Author: Jennifer Becker
Virtually every industry has a model for comparing results to other businesses in the same field. For the independent agency system, that model is the Big “I" Best Practices program.
Best Practices resources gather data from highly qualified agencies that have demonstrated real, measurable success. Other agencies can use these metrics to compare their own information and statistics to those recognized as the best, applying appropriate resources for self-improvement while celebrating areas of high achievement.
Using Best Practices resources forces agents to work on their business instead of just in it—and that can pay for itself many times over. If agencies follow Best Practices metrics year after year, they can validate processes and update procedures when it becomes necessary in the future.
Here is a closer look at exactly what the Best Practices Study will help you measure and how this data can be beneficial to agency operations and planning.
Perpetuation readiness – is your agency positioning itself to perpetuate internally? What do you need to do to get there?
Sales culture – Are you optimizing organic growth and new business development? How are other agencies achieving stellar results on a consistent basis in this area?
Productivity – Is your operation's productivity competitive with your peers, or are you compromising your agency's value in this area? How can you be a more efficient agency?
Financial health – How does your profitability compare to other agencies? Can you fuel shareholder transactions and fund investments in the next generation of buyers? Does your bottom line meet the valuation expectations of sellers and buyers alike?
Producer recruiting and development – Are you hiring enough producers and preparing them for success? Do you have a system in place to ensure effective management of this critical part of your business?
In all areas every agency can make apples-to-apples comparison. Agencies can compare their own metrics to those of firms in six specific revenue categories, from those with less than $1.25 million in annual revenue to those with more than $25 million.
The most current copy of the Best Practices report can be ordered online. For more information on how each of the metrics can benefit your agency 15-minute webinars are available for on-demand replay. Questions can be sent to Best Practices staff.
Last Updated: April 7, 2020