COMPREHENSIVE HEALTH CHECK YOUR COMPREHENSI VE HEALTH CHECK

COMPREHENSIVE HEALTH CHECK

YOUR COMPREHENSI VE HEALTH CHECK

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TODAY’S AGENDA Best Practices Methodolo gy Resources Agency Health 4 Service Excellence Insights Intell. Agent

OUR METHODOLOGY Comprehensive Health Check Employee Recruiting Engageme & Hiring nt Informatio Financial n Customer Training & Business Technolog Experience Planning y Carrier Relationsh Sales Marketing ip Managem ent Strategic Alignment Process Integrity

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OUR METHODOLOGY Stages of Organizational Maturity OPTIMIZED STRATEGIC INTEGRATED DOCUMENTED INFORMAL • Informal • Ad-hoc • Chaotic • Inconsistent • Emerging • Managed • Standardized • Isolated • Repeatable • Defined • Structured • Measured • Integrated • Competent • Aligned • Disciplined • Predictable • Quantitatively Managed • Continuous Improvement • Adaptive • Opportunistic • Synthesized • Proactive • Agile

best practices Perfection is not attainable, but if we chase perfection we can catch excellence. – Vince Lombardi Industry Business Marsh. Berry Southwest Airlines Reagan Consulting: Best Practices Study 2018 Walt Disney World National Alliance Growth & Performance Standard Balanced Scorecard Institute Sandler Selling System IIAT UD Engagement Study 2015 Strategic Management Maturity Model Compensation Data Surveys Catalytic Coaching Kotter: Leading Change Info-Tech Research Group 8 Lean Methodology

Best practices Top performing ‘service excellence’ firms Customer Focus - The external customer is both the starting point and ending point. Maximize value to the customer. “Committed to providing our customers with the best possible service—and to improving it every day” – Nordstrom’s brand Purpose - The purpose of an organization encompasses your vision (where you want to go), your mission (what you do), and your strategies (how you do it). Organizational Alignment - All the people involved need to have a common understanding of the organization's purpose. Empowered, Knowledgeable Employees - Give frontline employees the first opportunity to solve problems. Provide a flexible and creative work environment. "The only constant is change. " Flexibility is the ability to react to changes in customer demand. ” Partnership - Use teams, not individuals, internally between functions and externally with suppliers/carriers. Inform suppliers/customers about the caliber of your organization. Process - Organize and think by end-to-end process. Think horizontal, not vertical. Improvement - Continuous improvement is everyone's concern. Improvement should go beyond incremental waste reduction to include innovation breakthrough. Visualization – Visuals translate performance of every process into expected versus actual, throughout the management systems. Technology – “Information technology and business are inextricably interwoven- I don’t think anybody can talk meaningfully without taking about the other. ” –Bill Gates Innovation – “We are all looking for the magic formula. Well here you go…creativity plus iterative development equals innovation. ” – James Dyson Financial Health – Fundamental financial health and practices allow an organization to invest 9 in its future.

AGENCY PRACTICES

AGENCY snapshot OPTIMIZED STRATEGIC INTEGRATED DOCUMENTED INFORMAL

AGENCY snapshot OPTIMIZED STRATEGIC INTEGRATED DOCUMENTED INFORMAL Customer Experience Employee engagement Training Carrier Relationship Management Sales Strategic Alignment Financial & Business Planning Marketing Recruiting & Hiring Process Integrity Information Technology

Strategic Alignment BEST PRACTICES “Galvanizing Commitment” • Alignment throughout: Vision & Values • Culture • Structures • Systems • Communication - The Fifth Discipline Fieldbook - Southwest Airlines Maturity Logic Recommendations Vision, Mission, Core Values • Strategic Plan & Goals Top (10) Key Business Objectives for the Next 3 -Years Define agency strategy in terms that link agency, customer and employee interests Time & Data Management: (Standard Meetings- Management, Team, Service, Sales, etc. ) • Purpose • Agendas • Attendees • Key Business Information TIP: Start with employees and the rest follows from that. -Herb kelleher

