Sunday, October 19, 2008
Running the bases
Running the Bases
About a year ago, we realized that our training topics were too broad and didn’t take into consideration our agents’ varying levels of expertise.
Some of our training was too basic for the veterans, and some of the material that our highly sophisticated agents appreciated was way over the new people’s heads.
So I scheduled one of our occasional think tanks to come up with a solution. One Friday morning, I drove with two of our managers who are heavily involved
in training, plus another partner, to my cabin, which is about an hour’s drive away from the office. We spent the entire day thinking and talking about one topic: how to develop our firm.
A number of ideas came out of that meeting.
One of the results of our think tank was a strategy that has helped us target our training to our agents’ varying levels of experience and expertise.
Here’s how it works¾picture a baseball diamond with the three bases and home plate:
Level 1 is first base. It involves twice-a-month training for new people (those with us less than a year). We have a 12-topic curriculum that gets repeated
because new people need to see it several times. It’s called “12 Things All New Agents Need to Know.” These meetings include lots of role-playing and repetition.
Level 2 represents second base. It’s for people in their second year, and we meet once a month.
Attendance is mandatory at Level 1 and 2 meetings because those agents are still on company financing.
Level 3, or third base, is for those agents who have been with us for more than two years but who have not reached the top 20 percent in terms of production.
This group meets every other month. For Level 3 meetings, we have speakers come in from the home office to make presentations.
Level 4 is home base! These agents represent the top 20 percent in our organization, and they meet quarterly. They have to earn their way into Level 4.
For these meetings, we hire professional speakers.
Attendance at Level 3 and 4 meetings is voluntary. But I keep track of attendance because it’s a worthwhile effort,
and I want to monitor how many people are taking advantage of this training opportunity. I’ve made our marketing department accountable for getting 35 percent of our firm (about 50 people)
into each Level 3 meeting. I’ve found that setting this specific attendance goal encourages the marketing staff to do a better job of promoting the program and selecting speakers.
We have two methods for getting feedback from these meetings¾one is a paper evaluation, and the second is a phone call from an administrator.
We ask each participant to tell us what was the best part of the level they participated in, what didn’t go so well, etc.
One of the comments we’ve received, for example, is that some of the new people wanted to do more role-playing.
So we incorporated more of it into our training.
I collect those forms and, as I do monthly reviews with our education department, we look at those statistics.
We have the highest production of new agents in the company, and we are convinced that our high retention is the direct result of very selective recruiting and much targeted training.
We’ve also seen great retention among our veterans because they are receiving excellent learning experiences right where they need them.
These think tanks, which can involve any group of managers, have been extremely productive.
Rather than having a two-hour meeting and talking about nine different issues, these focused, all-day meetings allow us to really dig deeply into a topic.
It also gives us a chance to, as the saying goes, “spend time on the business, not in the business.”
It’s an informal environment, so we wear jeans. The camaraderie is great, too. We usually have rolls and juice in the morning, work for a few hours,
then go into town and have lunch in a cafe. Then we work for a few more hours and drive back.
We’ll walk through Dan Sullivan’s strategy circles, and that helps us come away with very specific next steps.
If you’re considering doing this, keep in mind that think tanks like this can end up being so informal that you don’t come away with anything useful,
such as who does what, what can we expect, and when it is due. So take good notes and build follow-up into your calendar.
To make sure that we capture and act on the high points of our discussions, I’ll assign projects to people and let them know that
I’ll check back with them in 30 days to discuss their progress.
This is our way of asking our customer¾the agent¾what we could do better.
Here’s another, shorter, retention idea. We recognize each agent’s birthday. We mail each agent two movie tickets in a birthday card.
We also send their children birthday cards and, if they’re under age 12, a crisp $1 bill. It’s a small thing, but recognizing families helps build loyalty,
retention and a positive culture. We’ve gotten cards back from the kids written in crayon saying, “Thank you for the money.”
