September-October2018 by BIG Independent Group

by Jon Spaugy, BIG CEO

BIG TIMES EDITORIAL SEPTEMBER / OCTOBER 2018

IT’S REALLY FALL? Although most of California is still experiencing very summerlike weather, the calendar tells us fall (or “autumn” for most of the planet) is fast approaching. At press time, September 23 is a little over a month away. Personally, I love this season: Baseball playoffs, football in full swing, leaves turning brilliant yellows, oranges and reds, sweaters and light jackets worn as the evenings start getting crisp. Some people see fall as the prelude to the end of a cycle. Leaves turn brown and fall of the trees, the Dodgers fall short… you know, the rites of the season. While BIG still has some exciting events ahead, most notably our annual Holiday party on December 1st, I am happy to take stock of what BIG has accomplished so far and keep building on that momentum. The most significant activity we’ve had recently is the election of a new slate of BIG leaders. I’m happy to report we have an eclectic mix of agency owners, company executives, and other industry supporters on board.

season has to offer. No, my friends, fall does not mean we are coasting towards an ending, far from it. We have achieved a great deal throughout the year, and can enjoy – even revel – in our successes, both professional and personal. Another awesome convention last March, a getting-awesome-fast NorCal Minivention in September, excellent training sessions held throughout the year, significant growth in BIG membership and leadership. All in all, 2018 has been very good to our association – and it’s not over yet! So it is a good thing, in my opinion, that we are heading into a winding-down period. There’s nothing wrong with a little reflection. However, in true BIG style, we are also in the middle and at the beginning of some great things. Proud of what we’ve achieved so far, looking toward the 2018 finish line, and excited about our new leadership direction. I’ll see everyone at the Holiday Party!

BIG has always welcomed a variety of opinions and ideas. We have never been – and will never be – an association built on benefitting a few select individuals at the expense of the greater membership. EVERYONE has a say in the direction our association moves toward, and BIG’s leadership is reflective of this diversity. In this issue, there is an excellent Q&A with BIG President Vira Egli from Record Guardian, as well as a few mini-bios featuring some other board members. Take a look and get to know the newly revitalized BIG leadership. Honestly, I am looking forward to Halloween, Thanksgiving, the beginning of the holiday season, and all that the

September/October 2018

Get Active, Get Involved, Get BIG!

Study: 60% of Americans Don’t Know Obamacare Individual Mandate is Still in Effect Will you be penalized for not having health insurance this year? According to insuranceQuotes.com’s latest survey — which tested consumer knowledge on health, home and auto insurance — a majority (60%) of Americans do not know the answer. And that’s just one of several striking findings from the report. “According to our data, it is apparent that there’s a lot of misinformation—and a lack of awareness—out there when it comes to insurance, from the basics of Obamacare to your standard home and auto policies to what’s covered and not covered,” said Jason Hargraves, insurance analyst at insuranceQuotes.com. “And when a consumer doesn’t have a full understanding of their policies, chances are their pocketbook will ultimately pay a price.” Among the study’s additional findings: 62% don’t know that theft of items from a car is covered by a standard homeowner’s policy. 60% don’t know that women, on average, pay lower auto premiums than men. 46% don’t know that a standard homeowner’s policy lacks coverage for damage caused by pests. 39% don’t know that health insurers can factor in tobacco use when determining premiums. 34% don’t know that their own policy is responsible for paying if a friend gets into an accident with their vehicle. “If your home experiences a rodent infestation or termite damage—or another unexpected event—having the appropriate insurance policy can mean the difference between inconvenience and disaster,” said Hargraves. “When researching and selecting your individual and family policies, it’s always worth it to pay attention to the details.”

The full report on the survey—which includes additional data, insights and analysis—is available athttps:// www.insurancequotes.com/home/survey-insurance-myths-7122018. “To save costs, and maximize coverage, consumers should shop around to evaluate their options and find the best deals,” added Hargraves. Methodology: This study was conducted for insuranceQuotes.com via telephone by SSRS. Interviews were conducted among a sample of 1,009 respondents from May 30 through June 3, 2018. The margin of error for total respondents is +/-3.69% at the 95% confidence level. All data are weighted to represent the adult U.S. population.

