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Agency Management For ADP

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Agency Management For ADP

  1. 1. Agency Management For ADP A Practical Hand Book
  2. 2. 1 | P a g e Chapter 1 - About Agency Development Partner (ADP) Learning Objective After going through this Chapter, you will be able to:  Describe ADP Profile  Identify Roles & Responsibilities of an ADP.  List down the common denominators for successful ADP.  Explain ADP as a LEADER. Profile of ADP (At a Glance):  Source, create & develop a strong network of Licensed Insurance Consultants  Lead a Team of Insurance Consultants, guide & support them in various Operational/Sales activities  Motivate & monitor the activities of licensed Insurance Consultants & drive them to achieve the business goals  Works on variable Compensation which is directly related to 7 key parameters  Enjoy a lucrative Career path along with unlimited Income earning opportunities Roles & Responsibilities of an ADP:  Recruitment of Insurance Consultants  Activating Insurance Consultants on regular basis  Retention & Development of Insurance Consultants  Building Productive Agency Force  Ensuring Consistent Production Growth  Managing a profitable Operation Success is achieved through sound use of systems, processes & tools.
  3. 3. 2 | P a g e 6 Common Denominators for Successful Agency Development Partner: Successful Agency Development Partner come in all shapes & sizes. They may vary widely in background, education & style of operation, but they all have few common denominators that separate them from others. Sl no Common Denominators Description Resultant Skills 1 Professional Business like Appearance, Manner, Attitude & Personality Attract Talent (Good Recruiter)2 Desire to build others Set high expectation from Team members & strive hard to help each individual actualize his/her potential. 3 Self-Organized & Disciplined Ability to be organized & disciplined Develops Performers (Good Trainer)4 Methodical & Structured Approach Develops ability to create a procedure & ensure that all must follow it religiously. 5 Pursues a Common Goal Gain a commitment from Team members to work in a consistent & co-operative way to achieve the superior objectives. Leads the Team (Good Leader) 6 Manage Activities & Stays Focused Consistency in action & Delivery ADP is a LEADER Letter Acronym L Lead a Team E Experience of Sales & Sales Management A Attract Resources D Develops & Assist Team Members E Ethical & Profitable Business Operation R Retain & Maintain Team Productivity Success, productivity & profitability are the key characteristics & qualities of the professionals.
  4. 4. 3 | P a g e Chapter 2 - Quality Agency Recruitment Learning Objective After going through this Chapter, you will be able to:  Describe the top three responsibilities of an Agency Manager/ADP.  Explain E.V.A.L.U.A.T.I.O.N The job of providing a steady flow of new Agents in sufficient numbers & of good potential is a key factor in building a successful life insurance Sales organization. The top3 responsibilities of an Agency Head are as follows. 1. Attraction of Agents 2. Retention of Agents 3. Productivity of Agents Prospective key Agents are generally easy to spot, but often are difficult to recruit in a hurry. When recruited they immediately help attract other high potential people those who are following. The Agency leader should always seek prospective key agents. The results are both rewarding & lasting. There is no prototype for the perfect insurance producer. Successful agents come in all shapes & sizes, from all kinds of backgrounds with varying degree of education & with assorted business experiences. Still we know successful agents generally have certain traits & abilities in common. Once you have determined the vital characteristics you seek in prospective agents, it is important that you know what question to ask candidates & how to interpret their answers so you can make responsible judgments as to whether or not they possess the essential characteristics & whether or not you should move forward. Magic Formula of E.V.A.L.U.A.T.I.O.N.:- This provides you with a structured outline for guiding your Interviews with prospective Agents. This strategic questioning technique will help you talk with candidates in conversational manner. Letter Acronym Objective Preferred Questions E Evaluation of Self To understand Attitude towards self How would you describe yourself as an Individual? V Visible Achievement To understand Competency & past success records How do you rate yourself on your Achievement? A Advanced Education To Understand Intelligence & Background What are the other training you had after leaving college? L Life Insurance To understand previous Knowledge/Experience/Skills in Life Insurance. Life Instrument is the best Financial instrument, Justify. U Unlimited Contacts To understand social Contacts & Reputation The biggest Get together you attended, had how many people?
  5. 5. 4 | P a g e A Ambition To understand the key drives along with future plan What would you like to be earning 5 years from now? T The Higher income Markets To understand the Ability in pulling big Ticket size by penetrating in HNI segment How many people you can approach from the higher income Group. I Interest & attitude towards Insurance Selling To understand the Attitude & perception about Life Insurance Selling. In your opinion how much time you are willing to invest to be successful in Insurance Business? O Other Family Members To understand the Family & social background To what extent do your family members involve themselves in your Career? N Need for Income & Recognition To understand the Money need & need for Social Recognition Do your current Job meet your Recognition & Financial need? Make prospective producers aware of the tough road they will travel in the early selling years. We believe this increases retention. Jack & Garry Kinder Effective & Successful Managers are unwilling to take on monkeys that do not belong to them.
  6. 6. 5 | P a g e Chapter 3 - Life Insurance Consultancy Learning Objective After going through this Chapter, you will be able to:  Identify at least 10 points that make Insurance Consultancy an ideal & great profession. Life Insurance agency is actually a service to the public in true sense. It is similar to the service of a doctor, lawyer or a chartered accountant. The profession of a life insurance Agent is unique as it is a combination of several professions providing distinguished Services. IC is a Teacher who teaches society the meaning, the message and the magic of life insurance. IC is a Social Engineer constructing bridges between the ‘certainty of today and the uncertainty of tomorrow. IC is a Lawyer who pleads the cause of the future generation with the present generation to ensure a better and happier tomorrow. IC is a Doctor who suggests a remedy for the different needs of the family by recommending savings and investments. IC is a Soldier who fights courageously with all possible objections raised by the Prospect. IC is a Nurse providing the best personalized service when customers require it most. Above all IC is a friend, philosopher and guide for clients. Let’s identify more reasons why Insurance Consultancy is considered as an ideal & great profession. A. A World Wide Profession: Life insurance can be termed as a business of the people, for the people & by the people. Its purpose is to secure the Bread, butter, clothing & shelter for all. From Mexico to Melbourne life insurance business is well established & the credit goes to Millions of Life Insurance Sales Professionals. B. Facile Entry: In order to get started in this wonderful profession one should not require high sounding degree like MBA, MCA, CA etc. C. Easy To Begin: This profession does not require large investments & long gestation period. In fact one can start business & make earning at the earliest. Reports says an Individual can earn his first commission within 40 days from the date he/she has taken the decision to join this wonderful profession. D. No/Low Capital: No need for great capital & high education for this profession. As there is no capital investment involved, there are no financial loss either. One only need Time, Passion & Hard Work. E. Wide Market Opportunity & Unlimited Earning Opportunity: This profession broadens One’s Area of work. The whole country is open to capture & conquer. Research says that more than 95% of Insurable population in India is under insured. The Life Insurance market of India is among the top ten growing market of the world & it will contribute 10% of global growth in next 5 year. It proves that this is the Profession where one can earn unlimited Income. The Income earning potential is directly proportional to one’s effort. Only sky is the limit.
  7. 7. 6 | P a g e F. All Season Business: Most of the Business caters to a limited class of people & for a limited period. An insurance Professional can do business with any class of people, anywhere & at any point of time of the year. G. Bright Career with Continued Income: Life Insurance have an element of renewal commission spread over the whole Term of policy. This is a very attractive benefit for a self- employed person. It is one of the very few profession that provides residual income (One time work- Many Times revenue) H. Bright Future: The Future in this Profession is extremely bright. This profession will exist as long as people need food, clothing & shelter. I. A Homely Business: The business can be operated from One’s home as well. One need not sit in a specified place waiting for customer just like shopkeepers, doctors, lawyers etc. J. A Noble Profession: This is the noblest profession in the world. Every policy one sells is packed with Bread & Butter, clothing & shelter. Is there any better profession & nobler cause than wiping out tears of a family already caught in the web of sorrow & suffering? K. Un equalled Freedom: in this job One is not at the mercy of his/her Boss for his/her own income and survival. If anyone refuses to insure with him another person next door may be waiting for him. No person other that him/her allow him/her to take one day off & no person other than him/her decides his/her Earning. L. Personal Progress: With the professional Training programs & opportunity to avail various self-developmental programs. One can really enhance his/her worth. M. Opportunity of Earning While learning: This is one of the very few profession in the world where one can make still money while in colleges. N. Opportunity to Avail monthly Competitions (Prizes): This is one of the rarest profession where on every month One can choose to get the required items as prizes (sponsored by BALIC). O. Opportunity to Travel Abroad: if one achieves selected Business during a particular period he/she may be gifted free National, International Trip with spouse & Family Members (sponsored by BALIC). P. Opportunity to Avail Club Membership: With Us (BALIC) One can avail the best club membership benefit. This not only enhances professional status but also provides distinguished benefits. Q. Opportunity to avail excellent Rewards & Recognition Programs: BALIC provides excellent R & R benefits. One not only gets the recognition at the highest platform but also gets various monetary & nonmonetary rewards. R. Opportunity to Lead a Team: We (BALIC) also provide unique opportunity to our successful Insurance Consultants to be a Sales Leader & avail the unique Employee benefit.