We want our firm to reach into the family to recognize their overall contribution to the firm’s success
Tim P. Schmidt, LUTCF FIC
Managing Partner
Thrivent Financial for Lutherans
Golden Valley, MN
Wednesday, October 15, 2008
Invest in Marketing Assistant
Invest in a Marketing Assistant
Dear Leaders,Check out previous articles at: http://regleaders.blogspot.comInvest in a Marketing AssistantAfter new advisors have been with us for six months, we encourage them to get out their checkbooks and invest in a marketing assistant. Most of them already have administrative assistants. We are trying to drive the message home to them, through Securian, that they are business entrepreneurs who need to invest in their practice.Two or three advisors can share the expense of hiring the assistant in the beginning. After a year, though, each advisor should have his or her own full-time marketing assistant.Often, a good salesperson is not a good businessperson. So we have to build that skill set. We train and educate our advisors on how to make use of marketing assistant’s expertise. Most of them don’t know where to begin. Many times, they try to treat their new marketing assistants like administrative people. That doesn’t work. We also help our advisors recruit their marketing assistants. We consider it a joint venture—even though the advisor is paying that person’s salary, we invest a lot in making sure that the relationship helps the advisor increase production.We have found that this helps a new advisor’s practice go to next level. It has also made a big difference in our retention of new advisors because they’re acting like businesspeople, investing in the infrastructure of their business. If you’re thinking about doing this, I would advise that you plan on the first marketing assistant not working out, and maybe the second, too. The one who works out will be about your third hire. It’s important to have a strong positive chemistry between the advisor and the assistant.I used this strategy when I worked with Prudential. Of our 25 top-ranking advisors, 23 of them had both an administrative and a marketing assistant. We saw a great improvement in their retention and in moving their practice to next level. The main responsibility for a marketing assistant is to increase the number of quality, face-to-face appointments between the advisor and qualified prospects, in the advisor’s conference room or office. The assistant also helps get cases ready, prepares presentations and illustrations, anything that he or she can do to make selling easier for the advisor.I can remember the day when I finally convinced one of my advisors at Prudential, Terry, to invest in his practice by hiring a marketing assistant. Now he leads Prudential as the No. 1 advisor, and he has six or seven people working for him. He had always had an administrative assistant and was reluctant to hire another assistant. When I finally encouraged him to do so, the first two people he hired didn’t work out. The third one was the charm.As a result, Terry’s commissions and fees have increased from $150,000 to more than $600,000. He had been averaging 11 or 12 appointments a week, many of them out of the office. Now he averages 22 appointments a week and 90 percent of them are in the office.Thomas P. Burns, CLU ChFCSenior Vice PresidentSecurian Financial Network/Minnesota LifeSt. Paul, MN===========================================================================================================Leadership StylesWhen asked what do you want to see most in an MBA graduate today.The answer was “Someone who is articulate, persuasive, and can read a balance sheet- in that order”The soft skills – being articulate, persuasive and effective – are what most people need coaching.In another example in Coopers and Lybrand’s corporate brochure they describe their core values as integrity, teamwork, mutual respect and personal responsibility, the style side of business, the softer side. The technical side of the world’s largest accounting /consulting firm isn’t emphasized. Granted, it’s assumed.And the same is true for you. Once you reach management and executive levels, your substance is assumed. What your boss wants to see is if you fit in, reflect the corporate culture’s image (as well as their’s) and if you understand the “code”. Substance and style, they permeate all walks of life!Pepsi-Cola rate its top middle and senior management people on thought leadership, people leadership, organizational impact, and professional maturity. By the time an individual get to that level in the organization, their managers rightfully assume competence. What they are looking for is the style. If you don’t have it, you are out, regardless of how brilliant you areMortimer B Zuckerman and Thomas R Evans in Fast Company, rates leaders on nine elements1. Charisma – instills faith, respect, and trust. Has a special gift of seeing what others need to consider. Convey a strong sense of mission2. Individual considerations. A coach, advises, and teaches people who need it. Actively listens and gives indications of listening. Gives newcomers a lot of help.3 Intellectual stimulation. Gets other to use reasoning