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HOW INSURERS CHOOSE WHO IS ELIGIBLE FOR COVERAGE

Earlier this month, the general counsel for the California Department of Insurance issued a legal opinion, that under insurance reform law Proposition 103, insurers’ underwriting rules submitted with a rate application must be made available for public inspection. Underwriting rules are the criteria insurance companies use to determine whom to insure, what they will insure, and whether to renew an existing policy. “Consumers and insurers alike benefit from transparency,” said Insurance Commissioner Dave Jones. “Consumers are able to better understand how insurance companies decide who to insure and who to renew.”

the rate-setting process. Insurance companies seeking a rate increase or decrease must submit public rate applications to the commissioner including their underwriting rules. In the past, certain insurers have contended their underwriting rules are confidential or proprietary information and not subject to public disclosure. In response to a request by a member of the public, the general counsel analyzed the issue and determined Proposition 103 does not allow this practice. From California Department of Insurance (www.insurance.ca.gov).

Voters passed Proposition 103 in 1988 to lower insurance rates and encourage the public to participate in

THE FUTURE OF P&C INSURANCE DISTRIBUTION By Mark Breading, Partner, Strategy Meets Action

How much will the distribution of P&C insurance change in the next five years? This is anything but an academic question. Insurers, agents/brokers, and tech companies are all trying to read the tea leaves to position for success in a changing environment. InsurTechs focused on distribution are numerous; new entrants are surfacing every day. And the inexorable and rapid move to digital is the overarching theme that is affecting all of insurance, including the distribution area. Strategy Meets Action’s (SMA’s) recently released research report, The Future of Distribution in P&C Insurance: Transformation in the Digital Age, takes a look at how insurance executives believe distribution is likely to evolve. The ways that personal lines and commercial lines distribution go forward are expected to be quite different.

CONSOLIDATION, RISE IN IMPORTANCE OF TRUSTED ADVISOR ROLE In general, insurers expect significant consolidation among commercial lines agents and brokers and see the trusted advisor role rising in importance. Major disruption by InsurTech and entry by the global tech giants (Google, Amazon, etc.) is not anticipated to be as much of a factor, although still an important one. On the personal lines side, 59% expect major disruption by InsurTech and almost half assume that the global tech companies will play a significant role in the distribution of auto and homeowners’ insurance. Other factors that will change the distribution channel environment include the continuing rise of direct

(especially for personal lines) and an increase in comparative rating, which both personal and commercial lines executives foresee. There are two aspects of change that are especially noteworthy. First, almost no one predicts that insurance distribution will be largely unchanged five years out. In fact, none of the personal lines execs and only 8% of commercial lines execs responding said that distribution will be about the same in five years. The second interesting finding is that only 10% of personal lines insurers believe that agents will assume more of a trusted advisory role. In our view, it will be critical for personal lines agents to up their game. This includes becoming more of an advisor in a world that is increasingly connected, digital and has a changing set of risks.

AGENCIES MUST EMBRACE THE DIGITAL WORLD In addition, agencies must embrace the digital world to meet customer expectations, improve operational efficiencies, and gain more insights into prospects, customers and their insurer partners. Insurers also expect emerging technologies to have a huge impact on distribution. Artificial intelligence, chatbots, and mobile/digital payments are the top three technologies that insurers plan to invest in over the next three years to enhance their capabilities in the distribution space.

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AGENT CHANNEL STILL DOMINANT Pundits have been predicting the demise of the agent channel for decades, yet the channel is still dominant. The word disruption has been used in relation to distribution more than any other area of insurance. And to be sure, P&C insurance distribution is poised to change significantly. But ultimately, SMA expects agents and brokers to still be playing a major role in five years, although the agencies of the future might look quite different than those of today. ABOUT THE AUTHOR Mark Breading is a partner at Boston-based Strategy Meets Action. Email him at mbreading@strategymeetsaction.com. This article first appeared on StrategyMeetsAction.com, and is reprinted here with permission. Opinions expressed in this article are the author’s own.

