As general agents, we are all striving for the same end goal -- growing a successful business. How each of us reaches that end goal differs greatly based on a variety of factors ranging from our past experiences, to our unique business objectives, to our management styles. At the same time, we all face many of the same challenges, and since each of us resolves these issues in our own way, it's clear that we can learn a great deal from one another.
In his book, The E-Myth, Michael Gerber talks about the fact that, "success lies in the system." Over the course of my career, I've seen for myself how true this is. In my experience, it is those agencies that have developed a systematic approach to setting goals, recruiting the right people, building relationships and cultivating knowledge that have found the most success. By looking closely at the best practices and proven methods of your colleagues, you too can establish your own system for success that will enable you to grow your agency year after year and, ultimately, decade after decade.
Success lies in the planning: Setting goals
It's no secret that goals drive success. In fact, the importance of setting goals has been discussed by virtually everyone from Napoleon Hill, one of the first authors to tackle the subject of achieving personal success, right through to Stephen Covey and Anthony Robbins, among many others. The bottom line is that goals are critical to success because if you have no idea where you're going, there's no way you're going to get there.
One of my first sales managers taught me to write my goals down on an index card and carry them with me in my suit pocket every day. I did as he suggested and found that I was reminded of my goals each morning when I put that card in my jacket and each night when I took it out. Of course, goals change over time. My own changed when I started in agency management and then again when I became a general agent. I never stopped writing them down, however, and this is a practice that has kept me focused on where I am going.
Of course, writing goals down is the easy part. The challenge is creating goals that are achievable and also push you to reach higher. Here are a few things to consider:
o Focus, focus, focus. Vague goals without definition will get you nowhere. Consider the difference between "I want to grow my business" and "I will add $10 million in-force." The first gives no clear direction while the second has a specific end result.
o Measurability. Effective goals are easily quantified. You must be able to monitor your progress and make adjustments as time passes. With the above examples, how will you know when you've adequately "grown" your business? On the other hand, you will know pretty quickly whether you are on track to add $10 million in-force.
o Keeping it real. When setting goals, be realistic about what you are likely to achieve. Consider your agency's past performance, as well as industry growth rates to set goals that are within reach.
o Reach a little higher. While goals should be attainable, they should never be too easy to reach. For instance, if you were able to grow your in-force business by $10 million last year, then setting your sights on $10 million this year is playing it a bit on the safe side. Go for $15 million and really strive for excellence.
o Be definitive. Goals should have very specific time frames around them. Bigger goals are usually set on a yearly basis -- like the in-force business you want to achieve. For ongoing success and maximum measurability, however, you should break annual goals down into quarterly, monthly and/or weekly milestones.
o Make them known. As I mentioned, writing your goals down and carrying them with you is a great way to make them real. Take it a step further by sharing your goals with family, friends and colleagues, and make sure all your staff and associates know what you are striving for. This ensures everyone is behind you and supporting your strides toward a common goal.
With this, achieving goals becomes a simple formula, a system. If your goals follow these guidelines, you can review and update them regularly, readjusting them as needed to keep momentum and morale high within your agency.
Success lies in the people: Effective recruiting strategies
We all know that our agencies are only as strong as the associates representing us in the marketplace. As with many other types of businesses, people are at the very core of our success. Yet we approach recruiting in a far different way than other businesses.
For the most part, those of us that run general agencies are never done recruiting. The number of "jobs" available in our agencies is infinite, or at the very least, undefined. There is virtually no other industry that operates in this way. When other companies recruit, they are typically looking to fill one position and when they find the best person -- one with the right blend of knowledge and experience -- the search is over.
In our industry, however, we approach recruiting in much the same way as we did prospecting when we were salespeople: We believe that the more people we bring into the agency, the closer we will get to finding the right associate. The result? Industry statistics indicate that only about 11% of recruits survive in financial sales past the four-year mark.
In discussing this dilemma with other general agents, we realized that many of us had become so intent on bringing in associates, that we weren't necessarily seeking out people with any kind of specific skill set or those truly suited for a career in selling financial services.
To get a better understanding of where the breakdown was in the system, one agency began conducting exit interviews with associates who had chosen to leave. Surprisingly, many said they'd taken the position simply because they were not able to secure a job in their chosen field. One young man in particular had a passion for hockey and wanted to coach. He took a job in financial services to fill his time until he could break into the career he really wanted. Perhaps he would have been hired anyway, but had the recruiter dug a little deeper into his background, hopes and desires, it's likely the fact that he was not looking for a career at all, but just a job would have been revealed much earlier.
