The Building Blocks of Agency Development | A Handbook of Life Insurance Sales Management
Idioma: inglés
Editorial: AuthorHouse, 2012
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The Building Blocks of Agency Development | A Handbook of Life Insurance Sales Management | C. Nguyen Canh Clu Chfc | Taschenbuch | Kartoniert / Broschiert | Englisch | 2012 | AuthorHouse | EAN 9781468553963 | Verantwortliche Person für die EU: Libri GmbH, Europaallee 1, 36244 Bad Hersfeld, gpsr[at]libri[dot]de | Anbieter: preigu Print on Demand.
N° de ref. del artículo 108964131
- Título
- The Building Blocks of Agency Development | A Handbook of Life Insurance Sales Management
- Autor
- C. Nguyen Canh Clu Chfc
- Editorial
- AuthorHouse
- Año de publicación
- 2012
- Estado
- Neu
- Encuadernación
- Taschenbuch
- Idioma
- inglés
- ISBN 10
- 1468553968
- ISBN 13
- 9781468553963
- Peso del artículo
- 270 gramos
- Dimensiones
- 229 x 152 x 10 mm
- Catálogos de vendedores
- Bücher
“Sinopsis” puede pertenecer a otra edición de este título.
Fragmento. © Reproducción autorizada. Todos los derechos reservados.
The Building Blocks of Agency Development
A Handbook of Life Insurance Sales ManagementBy C. Nguyen CanhAuthorHouse
Copyright © 2012 C. Nguyen CanhAll right reserved.
ISBN: 978-1-4685-5396-3
Contents
IA. Objectives....................................................................4IB. What You Do to Achieve Objectives.............................................7NOTES—CHAPTER I.............................................................38IIA. Recruiting...................................................................39IIB. Retention: Developing and Keeping New Agents.................................51IIC. Problem Solving..............................................................70IID. Motivation...................................................................84NOTES—CHAPTER II............................................................100IIIA. Differences between Management and Leadership...............................107IIIB. Leadership Styles...........................................................116IIIC. A Leader's Top-Priority Responsibilities....................................123IIID. How to Fulfill Top-Priority Leadership Responsibilities.....................130IIIE. A Leader's Requisite Qualities..............................................133NOTES—CHAPTER III...........................................................157INDEX.............................................................................161
Chapter One
PURPOSE OF AGENCY MANAGEMENTWhat's the main purpose of agency management? Now that you've been promoted to be an Agency Leader (AL=Unit Manager, Sales Manager, Agency Supervisor) in your insurance company, your boss expects you, and so do you, to succeed in your new position. Your enthusiasm abounds because you were promoted rather quickly. You want to know a lot of things in order to succeed faster; however, since you're a cautious person, you've been thinking hard but still aren't sure where to begin and what you should focus on to ensure your success as you promised your company. Although you're very confident, sometimes you wonder if you've promised management too far beyond your ability. You realize that you need to learn a great deal more to acquire new knowledge and skills. So, where should you start?
Don't worry! There are 3 things you need to determine and focus on:
• Objectives,
• Activities to achieve your objectives, and
• Methods to carry out your activities in order to achieve your objectives
Like taking a trip, you need to know where you want to go, what to prepare, and how to get there. This first chapter will help you explore your objectives—what your company wants you to get done, how much pay you want for your work, and how far you want to move upward in your company.
STOP HERE!
Write down in the space provided on the next page, or on a separate sheet of paper, what you believe are the main objectives of what you do in your position of AL.
In my opinion the main objectives of what I do as an AL are:
1. _____________________________________________________ _____________________________________________________ _____________________________________________________
2. _____________________________________________________ _____________________________________________________ _____________________________________________________
3. _____________________________________________________ _____________________________________________________ _____________________________________________________
4. _____________________________________________________ _____________________________________________________ _____________________________________________________
5. _____________________________________________________ _____________________________________________________ _____________________________________________________
IA. OBJECTIVES
The main objective of business is to grow profit over time. Your job as an AL is to:
* Grow staff
* Grow revenue, and
* Grow profit
IA1. Staff Growth
You're supposed to increase the number of your active (selling) agents every quarter. It doesn't matter how many producers you have; it only matters how many of them sell. The number of agents on your sales staff is only a body count. The number of your active agents indicates how successful you are as an AL. It's better to have a lower body count and a higher ratio of active agents. But, the important thing you need to bear in mind is the increase of this ratio as well as the absolute number. You should decide on a ratio higher than the company's average but not unrealistic. The ratio alone isn't a good indicator of success. A 66% active ratio looks good on paper but it doesn't reflect your talent and skill when your staff has only three or four agents. The same ratio is excellent when the number of your sales staff is 15 or 20 and keeps increasing. To achieve consistent growth, you'll need to recruit to increase the body count, develop new salespeople into active agents, and manage to retain the majority of them over time. So, within your responsibility for staff growth, you're responsible for recruiting, development, and supervision.
