EF summer 08.indd - National Association of Professional Allstate ...

More documents

Recommendations

Info

company is “unwilling or unable” to compete head to head with our competition, but is relying on cutting costs and shifting costs to the agency force in order to prove to shareholders that this management team is worth its salt. But cost-cutting can only go so far before it becomes counter-productive and it clear, based on recent surveys, that the morale of the agency force is at or approaching an all-time low and prospects for improvement are nowhere in sight. Captain Wilson, your ship is taking on water and lots of it. Your crew wants to help you save it, but it won’t be easy. For starters, you may want to jettison your 1950s style management culture, stop focusing on short term “patches” and solutions, take time to learn some lessons from companies that enjoy positive relationships with their agents, abandon the employee-like controls that you impose on your independent contractor agents and get back into your core business by showing some true grit in the marketplace. Time for a Reality Check The agents of Allstate understand the company’s desire to write more financial services business – it is a huge profit center. The problem for many agents, at least in coastal areas, is a loss of PIF. Fewer households mean fewer opportunities to sell financial products. In addition, because of this no growth or negative growth trend, agents are recycling the same customers over and over again hoping they’ll buy some financial products from them. And because of the company has decided it won’t cut rates and has abandoned property markets, there is little “new blood” in agent books of business. Yet, in spite of all this, the company arbitrarily boosts agent quotas, threatening the livelihoods of thousands of producers. If left unchanged, this flawed approach will become even more pronounced. The books of many agents are extremely mature – many have customers with original policy years in the 1950s. These customers are in their 70s, 80s or 90s – hardly prospects for life insurance or suitable candidates for the company’s new ClearTarget Retirement Funds. The company doesn’t cotton to the opinions or observations of those outside of its inner sanctum in the bowels of Home Office. This is not uncommon for paternalistic oriented companies or organizations. They presume to know what’s best for the entity as a whole while eschewing honest and constructive input from those on the front lines. On the battlefield, this would likely be a losing strategy, just as it is in business. Listening doesn’t cost a dime – failing to listen can cost a fortune. Looking from the bottom up, it is clear that Allstate’s agent recruitment process, its heavy-handed treatment of “independent contractor” agents and its archaic management structure are due for major overhaul. But because the corporate mind-set is so entrenched, there is little optimism that things will change, even among many of the hand-picked NAB members. They privately complain that some topics are off-limits and that much of their input is unheeded. It was hoped that Mr. Wilson would be a true visionary with the ability to identify and fix these problem areas. So far, agents have been underwhelmed and, in fact, disappointed. While most agents understand the need for the company to rid itself of problem agents, including a small percentage of blatant non-producers, the latest spate of “improve or else” letters have been sent to, perhaps, thousands of agents. This is bully-style management at its worst. “Lather, rinse, repeat” It is doubtful that any newly hired Allstate agent would have ever agreed to sign on the dotted line if they, for the slightest moment, thought they were anything but independent. Some, if not most, managers are untruthful when they present the Allstate opportunity to the budding entrepreneurs they interview. While they don’t lie outright, they simply fail to disclose or gloss over information that could adversely influence a candidate’s decision. These deceptive practices are not only unethical, but can bankrupt an unsuspecting candidate. This “Buyer Beware” attitude is unconscionable, especially in light of the fact that these unsuspecting victims place all their trust in what they are told. Thanks to this process, a great many new agents fail and when they do, the process begins all over again. It matters not that most have spent their life savings chasing their dream of owning and operating their own business. For their part, many managers look at these poor souls as losers, never grasping the fact that they were the root cause of these failures. Whether they’re devoid of scruples or just plain clueless, the managers don’t look back. They must hire a replacement to make their year-end numbers. And so, the cycle repeats itself and like running in place, it all seems to be an exercise in futility. But all this may not be disturbing to some agents. Much like kidnap victims who begin to empathize with their captors, these agents may not fully comprehend the cumulative effects of the changes that have occurred in the past several years. How else is it possible that the company can get away with shifting more and more costs and exert more and more control over its “independent contractor” agents – and then have the audacity to send threatening letters to thousands of agents Although this part of the story doesn’t have a neat, pre-packaged ending, it would appear that the company has a lot of soul-searching to do before Captain Wilson can right the ship. As more and more agents fail, as more and more of Allstate’s market share drifts away, and as more and more agents realize that they are not truly “independent”, it may be Allstate’s inability to hire and retain truly qualified agency owners that ultimately signals the time for change. 30 — Exclusivefocus Summer 2008
Why are Allstate Agents so Excited E-chx Payroll and NAPAA have joined forces to make an exciting offer that has Allstate Agents jumping for joy! Warning Program Highlights: E-chx pays your NAPAA membership dues. E-chx is saving many agents between $350-$3,500 per year on their payroll processing and NAPAA membership costs. Incorporation services at a discounted rate* *Incorporation services provided by Incorporators USA, LLC Warning: Excitement has been known to spread through Agents “This program has been so much easier to use than my previous service company, and costs less too.” Scott Sileo Allstate Agent, NAPAA member “E-chx has made processing payroll simple. The attention to product quality and customer service is amazing.” Yvonne S. Whitaker Allstate Agent, NAPAA member E-chx Offers: Multiple input options “Insight” for your accountant Real-time reporting HR Helpdesk Employee Homepages Complete tax service Award winning customer Employee benefit solutions service Get excited! We’ll save you time and money! Contact: Tom Mistretta Program Manager (866) 312-8863 tmistretta@e-chx.com Summer 2008 Exclusivefocus — 31
Page 1 and 2: Exclusivefocus Summer 2008 An Offic
Page 3 and 4: We finance Allstate books of busine
Page 6 and 7: president’s letter Farewell Messa
Page 8 and 9: usiness opportunities to increase a
Page 10 and 11: letters to NAPAA I wish to terminat
Page 12 and 13: letters to NAPAA ker friends are la
Page 14 and 15: letters to NAPAA I appreciate you
Page 16 and 17: 16 — Exclusivefocus Summer 2008
Page 18 and 19: the thief becomes your health infor
Page 20 and 21: agent issues The Kafka Interview IN
Page 22 and 23: [ “I think that Canada is the tes
Page 24 and 25: usiness Would You Like Fries With T
Page 26 and 27: feature There Must be a Better Way.
Page 28 and 29: elated bonus. His first step is to
Page 32 and 33: Is a sea of paperwork slowing you d
Page 34 and 35: membership musings Standing By You
Page 36 and 37: whether spending this amount of mon
Page 38 and 39: AAs most of you know who have been
Page 40 and 41: technology What To Expect When It
Page 42 and 43: integrated or separate video card,
Page 44 and 45: onus from Allstate, such as the rat
Page 46 and 47: technology Allstate Agents Have a C
Page 48 and 49: June 10, 2008 Ladies and Gentlemen
Page 50 and 51: on my behalf. Allstate did offer to
Page 52 and 53: and better refine your analysis. If
Page 54 and 55: staffing Is Your Staff “Engaged
Page 56 and 57: usiness tips Stronger Documentation
Page 58 and 59: organizing your business Forming an
Page 60 and 61: the NAPAA market place Agencies for
Page 62: the NAPAA market place Agencies for

EF summer 08.indd - National Association of Professional Allstate ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?