Change 3

Distributor’s Summit 2011:The Next Decade for Distributors

Change is the Only Constant

June 1, 2011

Welcome!

GAMA International welcomes you to the Distributor’s Summit. Our purpose today is to discuss distribution management growth and effective succession planning in the life insurance industry. Without proper strategies, it could mean the end for your firm or agency.

© 2010 GAMA International. All rights reserved. Slide 2

Change, Change, Change

• Retiring baby

boomers along

with a lack of

women and

minorities in the

financial services

industry creates a

problem.

• It is in a

company’s best

interest to widen

the talent pool

by employing

younger

generations,

women and

minorities.


With Change, Comes Opportunity

• Generational opportunities

• Who are the baby boomers?

• “Each generation imagines itself to

be more intelligent than the one

that went before it, and wiser than

the one that comes after it”

– George Orwell


• Born between 1964 and 1980

• Individually focused,

self-directed and

creative individuals

looking for ways

to maintain a

certain lifestyle,

while receiving

recognition for

personal

accomplishments.

• Must be transitioned into

leadership positions


Generation X

Generation Y

• Born between 1981 and 1995

• Entitled, open-minded, and educated do-gooders looking to advance at a

steady rate, receive frequent feedback and work in a team setting.

• How do we recruit them?


Technology: Get Used to It!

• Social media, tablets, and

smartphones, oh my! It’s time to

get tech savvy to stay afloat.

• “ Once a new technology rolls over

you, if you’re not part of the

steamroller, you’re part of the

road”

– Stewart Brand


Gender-based Opportunities

• MENTORING!

• Why are there

such few women

in leadership

positions?

• Gen X women like

the flexibility of

not having to

adhere to a

traditional linear

career path.

• Appealing to Gen

Y women and men

should entail the

same process.


Gender of Field Leaders


LIMRA. Krozel, Kathleen. Leading Indicators: Sales Leadership and the Future of Agency Distribution. 2010: Windsor, Connecticut.

(p.21)

Building High-Performance Adviser Teams

• Two birds one stone: fulfill Generation Y’s need for a team-based

environment and constant feedback and Generations X’s desire to

specialize by creating high performance adviser teams.


Types of Teams

Product-Based Team

Skills-Based Team

Market-Based Team

Mentoring Team

Blended Team


Set Expectations

• What do you expect out of team members in terms of work and

behavior?

• How will you assign accounts to

new agents?


Tracking Team Performance

• Transitioning from individual accountability to a team setting requires you

to clarify how a team’s effectiveness will be measured.

– Sales

– Marketing

– Obtaining new

clients

– Retaining clients

and managing

activity


Initiating the Team and Building Synergy

• Cohesion and synergy are

imperative for a team’s success

and will exist if all members are

invested in making the team work

towards the overarching mission.

• Synergy = WINNING


Developing and Leading the Team

• Leaders must learn to balance the

concerns and personalities of team

members during each stage of the

“Orming Model”

Forming Storming Norming Performing


Transition to Leadership

• How do we move from

personal production to

management?

• Advisors work as mentors to

transition agents into

leadership positions by

handing over responsibilities

and coaching during the

initial phases.


Recruitment and Selection

• New leaders should be guided by experienced

leaders during their early period of executing

the recruitment and selection process so

that, in turn, they can mentor and train new

associates.


Training and Development

• Mastery of the sales process is key to becoming a successful agent.

New leaders can train newly selected agents with continued

guidance from veterans.

• Build the right habits and incite confidence.


Characteristics of a High-Performance Leadership Teams


Now that we know how to build advisor teams and transition agents

into leadership positions, what do we

look for in a successful leadership team?

Vision/Mission

• “Teamwork is the ability to work together toward a common

vision. The ability to direct individual accomplishments toward

organizational objectives. It is the fuel that allows common

people to attain uncommon results.”

– Andrew Carnegie


Setting Hard Targets

• Short-term, flexible goals that

reflect the vision.

• Strategy: a clear vision and hard

targets provide direction for your

organization.


Creating a Culture of Commitment and Personal Accountability

• Accountability produces results and drives strong performance.


Building Harmony

• Building open relationships

between team members is

inevitably central to success.


Building Trust Through Communication

• Without trust, you cannot have harmony.


Achieving Alignment

• To lead with one voice, a

leadership team has to integrate

the vision, strategy, and culture

into one synchronized whole.


Developing a Leadership Team

• How do you develop specific skills

and know that your resources are

being used properly?


Conclusion

• A firm’s strategy for growing its distribution

management and developing effective

succession planning will determine if it will

succeed in a changing landscape.


Change 3

Business

life insurance industry

percent of insurance

financial services industry

distributors change

management positions

number of insurance

sea of insurance industry

changeretiring baby