and evidence, rather than unsupported opinion. Enables others to think about old problems in new ways. communicates in a way that forces others to rethink ideas that they had never questioned before4 Courage. Willing to stand up for ideas, even if they are unpopular. Does not give in to pressure or others opinions in order to avoid confrontations. Will do what’s right for the company and foe employees, even if it causes personal hardship5 Dependability. Follows through and keeps commitments. Takes responsibility for actions and accepts responsibility for mistakes. Works well independently of the boss.6 Flexibility. Functions effectively in changing environments. When a lot of issues hit at once, handles more than one problem at a time. Changes course when the situation warrants it.7 Integrity. Does what is morally and ethically right. Does not abuse management privileges. Is a consistent role model.8 Judgment. Reaches sound and objective evaluations of alternatives courses of action through logic, analysis and comparisons. Puts facts together rationally and realistically. Uses past experiences and information to bring perspective to present decisions9 Respect for others. Honors and does not belittle the opinions or work of other people, regardless of their status or positionsNote how these leadership skills apply not only to ability but to style as well.Coaches get juice through fair and honest treatment of people, gaining trust, learning from mistakes, understanding tactics, plus observation and patience in dealing with various situations. That’s juice- the intangible, the soft, the style side. The person who thinks this can’t be learned will probably remain in a subordinate or ineffective position.You can even take style into another level: Prana. Prana is a Sanskrit word.It means “breath” or “life force”. Your business qualifications combined with your prana makes for your all –important juice
Dear Leaders,Check out previous articles at: http://regleaders.blogspot.comInvest in a Marketing AssistantAfter new advisors have been with us for six months, we encourage them to get out their checkbooks and invest in a marketing assistant. Most of them already have administrative assistants. We are trying to drive the message home to them, through Securian, that they are business entrepreneurs who need to invest in their practice.Two or three advisors can share the expense of hiring the assistant in the beginning. After a year, though, each advisor should have his or her own full-time marketing assistant.Often, a good salesperson is not a good businessperson. So we have to build that skill set. We train and educate our advisors on how to make use of marketing assistant’s expertise. Most of them don’t know where to begin. Many times, they try to treat their new marketing assistants like administrative people. That doesn’t work. We also help our advisors recruit their marketing assistants. We consider it a joint venture—even though the advisor is paying that person’s salary, we invest a lot in making sure that the relationship helps the advisor increase production.We have found that this helps a new advisor’s practice go to next level. It has also made a big difference in our retention of new advisors because they’re acting like businesspeople, investing in the infrastructure of their business. If you’re thinking about doing this, I would advise that you plan on the first marketing assistant not working out, and maybe the second, too. The one who works out will be about your third hire. It’s important to have a strong positive chemistry between the advisor and the assistant.I used this strategy when I worked with Prudential. Of our 25 top-ranking advisors, 23 of them had both an administrative and a marketing assistant. We saw a great improvement in their retention and in moving their practice to next level. The main responsibility for a marketing assistant is to increase the number of quality, face-to-face appointments between the advisor and qualified prospects, in the advisor’s conference room or office. The assistant also helps get cases ready, prepares presentations and illustrations, anything that he or she can do to make selling easier for the advisor.I can remember the day when I finally convinced one of my advisors at Prudential, Terry, to invest in his practice by hiring a marketing assistant. Now he leads Prudential as the No. 1 advisor, and he has six or seven people working for him. He had always had an administrative assistant and was reluctant to hire another assistant. When I finally encouraged him to do so, the first two people he hired didn’t work out. The third one was the charm.As a result, Terry’s commissions and fees have increased from $150,000 to more than $600,000. He had been averaging 11 or 12 appointments a week, many of them out of the office. Now he averages 22 appointments a week and 90 percent of them are in the office.Thomas P. Burns, CLU ChFCSenior Vice PresidentSecurian Financial Network/Minnesota LifeSt. Paul, MN===========================================================================================================Leadership StylesWhen asked what do you want to see most in an MBA