  8. 8. 7 | P a g e S. Opportunity to be a Sales Superstar: Million Dollar Round Table is considered as the premier association of Insurance & Financial professionals. Less than 1% Insurance professional globally enjoy this distinguished designation. BALIC provides excellent support to its consultants to be a sales superstar like MDRT, COT & TOT Agent. Note: - For more details please refer to BALIC IC Compensation (2014 -15) The unique characteristic of superior managers is their ability to communicate & create high performance standards & expectations. Effective sales people sell differences, not similarities.
  9. 9. 8 | P a g e Chapter 4 - Agency Recruitment an Overview Learning Objective After going through this Chapter, you will be able to:  Explain recruiting Philosophy.  Identify common traits of life insurance agents/consultants that make them successful.  Highlight other factors that should be considered while selecting an IC.  Discuss an Ideal IC Profile Life Insurance is a Distribution business. The Agency Leader’s ability to attract, recruit, select and retain the right set of advisors is a critical determinant of success to your business. As Agency leader, you are fully committed to building a high performing team. Building this team requires successful recruiting. Individuals never win, only the team does. Teams outperform individuals because teams generate a special energy. This energy develops as team members work together fusing their personal energies and talents to deliver tangible performance results. The larger the team, the more the energy, the better your team will be motivated to perform! Becoming an outstanding recruiter will not Guarantee Success, but not being able to Recruit, for whatever reasons, will guarantee Failure. The Life Blood of a good sales Organization is recruiting the right people. Some of the reported problems while Recruiting Agents are 1. Not enough people interested in the career. 2. Early Agent Failure 3. An ineffective Selection Process 4. Licensing Difficulties Many of these Problems can be avoided by keeping 2 key points in mind. 1. Recruiting is a systematic process & 2. Insurance (Life) sales is a terrific career for the right person & the right person only. The Recruiter should first be looking for the individual with right skills, attributes & attitudes. The right person will be excited about the opportunity of an insurance career with unlimited income potential. The right person will require less Development time, become successful early & make a good contribution to Agency productivity. Recruiting Philosophy A sound recruiting philosophy is one that provides a solid foundation for Your Recruiting process. Recruiting quality producers (Agents) is a prime task in building a successful Team. Your Company looks to you to attract Agents who can sell effectively in high income markets. Induction of a sufficient quantity of the high potential producers inevitably result in substantial & steady growth in Business Production.
  10. 10. 9 | P a g e To be a successful recruiter, you must adopt a philosophy of high standard. If you set your standard high enough & early enough your Recruiting activity will grow progressively easier & your Recruitment will become progressively better. Your philosophy should include several elements such as 1. A Positive Attitude toward Recruiting. 2. A Desire to recruit in a planned, detailed & consistent manner. 3. Key Focus on Recruitment (in both quality & quantity) 4. Recruitment A continuous Activity. 5. An unbiased recruiting Approach 6. Setting Recruitment Goals well in advance Quality Agency Recruitment As an ADP recruitment is your no one Job. You must do something about recruiting every day. The relationship between recruiting & productivity & retention are well known. Recruiters get the job done with quality people. The job of providing a steady flow of new Agents in sufficient numbers & of good potential is a key Factor in building a successful life insurance Sales organization. The top 5 responsibilities of an Agency Manager are as follows. 1. Search for Talent 2. Evaluation of Potential Agent 3. Attraction of Agents 4. Retention of Agents 5. Productivity of Agents Prospective key Agents are generally easy to spot, but often are difficult to recruit in a hurry. When recruited they immediately help attract other high potential people those who are following. The Agency leader should always seek prospective key agents. The results are both rewarding & lasting. There is no prototype for the perfect insurance producer. Successful agents come in all shapes & sizes, from all kinds of backgrounds with varying degree of education & with assorted business experiences. Still we know successful agents generally have certain traits & abilities in common. You need to know the exact person & the exact profile of the person you want to hire. Constantly search for 6 vitals & those six vitals are as follows. 1. Character/Integrity 2. Mental Alertness/Common sense 3. Achievement drive/fire in belly 4. High energy level 5. Money motivation 6. Staying Power The first vital Is Character/Integrity – Do they have sales character? Can they hear "No" and keep going? When they get knocked down, do they get right back up? They need the integrity to always do the right thing.
  11. 11. 10 | P a g e Second, Mental Alertness/Common Sense – Are they a quick learner and If so, do they possess the common sense of street smarts that will help them in their sales interviews? Third, Achievement Drive – Do they have to win? Do they have to achieve? Fourth, High level of Energy – Sales requires the ability to work long hours, especially in the beginning. Do they have both physical and mental energy? Fifth. Money Motivation – Do they want the better things in life? Sixth, vital Is Staying Power – Are they persistent? Will they stick and stay?  Staying Power Other Key Factors There are other profile factors to consider - these are not vital, but they are important and do need to be considered. Entrepreneurial Flair – Do they have entrepreneurial Flair in them? The nature of our business requires you to attract the entrepreneur type. Entrepreneurs hove on ability to manage their own time and activity. They like being responsible for results. They like having an opportunity to determine their own incomes and shape their own futures. Natural Markets - What is their natural market? You'll discover this in conversation and by having them complete Project 100 or 200. Family Support – Do they have full support of their family? Financial Stability – Is the candidate Financially Stable? Education - Being well educated is a plus. It's an indicator of their ability to learn and stick and stay. Socially Mobile - Look for people who are active in their community, in religious organization and clubs Success is the result of process, not one single event.
  12. 12. 11 | P a g e Chapter 5 Ideal Profile of an Agent (Based on real field experience) Learning Objective After going through this Chapter, you will be able to: Discuss an Ideal IC Profile based on real field experience.  List down few ideal IC Profiles on the basis of demographic segmentation.  Explain IC Recruitment & Selection matrix. Successful advisor has been found to come from the following traits/background 1. Age:- Although, as per IRDA regulations any individual whose age is above 18 years can apply for IRDA License & can sell insurance in India however it has been observed that most of the successful advisor fall into the Age bracket of 25 Years to 55 Years. A candidate within this age bracket is comparatively more mature than an eighteen year old & is more comfortable in discussing serious issues related to financial & insurance planning with clients. 2. Marital Status: - It has been observed that married advisors seem to be more successful in this role, compared to their unmarried counterparts. The reason could be that a married candidate has more responsibilities & hence take the profession of selling more seriously. 3. Education: - As per IRDA norms, the minimum education eligibility criteria to obtain an insurance license in India is XIIth standard. However it has been observed that candidates who are graduate or postgraduate tend to do better than others. These candidates are more mature & take this opportunity more seriously. Their relatively better academic levels, also enables them to understand more complex concepts (related to financial & Insurance planning) & present them effectively to client. 4. Business Background: - Candidates with a business background (Entrepreneurship) are observed to do better than others, since they are self-disciplined, risk takers & have initiatives. They are also used to erratic earning cycles. Candidates with an employee background, on the other hand are used to being led, tracked & driven by a supervisor. 5. Financial Background: - Candidates with a decent financial background are observed to do better than others. While selecting a candidate, one also need to check his financial background. An ideal candidate should have an household income (HHI) of Rs. 2 lakh or above. This would help the agent in sustaining the initial 6 month when income is likely to be irregular. 6. Family Background: - It has been observed candidate with a good Family Background is more successful in Agency Business. He/she can use the reputation of family & social contacts into business practice. It has been seen quite a no of agents focus only on their Natural Market & are quite successful. The 2nd point is an individual who has a family to support will take this business more seriously. It has been also observed that an agent
  13. 13. 12 | P a g e having lot of difficulties in family front (Domestic difficulties, Health related problems etc.) are unable to concentrate & lose their focus in building productive life insurance agency. 7. Time: - It has been observed that successful Insurance agents devote adequate time in building & developing their business. Life insurance business requires lot of patience & perseverance. One may not get quick result. It may need 3 months to 3 year (or may need more) to get settled in this business. The 2nd point is that time is considered as the working capital for an agent & it is directly proportional to his/her earning. 8. Success Record (History):- It has been observed that one person who is success oriented, who have tasted success in past will probably achieve higher success in future. Much of the future can be predicted on past performance. If an individual has performed well in improving Knowledge, Has had a good Attitude, has worked hard on building skills & proper work Habits in past jobs, then he or she will in probability carry the same effort into the present job 9. Attitude/Character: - It has been observed that one person who have shown positive attitude coupled with good character & value system will achieve phenomenal success. There must be fire in the belly, positive self-image, do have sales character (can hear no & keep going), show integrity & follow ethical practice. 10. Confident & Competent: - It is an universal truth that a Confident, Competent & Committed individual can face any challenges & come out successfully. In order to be successful in Life insurance agency the person must be confident, competent (Basic skills) & committed. The Agent must show high level of energy & must be open for training & development. 8 Common Sense Rule for Selecting Winners 1. Always be recruiting; it is a full time job. 2. Multiple your enthusiasm & effort through nominators 3. To serve from your target market recruit from inside it. 4. The most important product the manager has to sell is a recruiting one. 5. Look for successful characteristics in candidates. Do not hope to develop them yourself. 6. Winners come from selection, not from rejection. 7. A well-selected agent is half way to success. Caution while Recruiting under following Situation  Candidate having lack of success pattern  A stranger having lack of natural market.  An individual in his early youth (Around age 20 Years) having no history of Leadership.  Individual lacking money motivation  Individuals having a lot of Domestic difficulties.  People having serious health Problems  Individual having lack of Ambition & Energy level  Candidates having poor communication & Interpersonal skills.  Candidates having past police Record (Adverse)  Candidates Lacking Self-Discipline, Self-Reliance, & Self-Motivation.
