Exclusivefocus - National Association of Professional Allstate Agents ...

Exclusivefocus - National Association of Professional Allstate Agents ... Exclusivefocus - National Association of Professional Allstate Agents ...

11.07.2015 Views

opinionPockets Lined With GoldONE AGENT’S PERSPECTIVEIs Corporate “greed” the root cause ofmany of our recently felt corporatefailures and the economic downturn thatwe are all now experiencing? Is “greed”really good?What is happening to our company?The current management teamhas evolved since 1994, when Ed Liddymoved from Sears to Allstate. Slowly butsurely, most, if not all, of the pre-Liddycareer management people have beenmoved out. Now our top managementconsists of people from outside the insuranceindustry. This, in and of itself, isnot a basis to question where we are going,but I certainly believe that when weanalyze the current strategies, we havereal cause for concern.We are experiencing a loss of marketshare. We have seen the company changecourse under the guise of “fiscal responsibility,”to halt writing of homeowners andcondo insurance in many coastal regions.This could be understood, in light of themajor losses suffered in hurricane-proneareas, supported by the predictions ofthe National Weather Service. The factis that many of the FEMA models havesince been refuted and proven wrong, yetthe company has not seen fit to changeits course of action. The reality is thatmany of these areas have experienced along history of profitability and relativelylow to moderate loss ratios; a benefit toboth the company and the agent.The new push for “emerging business”is nothing more than a shell game.We are substituting policy numbers forpremium dollars. Just like the move awayfrom property, this is not sound corporatestrategy. Allstate should be playing to itstraditional core business of personal autoand property insurance, and business insurance.Many years ago, the companychose to abandon commercial insuranceunder the pretext that it would be betterserved in directing its resources to its personallines. Now we broker these lines toother carriers, all of whom seem to be doingwell producing the policies that Allstateno longer provides. It is strange, andagain, not good corporate strategy, to haveAllstate agents sub-producing many typesof insurance through company-sponsoredprograms at reduced commissions, whilethe company has contracts with independentagents at higher commission rates.Over and over, Wall Street analystshave cautioned the risks associated withproperty insurance and, at the same time,warned against Allstate’s involvement inthe financial services world. Why wouldthe company be guided and persuadedby one viewpoint stemming from WallStreet but not the other?In these dark financial times, withfederal bailouts, bankruptcies and foreclosuresrunning rampant, we couldalso question the awarding of stock tocorporate officers and board members.Shouldn’t we reward for extraordinaryperformance or results? At this point inDecember of 2008, 1,584,043 shares ofstock have been awarded. Note that Allstatestock has been as high as $55 pershare in the past 52 weeks; but even ifwe use $27 per share, this amounts to$42,769,161. These giveaways took placeas the company was oozing negative resultsthroughout much of 2008. It shouldalso be noted that Tom Wilson received375,021 shares of the above-mentionedawards and, using this same formulawould represent $10,125,567.These awards were issued during aperiod when Allstate indicated that itmust reduce costs. It was also a periodthat saw the company squeeze agenciesby shifting more expenses to them.Paradoxically, as the company shifts itsmassive technology expense to its agents,past and current corporate officers stillfly around in company-owned corporateaircraft. The expense reduction initiativesof the company appear to have fallenunilaterally on the agents. I am confidentthat the agents would be willing to forgoextravagant corporate-sponsored eventsand trips if it meant better claims andtechnology service. Could the same betrue of the current management team?It is said that “distance makes theheart grow fonder” but it appears to methat while prior Allstate managementmay not have always put the agents first,at least they were always concerned withthe overall corporate and fiscal well-beingof the company. Can we say the samefor our current management team, or arewe left to watch them as they fill theirpockets and ride off into the sunset,moving on to destroy yet another nationalrecognized brand and institution?The sad part is that this crew has ashort-term mindset. Is it possible theydo not realize what they are doing tothis once-great company? Could it betheir goal is to pump up short-term resultsfor as long as possible and then dontheir golden parachutes, only to leave thecompany in a shambles? In the end, itwill be the loyal and steadfast agents ofAllstate that remain.26 — Exclusivefocus Spring 2009

