CIC - Agency Management

CIC - Agency Management Budget Considerations for growing an agency and doing a needs assessment - ANSWER -the specific talents and skills employees require -an awareness of gaps, deficiencies, and surpluses within and across departments -a determination of how many employees the agency can afford to hire -the best time for employees to join the agency An agency uses its value statement to accomplish several goals - ANSWER 1. Communicate the agency's core principles to shape its direction and organizational goals 2. Focus on aspirations and behavioral issues that matter most to the agency's leadership 3. Define the standards of conduct and expectations for all agency members 4. Communicate these statements orally, written, and electronic form Value statement answers the questions - ANSWER Who we are? What we are? How we do it? An example of a value statement - ANSWER The smith Agency values helping local businesses succeed An agency's vision statement should - ANSWER 1. Communicate a clear picture of what an agency is trying to achieve 2. Identifies characteristics that: -reflect the long-range goals of the agency's policyholders -project the view of what the agency aspires to be -guide the agency's strategic development An agency's vision statement answers - ANSWER Where do we want to go? An example of a vision statement - ANSWER The vision of the Smith Agency is to be a fully employee-owned agency that is recognized as the premier commercial lines agency in the region An agency's mission statement should - ANSWER -provide a clear statement of an agency's purpose and focus -Identify characteristics that are broadly stated in terms of service, income, and profit -establish clear growth goals serving its key stakeholders, clients, and employees An example of a mission statement - ANSWER ABC Agency will provide quality personal and commercial insurance products to the clients located within our trade area to help them achieve their financial security goals Several considerations that contribute to establishing an agency's goals - ANSWER - Target market niches -Agency personnel and productivity -Market territory -Multiple locations -Marketing and Sales Long-Range Planning - ANSWER occurs over 3 to 5 years -establishes purpose, continuity, and direction -focuses on broad goals that will remain relevant years later -provides a broad picture of where an agency is headed Short-Range Planning - ANSWER Usually extends over a 12 month period -more specific and provides details that fit within the framework of the long-term plan -Involves the production of detailed action plans that organize and prioritize action steps -Communicate roles and responsibilities -offers guidance -provides an agency's daily/weekly/monthly action agendas S-M-A-R-T - ANSWER Specific - Measurable - Attainable - Realistic - Timely An agency's 5 growth stages - ANSWER 1. Start-Up 2. Development & Growth 3. Success 4. Expansion 5. Maturity Start-up companies - ANSWER owner or management team handles everything -the agency is only beginning to establish its client base, production, and service is unstable Development & Growth - ANSWER -an increased number of clients/account -make efforts to balance revenue and expenses -owner/management team remains involved in daily operations Success - ANSWER -agency is profitable and follows well-executed procedures -owner/management team delegates some sales and service activities Expansion - ANSWER -an agency grows rapidly and targets new marketing territories Maturity - ANSWER -agency is fully developed and uses sophisticated systems -emphasis on collaboration and building professional integrity -CEO/management team focuses on strategic goals, planning, human resource development, and support systems Factors that asses an agency's financial health - ANSWER 1. Profitability 2. Accounts Receivable - able to collect payments in a timely manner 3. Retention Ratio 4. Average commissions - Producer compensation structure - who owns the book of business 5. Competencies of personnel - company markets 6. Brand - positive or negative image in the community Tools to measure agency financial health - ANSWER 1. Budget 2. Income Statemen