  14. 14. 13 | P a g e Six Key Questions Always keep your evaluation objectives in mind. You're attempting to determine the answers to the following six key questions: 1. What is the individual's “thread of discontent?” How will your career opportunity solve this problem? 2. Do you like this individual? Will you have a good relationship? Do you mesh well? 3. Does this individual have a strong belief in the service we offer? Do they believe in the need for insurance? 4. Does this individual have a market? Does he or she have contacts? Do we see clearly where the initial 100 sales will be produced? 5. Will this individual produce a consistent effort without close, daily supervision? People In our business do not necessarily succeed because they have more ability. They succeed because they have the desire, self-discipline and energy to work hard from the first day they enter the business. 6. Can we obtain a responsible commitment? In other words, will this person commit to investing the effort and time necessary for sticking and staying in our organization? Sample IC Profile Age Education Number of Dependents Annual Income Market Reach/Contacts Stay in City 1 House Wife 30 - 40 Graduate 1 to 3 Rs. 500,000 & above (Family Income) 300 Plus 2 Secretary - Presidents Club Members & Associations 35 - 55 Graduate 3 to 5 Rs. 600,000 & above 500 Plus 3 Real Estate Agent/Broker 25 - 40 Graduate 2 to 4 Rs. 500,000 & above 500 Plus 4 Financial Producs Distributors 25 - 40 Graduate 2 to 4 Rs. 300,000 & above 500 Plus 5 Accounts Officer/Office bearer of Big Societies 30 - 50 Graduate 1 to 4 Rs. 400,000 & above 500 Plus 6 Gym Instructor/Health Club Manager/ Beautician 25 - 40 Graduate 2 to 4 Rs. 300,000 & above 500 Plus 7 Freelancer/Network Marketer 25 - 40 Graduate 2 to 4 Rs. 400,000 & above 300 Plus 8 Entrepreneurs (Grocery Owner, Ration Shop Owner) 25 - 40 Graduate 2 to 4 Rs. 500,000 & above 500 Plus 9 Family members of Top Insurance Agent of Competitor 25 - 40 Graduate 1 to 4 Minimum Rs. 300,000 (Self Income) or Rs. 600,000 & above (Family Income) 500 Plus 10 Service Providers (Courrier Agency/Gas Agency Distributors, Milk/News Paper Vendors etc) 25 - 45 Graduate 1 to 4 Rs. 500,000 & above 500 Plus ProfileSl No. Parameters Minimum 3 to 5 Years If you have a problem anywhere in your management process, find a system, a process, a tool & your problem will disappear!
  15. 15. 14 | P a g e 15 Points 10 Points 5 Points Age 25 Years - 50 Years More than 50 Years 18 Years - 25 Years Educational Background Above Graduate Graduate Under Graduate Number of Dependents More than 4 1 to 4 No Dependent Currently Monthly Income/expenses More than 15,000 5000 - 15,000 Less than 5000 Total Work Experience More than 5 Years 1 - 5 Years Less than 1 Year or no Experience Industry Background Financial Industry (Insurance/MF/Post Office etc) Non Financial Industry No such Back Ground Tennure of Stay (In the same City/Village) More than 5 Years 1 to 5 Years Less than 1 Year Number of Awards/Rewards received (both in Professional & Personal Life) More than two Awards 1 - 2 Awards No such (Awards/Rewards) Can devote number of hours to this profession More than 10 hours in a week 2 hours to 10 hours in a week Less than 2 hours in a week Want to supplement your (This year) Annual Income by xx % from this profession More than 100% 30% to 100% Less than 30% IC Recruitment & Selection Index Candidate Name:- Date:- Total Score Note:- In order to qualify an IC must score 80 Points Parameters Points Actual Profile of Candidate Points Secured It is better to hire people who are already manifesting the desired attitudes than to attempt to rehabilitee candidates who have wrong attitudes or lack positive motivations.
  16. 16. 15 | P a g e Chapter 6 Agency Recruitment Process Learning Objective After going through this Chapter, you will be able to:  Explain the seven step of IC Recruitment Process. Agency Recruitment Process Collecting Names of Prospective Agents Personal Contracts – Successful Agent Referrals – Center of Influence – Market Survey | Appointment Made (Tele Appointment, Direct Mail) | Face to Face Meeting for identifying career change need | Presentations (Agency Career Selling) | Selection Interviews | Pre-Contract Orientation | Post Contract Induction Goal Setting & Activisation Rejections Reservoir
  17. 17. 16 | P a g e 7 step systematic Agency Recruitment Process Step 1. Collecting Names of Prospective Advisors (Prospecting):- Prospecting for Agents may be defined as bringing yourself in contact with an individual who might conceivably become one of your Agents. As in the case of an Agent Prospecting for Clients, Prospecting for Future Insurance Advisors is an activity & not a thought Process. It becomes a successful Activity only when you find enough candidates of the right type who can be interested in the career of Life Insurance. Various methods of Prospecting are Natural Market, Referrals, Center of influence, Market Survey etc. We will discuss in detail in the following sessions. Step 2:- Taking Appointments Professionally For the First Meeting (Face To Face):- This can be done in 3 different ways 1. Tele Calling for securing Appointment 2. Sending Direct Mail & followed by Tele Appointments 3. Direct Meeting (Brief) with the Prospect & securing Next Appointment for Detail discussion. Step 3:- Face To Face Meeting to Build the Rapport & probing gently to understand the suitability of candidate’s profile & to identify the thread of Discontent by using (Advanced) S.P.I.N Method. Once the Thread of Discontent is identified then guide & motivate the Potential Advisor to join into the lucrative Life Insurance career. Step 4:- The Career Presentation occurs when you are convinced that you have found the individual you want to hire. You should arouse the prospective Agent’s interest, describe the career & motivate the prospective Agent to join this Profession. You should convince the candidate that insurance is the career for right individual. Step 5:- Selection Interview: - Selection is the most important step in hiring a new Agent. In selection you have to eliminate candidates to discover the candidate who is most qualified for the job. Good Effective selection means matching the candidates’ qualifications against the job requirements in as objective & a scientific manner as possible. Step 6:- Pre Contract Orientation :- The main purpose of any pre-contract orientation program is to reduce Agent Turnover by helping you identify & eliminate potential Terminators before they are contracted. Pre contract Orientation also helps those who become agents to assimilate initial Training more rapidly & thus get off to a faster start. Step 7:- Post Recruitment Induction, Goal setting & Activisation: - No Recruitment is complete until & unless the Agent is properly inducted (Trained) & set his own Goal in consultation with his/her Recruiting Manager & started Production early If you improve your activity in one part of your business by 10%, your result will improve by 50%!
  18. 18. 17 | P a g e Chapter 7 Developing Agents Learning Objective After going through this Chapter, you will be able to:  Emphasize the importance of Class room Training  Justify the importance of Field Training  Explain the Directing & Supporting function of an Agency Manager  Describe the Development & Control aspects of Supervision New Agent development process is a most critical aspect in the Agency Business. A new agent is like a small plant. He/she needs utmost care in the initial phase i.e. for at least one year. Initially an agent is highly insecure & there are lots of questions in his mind. The Key ones include  Is this the right industry for me?  Can I be successful in this business?  Selling insurance is a very low end job, what will my relatives & friends think about this?  Will I be able to sell insurance? These questions can be addressed by proper hand holding, support & guidance of Agency Manager, Trainer & Branch Managers. Building Agents for Success Before you can hope to successfully build people, you must first gain their complete trust, respect & confidence. You can buy an individual’s physical presence in a given place, but you can never buy enthusiasm. You cannot buy loyalty. You cannot buy the devotion of hearts, minds & souls. You must earn those things. In order to inspire each of your people (Agents) to superior performances, you must sell them the idea that they will be successful under your guidance & your style of leadership. “The Mediocre Manager Tells, The Good Manager Explains. The Superior Manager Demonstrates & the Great Manager Inspires” William Arthur Ward The New Agent Development Process includes the following.  Class Room Training  Field Training (Handholding, Observation, Demonstration etc.)  Directing & Supporting/Supervising Let’s discuss each development process in detail. Class Room Training Agency Manager with the support of Training Manager must ensure that following training interventions are made religiously at appropriate time. IC 33 Training: - This Training is meant for prospective agent/advisor. The prime objective of this training is to conduct IRDA stipulated 50 hours training & help the prospect clear the IRDA Examination.
