Communication – The Secret to Success

Communication (Pronunciation) noun 1. the act of transmitting, 2. a giving or exchanging of information, signals or messages by talk, gestures, writing, etc.

When it is boiled it down, all that a service business does is collect and transmit information. In other words, communication is what an agency produces and sells. So why is it that many services business have problems with communication?

When we perform a Management and organizational or Operational review for our clients, the biggest complaint we hear from the employees is that there is a lack of communication within the business. Vendors and businesses both complain that each other fails to properly communicate.

Communication within a business takes many forms. Just as an business owner will have a plan for their business goals, they should have a plan for their communication goals. It is a good idea to write down how the business will internally communicate all the information that is needed to be distributed. Each business will have their own set of rules and regulations regarding what to communicate and how it should be done.

Information will have various degrees of importance and urgency. An important item might not be urgent and likewise an urgent item might not be important. Also, some issues are easily understood and others will take time to understand, resolve and implement.

Keep the Lines Open
Management and staff should match the proper mode of communication with the information that needs to be sent in order to maximize impact. For example, articles or bulletins are best circulated on a routing slip throughout the office. A short notice of importance should be e-mailed to everyone. Information for an individual should be handled in private.

Overall staff, department or management meetings should be used to cover the current key issues impacting the agency or department. These meetings tend to be the main channel of communication between management and staff for most agencies. It should, however, be just one of the many arrows in the communication quiver.

Why Staff Meetings Fail
When we tell an business owner or manager that the staff believes that there is a lack of communication they often gawk and point to the fact they have weekly staff meetings that last one to two hours. Unfortunately, quantity does not replace quality.

Staff meetings can often end up being a dumping session. Management dumps information on the staff and the staff dumps problems on management. What to do with that information is rarely discussed and issues are not usually resolved during the meeting.

The valuable information disclosed in staff meetings is often only through one way communication. The staff is told what the vendors are doing or what new program management is focusing on. This is important information and needs to be disseminated and properly discussed. Management, however, provides the staff only with the “headlines” and does not work with the staff on how this will impact them.

The staff usually gets to talk at the end of the meeting when management asks if there are any questions or comments. Typically, this ends up being dominated by the same people who like to talk about their problems. Management then takes their concerns under advisement and will supposedly report back later. Employees need to be pro-active throughout the communication process and management needs to establish and live up to high communication standards.

Effective Meetings
The first step in setting up an effective staff meeting is to set an agenda for each meeting. Meetings should be held on a regular basis and at a time that will not be a distraction. Usually early morning during the midweek is best. The meetings should last no longer than one hour.

The agenda needs spell out the key issues to be discussed including input from the staff. Everyone should see the agenda before the meeting, including copies of any supporting material, such as articles or action plans. The purpose of posting the topics before the meeting is to allow time for everyone to reflect on the key issues and start to think how it will impact the agency and themselves.

Typically, when brand new information is brought up in a staff meeting, the employees think of the impact after the meeting and they feel that since their opinion was not heard it does not seem to matter. This is the nucleus of the feelings that employees have about the lack of communication in the business.

Employees resent when management makes changes are made that affect them, yet they were not consulted. Many times, the employee understands the issues better than the manager that makes the changes. Exploit the knowledge of the employees.

Management and staff both need to be prepared prior to the meeting to discuss the key issues. Meetings are much more effective when all the attendees know what will be discussed and what the goals are for that meeting. The biggest time waster in meetings is when new or side issues are brought up and the facts or objectives are not known.

When management has news regarding the markets, regulations, customer service issues, etc., they need to clearly understand the following before the meeting: 1) what was happening in the past, 2) why is there a change, 2) who will be impacted by the change, 3) what is the plan for implementing the change, who is responsible and what is the timeframe.

If an employee has an issue they want to bring up, it should be added to the agenda. It is their responsibility to collect the facts and to perform the first analysis before the meeting. Any problem needs an initial solution at the same time from the employee, otherwise it should not be added to the agenda.

The standard format for discussing each issue should include the introduction, time for discussion and an agreement on what the next step will be. If the problem needs more than a few minutes to resolve, then an individual or committee needs to be appointed with a date scheduled to report back.

All employees that attend seminars, conventions and association meetings must provide the group that would benefit from the information, a summary of the event. This way the valuable information one person learned is now imparted on the rest of the staff.