graduate today.The answer was “Someone who is articulate, persuasive, and can read a balance sheet- in that order”The soft skills – being articulate, persuasive and effective – are what most people need coaching.In another example in Coopers and Lybrand’s corporate brochure they describe their core values as integrity, teamwork, mutual respect and personal responsibility, the style side of business, the softer side. The technical side of the world’s largest accounting /consulting firm isn’t emphasized. Granted, it’s assumed.And the same is true for you. Once you reach management and executive levels, your substance is assumed. What your boss wants to see is if you fit in, reflect the corporate culture’s image (as well as their’s) and if you understand the “code”. Substance and style, they permeate all walks of life!Pepsi-Cola rate its top middle and senior management people on thought leadership, people leadership, organizational impact, and professional maturity. By the time an individual get to that level in the organization, their managers rightfully assume competence. What they are looking for is the style. If you don’t have it, you are out, regardless of how brilliant you areMortimer B Zuckerman and Thomas R Evans in Fast Company, rates leaders on nine elements1. Charisma – instills faith, respect, and trust. Has a special gift of seeing what others need to consider. Convey a strong sense of mission2. Individual considerations. A coach, advises, and teaches people who need it. Actively listens and gives indications of listening. Gives newcomers a lot of help.3 Intellectual stimulation. Gets other to use reasoning and evidence, rather than unsupported opinion. Enables others to think about old problems in new ways. communicates in a way that forces others to rethink ideas that they had never questioned before4 Courage. Willing to stand up for ideas, even if they are unpopular. Does not give in to pressure or others opinions in order to avoid confrontations. Will do what’s right for the company and foe employees, even if it causes personal hardship5 Dependability. Follows through and keeps commitments. Takes responsibility for actions and accepts responsibility for mistakes. Works well independently of the boss.6 Flexibility. Functions effectively in changing environments. When a lot of issues hit at once, handles more than one problem at a time. Changes course when the situation warrants it.7 Integrity. Does what is morally and ethically right. Does not abuse management privileges. Is a consistent role model.8 Judgment. Reaches sound and objective evaluations of alternatives courses of action through logic, analysis and comparisons. Puts facts together rationally and realistically. Uses past experiences and information to bring perspective to present decisions9 Respect for others. Honors and does not belittle the opinions or work of other people, regardless of their status or positionsNote how these leadership skills apply not only to ability but to style as well.Coaches get juice through fair and honest treatment of people, gaining trust, learning from mistakes, understanding tactics, plus observation and patience in dealing with various situations. That’s juice- the intangible, the soft, the style side. The person who thinks this can’t be learned will probably remain in a subordinate or ineffective position.You can even take style into another level: Prana. Prana is a Sanskrit word.It means “breath” or “life force”. Your business qualifications combined with your prana makes for your all –important juice
Tuesday, October 7, 2008
A culture of High Expectation
A Culture of High Expectations
To me, leadership is about the culture you create. My culture is one of high expectations from an activity standpoint. I’ve always believed in high activity and high standards. As a new financial rep, early on, I was high-life, high-activity person. That’s what I believe in. I got that from Al Granum
In 2001, I took over an organization that was not high-activity-oriented and didn’t focus on high-lives production. I spent the first year on the soapbox talking about activity with every new recruit and prospect I had. The people here were in their own groove and resisted it. The first year was awful.
I found out the hard way that you should never relax your standards.
As a new managing partner, when your name is suddenly on the door, even if you’re successful, fear and self-doubt can set in and make you do things you wouldn’t normally do.
I had spent nine years recruiting and developing people in the Hoopis Agency, a phenomenal organization. I was extremely selective about the people I hired and had tremendous success. Tremendous!
But the minute I walked out of there, knowing that now it was all on me, self-doubt set in.
My logic got out of whack because, guess what? Panic is too strong a word, maybe, but I wasn’t nearly as selective as I should have been. I needed to get recruits in here, the momentum of some new blood. I needed to show the organization that I could get new people on board. When that’s the mindset, you’re willing to accept less of candidates. So the 20 I recruited in my first year weren’t even close to the mark.