  19. 19. 18 | P a g e Product Training: - In this session the advisor is introduced to the products & services offered by the principal (Insurer). This training is meant for new & existing advisors. Normally new advisors undergo this training program just after they clear their IC 33 exam. Only after this training the advisor is considered ready to approach prospects in the market place. Again when a new product is launched by the principal, the existing agents are also required to be trained on the same. Sales Training: - Most of the agents come from a non-sales background. Hence they need to get equipped with proper sales training to be effective in the field. The key topics covered in these sessions are as follows.  How to identify prospects?  How to fix an appointment?  How to approach the client (Prospect) with confidence & build rapport?  How to do probing & identify client (Prospect) Insurance/Investment need?  How to present the solution?  How to handle Sales Objections?  How to close a sale?  How to take referrals? Process Training: - Every organization (Insurer) has its own defined systems & processes. Agents need to be trained so that they can adhere to the same. It is also the responsibility of Agency Manager & Trainer to ensure that agents undergo training on Anti Money Laundering, Market Conduct Guidelines, Policy Issuance &Underwriting guidelines, Policy servicing guidelines etc. Soft Skills Training: - The fourth area of training where sessions need to be conducted on a continuous basis in sessions on behavioral & other topics like  Goal Setting  Time Management  Business Planning  Work Habits  Leadership & Personal effectiveness etc. Broadly speaking all training sessions are designed to provide inputs on four areas that lead to change in behavior. This is represented by the Acronym V.A.S.K. V = Values A = Attitudes S = Skills K = Knowledge Your Agent’s sales success will be directly proportional to two things. The Quality & Quantity of their daily activities. Clearly nothing happens without action. As an Agency leader this is your key responsibility in educating & instructing your Agents on how to put a good day’s work.
  20. 20. 19 | P a g e There are three master keys you want to move front & center on the subject of putting in a good day’s work. Key no One – Do the right activities Key no Two – Do them right Key no Three – Do them often Field Training A good point to remember is that education takes place in the classroom & training takes place in the field, under live conditions. There are no natural born salesmen or women. Selling skills are learned a little from training & a lot from practice under the direction & support of Agency Manager. Sales people learn by observing & doing, not by reading or listening to lectures. Research studies in behavioural sciences have demonstrated that the best way to learn a skill is by actually performing that skill. When learning how to swim, all the study, lectures & exercises are secondary to the experiences & practice the learner has in water. The same is true of selling. Joint Field Work is the most effective method to help your agents develop skills like prospecting, setting appointments, conducting interviews, making sales, building the client relationship & getting referrals. Agency Manager teaches by showing rather than telling. Agency Manager demonstrates the skill, then reverses the role to observe & critique The ultimate aim of the joint Field Work is to prove the agent 1. Your Company’s products can be sold 2. Your Company’s products can be sold in their marketplace. 3. Your Company’s products can be sold by them. 4. You are serious in developing sales skills of your Agents. 5. You want your Agent to be Confident, Competent & Committed. How JFW is conducted? There is a old saying. “Give a man fish & you feed them for a day. Teach him how to fish & you feed him for life”. The ultimate objective is to make the agent independent & competent. The Agency Manager should start minimum 5 demonstration calls, where he should demonstrate the complete sales cycle i.e. identifying prospects, appointment fixing, sales call, need identification, presenting solution, closing, reference collection etc. This should be followed by minimum 5 observation calls. Field observation is one of the most important development techniques where agency manager merely observes the advisor making a sales call & does not intervene, during call process. The manager should avoid temptation of supporting the agent on calls unless & until the agent is mentioning something that is wrong or may not be of any interest to the customer.
  21. 21. 20 | P a g e The objective of demonstration & observation calls is to train the agent & equip him to become an independent agent. Handholding at Work How Lioness or Tigress bring up its young ones? Initially the young mothers hunt & demonstrate to her cubs as to how to kill the prey & also arranges for the food to feed her cubs. Gradually, the mother lets the cubs kill smaller animals, so as to not only allow the cubs get self-confidence about their hunting skills, but still be around her young ones, so as to handle any unwanted danger to them. With the handholding provided by the mother, the cubs soon learn to hunt on their own. What the mother lioness or tigress does is that she demonstrates & then observes, at the same time providing coaching to her cubs. This is the nature’s way of developing the cubs. The Agency Manager should exactly handhold his/her agents in the similar manner as the mother tigress/lioness is doing with its cubs. This is possible through demonstration, observation, feedback & coaching. Directing Directing means showing the way, not giving orders. Let’s understand it with the following example. 1. Agency Manager To Agent: - Please prepare your prospecting plan for next week, and submit it to me on Friday. 2. Agency Manager To Agent: - Let’s meet on Friday at 2 p.m. to plan your prospecting activity for next week. In the first example Agency Manager gives an order to the agent to submit a prospecting plan & in the 2nd example the Agency Manager has shown direction to help the agent find new prospects. Supporting Supporting means be a teacher, not a secretary. Let’s understand it with the following example. 1. Agency Manager To Agent:- I will go to the job fair & get names for you. 2. Agency Manager To Agent:- I will go to the job fair with you and show you how to get names. The difference is the way in which the support is given. In the first example Agency Manager acts like his agent’s secretary & in the 2nd example the Agency Manager acts like a coach/teacher – working side by side with his agent in order to show the latter how to do things the right way.
  22. 22. 21 | P a g e Supervision Supervision has two aspects. 1. Development & 2. Control The development aspects deal with all those factors that would propel an agent towards achieving peak performance. It involves, first of all kindling the agent’s inner energy & drive towards successful attainment of goals. It also involves training & educating the agent to acquire certain skills. It also involves handholding & encouragement when the agent faces failure & rejection. The Control aspect is about bringing focus, discipline & method into the agent’s work so that effort is optimized and leads to a high level of performance. It essentially calls for getting the agent to set goals and plan daily activities. Then engage them with regular review & monitoring to ensure that these are strictly followed. How to Supervise? Let’s understand it by using the following case. Have you seen a mother teach a baby to walk? The first step is to be a mummy or daddy (or someone the child trusts completely). Let’s take the case of mummy. She first gives her little one a finger to hold. The child clutches these fingers & takes his first few steps with mummy encouraging him on. Slowly after some time she lets her child go. Then the inevitable happens. Baby comes crashing down on the floor & lets out a howl. Does mummy howl back in frustration or get angry with the child for not being able to do even a simple thing like walking? No, she simply stamps on the floor, saying “bad floor” for dropping the baby. Then she starts the whole thing once again, calling out to baby to try & stand up again. Supervising a new comer (Agent) is a little like that. Many agents left the profession being demoralized/frustrated because agency managers were unable to handle their own emotional baggage in the face of failure & mishaps of their agents on the field. The worst thing that could happen when an agency manager sent out a message, through words or body languages that the agent is a hopeless case and would never make it. It is critical that an agency manager should be able to make a distinction between the person & his performance. Agency manager is in the business of building people. It is a business that involves both leadership of people & management of the outcomes they generate. Every agency manager should be a very good supervisor to his agents like the mother takes care of her baby. Supervision is about affirming & reinforcing the power of positive expectation. The mediocre manager tells. The good manager explains. The superior manager demonstrates. The great manager inspires.
  23. 23. 22 | P a g e Chapter 8 Key Agency Management Activities Learning Objective After going through this Chapter, you will be able to:  List down at least ten common expectations of an Agent from his/her Agency Manager.  Analyse the reasons why Agents fail in our business.  Identify the key sales management activities of an Agency Manager  Describe the significance of having a commitment interview  Explain five Mantras for assured success in Agency Profession  Justify the importance of Goal Setting  Emphasize the importance of First start (Setting Agents up for early success)  Describe Monitoring & Measuring activities of an Agency Manager  Explain the Production Triangle.  Demonstrate how to use Agent’s Activity Management Report.  Justify the importance of Performance Evaluation & Planning Sessions  Explain the suggested pattern for conducting weekly Team Meeting Common Expectation of an Agent from Agency Manager:- 1. Be interested in them as an individuals 2. Guide me on not only what to do, but how to do 3. Show me how to apply the best planning technique to my daily work. 4. Help me to organize my time & plan my day better. 5. Give me more ideas for uncovering new prospects from the higher income markets. 6. Demonstrate me how to sell quality business & how to upgrade my clientele. 7. Provide me instructional & educational materials in easy to digest capsule doses. 8. Teach me how to think creatively 9. Teach me how to handle the competition 10. Carefully plan & conduct Sales Meeting 11. Upgrade & boost my Confidence, Competence & Commitment 12. Give me factual example of successful selling techniques used by other Agents 13. Supervise my Activity, not me 14. Avoid taking personal credit for accomplishment & 15. Be Approachable There are really only 3 reasons why Agents fail in our business 1. We as Agency leader select them poorly 2. We as Agency leader induct or train them properly 3. We as Agency leader supervise or manage them poorly People do not care how much you know, until they know how much you care!
