, even essential, strategies for businesses, they also reflect a tentative commitment. In marketing and sales programs, this translates into campaigns that start with a flourish and either fade away quickly or are replaced with some other effort that soon disappears. What’s extolled as “agility” and “flexibility” is often nothing more than an inability to stay on course and follow through. Admittedly, many of these “programs” are ill-conceived and poorly executed. Product promotions, sales contests, direct mail campaigns, Web site maintenance, and publishing newsletters are frequently efforts that die quickly. An inability to sustain projects shows that there’s a difference between being committed and just talking about it. Think “prog...am.” An inability to plan programs can be one of a manager’s most serious deficiencies. For example, some bank employees were going to be relocated to supermarket branches, so a training session was set up for them that involved planning basic promotions. Groups were asked to develop a month-long program for promoting a bank product. Two of the three groups designed posters; the third group outlined a schedule of events, activities, with announcements to take place during the entire 30-day period. Which team do you think was most objective? In another situation, the principal of a Long Term Care insurance organization asked a marketing agency to develop a direct mail piece for businesses. The agency’s rep asked, “What do you want to do as a follow-up to the initial mailing?” Caught off guard, the executive didn’t know how to answer the question. These aren’t isolated examples. A “one-shot” mentality is pervasive in business, but marketing and sales demand carefully crafted, consistent programs. Be believable. We’re told that appearances are deceiving — yet they aren’t when it comes to marketing! Dr. Jeff Moss of Moss Nutrition, a distributor of nutritional supplements to health care professionals, had held seminars for doctors for years. His feedback from attendees was positive, even enthusiastic, yet the numbers bothered him. “Why aren’t more people signing up?” he asked. A review of the seminar’s elements found that the prospect list was on target, as were the topics, presenters, locations, and dates. The promotional materials appeared to be the program’s one weak link. The mailers looked home-made and unprofessional, particularly compared to what other companies were sending to the same people. A new, attractive, high-quality mailer was designed and mailed. The responses from subsequent seminars began coming in immediately, producing nearly three times more registrations than in the past. If it looks like junk mail, it is junk mail. If the presentation looks second-rate, so will the product. Be genuine. Why do so many businesses (of all sizes) have an inferiority complex? Why do they want to portray themselves as something different than what they are? The answer: They’re not sure that what they are is acceptable to someone else — especially to prospective customers. In a highly competitive business environment, the temptation to alter reality becomes increasingly severe. The same businesses that complain about job applicants who “enhance” their resumes do the same thing when presenting themselves. Their brochures are filled with hyperbole. How often has a company used a photograph of the building where its offices are located, implying that it owns the entire skyscraper? How many companies insist on including products and services that they can’t deliver in their promotional literature? Irrational? Of course — and unnecessary, too. Inferiority complexes can cause businesses (like individuals) to behave inappropriately and push others away. The goal is to be genuine. Most businesses have more expertise, experience, and knowledge than customers ever know — that’s what today’s customers are seeking. It’s intellectual capital that counts today. Charlotte Otto, senior vice president for public affairs at Procter & Gamble, recommends that we look at ourselves as “knowledge engineers.” Customers want credibility — a condition that occurs only when image is consistent with reality. Otherwise, the discomfort and dissonance raises a red flag. Faulty thinking costs companies more sales than the outside competition ever has. Not wanting to hear the truth almost always leads to inappropriate, costly action. In the final analysis, how we think is as important as what we do.

Targeting The Ethnic Consumer
In the marketing field, the debate continues as to which is better, a well-aimed shot with a 22-caliber rifle or a broad spray of buckshot from a shotgun. This article focuses on taking the middle ground: Targeting all of your products to significantly large but defined market-ethnic minorities. Niche marketing. Target marketing. Guerilla marketing. The names might change, but such narrowly focused marketing generally aims for a definite market with a definite product -- for instance, an Electrical Contractors program designed for marketing to electrical contractors. An insurer might choose to define its market by affluence, age, or other factors. All it needs is to call a list company or database-management firm to get the names, addresses, and phone numbers it needs. All too often, minorities are forgotten or ignored in marketing campaigns. As with the stereotypical notion of alcoholics as bums who live under bridges, many of our preconceptions about ethnic groups are misbegotten, and might be costing us serious profits. The reality is that most minorities today are made up of hard-working, industrious individuals with a need for insurance and the means to purchase it. An Illustration My next-door neighbors are a good example. Fleeing from Iran for their lives, this husband, wife, and two children arrived safely in the United States and prepared to begin anew. Under the Shah's regime, he had been a colonel serving as the equivalent of a mayor for a large city. She was an educated housewife. After the Shah's overthrow, they became literally penniless. He began driving a taxi, since he couldn't find executive-level employment. She took computer training for database entry. Today, he owns a dry cleaner in an upscale suburb of Los Angeles and she works as a middle-level manager for a major credit card-processing company. One daughter is married and has moved out of state, and the other lives at home and works in the loan department of a bank. From an insurance perspective, this