* You should discuss with your leadership team, and decide on a common goal. You should meet with your team to guide the discussion and group decision but avoid imposing your ideas on them or unilaterally deciding regardless of what the team thinks. If you don't completely agree with them, you'll need to convince them of the reasons and benefits of your position and persuade them to change their minds. Since you're the leader, you can rather easily dictate and impose your will on the team but success isn't certain when you lack the ardent support of the majority.
IA2. Revenue Growth
Your agents' premiums must grow over time. As the years go on, operation expenses increase due inflation and the ever rising cost of doing business. If they maintain the same level of premiums, your company's revenue will decrease in value, and so will their income, and yours! When your agents do the right things and do them right, and have consistent and sufficient activity in prospecting and selling, they'll naturally sell more and bring in more premiums. Exceptions do exist when you have the same number of selling agents but your premiums increase. This is due to either larger cases are sold or more cases sold per active agent. In the first scenario, luck can be a factor. However, in order to sell large cases on a continual basis your agents must upgrade their markets, which isn't an easy thing to do. Agents rarely reach out of their comfort zones and venture into new territories. The second scenario doesn't happen often either. For the same agents to sell more cases per week or month, a change of market is necessary. Again, unless you as a manager actively promote and help your agents develop new markets, the number of sales per agent and their case size remain rather consistent over time if your management capability remains at the same level. You need to get out of your own comfort zone and bring your agents with you on this uncomfortable trip to help them sell more and bigger to increase revenues for themselves, for you, and for your company.
IA3. Profitability Growth
The bottom line in running a business is to make a profit. Lee Iacocca, former President and CEO of Chrysler, says in his autobiography that one is "in business to make money." (1) In the life insurance business, an insurance company usually doesn't make money in the first few years of policies sold. It varies from company to company and from product to product. It may take somewhere from three to five or seven years to earn a profit. The company makes money from old premiums, savings in expense and mortality experience, and investment income. Therefore, new insurance policies of questionable quality will lapse early and cause greater expense and lower profit. Business sold to relatives and friends by new agents normally have lower persistency. It was sold based almost exclusively on relationship; the buyer felt "obligated" to help the new agent due to blood relations or friendship. It wasn't bought because of protection or savings needs. It'll lapse when the agent leaves the business as the owner sees no reason to continue paying premiums. Business sold under pressure of contract continuation, or meeting sales contest deadlines, or under the agent's high pressure sales techniques all fall into the non-quality business category. So, your job includes attention to quality business to help your company make a profit.
The above explanation of life insurance profitability doesn't appear to apply to individual sales managers because such profitability depends on long-term investment factors. Therefore, when we talk about profitability growth for you as an AL and your agents, we talk about your personal income, although most companies do pay a portion of your management income based on the business persistency of your staff. You need to keep an eye on your net income every quarter. You may hire more productive agents and bring in more premiums in the quarter but end up bringing home less money. In order to affect quick increase in staffing and revenue for a particular quarter, you may have spent too much money on advertising, travel, awards, and other incentives. Remember first and last that you're a businessman or businesswoman. As such, you should bring home more income from your business. Otherwise, you lose money.
IB. WHAT YOU DO TO ACHIEVE OBJECTIVES
STOP HERE!
Write down in the space provided on the next page, or on a separate sheet of paper, the most important things you do as an AL to achieve growth in recruiting, premiums, and income.
In my opinion the most important things I do as an AL to achieve staff growth, premium growth, and income growth are:
1. _____________________________________________________ _____________________________________________________ _____________________________________________________
2. _____________________________________________________ _____________________________________________________ _____________________________________________________
3. _____________________________________________________ _____________________________________________________ _____________________________________________________
4. _____________________________________________________ _____________________________________________________ _____________________________________________________
5. _____________________________________________________ _____________________________________________________ _____________________________________________________
IB1. An AL's Two Top-Priority Responsibilities
The main responsibilities of an AL are recruiting, retention, and agent development.