  24. 24. 23 | P a g e Supervision is the capacity of an Agency Leader to inspire confidence, admiration & trust in Agents so that they will turn to him for help & guidance. Research says 85% rely on others to manage them. 15% can manage self. Out of this 15% only 2% can manage self & manage others. As an Agency leader you will always have a need for agents who produce substantial amount of business on a consistent basis. Your job is to attract talented people & move them into the 15% group as independent, responsible performers. The Key Sales Management Activities of an Agency Sales Leader 1. Having a Commitment Interview 2. Agent Goal Setting 3. Setting Agent Up for Early Success 4. Activity Management (Monitoring & Measuring) 5. Performance Review Meeting 6. Understanding & using Performance Improvement Formula We will discuss each activity in detail. Having a Commitment Interview In Life Insurance Selling first 10 words are more important than next 10,000. Similarly in Agency Management the First 3 hours of Inducting, Informing & Instructing are more important than next 10,000 hours. In the initial period, you as an Agency leader have a greater impact on new people (IC’s) than any other time during their entire careers. The Advisors (Newly Licensed) minds are wide open & they are alert & ready for information. They are much like sponges ready to soak up the Ideas, Suggestions & challenges you give them. Being as an Agency Leader you must plan carefully the first 3 hours you spend with individual IC’S where you will discuss on following 5 major Areas 1. Agency & Company Philosophy (Office Hours, Operational Support, Code of conduct etc) 2. Skills to be Mastered (Prospecting, Tele calling, Conducting Interviews, Closing sales, Sales Presentations, Referral generation etc ) 3. Work Pattern & habits ( Weekly success formula, Daily score card, Daily Action Plan) 4. Record keeping & Planning System ( Annual Goal setting, Bi Monthly Production, Evaluation & Planning <PEP> Session) 5. Disciplines of the Job ( New Agent’s Attitude, Work habits & Selling habits) Without a clear Vision & Direction, the Team Leader becomes the blind leading the blind. Your Agent need you to be friendly, not to be their friend! They do not need another friend, they need a Manager!
  25. 25. 24 | P a g e Goal Setting A professional without goals is like a ship sailing without a captain. The ship may have the finest equipment and structure, yet without a captain to steer and chart its course to a designated port, it goes nowhere -- and may even drift aimlessly onto the rocks. Goal is the master skill of success; one cannot hit a target if he/she could not see it. Clear Goals increase confidence, develop competence, & boost levels of motivation. Goals give a sense of meaning & purpose. Goals give a sense of direction. There is a saying that before you embark upon a journey it is important to know your destination. This holds true for an insurance advisor as much as others. It is a must for every sales manager to ensure that he/she must sit with his/her agents, guide/direct/assist the agent in conducting an effective goal setting exercise. The Process of Goal setting is the means to get the agent focused on what work to do, even when there is no one out there in the external environment to give guidance in this regard. It also helps the Agency Manager to identify the Hot Buttons of the advisor. Hot button is the trigger point in the mind of the advisor which drives him to work. Goals can be broadly divided into two types.  Professional Goals  Personal Goals Professional Goals are linked to professional achievements of certain milestones in the insurance profession. Typically these goals are derived from the amount of personal income the agents wants to earn during the year. Let’s take an example. Mr. Suresh is an Agent. Suresh desires to generate Rs. 250,000 as additional income (First year Commission) from Agency Profession. The Average Commission income is about 25% of Premium. It implies that Mr. Suresh needs to produce Rs. 1000000 (First Year Premium). It is observed that average premium per policy is Rs. 25,000. It means that Suresh, needs to sell minimum 40 policies to get his desired income. On an average Suresh meets with five person to close one sale. This Means Suresh needs to meet minimum 200 prospects this year. This can further devolve into how many calls Suresh must make during a month/week/day etc. Personal Goals is related to personal milestones that one may achieve within a specific time span. Let’s look at some of the personal goals.  Standard of Living (For instance the purchase of a house, a car, LED TV etc.).  Educational Goals (For Instance completing MBA, CFP, Licentiate, Associate, LUTCF etc.)  Spiritual Goals (Such as going to Haj, Visiting holy places etc.)  Physical Goals (Such as reducing weight by 10 kg in 6 month etc.)  Vacational Goals (such as taking the family for a vacation to Goa/Shimla etc.)
  26. 26. 25 | P a g e Role of Agency Manager Being an Agency Leader you must discover the personal/professional Goal/s of each of your Advisor. The Advisor is associated with you to fulfil some of his/her goals. The fundamental success secret of Agency Management is that, the better The Agency Leader (You) know about your Agent’s & their goals, the better you can motivate & assist your Agent’s in achieving their goals. By doing this you can ensure building a strong & productive Agency force.. After identifying their Goal your next job is to help them in proper Goal setting & link it to various Agency Activities & Business plans. The fundamental principle of Goal Setting is S.M.A.R.T/R S: Specific, M: Measurable, A: Achievable, R: Realistic, T: Time Bounded (With Dead Lines) R: Review The 3 step IC/Agent Goal Setting Process 1. Defining the Accomplishments/Goal (What, Why & When) 2. Develop the Goal (Classify, Prioritize & Visualize) 3. Formulate Action Plans (Activities, Strategies, Obstacles & Resources) Setting Agent Up for Early Success Getting producers off to a fast start will help your recruiting efforts. Your retention will likely improve because producers who get off to a fast start experience success early. Confidence comes from successful experiences. You can somewhat predict the agent's future because studies show that what an agent does in the first 90 days under contract, is a strong indicator of what he or she will do for a lifetime! There is only one way to achieve consistent fast starts with new agents. As soon as they decide to join your Agency, start to prepare them adequately. Train them on the essentials of the job, and build their confidence at every opportunity. A First start should be the keystone of your Agency Training program. The early Training you give new agents is the most lasting & least expensive. The Training & Development of a successful Insurance Agent is very much like that of a doctor. When doctors are learning their profession as young medical student, they are most regimented & supervised persons in the world. When they become practicing physicians, they transform into some of the most independent members of society. It is also same with life insurance Agents. During their apprenticeship & formative years, New Agents need much sales knowledge & some technical instruction. They need a lot of training on the job & in the field. They need strict discipline. They need close attention & supervision until they are ready to perform successfully on their own. Embrace Fast start Strategies The ability to move associates to a fast, productive start can be mastered. Managers, who master the art of setting new associates up for early success, are those who:  Communicate expectations of excellence  Embrace joint work  Focus on results, not activity  Develop competence and confidence  Are tough, but fair! Planning comes before doing.
  27. 27. 26 | P a g e Five Step Process for a Fast Start: 1. Use Pre contract Training 2. Use a set of Selling System 3. Demonstrate a belief in joint field work 4. Teach a winning Attitude 5. Teach Sound Work habits Pre Contract Training:- Agents who receive Pre contract Training have a much better productivity & retention than those who did not. Pre contract Training is not only an effective Training strategy, but an excellent fast start procedure as well. It is very important on your part as an Agency Leader that you’re new Associates must be given complete & accurate job description as is humanly possible. You must show them the true picture (The complete picture of the job, pointing out the unpleasant aspects as well as the satisfying one.) Set Selling System:- As an Agency Leader You need to teach your Agents that there are four important sales made every time a policy is sold. Sale no 1- Getting the prospect to agree to listen (Arranging an interview under favorable conditions.) Sale no 2- Getting the prospect agree that a problem exists (Gaining Need Recognition) Sale no 3- Convincing the prospect that Agent has the best solution. Sale no 4- Getting the Prospect to buy now & become a client (Stimulating action on the part of the prospect.) Joint Field Work:- The important objective of joint field work is to help new agents discover that  Life Insurance can be sold  Life insurance can be sold to their prospects (Friends, Relatives etc.)  Life insurance can be sold by them. Please make a note that Insurance Selling in true sense cannot be taught in the Training room. Selling skills must be learned in the field, in their own setting. In order to ensure Fast Start you as an Agency Leader must put an extra amount of stress on effective joint selling from the very beginning of a new agent’s career. As an Agency Leader, you should make certain that your new Agents gets several hours of Joint field selling during his or her initial Training period. Secondly you must ensure that as a supervisor you are an outstanding individual & high performing successful joint field worker. Developing Winning Attitude:- As an Agency Leader please make a note that, if an Agent’s self-image does not keep pace with his or her achievements, the Agent will fear success. It is very important that you encourage your Agents to read books & attend professional Training & developmental programs. Your Agents operate in a negative environment most of the time. It is seen that Prospects can tear Agents down much faster out in the field than you can build them up in the office. It is your job to build their confidence & help them maintain a positive outlook.
  28. 28. 27 | P a g e Sound Work Habits: - It is very important for you as an Agency Manager to teach your new Agents good habits from the outset of their Careers. A combination of Pre contract training & the implementing of sound habit patterns will salvage a great many new Agents who would otherwise become losers within a short time & drop out. It is important to monitor the habits of Agents carefully during the early days of their association with you. Our Agents do best those things we expect & inspect. How to ensure that Fast Track is Successful:- In order to ensure First Track we as Agency Leader can do following 7 Activities. 1. Celebrate the First Log in Day (Graduation/Licensing Day) 2. Drive for Qualifying Early Bird ( It should be driven aggressively within first 30 days of License 3. Drive for Qualifying PRF 4. Drive for Qualifying Balic Club Membership 5. Special Drive for MDRT Early Bird. 6. Qualifying for Spot (Instant Competition) 7. Qualifying for Periodic Competitions & Conventions Activity Management (Monitoring & Measuring) Activity Management is a key to the success of the agents. Managers can add great value to the agents when they focus them on what they control. Remember, they do not control results! When dealing with productivity, there are four activities that an agent must perform to be successful. They are: Prospecting, Approaching Prospects, Meeting with Prospects and Making Sales. Managers make a big mistake. They focus too heavily and too often on results. The agent cannot control results. The results are achieved after doing the core activities. The Three Great laws of Agency Manager The first law is longevity, the second law is effectiveness, and the third law is maximization. The Law of Longevity says Focus on those things you can control. The law of Effectiveness says: Never confuse activity with accomplishment. The law of Maximization says: Monitor and measure consistently those things that matter. The only certain means of achieving lasting success is to form the habit of giving more & better service than is expected of you.