usiness tipsHow to Train Cats and SalespeopleBY JOHN BOEWhich do you think would beharder to train, a cat or a salesperson?Seriously, which one would youpick? While it's true that cats have awell-deserved reputation for being independent,demanding and virtually impossibleto train, the same can be said formany salespeople. Surprisingly, the sametraining and reward techniques requiredto get Fluffy to jump through a hoop canalso be utilized to motivate your salesteam to achieve peak performance!One evening while channel surfing, Icame across a fascinating animal act thatgrabbed my attention. The act featureda cat trainer with a half-dozen cats ofvarying size, shape and color. Unlike acircus lion tamer who attempts to intimidatewith a chair and whip, this mansimply used a combination of treats andverbal praise to motivate his cats to performdifficult tricks. Using only soothingvoice tones and a pocket full of cattreats, he would calmly command eachcat to do its own specific trick. Amazingly,he got one cat to walk on his frontpaws, one balanced on a ball, while yetanother pushed a toy baby stroller acrossthe stage.After the performance, the cat trainerwas interviewed and asked how he wasable to get his cats to willingly obey hiscommands. His response surprised mewith its simple wisdom. He said that hedidn't train the cats at all; he simply figuredout what each cat liked to do bestand then encouraged that behavior!"People need to realize that a cat's indifferencedoesn't mean they can't learncool tricks," says celebrity animal trainerJoel Silverman. "It simply means youhaven't convinced them yet that doingso is in their best interest. A dog naturallywants to please you and will workfor you, but a cat needs a paycheck to bemotivated."Five Tips to Help You TrainCats and Salespeople1. Temperament testing is amust! Before you invest your timeand energy into training make sureyou check for temperament suitability.Temperament testing allowsyou to identify those whoby nature lack the discipline,desire or self-motivation to consistentlyachieve peak performance.Sales managers who lack the benefit oftemperament understanding are inclinedto place too much emphasis on their gutlevelfeelings during the hiring process.If you hire someone that is not suitedfor the position, you will experience lowmorale, high turnover and find yourselfconstantly in the training mode. On theother hand, when you recruit the rightperson you will find that they are selfmotivatedand eager to learn.2. Look for "hot buttons". Traditionally,sales managers have relied primarilyon commission to motivate their salesforce. Unfortunately, a compensationstructure based solely on commissiondoes not address individual motivationalfactors and, therefore, money alone willnot motivate your sales force. A successfulincentive program is a mixture of awards,recognition and peer pressure. There istremendous power behind a timely wordof praise or a handwritten note acknowledgingachievement. While money iscertainly an important ingredient in anyincentive program, it should by no meansbe the only tool in a manager's motivationaltoolbox. If money by itself were asufficient motivation, commission-basedsalespeople would simply sell more withoutadditional enticement.3. Make the training fun and positive.All cats and most salespeople have prettyshort attention spans and lowboredom thresholds. Keep lessonsshort, interesting and always tryto end on a positive note.4. You must be patientwhen training cats or salespeople.It's important torespect individual abilitiesand preferences. Make allowancesfor personality,and don't get frustrated ifthe training schedule doesn'tgo exactly as expected. Remember thatpeople have off days and on days justlike cats. "When I'm really pushingand the going gets tough," says Silverman,"sometimes the cat just sits downand says, 'I give up'. Even the brightestcats, if they feel you're pushing themtoo hard, will, in effect, say, 'Screw you,buddy, I'm going to go over there, sitdown, and stare into space.'"5. Make sure to take time for restand relaxation. All work and no playwill make the cat, the salesperson andthe trainer grumpy. Whether it is playingwith a ball of yarn or enjoying a round ofgolf, taking time out to play is criticallyimportant. By successfully balancing playand work, you will return recharged, refreshedand ready to accomplish more.By incorporating these five powerfultips into your training program, you willdevelop an award-winning sales teamand achieve unbelievable results!John Boe presents a wide variety of motivationaland sales-oriented keynotes andseminar programs for sales meetings andconventions. John is a nationally recognizedsales trainer and business motivationalspeaker. To learn more, visit www.johnboe.com or call 877 725-3750. FreeNewsletter available on Website.Spring 2009 Exclusivefocus — 27