family now owns the dry cleaning establishment, a new suburban home, the condominium in which they used to live (now rented with a positive cash flow), three nearly-new vehicles, and two dogs. It's not hard to imagine the insurance they need to purchase every year. Today we're finding examples like this throughout North America. Budding minority entrepreneurs are opening small businesses, while education is opening corporate doors for many second- and third-generation minorities. In other cases, many foreign nationals sent here on corporate assignments for multinational firms are choosing to stay, and many wealthy citizens from Asia are migrating here and purchasing homes and businesses with hard cash. Despite all this, most agents' tunnel vision ignores minorities, often precluding any marketing efforts to gain their business. One Business Tackles The Market A friend of mine is the second-generation owner of a Chevrolet dealership. He watched his sales plummet as the demographics of his community became predominantly Asian. He had failed to learn the negotiation and buying habits of this minority, let alone figure out how to reach them with advertising. Daily he watched his white sales staff idle away the hours without a single customer. When an entire family (we're talking three generations) would arrive, usually with a translator, the sales staff would seldom close a sale. They did not know how to handle a group negotiation. Finally, before either selling the dealership or going bankrupt, he hired a new general manager who was experienced in trading in the Asian community. The new GM (who, by the way, was not Asian) began a multifaceted campaign that started with an analysis of the community. It turned out that there were about five or six dialects in the local Asian community. Moreover, about 25% of the population was Hispanic. Advertising in the major papers was canceled; ads now run in about a dozen small, local papers written in specific languages. A new sales staff was hired, with language skills being one of the major job requirements. Now, each of the major Asian languages (or dialects) is covered among the sales personnel, and four speak Spanish; everyone must also speak English. Traditional closing offices have been torn down to create an open atmosphere in the showroom. The desks remaining have plenty of extra seating available, and three picnic tables have been installed for dealing with the larger family groups. No physical changes were implemented in the service or parts departments, but new personnel were hired to bridge the major language gaps. The sales staff helps out when some of the less-used dialects surface. The dealership has regained profitability, and the owner can concentrate on factory relations because he is less involved with day-to-day operations. Solutions are still being sought for problems in factory-mailed satisfaction surveys (most are tossed out by uncomprehending customers) and ongoing written correspondence with the customer base. Most communications are performed by telephone, using sales personnel. Steps To Take If the area of your agency or brokerage includes ethnic minority populations, you might want to consider what has been done in corporate advertising. From virtually ignoring minority marketing in 1980, most major corporations today have gone to some type of marketing aimed at ethnic groups. The following basic guidelines should help you with ethnic marketing: 1. Check the most recent census for your geographical area and determine its ethnic mix. Prosperity among these groups has been increasing dramatically. Blacks earn twice the gross national product of Mexico, nearly $262 billion (more than $8,700 for every man, woman, and child) and Hispanics earn $172 billion (nearly $7,800 per person). Asians, meanwhile, have an average family income higher than that of whites (European-Americans). 2. After determining the major ethnic categories within your area, look at the mixes within each category. Don't make the mistake of lumping all blacks or all Asians together into a single group. Haitian arrivals to America have little in common with American-born blacks, and major differences also exist within the Asian community. 3. Prioritize the ethnic minority you wish to target. This can be by population ranking, income levels, home ownership, educational level, or business ownership. 4. Hire (or retain as a consultant) someone who can speak the language and remember, sometimes you have to be aware of the dialect situation. For instance, a salesperson who speaks Chinese might not be enough; a Shew Chou dialect will be impossible for a Cantonese speaker to understand. 5. Create ethnic-specific advertising. Whether you are using direct mail, online media, print, or telephone, your message should address the culture of the particular group you are trying to reach. 6. Investigate the potential media. Many of us are unaware of the various publications and media catering to local communities. Search them out, and discuss your plans and needs with their representatives. Such conversations can open up a wealth of new ideas for you to contemplate, and most of these venues provide free translation services. 7. Involve your new customers. As you add ethnic clients to your book of business, invite them to suggest ways that you can improve your outreach to their communities. 8. Become involved in the ethnic communities you are targeting. Look into community clubs, charities, children's sport teams, holidays, festivals, and church advertisements. Most communities place a high value on word-of-mouth endorsements. Basically, they like doing business with someone they know and trust. 9. Conduct ethnic sensitivity training for your employees. The most effective ethnic marketing campaign in the world can be sabotaged by unthinking comments from your employees. If you're adding ethnic employees to your staff, such training becomes even more important. Check with leaders within the communities for available resources. 10. Give it time. As with any advertising program, persistence pays off. In ethnic marketing, you're the new kid on the block, and potential customers need time to get to know and trust you. Everyone in the insurance industry knows the importance of retention for long-term growth and profit. And most analysts agree that the minority consumer tends to be far more loyal than the traditional market. A minority campaign might lead to majority profits for you!...

