Hardware vs. Software
First, before we get
started, let me make an important point … it’s not how
powerful of a computer you own, it’s what software you
own and how you use it! Remember, computers are
purchased to RUN software. The key is software, not
computers. This is why you make your software decisions
FIRST and then purchase the hardware to support the software
that you use.
It always amazes me
when I talk to an agency owner who is so proud of his 500
mhz, beefed up computer system who only uses a word
processor, maybe a rating program, and maybe an ACORD form
program. I’ve seen agencies on 486’s more efficient and
successful in running their agency.
Therefore, I hope
I’ve clarified this important point … it’s NOT how powerful
of a computer system you use, but what software you use.
Hardware compliments software. Point made?
Our topic --
In this day and age,
it’s not very common to run across an agency operated
predominately by hand. Generally, an agency has some sort
of software they use to help them in running their agency.
The largest share of
agencies today are computerized. However, a large
percentage of them are disillusioned into thinking they are
automated.
What do I mean by
computerized?
Simple. Having
numerous software programs, each used for a different
function that don’t integrate together.
For example, having
a program to do quoting and then having to re-enter that
same information into an ACORD form program to create an
application, then having to retype basic information again
into a word processor to send out a letter, and then needing
to retype the same information into an accounting program to
keep track of commissions, and then … It’s an ongoing loop
with the agency personnel constantly re-entering the same
information. This is very time consuming.
What about notes?
Follow ups? What happens when there’s an endorsement to the
policy? A CSR/Agent is constantly jumping from one program
to another or is constantly pulling the file, and they are
re-entering information that is already on their computer
somewhere. Servicing a client becomes tedious and time
consuming.
This is NOT
automated! Yet, this is exactly what many agencies are
doing today and are proud to say, “Yup, we’re automated!” No
… you’re computerized!
And, as such, you’re
doing a ton of duplicate entry and wasting a lot of time in
servicing your clients, which is costing your agency
thousands of dollars a year!!
What if you have the
ability to link with your companies? For the computerized
agency, this creates another process of doing a lot of
unnecessary duplicate entry.
Being automated is
two things combined together …
1. Having
the right software program for your agencies individualism
(an agency management system along with 3rd party
software programs that are integrated in order to allow the
agency to do its work without the need of re-entering
information), and
2. Developing
effective workflow procedures.
Both steps are
equally important.
Being automated
means data already in the system flows to other parts of the
system as well as to 3rd party programs
eliminating the high majority of the time consuming
duplicate entries made by the computerized agency.
In addition, it also
means processing your work in an efficient way. For
example, when processing an endorsement there’s a way to do
it efficiently and there’s a way to do it which is time
consuming and has unnecessary steps.
For example, if
you’re sending a client a letter from your system and your
agencies method of operation is to keep a copy of all
letters sent to your clients, why would you print a copy and
put it in their file? There’s no reason too when it's
already attached to the clients record in the management
system. But, there are still agencies that do this. Think
about other area’s where you might “make a copy” and
needlessly put it in their file.
Advanced automation
procedures include T-Filing and Imaging.
Automated agencies
realize numerous benefits …
1.
Faster response time to their customers needs,
2.
Faster service time in handling their
customers needs,
3.
Reduced overall labor hours in the agency
(average between a 40% - 70% drop in workload),
4.
Should the agency be up for sale, automated agencies
with a system already in place receive top dollar
(it’s easier for a new owner to take over an agency with a
system in place for handling customer issues and that has
all of the customer information in a management system than
trying to take over an agency that is computerized with
information in numerous software programs and files),
5.
They have at their finger tips the ability to
implement more effective and strategic marketing
strategies,
6.
They’re able to know in an instant the financial
health of their agency; the break-down of their agency by
company and/or LOB; what methods of marketing are working
and what aren’t; loss ratio’s by company, LOB or producer;
which producers are writing the most business; how many
policies each CSR is handling; what transactions each
CSR/Agent made each day; etc… (Keep this thought in mind ..
how can you improve your agency if you don’t what’s going on
in your agency? Policy, customer, claim, producer, CSR,
marketing and accounting reports are essential in having the
ability to improve.)
And the list goes on
and on and on. With so many benefits of being an automated
agency, why wouldn’t you move forward from being
computerized to being automated?
This topic –
Manual, Computerized or Automated – is the theme of our
discussion today!
Making the Transition to Becoming
Automated … It’s Not as Painful As You May Think!
Change is the
foundation to growth. Without change, you don’t grow.
When you bought your
first computer system and starting using it to do letters
(word processing), that was a change in agency procedures.
But, look at how much better off you are today because of
that change!
The process of
moving from being manual or computerized to becoming
automated is not a difficult process. It’s simply a matter
of choosing the right software programs and getting the
correct training on workflow procedures. This is what I
have helped agencies do for the past 10 years, and I can
help you too.
Agency Management Systems
Which agency
management system to purchase is a whole new topic. Just
keep this thought in mind as you review them … there are a
lot of low end systems where the vendor claims their system
is an agency management system when in reality the system is
just an over glorified database program.
Even with the right
intentions of moving towards becoming an automated agency,
if you make the wrong decision on your agency management
system you may be doomed to never make that leap to becoming
a truly automated agency simply because of the limitations
of the management system you purchased. Thus, be diligent
as you review systems and do NOT make a decision by price
alone!
The other thing you
must consider when purchasing an agency management system is
how are you going to learn automation strategies such as the
best way to handle transactions in your agency, or how to
intermingle other 3rd party programs into your
operation in conjunction with your management system? This
is the second part of becoming truly automated and you need
to know how you’re going to accomplish it.
In this industry,
the reality is, your agency management system is the core
and foundation to your automation goals, and plays an
important role in the realization of achieving a truly
efficient agency.
Plus, your agency
management system is the foundation for integration. You
download TO your system, upload FROM your system, pull
quotes INTO your system from your rater, etc ... it's
where all activity begins and ends!
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