  29. 29. 28 | P a g e Monitoring and Measuring - The Monitoring is a directing function; the Measuring is the controlling function. Monitoring and Measuring are two related, yet distinct functions. Monitoring is a training function and measuring is a controlling function. The starting point is goal setting. Once goals are set and an action plan committed to, monitoring and measuring take center stage. You Monitor people, specifically their attitudes, skills and habits. You Measure numbers, which means you, look at their activity and results. Which is most important - what you monitor or what you measure? What you monitor is most important because what you're monitoring is causing what you're measuring. Many times all Managers do is measure results, results, results - they never get around to correcting the problem. Spend your time on monitoring. The easy part is measuring the numbers. The tough part is finding out what is causing those numbers. Is it call reluctance? Is it lack of ability? Usually they have the ability, but not the right attitude. You should place more emphasis on monitoring to see what's causing the results. Effective monitoring and measuring recognizes that Agents do have individual differences. Agents have different motivations, goals and aspirations. This makes it imperative that each Agent be considered as an individual. Agents will improve their performance if they see:  a need for improvement  they'll improve their performance if they see the recommended changes make them more effective, and  they see the advantages, benefits, and rewards of making the effort to change The ultimate result of a well-conceived monitoring and measuring system is improved performance on the part of individuals being monitored. There are three interrelated factors that provide the framework for achieving improved performance. These factors provide the triangle within which you implement your monitoring system.
  30. 30. 29 | P a g e Relationship Relationship is where you start; it provides the important foundation. Unless it is built solidly, you motivate, monitor and measure on "shaky ground." Commitment Commitment is next. This consists of mutual goal setting and establishing and gaining a responsible commitment to a plan of action. Nothing of significance happens until you secure a responsible commitment. This means commitment from both sides - yours and the Agent's. Mutual commitment to goal setting and an action plan to achieve those goals produces results! Measurement Measurement completes the triangle. Review solidifies and makes results possible. You must take regular progress checks and make mid-course corrections when necessary. Measurement, when done positively and meaningfully, always improves performance! Always keep in mind that relationship, commitment and measurement provide the framework for achieving improved performance. What You Monitor: - You monitor people. Specifically, you monitor their attitude, skills and habits. Remember, the foundation of the production triangle is relationship. Without a good, solid relationship, the time you spend trying to develop or improve an Agent's attitude, skills or habits will be wasted. Where You Monitor: - You monitor in the field. In live selling situations. You monitor in the office in role-playing situations, with weekly individual sessions and in the meeting room when you conduct sales meetings. You must be committed to joint field work with Agents, especially in the early years. You will uncover the most valuable information about your people when you are out working with them.
  31. 31. 30 | P a g e How You Monitor You can inform, instruct and inspire in a group. But you impact lives and change behaviors by monitoring one-on-one. This is the best setting for selling your Agents on their abilities, their futures and the confidence you have in them. Whether it's praising your Agent's attitude, skills and habits or having to offer direction and guidance, the best way to do this is one-on-one. Work hard to make your Agents aware of your awareness. When they are conscious of being monitored, performance improves. We've explored your monitoring role, which is primarily to help Agents develop their attitudes, skills and habits. Now, we'll move to measuring activity and results. The only reason to measure anything is to improve performance. If the tools you use do not improve performance, they should be replaced. Measurement develops Agent effectiveness in these four critical functions: Prospecting - Helping Agents develop a procedure for securing and attracting qualified prospects on a consistent basis. They must develop a market. Selling - Agents should be expected to use and master a set selling system. Analyzing - Right from the start, Agents should be expected to know their average size sale, their closing ratios and the average number of proposals they present each week. And finally, Planning -Agents must develop the habit of daily planning early in their careers. Sell them on "waking up productive" every selling day. The appended below chart is a tool to help you track your activity. On a daily basis the manager and the agent should report their activity. After only 3-5 minutes, the manager will know whether the agent is active enough doing the correct activities to lead to an improvement in productivity. If you do not manage your Sales people they will manage you. When Sales People win, they did it entirely by themselves. When they lose it is because of poor management.
  32. 32. 31 | P a g e Above is a blank chart. As you can see you can use it for any month of the year. Put the agents name and month at the top. Meet with the agents or speak to the agent on a daily basis to gather the information. You can do this in person or on the telephone. As an example, let us assume it is the 7th day of the month. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 10 9 8 7 6 5 4 3 2 1 0 Agent's Activity Management Report Agent's Name: ____________________________________ Month's of: _______________________________ Prospects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 10 9 8 7 6 5 4 3 2 1 0 Telephones Activity Kept Appointment Set 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 4 3 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 3 2 1 0 Sales
  33. 33. 32 | P a g e Step one: Ask the agent how many prospects they obtained yesterday (the 6th). Let’s say they say 3. Then put a dot in the appropriate box. See the example following. Step two: Ask the agent how many approaches they made yesterday (the 6th). Let’s say they say 10. Put a dot in the appropriate box. Step three: Ask the agent how many appointments they kept yesterday (the 6th). Let’s say they say 1. Put a dot in the appropriate box. Step four: Ask the agent how many sales they made yesterday (the 6th). Let’s say they say none. Put a dot in the appropriate box. Step five: Ask them what they have planned for today. Now you are finished for today. 6 7 8 9 10 11 12 4 _ 3 _ _ 2 _ _ _ 1 0 Prospects 6 7 8 9 10 11 12 10 _ 9 8 7 _ 6 5 _ 4 3 _ 2 1 0 Telephone calls 6 7 8 9 10 11 12 4 3 2 _ 1 _ _ _ 0 _ _ Kept Appointments
  34. 34. 33 | P a g e Next Step – once a week the manager should sit down with the agent and connect the dots that were recorded during the past week. 6 7 8 9 10 11 12 2 1 _ 0 _ _ _ _ _ Sales 6 7 8 9 10 11 12 4 _ 3 _ _ 2 _ _ _ 1 0 Prospects 6 7 8 9 10 11 12 10 _ 9 8 7 _ 6 5 _ 4 3 _ 2 1 0 Telephone calls 6 7 8 9 10 11 12 4 3 2 _ 1 _ _ _ 0 _ _ Kept Appointments 6 7 8 9 10 11 12 2 1 _ 0 _ _ _ _ _ Sales
  35. 35. 34 | P a g e (Remember, the purpose of this exercise is to get the agent talking about their business.)  Start by asking the agent what they see when they look at the chart?  Ask them what will happen if they continue to have just a few prospects?  What happens when they only make a few approaches to prospects?  What will happen when they have a few appointments?  What happens if they do not make sales?  What happens if they do not earn any money? If you get them talking they will hopefully take responsibility for their own activity. Sometimes they may try to avoid or stretch the truth. You know if they have enough prospects, enough approaches, enough appointments they will make sales. If they say they are doing all those things and still don’t get results, either they don’t know how to do their job or they are avoiding the truth. If they don’t know how, then train them! If they do know how but don’t get the results, then they are stretching the truth. You solve that by checking the prospects and asking for their names. Then ask every day how the agents are processing the names. When are they meeting with them? Finally, what are the results of the appointments? If you check a few times, they will probably stop trying to deceive you and themselves. Activity Management is a key to the success of the agents. Managers can add great value to the agents when they focus them on what they control. Remember, they do not control results! How do you launch an Activity Management system into your agency? The answer is slowly and with patience. A note to the manager You will need to persevere. It will be easy to stop at any point and not bother to do this. This is an excellent process. Don’t give up! Activity management is like a staircase that will lead to the eventual success of each manager and each agent who has the discipline and honesty to walk up it every day. Performance Evaluation & Planning (PEP) Sessions:- This is the key part of your supervisory system. If you can learn to handle these weekly/Fortnightly performance reviews skilfully, you will be on the road to becoming an effective Agency Builder/Leader. The purpose of PEP Sessions is to help you & the Agent perform more effectively. These sessions should be scheduled in advance. Once sessions are set, all other activities are planned around them. The schedule must be rigidly adhered to except in cases of real emergency. At the beginning of an Agent’s Career, you should conduct these sessions weekly for at least the first 12 month. When Agent has demonstrated maturity, the session can be held less frequently. Suggested Pattern for conducting Weekly PEP Session:- 1. Review the Agent’s record carefully before each session. 2. Greet the Agent warmly & make him/her comfortable for the meeting.