The open discussion period in a meeting should be short and limited to any accomplishments made or any lessons learned since the last meeting. Problems not on the agenda should be deferred to the next meeting, until the proper procedure is followed.

If the business is large enough, separate staff meetings should be held by each department. Issues and problems unique to any department should be addressed by that department’s meeting rather then the general staff meeting. The frequency of general staff meetings should be reduced if department meetings are held.

The Forest and the Trees
Let everyone know the big picture. Management needs to circulate the agency business plan and the sales and marketing goals. A separate meeting or retreat at least once a year should be held to review these plans and discuss the current status of the agency, where it is going and how it will get there.

Employees like to know that their efforts are going to a greater good. They need to see that there is an ultimate goal in mind and they are a part of the plan. Employees are more likely to do a better job when they know that they are needed and the direction they should take.

Knowing the big picture also helps define the little pictures. Business goals need to be based on reasonable and attainable goals of the individuals of that agency. The staff needs to know what management expects from them. The employee, however, should also set his or her own goals, otherwise it is management’s goals not the employee’s goals.

Individual goals, progress and shortfalls should be discussed in private at least twice a year. The annual review is the time when the goals are set, but a mid year check-up is needed to keep the employee on track and management in the loop. The employee should understand that they should bring up any problems that are impacting their performance immediately and not wait until review time.

Communication Rule
Each agency should have the following basic rule regarding communication. Each person is responsible for the proper, timely and efficient transfer of his or her communication. The staff is not off the hook because they were afraid to talk to management or that their issues did not matter. Management is not excused because they did not have the time to listen to staff, properly analyze the issue or provide resolution to a problem. Management needs to have an open door policy to hear what the employees have to say.

Conclusion
In Dale Carnegie’s book “How to Win Friends and Influence People” he shows how it is important to “win people to your way of thinking.” Don’t force your ideas on others. Let them do most of the talking and let them think it is their idea. In other words, the key to being a good manager is to be a master communicator.

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Our New Children’s Money Summer Camps

If two days of financial literacy and the most powerful game on the planet guaranteed your children the BEST chance at financial success, wouldn’t you sign them up?

Your kids will learn the…

Secrets of Savings
Basics of Budgeting
Dangers of Debt
Ins & Outs of Investing
Goodness of Giving
…and have a whole lot of fun, too!

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10 Rules For Family Run Businesses

Family businesses can be a blessing or a disaster. The root of a well-run family business is grounded in treating it like a business, not as an extension of the family. Here are ten guidelines that successful family businesses practice.

1.     Have the family member work somewhere else first.

2.     Do not expect more or less of them than you would of any other employees.

3.     Do not create a job for a family member.

4.     Keep family and business issues separate.

5.     Keep open lines of communication

6.     Never leave the business to two people (family members or not) on the basis of 50/50 ownership.

7.     If possible, develop an organizational chart that has family members reporting to people other than you or other family employees.

8.     Create a board of directors that includes non-family members.

9.     Make family members pay for ownership, even if it is at a discount.

10.  Make sure all participating family members agree to these guidelines.

Posted in Business Perpetuation, Family Issues | 1 Comment

How to Make A Training Program Work for Your Agency

The quality of employees and their development through training and education are major factors in determining long-term profitability of a small business. If you hire and keep good employees, it is good policy to invest in the development of their skills, so they can increase their productivity.  An individual struggling to do their job is not an efficient model to improve productivity for a business.  If the new employee can be brought up to an efficient level in a shorter time through proper training, just think what they can achieve in the long run.

The basic model to set up a training program is as follows:

• Establish the Overall Organizational Objectives.

• Perform a Needs Assessment with Each Employee. (email us for a copy)

• Is There a Gap?  Compare what the employees know and what they should know.

• Determine the Ideal End Results and Develop the Training Objectives

• Draft an Training Schedule for Each Employee

• Select the Training Methods and Mode

• Choose a Means of Evaluating

• Administer the Training Program

• Evaluate the Training Program Every Six Months

Ideas for Training Employees

Agency Policies and Procedures
A great  first step to creating a training for employees is to create (or update) a Procedure Manual.  Each step in servicing a client should be clearly written and agreed to by all parties within an agency.  The duties and responsibilities for each role (CSR, producer, marketing, etc.) are specifically addressed. During this process, it will become clear where there are gaps with employee knowledge and skills.

