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Change management encompasses “preparing and supporting employees, establishing the necessary steps for change, and monitoring pre- and post-change activities to ensure successful implementation,” as defined by quality education organization ASQ.

In the independent agent channel of the insurance industry, change is a must to heighten competitiveness, set strategic direction and fix tactical problems. Change is and must be part of the plan. It must not be made out to be scary by leaders. It’s up to leaders to help make change happen, and to develop themselves in the process.

Here's a look at four change management issues facing the IA channel today. It’s imperative that independent agents take advantage of resources — especially in-person sharing and learning, now that industry meetings have resumed — to tackle issues like these.

1. Fixing and flexing sales

Insurance agencies traditionally delineate sales generation as distinct from service tasks. But the truth is the entire agency today must be a sales organization. Without a sale we have nothing to service.

Agencies might find it useful to ask: “What does fixing the sales operation entail for our culture and for our customers?” Fixing the sales operation likely means changing processes, and possibly may require changing the culture to help it better support sales. “Flexing” sales might involve adding new technology, new markets, new staff, and new distribution partnerships.

2. Technology: change, then change again.

The independent agent channel often has viewed technology as “the solution” to business challenges. But the fact is that it’s not. Rather, technology can and should provide a catalyst for agencies to make themselves stand out.

A software or hardware tool can provide a feature function for agencies to move from point A to point B. In my view, we’ve got to stop looking at tech as “the solution” and instead look at it for the functions it can provide, and where those functions can take the agency.

What’s more, the nature of technology change means there is always a state of flux in these functions. It’s incumbent on agencies to anticipate that change, and to take steps to monitor it and grow with it. Technology user groups such as ACT, AUGIE, Applied Client Network, NetVU and many others are indispensable resources to see how other agencies are using technology and what value it provides them.

3. Integrating strategic changes after an acquisition or merger

Agency mergers and acquisitions (M&A) can look easy on the outside. It’s tempting to think: “My agency bought agency XYZ. Their persona mirrors my agency. So the integration of the two agencies is a given.”

But that doesn’t give enough consideration to the people part of that M&A integration process. Data and pro forma financial statements are essential, but even when the acquisition transaction checks all the boxes, you still have people involved in an acquisition.

It’s vital to validate and respect the people involved. While the acquired agency may have checked all the boxes, there also is an emotional level to M&A that no one should take for granted. If we don’t pay enough attention to people, we are doing disservice to the acquisition process, the business itself and of course the people.

4. Recruiting: why work for you?

The shortage of talent needs a fix. Most everyone is seeking new talent, whether new to the workforce or new to the insurance industry.

It’s incumbent on independent agencies to ask anew: Why would someone want to work for us? That is the first step in creating a value proposition to present to workers who will drive growth and profitability. You’ve got to position yourself as someone attractive to work for.

The insurance industry has an opportunity to change how we think about recruiting people: We can recruit by the persona and the skills that they represent, and not by the job that a hiring manager might happen to think they seem most suited to.

Insurance offers opportunity for anyone — for every college degree, every persona, every skill. We have an opportunity to recruit by those criteria rather than by simply recruiting by job description.

I visualize recruiting today as a park playground filled with kids. Some of them are swinging on the swings, some are hanging on the monkey bars, some walking a balance beam, some swimming, some walking, and some are just sitting taking it all in. Think of every person on that playground as a potential insurance worker who could join our community.

The good news in this analogy is that if agencies look at every person for their skills and preferences (rather than merely looking from the inside out using a job description), we can find “fits” between the work and the people. If a person loves to do five certain things (their heart just goes “pitter patter” for those five things), but they dislike doing two other things, it might make sense to have those two things done by someone who loves to do them. That can help create job satisfaction.

Source:

https://asq.org/quality-resources/change-management