Sidebar with

Harper &

Heim

Lawyers

By Jon S.Heim, Attorney, Harper & Heim

WHEN THE CDI STOPS BY It’s just another humid, busy day at your insurance brokerage. In walks a polite, businesslike person who introduces herself or himself as an investigator with the California Department of Insurance. The investigator wants to see files and ask questions, right now. What are you to think? What should you do? The first inclination of many brokers is to cooperate. Indeed to do so at some point is often the best course. However, most minor or routine problems which CDI may perceive with a brokerage are raised and addressed in the statutory consumer complaint procedure (see Ins. Code, § 12921.1 and following), which is summary and does not initially involve investigators. The impromptu entrance of a CDI investigator usually reflects greater priority to a problem. Also, the limited rights and protections that a broker has at this critical early point can be waived or foregone, by word or by conduct. It is important, then, to pause and think. The Insurance Code purports to leave a producer’s records open to CDI inspection anytime. “The commissioner shall, after notice and hearing, promulgate reasonable rules and regulations specifying the manner and type of records to be maintained by those licensees acting as insurance agents and brokers and the location where the records shall be kept. Those records shall be open to inspection or examination by the commissioner at all times, and the commissioner may at any time require the licensee to furnish any information maintained or required to be maintained

in those records.” (Ins Code, § 1727, subd. (a); for lists of the records required to be maintained, see our Sidebar “Production Agency Records,” BIG Times Magazine, Sept.-Oct. 2017.) Despite that last sentence, constitutional principles generally require that, if the broker so demands, CDI issue an administrative subpoena before production of any records. (De La Cruz v. Quackenbush (2000) 60 Cal.App.4th 775.) This procedure compels CDI to specify the documents it seeks, and affords the broker opportunities to challenge the administrative subpoena in court. “The right at stake is the right to a frontend or back-end judicial review of the reasonableness of the search.” (Id. at p. 95, fn. 1, citing See v. City of Seattle (1967) 387 U.S. 541, 544-545.) But again, this right may be waived. To be preserved, it must be asserted, when first and then whenever implicated. At Harper & Heim, Lawyers, we routinely recommend that, if a CDI investigator appears unannounced at a broker’s office, the broker respectfully decline to produce records, and instead refer the investigator to the broker’s attorney, perhaps expressing an uncertain hope (but never a promise or assurance) that production can be arranged in due course. Likely, CDI will have told the broker the general subject of the investigation. Broker and counsel can discuss the scope and content of any documents that may be produced, and analyze whether the broker faces trouble in the investigation or in some other issue that may be revealed in the production. Often, counsel will then ask CDI for a letter listing the documents it seeks, and production may be arranged by agreement, without an administrative subpoena. If the parties cannot agree on scope of production, CDI issues a subpoena and the broker asks the court quash or limit the subpoena. Only very rarely, however, is judicial resolution an objective of initially deferring production. Usually, the objectives are to allow for review of relevant facts and agreement on scope of informal production. CDI investigators may prefer immediate, open-barn access, but they understand that brokers and counsel may reject such an uncontrolled process in favor of specification and production of truly relevant documents only.

September/October 2018

Oral questions from CDI warrant still more caution. At the investigation stage, producers are not required to answer any CDI questions. Of course, suspicions and inferences may be drawn from any refusal to answer, as well as from any answer. To note that brokers generally have no duty to answer a CDI question is far from implying that they never should answer any. As recent news reflects, the decision whether to sit down with investigators is often difficult and complex. Unless a broker is certain of the subject of the investigation and of the broker’s full compliance with all applicable laws, customs and practices, a CDI interview should be declined pending consultation with counsel. Neither foes nor friends, CDI investigators are, on the whole, sound professionals who simply want pure, accurate information quickly. But in their job, a producer’s interests and rights are incidental obstacles. It is up to the broker and the broker’s counsel to understand and assert constitutional and procedural protections against unbridled or unreasonable searches. Don’t blow it.