Within six months, 18 of my 20 hires were gone. It was a huge financial commitment and wasted effort. A 10 percent retention rate isn’t going to cut it. If my retention is 20 percent, I won’t make a profit for seven years. If it’s at the industry average, which is 11 percent, I will never make a profit. I had cash flow in that first year, but I wasn’t profitable.
During my second year, my emotional controls relaxed a little and my logical controls took over, so I began to be more selective again. But it meant that I had to increase the number of people I interviewed.
I learned my lesson. I’m back to setting expectations and enforcing them, and that is part of our culture. Our mandate in my firm today is that we do 50 first interviews every month. We will have 600 first interviews this year. From those 600, we will recruit 18. The GAMA Foundation study [Agency Recruiting & Selection Practices] says that 20 interviews to 1 hire is what the most productive agencies do, and the less productive agencies do 10 to 1. I’m using 30 to 1, so it does take me longer.
My recruits have to adhere to a strict standard of productivity, too. They have to sell 20 lives or $20,000 of premium in their first six months, or we shake hands. I had a young man who came to me and had 17 lives and $18,976 of premium. He said, “I’ve got $22,000 of premium that I’m waiting to put in.” I terminated him. We had an agreement. We had talked about this all along. I know that the retention rate for someone who makes less than 20 sales in their first six months is not acceptable, so I held to that standard. My retention rate has dramatically improved.
I would advise any new managing partner to be patient. When you’re building your organization, either hire additional recruiting units or wait for the right people¾but do not compromise your standard.
Brian H. Early, CLU ChFC
Managing Partner
Northwestern Mutual Financial Network
Wayne, PA
GAMA International Board of Directors
To me, leadership is about the culture you create. My culture is one of high expectations from an activity standpoint. I’ve always believed in high activity and high standards. As a new financial rep, early on, I was high-life, high-activity person. That’s what I believe in. I got that from Al Granum
In 2001, I took over an organization that was not high-activity-oriented and didn’t focus on high-lives production. I spent the first year on the soapbox talking about activity with every new recruit and prospect I had. The people here were in their own groove and resisted it. The first year was awful.
I found out the hard way that you should never relax your standards.
As a new managing partner, when your name is suddenly on the door, even if you’re successful, fear and self-doubt can set in and make you do things you wouldn’t normally do.
I had spent nine years recruiting and developing people in the Hoopis Agency, a phenomenal organization. I was extremely selective about the people I hired and had tremendous success. Tremendous!
But the minute I walked out of there, knowing that now it was all on me, self-doubt set in.
My logic got out of whack because, guess what? Panic is too strong a word, maybe, but I wasn’t nearly as selective as I should have been. I needed to get recruits in here, the momentum of some new blood. I needed to show the organization that I could get new people on board. When that’s the mindset, you’re willing to accept less of candidates. So the 20 I recruited in my first year weren’t even close to the mark.
Within six months, 18 of my 20 hires were gone. It was a huge financial commitment and wasted effort. A 10 percent retention rate isn’t going to cut it. If my retention is 20 percent, I won’t make a profit for seven years. If it’s at the industry average, which is 11 percent, I will never make a profit. I had cash flow in that first year, but I wasn’t profitable.
During my second year, my emotional controls relaxed a little and my logical controls took over, so I began to be more selective again. But it meant that I had to increase the number of people I interviewed.
I learned my lesson. I’m back to setting expectations and enforcing them, and that is part of our culture. Our mandate in my firm today is that we do 50 first interviews every month. We will have 600 first interviews this year. From those 600, we will recruit 18. The GAMA Foundation study [Agency Recruiting & Selection Practices] says that 20 interviews to 1 hire is what the most productive agencies do, and the less productive agencies do 10 to 1. I’m using 30 to 1, so it does take me longer.
My recruits have to adhere to a strict standard of productivity, too. They have to sell 20 lives or $20,000 of premium in their first six months, or we shake hands. I had a young man who came to me and had 17 lives and $18,976 of premium. He said, “I’ve got $22,000 of premium that I’m waiting to put in.” I terminated him. We had an agreement. We had talked about this all along. I know that the retention rate for someone who makes less than 20 sales in their first six months is not acceptable, so I held to that standard. My retention rate has dramatically improved.
