Last month we discussed Virtual Management in which Agency Consulting Group, Inc. takes some management responsibilities within agencies who need further internal control while the agency owners spend their time selling insurance – or in other endeavors. We also covered some of the topics of Dashboard Reporting that allows agency owners, whether self-managed or utilizing Virtual Management, to identify the key elements of the success of their agencies.
We received a large number of inquiries asking for more details on the Dashboard Reporting, so this month we include how to set up your own Dashboard Reports covering the key elements that are important to you. We can, of course, come into your agency and create these Dashboard Reports including creating the source reporting for the component departments to assure you complete access to the key performance elements within your agency.
- The back-up to these reports is the detailed listing of NB on an on-going continuous basis through the year.
- Only REAL new business is included in this report – no rewrites or reinstatements are included even if they are coded as NB.
- Many agency owners require detail back-up to include producer names, carriers utilized, etc.
- The back up to these reports is the detailed listing of lost policies with highlighting of lost customers (only or last policy for that customer cancelled) including “reason” for the loss. Non-Pay is the method by which the business was lost NOT THE REASON.
- This report becomes a prospecting tool for accounts not lost due to death, departure from the area or sale of insured asset.
3. Agency Growth Report – is derived from the NB and the Lost Business Report and identifies whether the agency is growing or losing ground with respect to customers, policies and annualized revenue. As feasible, this report should be checked against the Management System Reports but, fair warning, this report will not correspond to the management system reports due to incorrectly applied rewrites, reinstatements and annualized vs. term policy values.
4. Production Reports – Sales Activity – Sales are wonderful. They are the culmination of the sales process, but not the critical measurement elements of it. The key elements of Production is Sales Activity. The combined agency sales activity report will reflect.
- The number of sales calls made by the production staff in the period and comparatively through the year and compared to prior year terms,
- The number of proposals made in the period, through the year and compared to prior year,
- A synopsis of prospecting activity conducted by the agency in the reporting period, recognizing that if sufficient time passes without prospecting activity, the well will run dry and the Sales Funnel will dry up as well.
- Supporting detail includes # of prospects in the Sales Funnel, # of sales calls, and number of proposals by each producer.
- Supporting documents are specific client names for all over 90 day receivables (many agents include all over 60 day receivables).
- # of claims opened in period
- # of claims closed in period
- Total # of open claims in period
- Large Loss Category Claims (agency definition of large losses) with client names specified.
- Back up includes names of clients with open and closed claims (marketing initiated to each category for referrals)
7. Cash Position – Initial Cash Position, Cash In and source, Cash Out and category (pd to carriers, pd to clients, pd to payroll, operating expense, other).
8. Backlog Reporting ( workflow) – Starting B/L, Total Incoming Work (from phone, from mail/email, all other), Ending Backlog (def. as items that could have been worked on if more time was available – eliminates items that cannot be advanced without further input from client or carrier). The end result of this reporting is the Productivity (number of units of work accomplished) as defined by Prior Backlog + Current Period Incoming – Ending Backlog for period.
9. Unresolved Client Issues in Period – Listing and status
10. Unresolved Carrier Problems in Period – Listing and status
11. ll Personnel Issues in Period
- Include name and synopsis of problem and solution, if accomplished. The agency should identify which of these topics (and others they may identify) are critical to the information stream available to the agency owners and managers. Each agency should tailor their Agency Dashboard to those issues that are critical to the agency owners.
The Agency Dashboard was originally created to keep remote owners fully informed of the status of their agency’s operations. It has since become the primary management reporting structure for local agency owners and managers to keep everyone informed of the critical measurement elements of agency operations.These owners and managers understand information is not JUST IMPORTANT to business owners, it is critical to the control of their businesses.