Call Jon Stanley Heim at (510) 725-7593, or e-mail him at jshinslaw@gmail.com or harperandheim@gmail.com

DO YOU HAVE A

WEBSITE?

By Andree Ochoa, CEO, DomainCart.com

In todays business ecosystem having a website is necessary for so many reasons one of them being that over a billion people now use the internet to buy stuff, such as insurance. Like many other things websites are in constant evolution and we have come a long way since the late 90s, now websites need to be faster, mobile ready, reliable, user friendly, design and color friendly too. Websites need constant updates if you want to be competitive on and off the Internet. Almost everyone knows that by being in the top 5 results on search engines you can make a lot of income. However that’s not something you can accomplish overnight, in fact most companies last a couple years before something like that happens. The best way to accomplish such a thing is by having a great product and building a great website for it accompanied with a team of helpful customer service agents. Building a website can sometimes be expensive, however there are companies such as DomainCart.com that have easy to use do it your self website building products with plans starting at just one dollar per month for personal sites and a little more for a small businesses. The main goals of having a website are to get onli-

ne, grow your business, and to never miss a customer. Don’t forget to make your website work for you, have it as an extra resource for your clients or as a daily tool for both your staff and clients. One idea would be to add dynamic forms to your website and have clients use those forms to save time and money, create a database of visitors and target them later with marketing information from specials or random products. Get the most juice you can get from your website, the more you get, the more you’ll want, I can almost guarantee that. In conclusion, if you have a business and don’t have a website you’re not being competitive someone else is getting those clients. If you have a business and a website, but your website is not dynamic meaning it doesn’t do other than show your contact information then your also not being competitive, you just have an expensive business card online. You need to have your website do something, make it become the tool for your customers so they return over and over and you can sell to them more and more. Thank you for reading this, if you like the article, please visit my website at http://andreeochoa.com and help me by sharing or liking the page.

September/October 2018

WHY YOU NEED TO DEVELOP SYSTEMS AND PROCESSES IN YOUR AGENCY by Bill Gough, Hall of Fame Member I am a huge believer in having systems and processes for everything in my business, ESPECIALLY my insurance agency. These systems and processes MUST be written down… AND… a team member needs to be responsible or “own” each process. What do I mean by that? Well, when a team member “owns” her processes, they will be responsible for editing and updating them as technology, time passes, and improvements made. Also, if they were to leave or be promoted, the next person will have up-to-date processes. When you develop written systems and processes, and you use them every day, they can make running your agency so much more effective, profitable, and your team will be in sync. I began writing out our operations processes for my insurance agency in the late 1990’s. Soon after, we developed documented systems for sales, marketing, and building the winning team. Today, they are the cornerstone of our teachings to agency owners just like you across North America here at BGI Systems. Running a business without documented systems and processes will cost you time, money, more stress, and will not allow you to run your business in the most efficient/profitable manner. Let’s face it… Operations systems are a huge part of your business. In fact, you have processes already in place, happening right now in your business. They just happen. Things get done. And on a daily level, that’s great because you shouldn’t have to worry about every little thing going on in your agency.

However, the breaking point is when something changes and you suddenly find yourself having to recreate those processes. (With NO reference and NO resource to draw from.)

What if there is an inefficient process being used in your agency now? You will be throwing time and

money out the window each day because your people will do things the least profitable way. Things still get done, but resources are being wasted in the meantime.

Now, how do you uncover this problem if you have no idea what processes are being used in your business? Simple, make sure every repeatable

thing is written down step by step. Perhaps your front office person is the greatest you could ask for; she’s been working for you for years and she has everything down to a ‘T’… streamlined and efficient. What will happen to those efficient processes when that person no longer works for you? How do you handle training a new hire when you don’t know the processes or they are not written down that have made everything run smoothly to this point?

