We're all painfully aware of the crisis in our industry, but thesource of it isn't what's been getting all the blame. Despite thefinger pointing, PPACA isn't the problem; it's merely pulled backthe curtain on a problem that's been there all along.

We've had it way too easy way too long.

Now don't get me wrong, selling is never easy, but if “easy” isa relative measure of the reward received for a given effort, Ican't conceive of another industry where it's easier to generatehuge financial rewards for, what is all too often, mediocreeffort.

Seriously, how does it make sense that a broker can get quotesonce a year, take care of the occasional service issue, throw in alunch and some ball tickets and be more highly compensated than 80percent of the client's employees?

If you feel it's an unfair criticism, then why are so manyproducers/agencies afraid to discuss their compensation withclients?

And therein lies the primary problem that's led to ourleadership crisis. Nobody has had to lead. When financial rewardsare as high as they have been, a lot of sins get covered up. Whowants to do the hard job of leading when they don't have to?

And therein also lies the need for leadership to step up likenever before. The high financial reward is evaporating as we sithere. It's up to your agency leaders to ensure the financial rewardcontinues. It's up to those same leaders to ensure the verysurvival of your agency.

Don't get me wrong, I'm not down on our industry; quite theopposite. I believe, in our role, we're in an extremely uniqueposition to have an unbelievable impact on the businesses of ourclients; an impact so significant that, for those who deliver, itdeserves an increase in compensation. However, I'm very negative onagencies that feel entitled to excessive compensation for mediocrevalue. I'm even more negative on leaders who've abandoned (or neverembraced) their responsibilities.

Let's take a look at three of the most critical aspects ofleadership and examples of how they are, all too often, lacking inour industry.

Effective Leaders Ask a question

Owners need to be sellers of vision and direction, but, all toooften, they're buyers of excuses.

I talk to many agency owners who recognize how much they need tofundamentally change their business model. They recognize thatquoting insurance and fixing the occasional service issue hasbecome woefully inadequate and they see the need to dramaticallyexpand their value proposition. Unfortunately, too many of themlack the backbone to bring the necessary change to theorganization.

It's common to see agencies whose struggles are directlyattributable to not having firm expectations and accountability forhow their producers perform. They usually know change is necessary,but they also know their producers wouldn't go along with it.

And this is a massive failure of leadership: letting a group ofunderperforming individuals run your business into the groundrather than require them to do what is necessary for the survivalof the whole company. Clearly, leadership isn't running this show.And no one is being done any favors here because if the agencydoesn't survive, neither do the producers.

Effective leaders listen to everyone around them. They listen totheir team, they listen to their clients, and they listen to themarket. It is the leader's responsibility to see the most completepicture, make the hard decisions, and lead the team to where theyneed to go.

“Leading” the team only as far as they are willing to go is afailure of leadership.

Effective Leaders Ensure their Team isPrepared

In most areas of the agency, leadership does a pretty good jobof providing the tools, resources, and skills training necessary toallow their team to be successful. Unfortunately, the area wherethey almost always fall short is in the one area that makeseverything else possible: a well-defined, buyer-focused salesprocess designed to bring in new clients.

Agency owners will repeatedly take the position that as long asthe producer is producing, they don't care how it happens.

The clients and prospects belong to the agency, not theproducer. Not only is it the right of the agency, it is theresponsibility of the agency to determine how the salesconversation takes place, how client expectations are set, and,ultimately, how those expectations are met. Agencies need aconsistent process that allows producers to deliver consistentresults while still allowing them the flexibility to be themselves.One that:

• Differentiates – Allows them to stand out from the same, tiredsales process of their competition
• Educates – Provides for continued improvement and developmentof producers and can be taught to new producers
• Scalable – Meets the needs of veteran as well as noviceproducers, and also meets the needs of sophisticated buyers, aswell as the mom-and-pop's
• Repeatable – Allows for consistent execution and results
• Delivers Value – Educates the buyer and allows them to make themost informed buying decision possible

Effective leaders understand a well-defined sales process is thefoundation on which a successful business is built. Everything fromagency profitability to client satisfaction is the direct result ofan effective sales process.

Effective leaders reward the rightbehaviors

In most agencies, producers are being paid too much for renewalsand not nearly enough for new business.

Producers are hired because of their ability to generate newbusiness. It's a difficult job and one that should have a very highfinancial reward. However, they should be hired to ALWAYS begenerating new business, not just producing until they decide theywant to simply sit on a book of business.

Instead of having a compensation formula that rewards continuedproduction, most agency compensation plans encourage producers tofocus on renewals. As a result, producers quit producing and theresult is an overpaid and under-qualified service person.

Effective leaders are clear about the behaviors in every rolethat drive the necessary results and build a comp plan thatencourages those same behaviors.

I know most of my criticisms won't be popular nor are any of mysuggestions easy. However, the truth can be harsh and nobody everpromised an easy job when you became a leader.

There is a crisis in our industry, which means there is a crisisin your agency; a crisis many won't survive. But for those whostand up and shoulder the burden of true leadership, unprecedentedrewards are waiting. Now, go lead your agency to places yourcompetition isn't willing to go. You have a whole team waiting foryou to do your job.