  36. 36. 35 | P a g e 3. Begin the discussion by having the Agent express his outlook. 4. Review the results of the past week’s activity; compliment the positive things 5. Review the activities that led to these results; compare with past week’s plan. 6. Check the Agent’s progress toward objectives & calculate together what must be done each week for the balance of the period to reach these goals. 7. Schedule any training or joint work (If required) 8. Discuss in detail the Agent’s plan for the coming week. 9. Review the Agent’s Success formula. 10. If performance is to be improved, first decide what is needed. Ask yourself,  Is it skill development  Is it Knowledge Enhancement  Is it Habit modification or  Is it Change in attitude that is needed 11. Close on a high note. Make it a real pep session. This is to be a key objective of your meeting. 12. Make entries on your Diary/Organizer immediately following the session so you can be well prepared for next week’s PEP Session Suggested pattern for conducting Weekly Team Meeting:- The natural objective of this meeting is to assist Agents in getting back in focus & opening up for Business Again as the new week begins. The 3 basic element (III) of successful Meeting are as follows. A. The Meeting must Inform B. The Meeting must Instruct C. The Meeting must Inspire The sure way to make every Weekly meeting a great occasion is to build your Meeting idea notebook. Be alert to information & ideas that will be of interest to your Associates. Providing Motivating Feedback:- Agents want inspiration & Motivation. Your important role is to enrich the Agency climate by providing continuous programs of recognition, Motivation & Constructive Feedback. Motivation to achieve results tends to increase when Agents are given regular feedback & when they are recognized for their progress toward Goal. The more recognition you give your associates for work well done, the greater will be their motivation to keep it up & do even more. Your sincere Appreciation for outstanding sales results is one of the best ways you have of making your Agents feel important. Every meeting with a Team member should be viewed as an opportunity to add value to that Team Member.
  37. 37. 36 | P a g e Everyone likes to play on a winning Team. You must intimate all your Associates about the progress of your Team. Make them feel special as they are a part of growing, prospering organization & is making an Important Contribution. When Agents are in a decline, it is particularly important to talk about their objectives – what they want to accomplish, where they want to go & what they want from life, rather than about production. Without a clear Vision & Direction, the Team Leader becomes the blind leading the blind.
  38. 38. 37 | P a g e Chapter 9 Key Concepts related to Advanced Agency Sales Management Learning Objective After going through this Chapter, you will be able to:  Explain the magic formula for Performance Improvement  Identify the strategy to develop market for your Agents  Explain the concept of Customer Life Time Value & Analyze its significance Performance Improvement Formula There are three vital factors that make the difference in Agents' incomes. These three factors should be measured on a weekly basis. The three factors are Market (The average size sale) Effectiveness (Closing percentage) Activity (Ask-to-Buy attempts per week/Average no of closing Interviews in a week). When these three factors are multiplied, the result gives you the Agent's weekly first year commission average. The performance improvement formula is M x E x A = FYCs
  39. 39. 38 | P a g e Let’s take an example Now. let's look at an example of the formula in action by comparing Agent A and Agent B. Mere's Agent A. Agent A has an average size sale of Rs.10, 000 in first year commissions per sale. Agent A has a 50% closing ratio. Agent A averages 1.5 closing interviews a week. Her MEA score is Rs.7500 weekly first year commissions. You multiply that by 52 and she is on pace to earn $390,000 in annual first year commissions. That's Agent A. Now, let's look at Agent B. Agent B averages only Rs.8000 per sale. Agent B only has a 40% closing ratio. However, Agent B has 6 closing interviews every week and her M E A weekly score is Rs.19, 200 in first year commissions and, for the year, that's Rs.998, 400 in first year commissions. You can see how a slight improvement in any of the 3 factors results in a dramatic increase in first year commissions. Developing Market for Agents Often agents start out with energy and enthusiasm. They quickly work through their Project 100 … calling on their family and friend in the hopes they will buy from them. After they have exhausted their immediate contacts, they begin to flounder. They lose their enthusiasm, their activity lessens, they write less business week by week, and then they leave the business. So how do you (Agency Manager) help them in developing their Market? Step one Build a profile of their ideal prospect. Look at the agent’s last ten sales. What does each of these customers have in common: age, marital status, children, income, profession, position, The ideal prospect profile may be slightly different for each agent. By doing this step the agent will identify those differences. Step two Put the profile characteristics on paper as in the example following.
  40. 40. 39 | P a g e Step three Ask the agent to share the profile with everyone. Every time the agent meets with a customer, a family member or a friend, the agent should show them the profile. Then they should ask them for referrals. Let’s say you have an agent who has sold policies to a doctor and a couple of nurses. There is a process you can take the agent through to broaden his/her market. It is called ‘mind mapping!’ This is where you get the agent to think broadly about possible places they can find medical professionals and related industries. Step 1 Draw a circle with the words “Medical Profession” in the centre. Step 2 Next begin to imagine all the related industries and professions that have something to do with the medical profession. The result is a very large market. Medical Profession
  41. 41. 40 | P a g e Step 3 As you can see, the agent who thought he/she only had a small market of a few doctors and nurses will now see a large, almost unlimited market. The professionals in this market all know each other. They see each other at different events and in different situations. All the agent needs to do is to revise their profile to say “anybody in the medical profession or related industries!” Step 4 Now the agent needs to ask the doctor and the nurses they already have as customers, plus ask family, friends and other customers for referrals into the related industries in the medical profession. Step 5 As a manager you can do this process with every agent in many different scenarios. Here are some professions or industries you can put in the centre of the circle.  Education  Manufacturing  Government  Construction  Sales & Marketing  Sports  Others? Customer Life Time Value (Concept) Customer Life Time Value has been a buzzword in marketing circles for some time now. It may be defined as the sum of economic benefits that can be derived from building a relationship with a customer as calculated over time. Life Time Value for a life insurance customer at any point of time is comprised of three parts. First – Historical/Past Value: - The sum total of premiums & other inflows that have been accrued through him or her. Second – Present Value: - The value of expected future premiums that are expected to be received as a result of existing business being retained. Third – Potential Value: - The value of premium & other inflows that could be derived by persuading the customer to buy additional products from the company or by referring the advisor & company to other prospects.
  42. 42. 41 | P a g e Formula for calculating Life Time Profit Value of an Average Client A Average First year commission of policy Rs. B Renewal Commission as % of First year's commission % C Renewal Commission of Policy (AXB) Rs. D Number of policies per year per client E Average number of years clients buys from you F Renewal commission over the life of clients [CxDx(E - 1)] Rs. G Commissions earned over the life of client (AxD+F) Rs. H Number of referrals from client I Percentage of referrals that become a client % J Number of referrals who become clients (HxI) K Commission earned on referrals (GxJ) Rs. L Total Value of loyal client (G+K) Rs. Let’s plug the numbers into the formula & see what happens For our example let’s say the average First year commission of a policy is Rs.10,000. The renewal commission is 20% of First year commission. The number of policy per year is 1. The number of years the client stays with IC is 10. The number of referrals from each client is 5 & the % of referrals that become client is 30%. After putting these numbers into the formula, we get. Formula for calculating Life Time Profit Value of an Average Client A Average First year commission of policy Rs.10000 B Renewal Commission as % of First year's commission 20% C Renewal Commission of Policy (AXB) Rs.2000 D Number of policies per year per client 1 E Average number of years clients stays with you 10 F Renewal commission over the life of clients [CxDx(E - 1)] Rs.18000 G Commissions earned over the life of client (AxD+F) Rs.28000 H Number of referrals from client 5 I Percentage of referrals that become a client 30% J Number of referrals who become clients (HxI) 1.5 K Commission earned on referrals (GxJ) Rs.42,000 L Total Value of loyal client (G+K) Rs.70000 As one can see in this example, each client is worth Rs.70000 to our IC over a 10 year period. So having 100 clients will make an IC Rs. 70 lakh over the next 10 years or an average of Rs.6 lakh per year.
  43. 43. 42 | P a g e When you (Agency Manager) explain the life time profit value figure to your team members (IC’s) they will realize so much more money to make from each one of their clients over the life of their buying cycle. By Explaining this concept to each one of your Insurance Consultant you can develop an excellent climate/culture that will automatically take care of following important aspects. 1. Long Term Orientation 2. Focus on Relationship Building 3. Enhancing Client Base by utilizing (Client) Referral Strategy & Personal Networking. 4. Commitment to Customer Service 5. Ethical & Need based Selling 6. Customer Satisfaction 7. IC Retention (Team Building) 8. IC Income Optimization. No one can become rich without enriching others. Anyone who adds to prosperity must prosper in turn.
