Randy Schwantz in Insurance Agencies
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June 19, 2023 – 4 min read
Randy Schwantz in Insurance Agencies
Randy Schwantz in Insurance Agencies
James G. Parker Insurance is a second generation agency. The current President, Jim Parker III joined the agency in 1978 as a producer and quickly assumes the role of sales leader and eventually President upon the retirement of his father.
JGP is a growing agency. In the mid to late 90’s, they achieved growth through acquisition, aggressively searching out agencies in which they felt had potential and good people. In 2000, Jim saw the need for a common sales culture and in February of 2001 The Wedge was implemented at JGP.
Jim gave each satellite office a choice as to whether or not to participate. The partners in the company did not support Jim’s decision and protested mightily over the cost and choice. With Jim’s vision and courage, the training was conducted in February of 2001, minus some offices and key producers. Jim believed it was the young producers that were the future of the agency and invested in them with The Wedge.
The training was completed and even with some controversy and bruised egos, Jim and Todd continued to drive the process. To their credit, it was their commitment and belief in the process that kept it alive, albeit just barely at times. There were success stories during this period and there were converts. But for 3 years, The Wedge Sales Culture plodded along, with a core of producers starting to win and grow.
Their success validated the agency’s commitment to it, and soon more began ask to get involved. In 2004 the joined WPI and the basics were introduced once again, most of which had drifted away from the process was addressed and put back on track.
The Wedge Sales Culture is credited as the engine of new business growth at JGP. Over the past 14 months, there have been 2 Wedge Workshops for new producers and veterans who originally passed on the initial training.
In these sessions, there was close to 40 producers trained, retrained or introduced to The Wedge. Twice we have been the all day speakers at their company wide sales meeting. The Wedge Sales Culture and the Practice of The Wedge is now the dominate process with only a few not participating. This is a total reversal from 2 ½ years ago.
In 2004, JGP participated in a PDS. The results were underwhelming. All 4 factors were well below benchmark. The group of general partners met with me in late August of 2004 to review this report. There was considerable concern about the result, but no clear consensus on what direction to take to address the issues. After making concrete recommendation on the steps needed to begin to fix the problems, Jim took me aside and says that as bad as the report was, he needed time to work with the partners before they could or would face the issues head on.
During the next twelve months, we met with the partners 3 separate times prior to doing a Wedge related workshop. Each time we would talk about the need for a common culture, not only in sales, but at all levels. We would discuss who, how, when and why it was best.
The strongest argument I could present was that without a common culture, redundant services would be necessary to provide the proactive service platforms we were working to implement and that eroded margins and profits for all the partners. After each meeting, Jim would tell me they are getting closer as a Partner Team and the message was taking hold. Jim did a tremendous job of articulating the vision to the partners. They began to gravitate to him for counsel and advice. They were becoming a team.
In late October of 2005 we conducted another PDS. The results were better. The work with the producers showed a clear improvement over last year. The producer group was beginning to understand the key performance factors. The Managers and CSR’s showed only a slight improvement. Unless this was corrected, the aggressive growth plans of the agency would be in jeopardy. It was time to act, and the partner group, now functioning as a team, was ready to take on the challenge.
The new challenge for JGP is to integrate the JGP culture through the many branch offices that became branches through acquisition and not natural expansion. Further complicating the issue is that each branch has operated fairly autonomously from the Fresno operation. Bringing the partners together did not translate into bringing the people and operation practices together. The loose bond they all had worked for a while, but it was now working against them and the task of bringing it together seemed monumental to the group.
We sat down to map out a strategy on how to approach this. The PDS clearly indicated that the people leadership skills of all management were weak. Clearly you can not lead an integration effort if leading is not a strong skill. It was decided that the partners would do a 2 day leadership/strategy workshop to learn the skills needed and develop a strategy to implement them. Next, the middle management group will attend a leadership, coaching and counseling workshop shortly after the partner group. The manager’s workshop will be designed to teach those skills, but also to communicate the strategies that were developed at the partner session.
Next we need to address the performance and culture of the entire company. We need to put together a performance platform (a clear understanding of purpose, responsibilities and expectations) for everyone in the agency that is addressed with the same process, working off the same principles and linked from office to office, making integration a process and practice, rather than a suggestion or demand.
We will begin this after the appropriate leadership training is done. The goal for this to develop a commonality of practices and behaviors for everyone, across all levels and locations, making the linkage of new processes clear to everyone.
It is a goal of our work together to take this entrepreneurial agency and develop into a collaborative entrepreneurial agency, recognizing the need for teamwork and interdependence on each other, without snuffing out the entrepreneurial spirit and energy. The BHAG for JGP is to be a $100 Million dollar agency in 5 years. To do this there is a realization by all partners that it will require a high performing organization with form and function, or another way of saying it, the right people in the rights seats in the right bus.
As we discussed at the partner meeting, change is the only way to play in a bigger game. They realize that if they keep doing what they are doing, they will get what they are getting. Achieve a level success yes, but to be successful long term, doubtful.
Every agency has successes, some for many years, but in today’s business environment, not many achieve it with any long term sustainability and predictability. Jim says we (JGP and The Wedge Group) are now partners and we are part of his team. The challenges are formidable but achievable. Both sides approaching it with trusting attitude and committed to do the right thing will assure a successful journey, replicatable with an agency with the courage and vision to compete in the new economy.
How The Wedge Sales Culture Drove New Business Growth
The Wedge Sales Culture is credited as the engine of this growth, and this case study explores how the agency has implemented and benefited from this process.
“Hire Producers with Confidence” Use Our Evidence-Based Interview Process to Eliminate Candidates Who Don’t Have GRIT
With my evidence based interview process you can be sure that your next hire has the GRIT to fight through walls and achieve success selling commercial insurance.
Growing Your Agency Just Got Way Easier
Do you want to work with me to grow your agency?
Take 90-seconds to complete this application
to see if you are eligible for a Growth Session.
How the Wedge Sales Culture Drove New Business Growth
The Wedge Sales Culture is credited as the engine of this growth, and this case study explores how the agency has implemented and benefited from this process.
“Hire Producers with Confidence” Use Our Evidence-Based Interview Process to Eliminate Candidates Who Don’t Have GRIT
With my evidence based interview process you can be sure that your next hire has the GRIT to fight through walls and achieve success selling commercial insurance.
Growing Your Agency Just Got Way Easier
Do you want to work with me to grow your agency?
Take 90-seconds to complete this application
to see if you are eligible for a Growth Session.