IB1a. Recruiting and Retention
In agency management you can always recruit your way out of any hole you dug yourself in not only in staff but also in revenue and profitability areas. Recruiting is the life blood of your business and retention is your wealth conservation. Please remember that you don't do your job right if a week's gone by without your active involvement in at least one recruiting activity. Your top responsibility is to bring more people to your sales team and keep the majority of them.
IB1b. Agent Development
You turn your new recruits into productive agents by directing and supporting the following four activities:
a. Prospecting
b. Calling for appointments
c. Making sales presentations, and
d. Managing activity
DIRECTING: What's the difference between the following examples?
AL #1 to Agent: Please prepare your prospecting plan for next week, and submit it to me on Friday.
AL #2 to Agent: Let's meet on Friday at 2 to plan your prospecting activity for next week.
As you can see, in the first example AL #1 gives an order to the agent to submit a prospecting plan. In the second example AL #2 also gives an order to the agent to meet in order to plan for prospecting activity with her involvement to give her input or show direction to help the agent find new prospects. In both examples the AL doesn't do the prospecting activity for the agent. In the first scenario, the AL doesn't even do the planning. The importance difference lies in the fact that AL #1 isn't involved at the start in the critical step of planning. She may discuss with the agent after she reviews the plan, or she may not. Reality tends to support the second possibility. We all know that field sales management is extremely busy with "urgent"activities—little daily "fires." Only strong agency managers who manage their time effectively have the stamina to review reports and give feedback. One can easily misconstrue the term "direct" as giving orders like a drill sergeant.
Managers in the past did give orders and exercise their positional power with detachment. Those days are over. Most of the time in today's free market economy directive management is no longer effective. Nowadays employees have more options thanks to greater employment opportunity. They can't be forced to take orders if they disagree. And they do disagree with unintelligent directions from their boss because they're well educated—in many cases even better educated than their superiors. It's easy for newly promoted managers to make this mistake of giving orders. They feel empowered because of their "higher" position, and mistakenly think that their positional authority will automatically command compliance. It'll help the new manager to keep in mind that personal influence, rather than positional power, is much more effective in getting things done through others. So, get involved with your agents in their most important business activities of which prospecting is foremost in order to guide, and build relationship. Be a friend most of the time; be a boss some of the time. We'll talk more about management skills in a later chapter. For now, it's worth remembering that "direct" means showing the way, not giving orders.
SUPPORTING: What's the difference between the following examples?
AL #1 to Agent: I'll go to the job fair and get names for you.
AL #2 to Agent: I'll go to the job fair with you and show you how to get names.
In both examples you can say the AL supports her agent in prospecting activity. The difference is the way in which the support is given. In the first example, the AL acts like her agent's secretary. In the second, the AL acts like a coach—working side by side with her agent in order to show the latter how to do things the right way. Many new managers confuse their supporting responsibility with helping. A manager doesn't do things that her Agents are supposed to do for themselves by themselves. She shows them how. Before you were promoted, you were a superior salesperson; and as such you took initiatives to get the right things done like setting appointments, seeing prospects, closing the sales. You did everything by yourself. You developed the habit of being independent. Since you were good, you didn't need a lot of coaching from your sales manager. The bad consequence was that you didn't have an opportunity to see how your manager taught agents new skills. You should find that doing things for others is easier and less time-consuming than showing them how to get things done. Naturally, it'd be easier for the teacher to solve a math problem than show her students how to find the solution by themselves. Many managers are tempted by the easy way out without realizing that they're giving up their managerial role, and consequently, their management authority and effectiveness. In addition, please remember the popular saying that when you give a hungry man a fish, he can feed himself for a day. On the other hand, when you teach him how to fish, he can feed himself for a lifetime.
As an agent you were more effective being independent; but, as a sales manager, you're more effective being interdependent. You need others to make the sales, get the premiums, and meet your sales target. You're dependent on your agents. On the other hand, your agents need you to show them how to make the sales, get the premiums, and meet their sales targets. You depend on each other. Many new managers misconceive that once promoted they have more independence. Your role is to be a teacher, who shows, and if necessary, corrects mistakes. To be effective in getting more things done through others, be a teacher, not a boss or a secretary! New agents need to be developed into professional insurance salespeople. It takes you a lot of time, hard work, and patience to turn a new recruit into a good salesperson. What do you need to teach and coach your agents in?