Financial & Business Planning BEST PRACTICES Ensure the leadership has automated financial reporting tools that are used to their full potential. Disclosurenet. com New technologies provide a dynamic & interactive experience. Clickthru and graphic interpretations can create powerful tools for stakeholders. - Proformative. com Maturity Logic Recommendations Financial Health* *For some best practices, attend Stephanie Stokes presentation tomorrow MUST-HAVE reports for decisionmaking • Operational • Sales • Financial Corporate Dashboard in place Continuous Improvement: Transition from manually manipulated reports to self-generated, interactive, drill-down analytics. (Vantage Agora) Consistency in reporting and data access across the enterprise. Comparative Metrics Tip: Business agility will make you better, stronger, faster.

Recruiting & Hiring Considerations BEST PRACTICES Sandler Kolbe DISC Omnia Strengths. Finder “Galvanizing Commitment” • Alignment throughout: Vision & Values • Culture • Structures • Systems • Communication - The Fifth Discipline Fieldbook - Southwest Airlines ü Current Recruiting/Hiring Process ü Job Position Skill & Talent Identification /Tools used to identifying position requirements (cognitive, personality, conative, etc. ) ü Copy of Job Postings ü Location / Strategy for Posting Jobs ü Hiring Checklist ü Copies of Acquisition Agreements Interview Methodology Process to evaluate alignment of new employees’ expectations to their actual experience within 90 days Consider employees aspirations during the hiring process Tip: Hire for talent, not just skills & experience

Training Maturity Logic BEST PRACTICES “Where people continually expand their capacity to create the results they truly desire while learning to see the whole together…” - Peter Senge Learning Organization Internal Promotion / Career Paths Onboard Training Process for Positions Endorsed Training Programs/Certifications could include: • Sales • Service • Leadership / Management • Technical Products • Internal Programs • Web. CE • IRMI Mature learning models are designed toward on-demand with consistency, usability & accessibility. Tip: Build continuous learning habits.

Training BEST PRACTICES “Make learning part of the way employees work together rather than something HR is making them do. ” - Karen May , Google’s head of “People Operations, ” State of the Industry Average annual spend per employee for training & development: $1208 Maturity Logic Recommendations Formal Training/Development Plans Enhance coaching and performance support. Integrate career and succession planning into process. Budgeted Professional Development $$ investment Top Growth Best Practices Agencies: . 5% of net revenues Association for Talent Development’s 2014 State of the Industry, businesses spent an average $1, 208 per employee for training and development

Employee Engagement Maturity Logic BEST PRACTICES There is a direct link between employee engagement and stakeholder value & customer satisfaction. - “First, Break all the Rules” ü ü Recommendations Organizational Chart Current Job Descriptions Employment Agreements Employee Handbook ü Employee Turnover Statistics for the Exit Interview Process to identify root Past 18 months cause retention Corrective Action Tools (Performance Management Tools) ‘Catalytic Coaching’ model & counseling tool ü Employee Engagement/Satisfaction Results ü Compensation Model • • Evaluate compensation policy holistically to include bonus/benefits Leverage bonus on reward program to maximize performance Tip: Happy team, happy clients.

Customer Experience BEST PRACTICES “Operates with 3 pillars: know our customers, organize around customers, make it bigger mission” - USAA T= C+R+I S Where: T = trust C= credibility R= reliability I = intimacy S = selforientation - Maturity Logic Recommendations ü ü ü Retention Best Practice: 92% Rolling 12 -month retention Value-Added Services Formalized Niches Account Rounding Statistics Risk Management Process Fee Services Offered Customer Satisfaction Measurement: Net Promoter Score Top NPS Leaders: USAA 80% Costco 78% Apple 76% Nordstrom's 75% Define customer experience. Develop holistic measuring & improvement system. Trust-Based Selling Tip: Engage customers & employees with a simple & consistent message