Right NOW is the time to create a written process manual for all activities that occur throughout your business. Yes, it may be tedious. Yes, it may be boring. It may seem monotonous and repetitive, BUT IT MUST

September/October 2018

BE DONE! (When you’re faced with training a new

employee, you will be thankful to have a detailed guide to train them.) We all want to put together winning systems and proven processes so our businesses can function smoothly with as little “babysitting” as possible. This is exactly what a written process manual will do for you. It will give you more money, more control, more time off, and the lifestyle that you really deserve. No matter the industry or office type, everyone knows that having written systems and processes in place is KEY to EVERYTHING running smoothly! I want to share with you another extremely valuable piece of knowledge – Be Careful Who You Take Bu-

siness Advice From.

Just as we wouldn’t trust a babysitter who wasn’t qualified and had little experience or poor skills to watch after our children, we shouldn’t trust our businesses to someone who doesn’t have the credentials and success to mentor us to win.

Watch out for opinions that are unfounded and unreliable. If they don’t HAVE IT, they don’t KNOW IT!!

Taking business advice from the wrong people does nothing but set you up to fail. We have to be

taking advice from those who are doing it successfully.

I practice what I preach – when I first really started getting into business coaching and reaching for success about 20 years ago, I knew I had to seek out the

AND…

Great business coaches can see what you may be missing and can give agency owners a fresh eyes perspective. It’s no secret that we need to take action quickly and decisively to make good things happen. Your business coach should also help you make the best decisions that will make your business profit and grow most efficiently.

We know that we must be committed, working hard and trying to improve more and more each day in order to get to where we want to be. The best business coaches give you the tools and motivation you need to grow and profit. With a good business coach, remaining stagnant is not an option. Good coaches and leaders take initiative and are willing to do whatever it takes to catapult their players and businesses to the top. ABOUT THE AUTHOR Gough started his career in insurance in 1984 Bill with Allstate working in a booth at a Sears Department store. Since the early 90s Bill’s agencies have consistently ranked in the top 1-5% of all Insurance Agencies across the country. Bill has won 117 insurance sales awards in personal lines (including life insurance) and small commercial, but none of these awards mean as much to Bill as the philanthropic work he does through his son’s memorial charitable fund. Contact Bill at (256) 246-2619 or visit his website at www.bgisystems.com.

best if I wanted to be the best.

That’s why I joined a few business, marketing, and mastermind coaching groups and started associating with top performers. Quickly I found myself among them. Good business coaches will not only help you get to your goals quicker, they will also keep you accountable to getting the results you want.

MEET THE BIG BOARD By Don Lukenbill

Clint Hilty

Marc Sobel

What better way to get to know the new BIG Board of Directors that with a brief Q&A with each member? Over the next series of BIG Times Magazine issues, you will learn a little bit about the insurance professionals guiding the association. Hopefully you will gain some insight and feel a little better connected with BIG. This month, we are pleased to introduce Andy Bloom of Alliance United, Marc Sobel of Kemper Specialty, and Clint Hilty of National General. BIG Times Magazine: How are you connected with the insurance industry? Andy Bloom: My industry experience covers over 30 years which includes Claims Adjuster, Operations Manager, Assigned Risk Specialist, Underwriting and ultimately Territory Management. I am currently California Marketing Team Lead for Alliance United Insurance Company. Marc Sobel: I work for Kemper Specialty Insurance as our Key Accounts Manager/ National Accounts. I have been with Kemper for 16 years and in the industry for 23. Clint Hilty: I am the Territory Sales Manager in the IE for National General, but started in the industry with AAA as an agent.

