3 Insurance Practice Management Strategies to Improve Business Results 

In the day-to-day drive to produce results and serve customers, there are three often-overlooked practice management strategies that limit an agent’s production and level of customer service.

These three practice management strategies are the foundation of any high-performing team at every level of athletics, and are used by coaches around the world. They also form the basis of many “championship organizations” in the business world, making them strategies that every insurance producer should look at implementing in order to build a significant practice.

These practice management strategies are often overlooked because they do not directly relate to generating revenue or serving clients. Yet, they are an absolute necessity in building a foundation for an agency that wants to grow and thrive long term. The three strategies include:

1. Creating a compelling vision and strategy for the agency’s future
   
2. Developing leaders throughout the organization
   
3. Managing the performance of all team members

Many practice managers express stress and frustration that team members are not as productive as they would like them to be. They lament about having an unmotivated workforce that needs continual micro-management to get things done. Yet, these same practice leaders invest little time in creating a motivating work environment that gives team members a reason to be enthused and engaged in their work.

1. Creating a vision
It is helpful to apply the metaphor of a championship team in athletics. On the first day of training camp, team members are collectively engaged and focused on fulfilling a compelling vision: winning a championship. Insurance practice leaders must also create a compelling vision that is motivational and inspirational for team members to rally behind and become excited about achieving. (Compensation packages should also be developed that allow team members to participate in the financial results of achieving the vision.)

For example, one of my clients created an inspirational future vision for his firm that included growth large enough to enable him to take over a recently vacated historic office building in the center of town. By the end of the staff meeting at which this idea was presented to nearly a dozen team members, many long-term employees were dabbing tears from their eyes.

2. Developing leaders
Because practice leaders are many times the primary rainmakers at their organizations, they tend to spend a lot more time away from the office than other employees, creating an in-house leadership vacuum where decisions are left for them to make upon their return. When decisions are delayed that address client service items and employee performance issues, the overall production of the office can be affected.

Just as athletic teams develop captains who have the authority to make decisions on the field of play, the best practice leaders work on developing a hierarchy of authority that gives certain team members the capability to make decisions within well-defined parameters. This approach provides multiple benefits, such as allowing for a smoother-running practice, a higher level of customer service, and more confident key team members, as well as an opportunity for succession planning as team members grow or decide to move on.

3. Managing performance
The third and final strategy used in developing championship athletic teams is consistent management of the team member performance. Creating and effectively implementing a performance management process is one area where many business leaders in all industries drop the ball.

Performance management starts by creating job descriptions for all team members that identify clear roles and responsibilities, yet are flexible enough to adjust as the practice grows. This is where most business leaders stop, but it’s only the beginning.

Next, you must develop clear performance expectations for each team member, followed by one-on-one discussions that help each person understand their strategic role in helping the practice achieve its goals. From there, you should create both formal and informal opportunities for providing feedback so that team members can learn what’s working while learning how they can improve their contributions to the organization.

Adopting this three-step approach to practice management takes forethought that some agents may view as taking time away from prospecting, producing, and serving clients. However, when you invest time, focus, and energy in regularly implementing the three powerful strategies of championship teams, you will start to develop a practice that is enjoyable to work in, become attractive to prospective employees, and consistently generate outstanding business results.

Skip Weisman is the owner of Weisman Success Resources Inc. He can be reached at skip@skipweisman.com.