Directing And Supporting Prospecting Activity
Most of the time agents leave their insurance sales business because they run out of prospects, not because they don't know how to sell. Therefore, as their teacher and coach you must focus on helping your agents succeed in this most critical activity in a life insurance sales career. We'll discuss the different methods of prospecting later. For now it's important for you to remember #1 how instrumental you are to your agents' success and #2 you must have a mastery of prospecting skills to teach them.
Directing And Supporting Calling For Appointments
Don't ask your new agents to call to set up appointments without your supervision. The majority of new agents have call reluctance. If no help is available, this reluctance will soon develop into fear, and surrender. Therefore, close supervision for calling sessions must be provided early on. Walk around and observe. Jump in to coach those agents who call for fifteen minutes without getting an appointment. Praise them publicly to motivate the good agents as well as encourage others by showing them that their peers can set up appointments over the phone. Your support and encouragement in this prospecting activity will make or break a new agent's career. The importance of your personal involvement can't be overestimated when it comes to new agents' calling for appointments.
Directing And Supporting Making Sales Presentations
New agents learn to make sales presentation in their initial training but they haven't gained the self-confidence needed to apply their skills in the first few weeks, especially when they sell to strangers. Joint field work in the initial weeks is an excellent way to teach and coach your agents to help them gain confidence in selling the right way. New agents sell to people they know; and normally they don't like having their manager tag along for fear of losing face, or any other reasons. To overcome this reluctance you may want to convince your new agents that these initial joint appointments are the best opportunities for them to practice their selling skills.
(Continues...)
Excerpted from The Building Blocks of Agency Developmentby C. Nguyen Canh Copyright © 2012 by C. Nguyen Canh. Excerpted by permission of AuthorHouse. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
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Telephone: 0541-580 72 84
E-Mail: mail@preigu.de
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Instructions for revocation
Revocation right
You have the right to revoke this contract within 14 days without specifying any reasons.
The revocation period is 14 days with effect from the day,
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on which you or a third party nominated by you, which is not the carrier, had taken possession of the products, provided you had ordered one or more products within the scope of a standard order and this/these product/products is/are delivered uniformly;
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on which you or a third party nominated by you, which is not the carrier, had taken possession of the last product, provided you had ordered several products within the scope of a standard order and these products are delivered separately;
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on which you or a third party nominated by you, which is not the carrier, had taken possession of the last part delivery or the last unit, provided you had ordered a product, which is delivered in several part deliveries or units;
To exercise your right of withdrawal, you must inform us (preigu GmbH & Co. KG, Lengericher Landstr. 19, 49078 Osnabrück, Telephone number: +49 (0) 541 / 580 72 84, E-Mail address: mail@preigu.de) by means of a clear declaration (e.g. a letter sent by post, or an e-mail) of your decision to withdraw from this contract. You can use the attached model withdrawal form for this purpose, which is, however, not mandatory.
You can also exercise your right of withdrawal online by clicking on a button labelled accordingly (such as ‘Withdraw from contract' or similar) on the AbeBooks/ZVAB website. If you use this online function, you will immediately receive a confirmation of receipt on a durable medium (e.g. via email) containing information on the content of the withdrawal notice, as well as the date and time of its receipt.
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You must return or transfer the products to us immediately and, in any case, at the latest within 14 days with effect from the day on which you inform us of the revocation of this contract. The deadline is maintained if you send the products before the expiry of the 14 day deadline.
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Criteria for exclusion or expiry
The revocation right is not available for contracts
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for delivery of products, which are not prefabricated and for whose manufacturing an individual selection or stipulation by the consumer is important or which are clearly tailored to the personal requirements of the consumer;
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for delivery of products, which can spoil quickly or whose use-by date would be exceeded quickly;
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for delivery of alcoholic drinks, whose price was agreed at the time of concluding the contract, which however can be delivered 30 days after the conclusion of the contract at the earliest and whose current value depends on the fluctuations in the market, on which the entrepreneur has no influence;
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for delivery of newspapers, periodicals or magazines with the exception of subscription contracts. The revocation right expires prematurely in case of contracts
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for delivery of sealed products, which are not suitable for return for reasons of health protection or hygiene if their seal has been removed after the delivery;
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for delivery of products if they have been mixed inseparably with other goods after the delivery, owing to their condition;
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for delivery of sound or video recording or computer software in a sealed package if the seal has been removed after the delivery.