usiness tipsHow to Train Cats and SalespeopleBY JOHN BOEWhich do you think would beharder to train, a cat or a salesperson?Seriously, which one would youpick? While it's true that cats have awell-deserved reputation for being independent,demanding and virtually impossibleto train, the same can be said formany salespeople. Surprisingly, the sametraining and reward techniques requiredto get Fluffy to jump through a hoop canalso be utilized to motivate your salesteam to achieve peak performance!One evening while channel surfing, Icame across a fascinating animal act thatgrabbed my attention. The act featureda cat trainer with a half-dozen cats <strong>of</strong>varying size, shape and color. Unlike acircus lion tamer who attempts to intimidatewith a chair and whip, this mansimply used a combination <strong>of</strong> treats andverbal praise to motivate his cats to performdifficult tricks. Using only soothingvoice tones and a pocket full <strong>of</strong> cattreats, he would calmly command eachcat to do its own specific trick. Amazingly,he got one cat to walk on his frontpaws, one balanced on a ball, while yetanother pushed a toy baby stroller acrossthe stage.After the performance, the cat trainerwas interviewed and asked how he wasable to get his cats to willingly obey hiscommands. His response surprised mewith its simple wisdom. He said that hedidn't train the cats at all; he simply figuredout what each cat liked to do bestand then encouraged that behavior!"People need to realize that a cat's indifferencedoesn't mean they can't learncool tricks," says celebrity animal trainerJoel Silverman. "It simply means youhaven't convinced them yet that doingso is in their best interest. A dog naturallywants to please you and will workfor you, but a cat needs a paycheck to bemotivated."Five Tips to Help You TrainCats and Salespeople1. Temperament testing is amust! Before you invest your timeand energy into training make sureyou check for temperament suitability.Temperament testing allowsyou to identify those whoby nature lack the discipline,desire or self-motivation to consistentlyachieve peak performance.Sales managers who lack the benefit <strong>of</strong>temperament understanding are inclinedto place too much emphasis on their gutlevelfeelings during the hiring process.If you hire someone that is not suitedfor the position, you will experience lowmorale, high turnover and find yourselfconstantly in the training mode. On theother hand, when you recruit the rightperson you will find that they are selfmotivatedand eager to learn.2. Look for "hot buttons". Traditionally,sales managers have relied primarilyon commission to motivate their salesforce. Unfortunately, a compensationstructure based solely on commissiondoes not address individual motivationalfactors and, therefore, money alone willnot motivate your sales force. A successfulincentive program is a mixture <strong>of</strong> awards,recognition and peer pressure. There istremendous power behind a timely word<strong>of</strong> praise or a handwritten note acknowledgingachievement. While money iscertainly an important ingredient in anyincentive program, it should by no meansbe the only tool in a manager's motivationaltoolbox. If money by itself were asufficient motivation, commission-basedsalespeople would simply sell more withoutadditional enticement.3. Make the training fun and positive.All cats and most salespeople have prettyshort attention spans and lowboredom thresholds. Keep lessonsshort, interesting and always tryto end on a positive note.4. You must be patientwhen training cats or salespeople.It's important torespect individual abilitiesand preferences. Make allowancesfor personality,and don't get frustrated ifthe training schedule doesn'tgo exactly as expected. Remember thatpeople have <strong>of</strong>f days and on days justlike cats. "When I'm really pushingand the going gets tough," says Silverman,"sometimes the cat just sits downand says, 'I give up'. Even the brightestcats, if they feel you're pushing themtoo hard, will, in effect, say, 'Screw you,buddy, I'm going to go over there, sitdown, and stare into space.'"5. Make sure to take time for restand relaxation. All work and no playwill make the cat, the salesperson andthe trainer grumpy. Whether it is playingwith a ball <strong>of</strong> yarn or enjoying a round <strong>of</strong>golf, taking time out to play is criticallyimportant. By successfully balancing playand work, you will return recharged, refreshedand ready to accomplish more.By incorporating these five powerfultips into your training program, you willdevelop an award-winning sales teamand achieve unbelievable results!John Boe presents a wide variety <strong>of</strong> motivationaland sales-oriented keynotes andseminar programs for sales meetings andconventions. John is a nationally recognizedsales trainer and business motivationalspeaker. To learn more, visit www.johnboe.com or call 877 725-3750. FreeNewsletter available on Website.Spring 2009 <strong>Exclusivefocus</strong> — 27

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