Agency Consulting Group, Inc. has been involved in Strategic Planning and implementation of plans for insurance agencies for 45 years. We have seen fantastic successes and dismal failures and have learned the ingredients of both the successes and the failures.
The primary cause of failures of Plans is the simplest of all problems – lack of implementation.
The planning process is a multi-day program during which the agency staff and management invests itself in what CAN result if the plans are implemented. However, planning, in itself, is like dreaming – without the dream it is difficult to determine whether you achieve your goals or whether the goals have shifted down to what you really accomplished.
But dreaming, itself gets nothing done. You must activate those dreams by DOING SOMETHING.
Each of our Strategic Plans includes a critical section called Action Planning attached to the Tactical (1-Year) planning section. The Action Plan defines “activities,” the implementation of which would assure the success of specific Objectives to which those Action Plans had been attached. Many years ago, in the implementation of our own Plans, we found that Action Planning was a necessary step because we, like many agents, were diverted from goals and objectives by the “firefighting” that encompasses our every day work-life. Action Plans reminded us of the activities that were required if our short-term ‘dreams’ (the Objectives for the year) were to be accomplished.
The implementation of Action Plans is tested by Benchmarks. Benchmarks are monthly measures that would define the success of the Action Plans toward the eventual goal of the Annual Objective.
Within our consulting practice, we not only conduct Strategic and Tactical Planning Sessions, but we are often asked to monitor the results of the planning process on a monthly or quarterly basis.
Theoretically, the benchmark measures would indicate if (and how well) Action Plans were working to accomplish the goals of the Objectives. And, if the Action Plans were implemented, benchmarking would accomplish that goal and permit Action Plans to be changed if they were insufficient to achieve the Objective (or the Objective changed if the Action Plan were more successful than expected).
Invariably, however, we find the failure of Action Plans results from simple negligence. A crisis occurs and other priorities keep the agency from initiating the Action Plan. The Objectives cannot be met without activities to generate the expected results. The revenue of the agency is weakened by the failure to achieve objectives. Expenses always seem to match (or exceed) expectations, so profits suffer. Agents new to the planning process tend to minimize the Plan at this point because the results were not achieved. In reality, the Plan was a good one and the Action Plans were well considered and would have worked – if they had been implemented!
Many agencies manage crises. Even if they do plan, the implementation is routine and somewhat boring. Any crisis is an excuse to go back to what was being done before planning was implemented and operating by the ‘seat of one’s pants’. However, implementation of action plans doesn’t have to be exciting – it has to work to generate the revenues needed to drive growth and profit to the agency.
I encourage agents involved in Strategic Planning to focus on their Action Plans and Benchmarks, ensuring their implementation despite any crises that may arise within their agencies. Remember, the Objectives that you set out were not just some things that would be nice to have in your agency – they are THE MOST IMPORTANT results that the agency must have in order to mature in your desired direction. Most are growth and retention based. The loss of a client, an employee, a carrier or other agency crisis, while important and needing attention, does not change the agency’s long-term priorities. A company has never risen to greatness by sticking its fingers in the dike and hoping for the best. The elimination of Action Plans and Objectives in favor or dealing with crisis is an EXCUSE, not a reason, for the failure of a Plan. And, while excuses are comfortable, they don’t grow your agency.
IMPLEMENT! – DO WHAT’S NECESSARY TO ACCOMPLISH THE OBJECTIVE! – DO SOMETHING!