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Welcome 
From our Founder,
Catherine Oak
Greetings!
It is springtime!
That means, it's
time to clear out the old dusty things in our closets. It is also a
great time to get rid of the old unproductive ways that we run our
businesses. Springtime is a perfect time to reflect on our past course of our agencies and restructure it accordingly so that it runs a smoother and more productive path.
Planning
ahead requires an understanding of where you are now, how you got
there, what works and what does not work. Once the current status is
defined, then a road map to the future can be drawn.
In this April newsletter, we provide you with some tools and ideas to get started with your agency review, today.
Oak & Associates is also offering additional help with a couple of affordable ways to guide you through the process.
One of our tools that will help your agency improve its' performance is our next seminar on Extreme Agency Makeover & Expense Control in Troubled Times.
If your time is limited, you can also benefit from our Online Learning Webinars. At the convenience of your desk, you can get the answers to your questions and you can share ideas with other participants!
You can also access our library of free webinars on our website.
To improve your agency's bottom line, you need consultants who understand your individual needs and who can get you to the next level quickly. If you want to see tangible and fast results, contact us today!
Oak & Associates will meet all your needs and exceed your expectations!
Call us at (707) 935-6565 for a free 30 minute review of the key issues you are facing.
You can also email Bill or Catherine.
Find out more about our Extreme Agency Makeover and Sales Manager Coaching program by visiting our website.
We, at Oak & Associates, are committed to your success!
Sincerely
Catherine Oak
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Management Seminar
Extreme Agency Makeover
&
Expense Control in Troubled Times
Is your organization equipped to survive the current financial crisis?
Join us at on of these dates for a powerful event to look at your business from a fresh perspective:
April 28, 2009
San Francisco
April 30, 2009
Stockton
May 20, 2009
Pasadena
10:00 AM to 4:00 PM
Equip your organization with the sound financial management skills that are necessary to navigate today's complicated economic landscape.
Extreme Agency Makeover will provide you with proven tools & ideas to grow your business despite the economic turn down.
Act now to register two people for the price of one!
Click here for details
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Webinars 
Join us for our webinars!
Keep up on the topics you need to know, now!
Agency Value
How much is your agency worth? Find out the key elements to agency value and what are the current trends.
May 6, 2009
12:00 PM Pacific
Producer Vesting Basics
What works and does not work when it comes to producer vesting or equity.
April 11, 2009
12:00 PM Pacific
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 Agency
Performance
Review
Where to Start
The rule of this game is to keep it simple.
The objective is to review the agency's performance in five areas of primary focus:
1) Book of Business Analysis
2) Sales
3) Financial Analysis
4) Productivity
5) Agency/Carrier Relationships
The analysis needs to include peer group comparisons, agency historical performance, a subjective feel for performance and areas for improvement.
The one question most agency owners ask in the review process is "how do we compare to other agencies?"
Read full article here
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Today's Benchmark
CSR Productivity
How do you know it is time to hire a new CSR?
Does your staff always seem to be swamped?
Is your work flow design optimized?
The most common way to evaluate work flow and CSR productivity is by looking at the number of accounts and commissions (or premiums) that they handle.
To use this method, the first step is to calculate the average size account in their book of business. That is to say the total commission in the book of business divided by the total number of accounts (not policies).
Then, look at the chart below to find the benchmark performance standards for that average size account. The performance standards below show the "average" and "high" performance for the number of account and commission dollars handled.
These standards also factor in the use of CSR assistants and staff that handle claims, certificates and placement. So, make sure you factor them in when doing your assessment.
Commercial Lines
Average Number of Accounts Commissions Dollars
Size Average High Average High
$100-800 330 619 $133,000 $202,000
$801-1,200 167 300 $165,000 $258,000
$1,201-1,500 136 189 $180,000 $259,000
$1,501-1,800 114 165 $182,000 $261,000
$1,801-2,100 99 139 $187,000 $264,000
$2,101-2,400 90 123 $194,000 $268,000
$2,401-2,700 81 110 $197,000 $271,000
$2,701-3,500 70 92 $220,000 $273,000
$3,501-4,300 61 76 $240,000 $280,000
$4,301-8,000 43 61 $250,000 $334,000
$8,001-13,000 39 59 $360,000 $493,000
Personal Lines
Average Number of Accounts Commissions Dollars
Size Average High Average High
$50-70 1,154 1640 $72,000 $101,000
$71-90 901 1257 $75,000 $103,000
$91-110 750 1057 $78,000 $108,000
$111-130 634 928 $79,000 $114,000
$131-150 616 825 $89,000 $118,000
$151-170 553 750 $91,000 $122,000
$171-190 503 714 $93,000 $131,000
$191-210 464 696 $100,000 $141,000
$211-230 446 676 $120,000 $151,000
$231-330 427 639 $140,000 $180,000
$331-500 329 573 $160,000 $200,000
Use all guidelines with a bit of caution. Each agency is unique in how it is structured, the types of accounts it handles, client service style and work flow design. Also, who handles what work between the CSR and the producer will vary between agencies.
If your agency is below average, look to see why. For example, some types of accounts are more labor intensive than others. Construction accounts often require a lot of certificates and thus will bring productivity down compare to a less labor intensive policy like D&O.
Use these benchmarks to evaluate your CSR performance, your work flow design and your staffing levels. This review should be done at least once a year or more to evaluate any adjustment that were made.
When adjustments are necessary, first, look at the big picture. Consider all the isues - the number of staff, technical skills, work flow issues, types of accounts, etc. Then, work on the the areas that would make the biggest improvement with the smallest amount of adjustment.
Remember that this is an ongoing process. Improving the quality of agency performance is a continuous cycle of review, analysis, adjustment and assessments.
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 Ten Areas To Cut Expenses
With the downturn in the economy, most businesses are hurting.
To survive, adjustments must be made.
Read the full article here for details.
1) Staffing
2) Producer Compensation
3) Small Accounts
4) Yellow Pages
5) Rent
6) Telephone
7) Auto Expense
8) Meals & Entertainment
9) E & O Insurance
10) Outsource Work
The bottom line is...the bottom line.
Think outside of the box and be ruthlessly creative when looking for ways to cut expenses.
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Quiz ????? Is your new agency poised for growth?
The basic building blocks of a company must be strong for that business to grow and experience long-term success.
Now is the time to get your agency ready for
the economy to turn around!
_______________________________________________
To see if your business is ready to grow, rate your business from 1 (poor) to 5 (excellent) on the following questions:
_______________________________________________
- Your business has a clear vision or defined purpose with specific targets and goals.
- You and your staff have a collaborative view and understanding of what is important for your clients and the willingness to adapt to change for those clients.
- The staff and your clients can survive without you.
- You know your business' expenses and have trimmed them down to the "right" level.
- Your staff has a spirit of a "sales attitude."
- Your employees would say "they have a career" versus "they have a job."
- You, your employees, and your clients can describe what makes your agency unique (and its the same thing).
- Your agency's work flow is very efficient and you have systemized your business.
- You would describe your producers as "hunters" and aggressive, versus "farmers" and passive.
- Your agency has the products and services that your clients want and need.
*If you score an average of 4 or more you are ready to grow. If your average score is 2.5 or less, your business will have a difficult time surviving the current economic turn down.
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So, is your score a bit of an embarrassment?
Don't be discouraged!
All you need is some guidance to pick your agency up and prepare it for the future that lies ahead!
Call us today for an Extreme Agency Makeover or attend one of our upcoming seminars!
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