A Procedure Manual serves as both the official arbitrator for decisions and the guide for questions when an uncertainty arises.  New employees will find a wealth of information in the pages of a well written Procedure Manual.  However, the written word is not enough. Oak & Associates can assist you in the outline for what should be in such a manual and the content, as well.  It is best to divide up the work among all of the Account Managers/CSRs and make sure the agency’s way is written into the procedure as well.

New Employee Orientation
The first days of work are crucial to a new employee’s success. It is important from the first day to orient the employee, teach the company’s goals and how they can be a part of achieving them. Involve peers, key leaders, even the owner. Review what’s required of them in the job description.

Go to In-house Training
Training is not just for new employees. Continue to upgrade the skills of current employees, which will help them adjust to changes in their job requirements. Such training is best offered by a supervisor. Research shows employees respond better to in-house trainers because they’re familiar with the person and the workplace.

Periodic in-house training done in a group setting, can teach communication, customer service, team building, technical and safety skills. Doing this while employees are on the job reinforces learning, which can be applied right away to their work.

Move into Mentoring
A specific kind of in-house training involves mentoring, where a high-rated employee teaches skills to another employee. A mentor could be the manager of the department or a well respected member within the department who will pass on the best skills.

This one-on-one arrangement (which research shows is the most effective form of training) pays dividends for both parties. It enhances trust with the mentors because you’ve given responsibility to them, and it improves team building among trainees who work closely with a mentor.

All new employees should be assigned a mentor.  It may make sense to use more than one person as the mentor to take advantage of other talent.  The concept of using mentors applies across the board to CSRs, producers, assistants, support, etc.  The mentor is the new employee’s confidant, as well as their tutor.

The mentor is there to answer the every day questions, as well as guide the new employee to a position of self confidence and perhaps even leadership.  The mentor and the agency also need to map out a formalized training program for the employee.

Next Step – External Training
You can also offer out-of-house training, by sending employees to one-day seminars, college courses or workshops. Though they seem costly, these training opportunities can be seen as an employee perk, something to reward or inspire superb workers.

This kind of training provides new skills, stimulates creative ideas and instills employee commitment, which is brought back to the workplace. Your staff members will more likely show initiative and be motivated.

External Training Programs
There are a plethora of classes and trainings for employees.  Many classes can also be taken on line.  The first step is to check the local or regional chapter of the various agents association (PIA, IIABA, etc.). Next, look into organizations that offer a designation (The National Academy — CIC, CRM, CISR, Chartered Property Casualty Underwriter — CPCU and/or AAI – Accredited Adviser in Insurance Program, etc.).  Finally, there are many excellent businesses that offer classes and trainings, which can often also be held in-house. The in-house classes can save a lot of money and time.  Most trainers can customize the course to meet the needs of the agency.

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MAKE CLIENTS FEEL APPRECIATED!

At your next general staff meeting, ask your people what they can do to get each client they talk to to feel really appreciated.  Have a leader gather the ideas that everyone has.

Using an easel or whiteboard, the leader asks each person in the room for one or two ideas of things they think would be great to do on the phone, in person or thru the mail to make clients feel appreciated and special.

Brainstorming Works!

Brainstorm the ideas that come up to refine them and to bring out additional suggestions.  Discuss current situations that employees have run into firsthand to get the creative juices flowing. Others can learn from both the good and poor experiences of others.  Also, go over how to handle tough situations and how to take advantage of opportunities.

It is good to discuss how to build up the clients and make sure the staff lets clients know the agency and employees really care about them and want to be there for them at anytime, especially in their hour of need.

Implementation Stage

Once all the ideas are gathered, have the group select the top three or four best suggestions.  Then work them into an action plan (possibly at another staff meeting). It is really key to have an implementation plan that includes accountability and checks and balances to make sure that the plan actually gets done. Employees, other than the owners should be listed in the action plan, that way there is not only delegation, but group ownership.

The Other Benefits

Renewal Retention – The agencies today that help their clients in this tough soft market and weak economic times, will not be forgotten when the times get good.  If for example, a client is having financial problems and may need to trim their renewal, producers and staff need to be ready to recommend areas where they can save money, ie. higher deductibles, self insurance and safety measures.  By saving money the client may also be able to insure something else they have exposures in, such as EPLI, business interruption, an umbrella, or fidelity bond.

Get Referrals – Referrals are the lifeblood of the agency and happy customers feed referrals, even when you don’t ask for them.

Summary

It your clients feel appreciated by your employees and your firm, there will be no problem retaining them, getting referrals and making everyone in your agency feel great as well.

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