Andy Bloom

BTM: What made you decide to join the BIG Board of Directors? AB: I have been involved with the BIG shortly after inception as a Founding Member Company and Advisory Board Member. This is the continuation of that service. MS: Jon offered me an opportunity to help shape the future of BIG and I wanted to give back to both Jon, BIG and our industry. I see BIG as part of the future for Independent Brokers and Agents. CH: I want to be a more integral part of the industry in which I represent. I served on the board for CAMB (California Association of Mortgage Bankers) for many years and I really enjoyed that. I saw an opportunity to be more involved with a group of industry professionals who want to make a difference and I like the momentum that we are trying build collectively. BTM: What would you like to see the association achieve in the next few years? AB: The overall goal that has always been there, of being a great source for networking and Broker / Agent advocacy. Where we are all able to learn from one another and focus on improving the industry that

September/October 2018

sustains us. The same applies to the member companies to help achieve a level playing field and be able to work together to write the business that is available to all of us. MS: I want us to be seen as a leader in the insurance industry. I would like us to be part of shaping the future generation of insurance professionals. CH: What would you like to see the association achieve in the next few years?

Any agent that participates in BIG will have exposure to insurance professionals who have been through a myriad of “markets”. The comradery that can be built through regular attendance is crucial to any salespersons success as many members are open to mentoring young agents with their career paths. BTM: In one or two sentences, give us your philosophy for success.

BTM: What are some benefits of a BIG membership?

Throughout my life I have always measured success by providing food on the table, a roof over my head, an education for my children and the ability to enjoy life through those things that make me happy. This was accomplished by hard work, most of my working career with two jobs, being honest with my associates and customers. My customers welcome me into their businesses and personal lives. That is success.

AB: BIG provides a way to become further educated, earn C.E. credits and be in an environment that is comfortable and often fun. Insurance people work very hard and the BIG gives opportunities to us to get together among our peers and just be people not identified by company or position.

MS: You are the average of the five people you spend the most time with. Challenge yourself to network with 5 people in our insurance industry who are successful. Take heed of their advice, seek out and follow their work and then apply what you can to your own efforts.

MS: Access to a board of directors who together have over 100 years of Insurance knowledge. We can help you take your agency to the next level.

CH: Surround yourself with positive people that push you to be a better you. “True success is attained only through the satisfaction of knowing you did everything within the limits of your ability to become the very best that you are capable of being” – John Wooden.

I would like to see BIG become a source of information and education to our agencies. I am also keen on being more involved with the legislative aspect of the industry.

CH: What are some benefits of a BIG membership?

Vira Egli BIG Board President

By Don Lukenbill Change is usually exciting, bringing new experiences and new challenges. This year, BIG is pleased to welcome a new Board of Directors, with participation from BIG veterans and newer members alike. We have a great group of leaders this year who already have some BIG plans for the association. The person elected to guide this roster of insurance mavericks? None other than Vira Egli from Record Guardian. Vira has seen the insurance business from the agency side and now as a technology vendor. She will add a unique perspective to the conversation, as well as some welcome new insight. “We are happy to have Vira at the helm of the BIG board,” said Jon Spaugy, BIG CEO. “She has already hit the ground running and has some interesting takes on the challenges and opportunities our association has.” Spaugy added he is looking forward to working with BIG’s leadership to continue its growth and evolution. For your reading pleasure, here is a little peek into the world of BIG’s new Board President Vira Egli: BIG Times Magazine: We always start with a little biographical information. Tell us how you first got into the insurance business and when you decided to make it your career. Vira Egli: My dad is an insurance agent and I started working at his agency when I was about 15-16 years old. I don’t know if any of us ever decide to make insurance a career. They pretty much just fall into it. I like to think that I’ve made “people” my career. I’m a big believer in providing value and the best possible customer experience. BTM: How has the business changed since you started?

