Why Aren’t You More Productive?

Independent agent Dayton Kilgus is optimistic when he hears that 44% of agencies feel they have made significant advances in productivity by using new technologies.

Whether new tech encourages agencies to do things a fresh way, adopt original documentation practices or change business processes, “we see the vision and long-term benefits of implementing technological changes,” says Kilgus, a producer at Metz Stoller with agencies throughout Illinois. “We know that down the road once everything gets in place, we’re going to see what we feel are substantial benefits in our ability to serve customers, answer questions and retain business.”

Independent agencies like Kilgus’ are reaping the benefits of fully utilizing technological capabilities that streamline agency workflow and reduce redundancies in order to build relationships, bring in new business and create consistency.

“How effective an agency operates these days is becoming increasingly intertwined with technology,” says Michael Howe, senior vice president of product management at Applied Systems. “We’re seeing [agents] think much more broadly about technology end to end across the business, in addition to the more classic or traditional sense of just the back-office and servicing via agency management systems. They’re spanning.”

If you belong to the 66% of agencies that reported lower levels of satisfaction in terms of finding productivity through technology in the 2014 Future One Agency Universe Study, here’s how your agency can break down tech processes to become more productive.

Mapping Productivity

Measuring productivity can be tricky. An individual may look to their gut for a productivity checkup, while a business may need numbers as proof. “Productivity means different things to different people,” says Tommy Dies, CFO of Bryan Insurance in Graham, Texas. “I try not to focus on any particular one number. I try to look at the larger picture when it comes to productivity and technology.”

Applied’s e-book, “Working Smarter: Finding Agency Productivity Gains,” breaks down the correlation between technology and productivity by role—each with its own indicators of ideal productivity performance [see sidebar]. Does a CSR spend more time talking to customers or rekeying data? How much time does a producer spend meeting with new clients versus manually sending reports? How quickly can a principal access big-picture information rather than flipping through spreadsheets?

Vertafore also thinks about productivity in terms of streamlining workflow for distinct positions, according to Theo Beack, chief technology officer, and Greg Wright, vice president of agency management. “The questions we’re asking of technology differs greatly depending on what role you’re playing within an agency,” Wright says. “We’re able to design those solutions much more tailored to each individual persona.”

Technology can significantly reduce—and even eliminate—workflow redundancies, which frees up staff time for the most important tasks. “Whenever you can look at your staff and say they’re focused on new sales and able to manage existing business with less effort, then that’s where productivity is achieved,” says Laird Rixford, president of Insurance Technologies Corporation. “Instead of having to do some of the menial, every day boring tasks, they are able to focus on the tasks that matter.”

And for independent agents, that means maintaining local, trusted relationships. Using technology to gain rapport isn’t nearly as effective as a face-to-face conversation, but it does enable agents to spend less time on administrative and follow-up tasks and more time on selling, educating and offering the right coverage to each customer.

“They have an advantage inherently built into their business,” Rixford says. “If you were able to add technology to enhance and improve that advantage, it’s even more powerful.”

Starting Strong

Agencies that want to feel more productive should search their current technologies for gaps and opportunities.

“People will make investments in technology, but they will not fully utilize those investments,” Rixford says. “Every customer is an opportunity to sell something more, and if you have the right technology and it makes it easy to do so, then that’s where you become productive. I’ve seen a lot of agencies that invest in technology and don’t get a value out of it because they do not invest the time and effort to make that technology fully utilized.”

No matter what you’re looking to adopt, transform or implement next, “think long and hard,” Dies says. “Make the decision as if it’s going to pay off in the long run and whether you’re willing to take the sacrifice and decrease productivity in the short run.”

You don’t have to start big. “The beautiful thing is that you can kind of piecemeal it,” Dies says, citing inexpensive methods including smart phone apps, social media marketing and moving to the cloud. Those strategies have saved Bryan Insurance “tens of thousands of dollars both in equipment and labor supporting that equipment,” Dies says.

Start simple: “Define the problem that you’re having—the pain point,” Dies suggests. Then, “identify the technology or technologies that are out there and start weighing them against each other.”

“An agency should be very thoughtful about which business objectives they are trying to reach,” Howe agrees. Whether it’s to better service customers, become more competitive or increase profitability, evaluate how technology could make running your agency better, faster and cheaper.

Business problem first; technology solution second. As Kilgus puts it: “You don’t go straight to the tool.”

“The wrong way to go about it would be to jump in with two feet and say ‘Technology is going to solve all my problems’ and hope that technology in and of itself is enough,” Howe explains. “It’s an important piece of the puzzle, but it’s only one piece of the puzzle—it has to go hand in hand with a very clear understanding of what you’re trying to do as a business and how technology can help you get there faster.”

Getting Buy-In

While setting agency-wide goals typically starts at the top, Howe says the more successful agencies involve people throughout the ladder when it comes to breaking down technological possibilities to support the company’s overall mission. “The metrics and objectives and how you look at productivity varies down at the individual level, so it’s really important to go from those top-level objectives and translate them down into objectives and measures of productivity for a given role,” he says.

To implement new, costly and initially time-consuming systems, “you have to get upper management fully behind it, engaged and supporting it to drive those processes forward,” Dies says. “When you do that, you get more buy-in from staff as you begin to include them in the conversation.”

That requires reminding employees how embracing the technology and its capabilities will benefit them. “I’m busy enough that I don’t just adopt new technology for fun,” Kilgus says. “I do it so I can get stuff done, because there’s so much expected from me.”

If every CSR, producer and employee understands the role technology should play in their agency, and specifically how it impacts their daily workflow, resistance will diminish and productivity will boom. “Getting them to see and acknowledge the need to change and understanding where we’re going makes the onboarding process so much smoother,” Kilgus says. “If they don’t buy into the ‘why’ and see the vision at the end, it’s going to be tough.”

Howe says the agencies that utilize technology best take the time to invest, understand what business problems need solving, apply technology accordingly and help employees understand that that technology. “Once you go through that journey, you see best practices agencies dramatically improving their effectiveness,” he says.

Morgan Smith is IA assistant editor.