Agencies need to put the basics in place 

Our experience indicates that too few independent agents do FORMAL strategic planning.  That is not to say that the owner doesn’t have a plan in mind.  But often that plan is closely-held and not communicated clearly on paper or verbally.  We encourage our clients to formalize their plans and conduct frequent reviews with their employees.  

In our backyard, strategic planning is a must for Massachusetts agents.  Major change is right around the corner---managed competition.  Agencies that don’t start best-case, worst- case and most-likely-case scenario planning now are going to be behind the eight ball when the implementation of managed competition begins April 1, 2008. 

BASIC STRATEGIC PLANNING 

Strategic planning is a business process that includes several elements. 

Mission Statement:  Why does your agency exist? 

Objectives:  What goals must you attain to succeed?  

Strategies:  How will you reach each objective?  

Tactics:  What specific actions do you need to take to carry out your strategies? 

Results Measurement:  Are objectives being met?  Are tactics being implemented?  

Updates: What adjustments are needed? When?  

SCENARIO PLANNING 

The concept is to pick external or environmental forces that could have a profound effect on your business and your agency. Imagine what strategic changes these forces might bring about. A common expression used for scenario planning is “what if” planning. 

Some examples for independent agents:  

. WHAT IF direct writer competition heats up and advertises cost-savings heavily in your market area?  What do you do? 

. WHAT IF a well-known multi-town agency opens an office near you?  What do you do? 

. WHAT IF your lead carrier will no longer write coastal business?  What do you do? 

. WHAT IF your lead carrier cuts contingency income dramatically?  What do you do? 

STARTER STEPS 

1. List the main issues facing your agency

 2. Decide when you want your plan in place. 

3. Allot time for planning process sessions ONLY. 

4. Decide who in the agency should be involved. 

5. Decide if an outside facilitator would help. 

6. Decide if planning meetings would be best held in the agency or at an outside location.  

COMMERCIAL BREAK 

Our associate Frank Herberg, CPCU, agency development coach extraordinaire, has served as a strategic planning facilitator for many independent agents.  Depending on the issues and needs, Frank and I have often double-teamed as facilitators too. ---Don Cookson