Specimen - revocation form
(If you wish to revoke the contract, please fill up this form and send it back to us.)
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To preigu GmbH & Co. KG, Lengericher Landstr. 19, 49078 Osnabrück, Email address: mail@preigu.de :
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I/we () herewith revoke the contract concluded by me/ us () regarding the purchase of the following products ()/
the provision of the following service () -
Ordered on ()/ received on ()
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Name of the consumer(s)
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Address of the consumer(s)
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Signature of the consumer(s) (only in case of a notification on paper)
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Date
(*) Cross out the incorrect option.
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"Personal data" is any information relating to an identified or identifiable natural person.
Responsible person
Contact us at any time. The person responsible for data processing is: Ansas Meyer, Lengericher Landstr. 19, 49078 Osnabrück Deutschland, +49 (0) 541 / 580 72 84, mail@preigu.de
Collection and processing when using the cancellation button
If you have entered into a contract via this platform for which a statutory right of cancellation applies, the platform provides you with a cancellation function (cancellation button) through which you can submit your notice of cancellation immediately.
When using the cancellation function, your personal data (name, email address, details identifying the contract or part of the contract you wish to withdraw from, and the time (date and time) of sending the notice of withdrawal) will only be collected to the extent that you have provided it.
The purpose of data processing is to provide you with the statutory option to withdraw from your contract and to ensure the proper processing of your withdrawal.
The platform operator collects your data on the basis of Article 6(1)(f) of the GDPR, namely the legitimate interest in ensuring the general accessibility of the statutory withdrawal function on the platform. You will receive a confirmation email from the platform operator acknowledging receipt of your notice of withdrawal.
The data is then transmitted to us by the platform operator.
If the contact relates to a contract already concluded between you and us, this data processing is carried out on the basis of Article 6(1)(b) of the GDPR. Otherwise, data processing is carried out on the basis of Article 6(1)(c) of the GDPR, to fulfil a legal obligation to provide an electronic withdrawal function.
We use your email address solely to process your notice of withdrawal. Your data will subsequently be deleted in accordance with statutory retention periods, provided you have not consented to further processing and use.
Collection, processing, and transfer of personal data in orders
When you submit an order we only collect and use your personal data insofar as this is necessary for the fulfilment and handling of your order as well as processing of your queries. The provision of data is necessary for conclusion of a contract. Failure to provide it will prevent the conclusion of any contract. The processing will occur on the basis of Article 6(1) b) GDPR and is required for the fulfilment of a contract with you.
Your data will be shared, for example, with shipping companies, dropshipping or fulfillment providers, payment service providers, service providers for order processing, and IT service providers. We will comply strictly with legal requirements in every case. The scope of data transmission is restricted to a minimum.
Duration of storage
After contractual processing has been completed, the data is initially stored for the duration of the warranty period, then in accordance with the retention periods prescribed by law, especially tax and commercial law, and then deleted after the period has elapsed, unless you have agreed to further processing and use.
Rights of the affected person
If the legal requirements are fulfilled, you have the following rights according to art. 15 to 20 GDPR: Right to information, correction, deletion, restriction of processing, data portability. You also have a right of objection against processing based on art. 6 (1) GDPR, and to processing for the purposes of direct marketing, according to art. 21 (1) GDPR.
Right to complain to the regulatory authority
You have the right to complain to the regulatory authority according to art. 77 GDPR if you believe that your data is not being processed legally.
You can lodge a complaint with, among others, the supervisory authority responsible for us, which you may reach at the following contact details:
Landesbeauftragte für den Datenschutz Niedersachsen Prinzenstraße 5 30159 Hannover Tel.: +49 511 1204500 Fax: +49 511 1204599 E-Mail: poststelle@lfd.niedersachsen.de
Right to object
If the data processing outlined here is based on our legitimate interests in accordance with Article 6(1)f) GDPR, you have the right for reasons arising from your particular situation to object at any time to the processing of your data with future effect.
If the objection is successful, we will no longer process the personal data, unless we can demonstrate compelling legitimate grounds for the processing that outweigh your interests or rights and freedoms, or the processing is intended for the assertion, exercise or defence of legal claims.