VE: Technology has certainly influenced how we do business, and there is much more acquisition and consolidation happening these days vs. “back in the

day.” For some, it has been business as usual for a while, whereas for others, it is something new seemingly every day. I guess whether (or how much) it has truly changed depends on which side of the fence you’re sitting and where. BTM: What advice would you give a young person considering insurance as a career? VE: I would advise them to first decide who they want to work for/with. In other words, preferred or non-standard. Also, do not underestimate the importance of having a mission. It’s your business’ compass. I’d go into more details about that but it would take up this whole Q&A! Suffice it to say that without drive, motivation, an understanding of the business, and a real plan, you’re not going anywhere. BTM: At Record Guardian, you are in a position to help agents on the technology side. How different is it from your days as an agent sitting on the other side of the desk? VE: Actually, I’ve always embraced technology. In the last agency I worked in, we did business via text, email, skype and had a management system to help us stay on top of sales leads and customers. Nowadays, there is so much out there at our disposal, and it’s quite affordable. If it helps grow your business and keep in touch with customers, use it!

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BTM: Speaking of helping agents, what made you decide to put your head in the noose and take the position of BIG Board president? VE: I was voted in! And I like the new direction the association wishes to take. I want to be a part of making it happen! BTM: What role do you envision the Board taking with regard to the association? VE: We hope to bring in fresh ideas and develop the association in such a way that supports the professional growth of agents. Sustainability requires the input and participation of all players in the industry and we want to promote this collaboration. BTM: Why should someone join a trade association like BIG? VE: Our goal is to create a collaborative and educational environment. Agents, carriers and other vendors should join because the more perspective and shared knowledge we have, the more everyone benefits. People should feel encouraged to ask questions that help them grow their business and be able to receive relevant answers. BTM: What direction would you like to see BIG go in over the next few years?

in business, tech, legislation in order to continuously improve our game. BTM: How do you believe this will be accomplished? VE: By agents, carriers and solution providers working together, sharing information. BIG will do its best to have relevant speakers at events and hold meetings that discuss topical, relevant subjects. Above all, we will communicate with our members and listen to their feedback. BTM: Now, let’s finish with some personal questions. If you could go back ten years and talk to the 2008 version of Vira, what would you say to her? VE: I’d say “keep listening to your gut instinct.” BTM: Fast-forward to 2028, what do you want to hear from Future Vira? VE: “So glad you’re still a vegetarian.” BTM: If you could distill your philosophy for success, both personal and professional, into one paragraph, what would it be? VE: I don’t need a paragraph. It’s really simple: I follow my instincts, I ask a lot of questions to learn, learn, learn and I do what makes me happy.

VE: We’d like for BIG to keep its focus on education. That said, we all need to keep abreast of the latest

HOW TO PICK A STRATEGIC PLANNER AND USE IN-DEPTH WORK STYLE ASSESSMENTS TO IMPROVE PLANNING PERFORMANCE By Dana Borowka, CEO, Lighthouse Consulting Services

Scott Adams, the creator of the cartoon Dilbert, has lampooned strategic planning for years. “I’m putting you on the strategic planning team,” announces Dilbert’s boss. “It’s like work, but without the satisfaction of accomplishing anything.” There is a grain of truth in Dilbert, because strategic planning can fall short without the right facilitator and approach. Some consultants say it is critical the strategic planner you hire should know the industry. “Choose a strategic planning resource that knows your industry and is willing to understand how your existing capabilities are or are not capable of achieving the strategy,” says Paul David Walker, a strategic planner with specialized expertise in many industries. “If they produce the ideal strategy vs. one that works for your existing talent, then the plan will just gather dust,” adds Walker.

BEYOND THE STANDARD SCREENING CRITERIA The standard screening criteria when selecting a strategic planning consultant is experience, results, references, and chemistry/fit. Barri Carian, a former senior executive for two Fortune 500 companies who has been a partner or in the embryonic stages of three start-up companies, is a strategic planning consultant who believes in today’s fast paced and disruptive world there are two additional areas companies should pay attention to in their selection. “The first is can the strategic planning consultant take us through a deep dive into the trends that will impact our future success?” she asks. “This includes societal (demographic and psychographic), industry and technology trends. Strategic plans that do not take these trends into consideration will not serve the company well.”