Telecommuting to Your Virtual Office
WHAT IS A VIRTUAL OFFICE? The virtual office concept, also known as telecommuting or a mobile office, emerged as the American work force shifted from physical labor to knowledge-based work. Workers who create or manipulate information can generally perform anywhere there is a telephone, desk, chair, and computer. Technology enables the knowledge-based worker's office to be portable. "Virtual," by Webster's definition, means "being such practically or in effect, although not in actual fact or name." Employees who work from home or some place other than the main office location are considered to be working in a virtual office. These employees are called telecommuters, a term coined in 1973 by Jack Nilles, a professor at the University of Southern California. A 1990 study estimated that 33 million people were telecommuting at that time, and the number continues to increase. To succeed in the highly competitive global economy, companies must adapt quickly to change. This includes creating assignment-oriented jobs rather than 9-to-5 jobs. Flexibility is the theme of business in the 1990s-and in the next millenium. A virtual office environment allows you and your business to perform in infinitely flexible ways. Let's review the pros and cons of creating a virtual office in the insurance industry. BENEFITS OF A VIRTUAL OFFICE TO THE AGENCY/COMPANY/VENDOR Generates greater productivity. Studies show that employees working in a virtual office are 15% to 30% more productive than their counterparts in a central office. Working in a virtual office allows uninterrupted focus on projects. Your telecommuters can complete assignments in 30 hours that used to take more than a 40-hour week. Off-site employees enhance their productivity by avoiding: Lengthy meetings and luncheons Long breaks in the hallway or at the copy machine Distractions from fellow workers Absenteeism due to car problems, sick children, and so forth Reduces office expenses. When your employees work off site, your office and parking space requirements decrease, reducing your costs. Employees who telecommute part-time can share office space. For example, three or four producers may use the same desk and computer in rotation, each one having separate password-protected files in the system. Enhances recruiting. As you interview new employees, you can be more flexible in the selection process. Since the physical location of your recruits is not as great an issue, you can avoid relocation costs. The option of telecommuting makes your company more attractive to prospective employees. Chances are good that you will even reduce employee turnover by providing a work environment that adapts to a variety of circumstances. Saves money. You are guaranteed to save money with your telecommuters. The quality and quantity of work increase, office expenses decrease, and you retain productive, satisfied employees. BENEFITS OF A VIRTUAL OFFICE TO THE EMPLOYEE Offers flexibility. People are searching for quality of life as they balance work and family responsibilities. A virtual office provides you with flexibility and more control over your life. You can creatively work around personal errands, child care, continuing education, and so forth. Ultimately, the satisfaction derived from this new lifestyle usually translates into greater productivity. Eliminates commuting stress. Futurist Alvin Toffler wrote "Commuting is the single most anti-productive thing we do." For instance, it is estimated that Californians waste 300,000 hours in traffic delays every single work day. A trip that took 15 minutes on a southern California freeway in 1984 will probably take 47 minutes in 2010, and other urban areas are seeing comparable increases in commuting times. A virtual office allows you to translate the wasted time and stress of commuting into top-quality work performance. Enhances productivity. Telecommuters focus on achievement rather than time. Structure your work hours to the times you are most productive and creative. If you function best during the morning, you can begin work at 7 a.m. in your virtual office instead of wasting valuable time in traffic. Saves money. Telecommuting enables you to save money on gas, tolls, child and family care, restaurant lunches, dry cleaning, and new clothes. Employees can work in their jeans after their one-minute commute to the spare room or garage office. CONSIDERATIONS FOR A SUCCESSFUL VIRTUAL OFFICE Carefully select the correct job. Not every job can be transferred to a virtual office. If you own a storefront agency with walk-in traffic, your receptionist needs to be at the front counter, not working at home. Generally, the guidelines for determining a telecommuting job include the following: Requires limited or infrequent face-to-face communication with other employees Uses a computer and telephone as its key tools Involves easily measurable performance and work Does not require routine access to materials at a central work location Carefully select the correct employee. The ideal candidate is self-disciplined, self-motivated, trustworthy, not easily distracted, and organized, and enjoys working independently. Budget initial expenses. You may have to purchase a computer with a modem (or notebook), a desk, a chair, a fax machine, insurance coverage, and an additional telephone line for your telecommuter. You may even buy a beeper or portable telephone to keep telecommuters accessible at all times. However, these investments will soon pay off with dramatic productivity gains. Establish a performance agreement. Determine with your off-site employee how to measure job achievements. This guarantees that your telecommuters are working, not playing, at home. Experiment with a virtual office for a limited time to ensure it is appropriate for your business and your employees. You may start with telecommuters working two or three days away from the central office and then increase the number of days as you see the positive results. Manage the change. Telecommuting is unfamiliar for you and most workers. Managing change within your organization will be your greatest challenge. Maintain regular communication with your on-site and off-site employees as you implement this new organization. TYPES OF POSITION TO CONSIDER Many positions in the insurance industry are ideally suited for telecommuting. For carriers, ideal jobs for a virtual office include actuary, field marketing representative, programmer, and systems analyst. For agencies, positions that work well in a virtual office include marketing representative, producer, and telemarketer. Automation vendors can use telecommuting with positions such as programmer, sales support representative, sales representative, systems analyst, technical support representative, and trainer. Your challenge is to think creatively and flexibly. Be willing to re-engineer your organization to meet the demands of today's changing business needs. Consider Peter Drucker's counsel: "Commuting to the office is obsolete. It is now infinitely easier, cheaper and faster to . . . move information . . . to where the people are."...