Performance Matters

In the article I posted last week I talked about building and sustaining good habits and used Life Insurance (The Agency Channel) to provide examples to support the view that creating the right habits can be more important than driving for Digital innovation to hit our Corporate numbers as a CEO. These habits are part of a strategy for high performance which has a pseudo-formula as follows: PfMAI.

(Whilst I have chosen to use the Agent as the example, I encourage managers from across every company function to consider how the principles can be applied to their area – as an Ex-CEO I promise you they work in every function of the business.)

PERFORMANCE IS A FUNCTION OF MOTIVATION, ABILITY, AND INSIGHT

Performance = What must I do. Big numbers supported by the right habitual actions.

Motivation = Why do I want to do it?

Ability = Have I the right skill set and knowledge to do this?

Insight = What are the important reasons for doing this work?

Yesterday we talked about Performance. The big numbers (for the company it will be profits, sales volume, embedded value or for an agent it is the income I want every year or month) being driven by good daily habits (for the company it is managers doing things daily to reinforce good habits and for agents it is prospecting, making appointments and seeing customers every day). Just like the big numbers the habits can also be counted, and the ratios say something about the quality of the performance.

How are your habits? Did you remember my request to you – JUST DO IT. DO IT NOW!

So, let’s look at motivation today. Again, I will focus on an Agent as in many ways the Agent is the base unit of a Life Insurance Company’s success (or failure!) In Asia, many Agents are recruited by their friend who is a Sales Manager with a Life Company. They are not really recruited, there is no proper job interview to check whether the career is right for the person, simply a request to come join a friend. Therefore, many Agents are part-time and continue their other work. This can be an initial help as the other work can help find prospective customers. However, in the long term the new Agent’s career success will depend on devoting full-time effort to give their customers a full and professional service. This choice gets easier when the Agent’s big numbers (INCOME) exceed those of the other work they do. If they can match that income just working part-time think what they could deliver if working full-time?

The Manager of the Agent should start by helping the Agent to build a plan – remember it is the Agent’s Plan not the Managers plan. The starting place is likely to be an earnings expectation. The first lesson I give you is to make sure this expectation is reasonable – remember the person is part-time. So, start using the essential efforts that drive results and their related ratios. In my experience a new agent needs to present to three customers to secure one sale. To get three meetings where the Agent presents, they need to call six of their prospects. To engage with six prospects, they will need to have ten prospects. This should allow the Manager to build an activity related plan designed to deliver the Income expectation of the Agent. Does the Agent commit to these activity numbers? These activities are the behaviors that Managers are trying to build and sustain as “good habits.” Yes, habits can change over time and good habits will need constant reinforcement.

Most Managers will then ask the agent to think about their dreams of the future and how this additional income can help deliver their dreams. The answers are usually simple goals like a house, a car, etc. These long-term goals are important but often well out of reach of a new agent. So, fix on what that dream is and ask the agent to give you a detailed description. Record this detail so that you can remind the agent in the future when their career gets good or importantly when the job becomes a struggle.

As the CEO of several successful Life Companies where Agency was a critical channel for our performance, I would encourage you to urge the Agent to seek a quicker motivation for their efforts! Ask them this question, “If you hit your earning plan THIS MONTH what will you treat yourself or your family to?” I might be a dishwasher for the wife, a weekend away with the family, or even a simple dinner at a good eating house. The key here is to get them used to enjoying the fruits of their labors as soon as possible. MANAGERS SHOULD ASK THIS QUESTION EVERY MONTH OF EVERY AGENT. JUST DO IT. DO IT NOW.

As an Agent when I was able to “give myself and my family” the special little things that make life better each month it was the proof that I needed to make Life Insurance my career.

Managers – go motivate your team with “the little monthly things.” It builds performance.

Next week I will talk about building an Agent’s Abilities. Not simply about the training needed but learning from their experiences on the job.

See Yah.

#motivation #CEO #leadership #learning #performance #learninganddevelopment