  44. 44. 43 | P a g e Chapter 10 Retaining & Maintaining the Productive Agency Team Learning Objective After going through this Chapter, you will be able to:  Discuss the approach/strategy to build an effective & performing Team.  Justify the importance of Retaining & Maintaining the productive Agency Team  Describe the principles & best practices to retain & maintain the productive Agency Team  Discuss the key points to develop good personal relationships with Team members Retention relates to all that you & your company can & must do to keep your Recruits. Recruitment costs time & money; & losing your hires & having to replace them soon after Recruitment is a very costly proposition. The Process in which a company loses its employees or sales people is called Attrition. The Life Insurance industry typically experiences high Attrition rate in its Sales force due to a variety of reasons. In India, attrition in the Life Insurance & Finanancial services industry is very high. Statistics indicates that over 90% of Recruits leave their job within the first 12 months of their employment. Of these numbers, over 80% do not return to the industry. How to Retain your Agency Force ? :- There are 8 things that you can do in a sales management role to make sure that your Sales Team performs & is dedicated to growing your company. By incorporating them into your plan, you will have happier & more productive salespeople. 1. Set Clear Expectations: - Sales People perform best when they know what is expected of them. A sales person’s Goal should be Fair & reasonable. 2. Have & Use the right System: - To have a highly functioning Sales Team, you must develop appropriate sales & marketing strategies for your products & services & the prospects that you sell to. In addition you need to develop systems that will support these strategies. 3. Have a customer Focused Sales Culture: - is everyone in your organization involved & supportive of the Selling Process? Or there is some conflict between the sales department & operation staff. If everyone is focused on how to serve the customer, then these internal conflicts can be avoided or, at the very least addressed in a productive manner. 4. Acknowledge Hard Work: - Something as simple as a THANK YOU can go a long way & help motivate your Team members. Take the time to recognize & achievement of an Agent/Employee by personally acknowledging their successes. 5. Hold Your Sales People Accountable: - Address issues head on & do not shy away from the difficult conversations. After you have set clear expectations or Goals, you must determine the rewards & consequences for hitting or not reaching those Goals. 6. Provide Proper Training: - You must determine what Training is appropriate & how to make it effective. You must identify the Training need from a no of angles. These includes Company orientation, product/Service knowledge, and Industry knowledge & customer service philosophy. To be effective Training must incorporate the ways that adults learn. 7. Create a fun Work Environment: - A fun workplace is an enjoyable workplace. Your Sales Team will spend countless hours at your business & having an enjoyable work
  45. 45. 44 | P a g e place boosts morale. Make the work enjoyable with creative ideas to keep your employees/Agents motivated. 8. Always keep them motivated: - Sales personnel are proud people. If they feel unimportant or useless they will not be motivated to work hard or work at all. Keep them informed & let them know that you are important. 8 Practical tips for an Agency Manager to retain his/her Sales People:- 1. Do not abdicate: - Abdication means that the sales Manager fails to take any responsibility for the success of the sales pipeline, & dumps everything into the salesperson’s (Agent) lap. In other words, he shifts the responsibility & the blame for poor results to the sales person. When he abdicates, He provides no leadership or support to the sales force (Agency) resulting high Attrition. 2. Do not Expect Silver Bullet: - Many Agency Managers secretly hope that one or just handful of Agents will be the answer to their prayers. The Agency Manager need to invest considerable time & resources to market their Agency & to develop their sales People. Please note there is no silver bullet. 3. Avoid Poor Hand offs: - This occurs when the Agency Manager hands a deal over to technical underwriting Team. Sales people (Including the Agency Manager) sometimes make promises to clients in order to edge out the competition. While the Technical people would rather under promise & over deliver. This hands off can often lead to internal miscommunication & the blame game. The Agency manager must be well equipped with the Technical aspects (Underwriting) & guide his/her Agency Team to avoid unpleasant situation. 4. Communicate Expectation Clearly: - The Agency Manager has the responsibility to clearly communicate Business Goal for each Agent & set the Activities that the Agent should undertake. 5. Hire the Right type of Sales Person, to start with: - There are 2 types of Salespeople; those who generate new accounts & those who develop the existing Account. For a newly formed Agency the Agency Manager should look for Agents who can generate new business by developing the relationship with current client. 6. Give Marketing & Sales Tools to support the Agency Force: - The Agency force need solid marketing & Sales Support to meet their prospects with confidence & under favourable condition. They expect active field support from their Agency Managers & Company. If they do not receive this support, then it is not entirely their fault if they fail. 7. Do not neglect to develop the Salesperson’s skills & Knowledge: - Sales People (Agents) are professionals, like an accountant, a lawyer or a doctor & they need on going professional development to stay current & enhance their technical knowledge & skills. This is a prime responsibility of Agency Manager to provide continuous education programs to their Agency Force. 8. Do not be afraid to pull the plug: - Out of every 10 agents, 3 will be duds, 5 will be mediocre & 2 will be super stars. It is extremely expensive for the Agency Manager to waste their time with the three duds. If you focus on the poor performer then you hurt the morale of more productive sales people. Do not be afraid to pull the plug & it would be less painful for everyone.
  46. 46. 45 | P a g e How to Develop Good Personal Relationship with Team Members:- It is not business you are developing, it is people. As an Agency Leader there are a no of specific ways that you can improve your effectiveness in developing personal relationships with your Associates (Insurance Consultants) 1. Use people’s correct name 2. Ask for their opinions & advice 3. Discover interests you have in common 4. Discover people’s hot buttons 5. Learn about their success 6. Offer encouragement & recognition regularly & abundantly 7. Be approachable to your Team members 8. Build your capacity to care Managers provide the missing ingredient that allows the sales person to be successful.
  47. 47. 46 | P a g e Chapter 11 Transform Your Agents to Professional Agents Learning Objective After going through this Chapter, you will be able to:  Understand the key traits of a Professional Agent  Identify the scope to Transform your normal (ordinary) Agents to Professional Agents The qualities & virtues of a top professional (Great) Insurance Consultant (Agent) can easily be learnt & cultivated through hard & sustained work. Let us analyze some perceptible & distinguishing features/key traits that make a Professional Insurance Consultant/Agent. Positive Attitude & Self-Image:- Your Agents must be proud of their profession. They must tell their clients that the first & foremost they are an Insurance Consultant & that is what they do for a living. You must tell your agents that their business is also a social work. They are making valuable contribution to the society. Your Agents should always bear in mind that they are in a noble & highly rewarding profession. Self-Confident:- Confidence is not the absence of fear, it is the conquest of fear. Your Agent’s biggest asset is a positive & courageous attitude. An Agent must have rock solid self-confidence. Focus & Committed to goals:- Your Agents must have goals. Any measurable parameter can become their goal. Whatever they set for themselves, it is important to have them. Goals push them forward without them there is little to look forward in their business. Teach your agents to set small targets at a time, approach them with determination & be happy with attaining them. Step wise targets lead to step wise achievements & as they move on they will reach the destination because every step counts. MDRT, COT & TOT are very important achievements for an Agent. It gives them a real goal. Enthusiastic & Energetic: - Your Agents must be enthusiastic about their profession. They must be excited about life. People will notice them when they glow with positive energy. Everyone loves a confident person. Teach them to have conviction & it will definitely help them to command attention. To be enthusiastic they must act enthusiastically. To be a professional Agent, they need to work only 10% more than other advisor. Putting in that extra bit is the key to their victory. Self-Disciplined:- Self-discipline is developed when they stop doing what they should not do & start doing what they know they should, whether they like it or not. The degree of their success in selling depends on their ability to recognize those few primary activities that make the big difference in producing results. Self-discipline causes them to concentrate on these activities. It is forming the habit of doing the right things right. It is having always a sense of urgency. Knowledgeable & always be a Learner:- People respect the person who is well informed. As an Agent their main weapons are knowledge of their proposition, knowledge of salesmanship & knowledge of human nature. Great IC’s recognized early on the need to set them apart from competition. They devoted time & resources to be the best. Whether it is Professional designations, ongoing education or searching for better & more efficient business practices, these Insurance Consultants continue to be the student of the game. They never quit learning. Always be open for learning. Books, experiences, people around them & their own mistakes can provide them excellent opportunities to learn.
  48. 48. 47 | P a g e Master Relationship Builder: - Professional Insurance Consultants are master relationship builders. They spend the vast majority of their time communicating, socializing & being with clients & prospects. These advisors have excellent one to one people skills. They are patient & willing to commit the necessary time & energy to develop meaningful relationships with their clients & prospects. Prospects buy from the individuals they trust. Excellent Solution/Service Provider: - Teach them to set a high standard in everything that they do. Making BIRIYANI requires more preparation, more time & better ingredients. It also requires something not mentioned in recipe – love & patience. But it also fetches a higher price. Clients do not buy a product; they buy a solution to their problem. Agents must understand the needs of client & offer a solution. As an Agent they must identify what is best for their clients & recommend plans which are in their client’s best interests. A professional agent knows he/she is in the business of advising clients & if he/she does a good job the profits will follow. Your Agent must provide excellent after sales service & assist/guide their clients in various claim related issues. Genuine advice with good customer service ensures that they get repeat sales & build a good base for future business. Trustworthy & Develop long term Vision: - Trust is the grease of any relationship. It is the most basic element that determines the quality of relationship. Professional Agents recognize that developing a relationship of trust is their highest priority. As a result these men & women always put their clients’ interest ahead of themselves. To be a professional Agent a long term orientation must be adopted whereby they recognize that even if less money is made in the short term, they will be rewarded in the long term by loyal clients. Similarly their genuineness & perseverance as an IC will not only enhance their prestige but also result in a higher income over a period of time. Their face is the mirror of their soul. If they are genuine it will show. It will bring them success. Clients part with their money only when they trust your Agents to deliver the service they have promised. Persistent: - Teach them to always bounce back. Get them up when they fall down.. Experts say that if Agents contact a specific number of people every day they will definitely succeed in life insurance selling. It is in fact easier than a game of cricket. While playing cricket they may hit ten balls & not score a single run, but in life insurance the runs will come automatically as long as they keep hitting the ball. They lose the game only if they quit. Teach them to stick to the task – until it sticks to them. Beginners are many, Enders are few. Honour & praise comes to those who stick & stay.

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