I would advise any new managing partner to be patient. When you’re building your organization, either hire additional recruiting units or wait for the right people¾but do not compromise your standard.
Brian H. Early, CLU ChFC
Managing Partner
Northwestern Mutual Financial Network
Wayne, PA
GAMA International Board of Directors
Running with new associates -Sept
Dear Leaders,
Enjoy this week article and do check out previous articles posted in the blog http://regleaders.blogspot.com
Running with New Associates
One of the primary jobs of a sales manager is to run joint work with a new associate. I have always looked at that as an opportunity not only to help potential clients with their financial planning, but as a way to spread the recruiting word. I explain to my clients that one of the other hats that I wear is helping AXA build a strong organization by always looking for good people to join our team! I suggest that if the client has friends, immediate family members, or relatives who are looking for a career change or have recently graduated from college, they should forward their names to me so that I can show them what the opportunity is all about. I have since taught my managers to incorporate this practice into their routine appointments; both on their own and as part of their joint work. Think about how many potential people your managers network with as they run with their new associates! The results over the years have been excellent. Each year we add four or five new associates to our branch as a result of client referrals! I have hired a CPA, a few recent college grads, and a couple of small-business owners as a result. Plus, it helps us keep our clients satisfied in terms of planning and also in creating career opportunities for people they care about! It's a win-win for all parties involved!
Louis J. Nuchereno
Executive Vice President
AXA Advisors, LLC
Williamsville, NY
The power of silence
"Growth takes place in a person by working at a deep inner level in a sustained atmosphere of silence."
-- Dr. Ira Progoff
How can we hear our wise voice of intuition if we are always thinking, talking and distracted by outer events?
If we take time daily to experience physical stillness and to direct our attention inside,
we can begin to find the peace, love, will and wisdom that exist as our essence.
"Only when one is connected to one's own core is one connected to others...
And, for me, the core, the inner spring, can best be refound through solitude."
-- Anne Morrow Lindbergh
"In the sweet territory of silence we touch the mystery. It’s the place of reflection and contemplation,
and it’s the place where we can connect with the deep knowing, to the deep wisdom way."
-- Angeles Arrien
Enjoy this week article and do check out previous articles posted in the blog http://regleaders.blogspot.com
Running with New Associates
One of the primary jobs of a sales manager is to run joint work with a new associate. I have always looked at that as an opportunity not only to help potential clients with their financial planning, but as a way to spread the recruiting word. I explain to my clients that one of the other hats that I wear is helping AXA build a strong organization by always looking for good people to join our team! I suggest that if the client has friends, immediate family members, or relatives who are looking for a career change or have recently graduated from college, they should forward their names to me so that I can show them what the opportunity is all about. I have since taught my managers to incorporate this practice into their routine appointments; both on their own and as part of their joint work. Think about how many potential people your managers network with as they run with their new associates! The results over the years have been excellent. Each year we add four or five new associates to our branch as a result of client referrals! I have hired a CPA, a few recent college grads, and a couple of small-business owners as a result. Plus, it helps us keep our clients satisfied in terms of planning and also in creating career opportunities for people they care about! It's a win-win for all parties involved!
Louis J. Nuchereno
Executive Vice President
AXA Advisors, LLC
Williamsville, NY
The power of silence
"Growth takes place in a person by working at a deep inner level in a sustained atmosphere of silence."
-- Dr. Ira Progoff
How can we hear our wise voice of intuition if we are always thinking, talking and distracted by outer events?
If we take time daily to experience physical stillness and to direct our attention inside,
we can begin to find the peace, love, will and wisdom that exist as our essence.
"Only when one is connected to one's own core is one connected to others...
And, for me, the core, the inner spring, can best be refound through solitude."
-- Anne Morrow Lindbergh
"In the sweet territory of silence we touch the mystery. It’s the place of reflection and contemplation,
and it’s the place where we can connect with the deep knowing, to the deep wisdom way."
-- Angeles Arrien
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