Sales Considerations BEST PRACTICES “A unified sales process and management disciplines is needed to meet growth objectives. ” - Julie Schatte, TNG, (Succeed, the Sandler Way) ü ü ü Sales Goals/Metrics Plan % of achieving sales goals in the past 3 years Producer Expectations Validation Process / Standards Pipeline Management Process / Reports ü Accountability to Process Sales Team Meetings Net-Investment in Un-validated Producer Pay (NUPP): Healthy Level for Best Practice Agencies: 1. 5% of Net Revenues New Business per validated producers Average Top 25% P&C Producers $87, 288 $176, 231 L&H Producers $116, 289 $233, 289 Tip: agencies that spend more than 10% of revenue on Marketing, more likely to experience significant growth

Marketing Considerations BEST PRACTICES ü External Marketing Model & Investment in Marketing “A unified sales process ü Standard Sales Presentation / Sales and management Process / Training disciplines is needed to ü Website/Collateral Materials meet growth objectives. ” - Succeed, the Sandler Way Top Performing Services Companies: spend 11% of net revenues 11 % average spend for services companies American Marketing Association & Duke University 2014 Study Best Practice Agencies • Top Growth: 3. 5% Tip: agencies that spend more than 10% of revenue on Marketing, more likely to experience significant growth

Process Integrity Considerations BEST PRACTICES Lean is the only business methodology we know of which can reduce the cost of providing a good or service, improve the delivery/lead time, and improve product quality, all at the same time. - B 2 C. com Common follow-up system (tracking) File documentation & organization Consistent disclaimers Staff licensing philosophy Use of coverage checklist standards for designing client programs - Using for small & large commercial Disaster/Service interruption recovery Tip: Organize and think ‘end-to-end’ process. Think horizontal, not vertical.

Information Technology Considerations BEST PRACTICES IT Investment Retail Orientation Conservative 4. 9% of Revenue Mainstream Tending Towards Leading Edge 7. 0% of Revenue ü Current IT Architectural Schematic ü IT Software/Hardware Upgrade Schedule ü Agency Management System(s) ü Workflow Utilization ü Paperless Process/Rules ü Cyber-liability Protection Measures ü Documentation Destruction Policy & Schedules Best-In-Class Retail: 7% - Info-Tech Research Group Tip: Ensure I. T. agility and strategy that enables constant innovation

Carrier Relationship Management BEST PRACTICES The key is to limit your relationships to the most profitable company relationships - Chris Burand Top 25% Growth Agencies generate 31. 8% of their revenue from Top 3 P&C Carriers - Reagan Consulting Maturity Logic Recommendations Carrier Relationship Management Strategy • Carrier Management Process / Quarterly Overview pro-active management process • Specific Carrier Goals and Results to Goal-History (target production goal success ratios) • Ideal Submission to Top Carriers • Hit Ratio with Top Carriers Adopt a disciplined, strategic approach with your top 3 carriers. Separate renewal & new business management. - Reference ‘Negotiate with Carriers’ Burand & Associates - ‘Agency Best Practices’ Bridge Strategy Group Revenue form Top P&C Carriers ü Centralized Marketing Function Revenue from Top Insurance Carriers Top 25% Growth Agencies: 19. 8% Top 25% Profitable Agencies: 12. 5% Top 25% Growth Agencies: 31. 8% Top 25% Profitable Agencies: 23. 2% Tip: Include staff responsible for delivering on strategy in the planning

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Next Steps 1. Celebrate! 2. Identify Resources 3. Determine Priorities 4. Take Action 2

OUR TEAM Marit Peters Angela Ford Organizational Development Continuous Improvement Agency Operations/Systems Mary. Peyton Sumners Donna Biles Polly Middlebrook Jim Gavin Regina Anderson Gunnar Kephart Cari Senefsky Insurance Practices Expert E&O Experts Stephanie Stokes Financial Wizard 27 Advantage Team

OUR values Service Excellenc e Continuo us Improvem ent We provide world class service every day, every moment. We will inspire creativity, passion, optimism and fun! 28 Integrity We build to last with honesty and accuracy with an eye on the future.

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Resources What gets measured, gets better. 30