Based on this, there are a few strategies you can use to minimize turnover.
o Inexperience rules. Focus on younger recruits, those coming out of college or making their first career move. These associates are ready to learn. It's natural to feel that people with a lot of work experience, whether in our industry or not, are a much better risk. Consider the fact, however, that with experience often come habits and work patterns that are difficult to change.
o Internship programs. Try inviting a number of college students entering their senior year to intern at your agency. This will help you evaluate their talents and commitment, while also giving them a taste for the business and the agency. Many companies across a wide range of industries have found success recruiting and retaining employees in this way compared to traditional career fairs.
o Profiling tools. In our industry, each company has its own profiling tools -- questionnaires to uncover work patterns and history, or aptitude testing -- that are helpful in certain cases. In my experience, these measurements are geared largely toward those with more experience in the workforce, so they can be especially useful when interviewing seasoned professionals.
o Letting go. Probably the most difficult thing for every small business owner is recognizing when someone is not well-suited for a particular job. It is always hard to let someone go, but try looking at it from another perspective. Imagine that by letting an associate go, you are giving that person the opportunity to find a career at which he or she just might excel.
Success lies in relationships: The art of building trust
This is a business of relationships. Like any product, and especially in today's volatile economy, people are more likely to buy from those they trust. So building a practice is extremely important. A doctor is a perfect example of this. Let's consider the relationship they have with their patients. Although a doctor has the ability to prescribe any number of medications and suggest a wide variety of treatments, he or she never does so without first evaluating a patient's current health and gaining a full understanding of that person's medical history. To not do so would be irresponsible.
Given the evolving role of the financial advisor today, we've begun to teach our associates to approach their relationships in much the same way. A prospect or client will always want to feel as if the advice given is based on his or her own unique circumstances. That's why associates should be taking the time to get to know their prospects -- their interests, work and family lives.
This philosophy works also for those of us in agency management. By taking an active role in getting to know your associates, you will begin to build trust, and with that comes respect for what you are trying to achieve. In the end, you will find your associates are committed to helping you realize agency goals while also striving to accomplish their own personal objectives.
Success lies in the knowledge: Continuing education
Doctors have to pass medical boards. Lawyers must all pass the bar exam. Even veterinarians must pass exams in order to practice their trade. The same is not true of financial advisors, despite the fact that the role of the financial advisor has changed significantly in the last decade. Today our associates are much more than life insurance salespeople -- they are literally financial advisors and have a great deal of responsibility to their clients. As a result, truly successful associates have become much more involved in all aspects of their clients' financial well-being and provide a full range of services, including traditional life insurance, disability insurance, estate planning, business succession planning and so much more. Yet, aside from 40 hours of industry training, there are no educational requirements in our business. It is up to each individual as to how far to take his or her education. In fact, some of the top producers in our industry have no designations at all.
This is somewhat of a dichotomy in a society that places such high value on education. We judge people by the degrees they've earned, the schools they've attended, and even the industry recognition or awards they've received. So there are many general agents I know that encourage their associates and sales management staff to earn as many designations as possible because that is what today's savvy prospects and clients demand, and -- as far as my colleagues are concerned -- it's what they deserve.
Perhaps you've reached the level of success you had hoped for your business, or perhaps there is more you would like to accomplish. Either way, change is always good and now may be the perfect time to reevaluate your goals and the way in which you approach growing your agency. The strategies mapped out here -- setting goals, effective recruiting, building relationships and continuing education -- have enabled me and many of my counterparts to develop systems that keep our agencies moving ever forward. With a more methodical approach to doing business, you will find you are able to stay on track, remain focused on your goals, and continue building on the success you've already achieved. For me it all goes back to what Michael Gerber said: "Success lies in the system." This philosophy has worked for countless others, and it will work for you.
Howard B. Cowan, CLU, ChFC joined Massachusetts Mutual Life Insurance Company as co-general agent in 1985 and was named sole general agent in 1987. Since he joined the field organization, Cowan Financial Group has won MassMutual's top honor, the National Chairman's Trophy, for 19 out of the past 21 years, the most of any general agent or field organization in MassMutual's history. Under his leadership, the field organization's individual life insurance in-force has grown from $1.3 billion in 1985 to a company-leading $ 23.6 billion today
Howard B. Cowan is a registered representative of and offer securities, investment advisory, and financial planning services through MML Investors Services, Inc., member SIPC. Insurance offered through Massachusetts Mutual Life Insurance Company and other fine companies. The views expressed here are those of Mr. Cowan, and not necessarily those of Massachusetts Mutual Life Insurance Company or its subsidiaries.