September/October 2018

For examples of those who didn’t take trends into account think Blockbuster, the music industry, the taxi companies, and Kodak. “Second, the plan must be executable,” adds Carian. “So often, strategic plans sit on a shelf never to be referenced again. Or they are so lofty, it’s overwhelming and companies don’t know where to start. Can the strategic planning consultant help you operationalize the plan? That means prioritizing initiatives, assigning owners or champions, breaking large strategic initiatives into smaller bites and developing systems to track progress and removing obstacles.” INSIGHT LEADS TO BETTER STRATEGIC PLANNING TEAM PERFORMANCE After a strategic planning consultant is selected, in-depth work style and personality testing can be a valuable resource for the strategic planning process. The true value of any assessment comes in using the insights it provides. Personality assessments lend objectivity to decisions that may otherwise be largely subjective. Here are five ways to use in-depth work style and personality testing for strategic planning: 1. Get the real picture when choosing strategic planning team members. Naturally all candidates for your strategic planning team want to put their best foot forward. However, through an in-depth work style and personality test, you can uncover a great deal about their ability to work well with other personalities, their problem-solving abilities, their thought processes and their ability to tolerate stress. This testing gives you objective information that can help you make an informed decision about whether these candidates would be good fit for the strategic planning team. 2. Help team members be all that they can be. Everyone has strengths and weaknesses. Find out the real truth with an objective measure. Once you pinpoint the good and the bad, then you place them in the right positions and coach them on where to improve.

3. Treat team members the way they want to be treated. In today’s fast-paced world of business there is little time to get to know many of your coworkers. Using in-depth work style personality assessments as the basis for team building exercises can quickly get everyone to have a healthier respect for other ways of seeing the world. 4. Make strategic planning leaders better team leaders. When team leaders understand what makes their people tick, they can be better leaders. Knowing the work style and personality traits can help with stressful planning sessions. 5. Set up strategic planning teams for success. Sometimes we hire the right employee and then give that person the wrong job. Understanding preferred work styles and where a person would be happiest goes a long way to improving retention and productivity. A proper test should reach beyond simple profiles and decipher an employee’s underlying needs. This is key for team building, conflict resolution, and succession planning. Some tests only use five or eight traits to make an assessment; this is not enough. We recommend a test that utilizes the full sixteen traits to get a complete picture of the person. A final thought: once you have used assessments to pick the right team, it might be a shame to use them only once a year. “My view of so-called strategic planning is that today it is less an event and more an ongoing conversation,” says Larry Cassidy, a group chair with Vistage International for 30 years. “The most effective organizations are evolving, and for me that moves viable strategic thinking away from being an annual event and toward an ongoing conversation.” Robert Scherer, president of TAG, an outsourced accounting and software solutions firm, believes that in order to maximize the likelihood of executing a strategic plan that attention to detail and follow-up are critical.

“Over the years, TAG has worked with many companies in various stages of their strategic plan, with many attempts to accomplish too much in one year,” Scherer said. “With planning it’s better to break down goals into shorter sprints, as it puts more urgency and focus on your goals, which defaults to a more agile approach.” TRENDS TO TAKE INTO ACCOUNT FOR STRATEGIC PLANNING Before his consulting career, Marc Emmer spent over 20 years in the food business, in operations, marketing and business development. Emmer, who writes regularly for Inc. magazine, offers these trends to take into account in your strategic planning: • Get great tax planning advice now. • Have a nimble strategic plan that can change on a moment’s notice. Review it quarterly to ensure you are in a position to seize the opportunities ahead. • Invest in technology. Ask of your management team, how is technology a strategic advantage? If your team doesn’t have the chops to answer the question, find the people who do. Weave technology into your strategic plan.

• Execute flawlessly. Given the rate of change, customers expect on-time delivery, great quality and seamless communication. Utilize agile principles to ensure your team can pivot quickly to meet evolving customer demands. ABOUT THE AUTHOR Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. If you would like additional information on this topic or others, please contact Dana at (310) 453-6556, email him at dana@lighthouseconsulting.com, or visit his website at www. lighthouseconsulting.com.

• Hire people before you need them. If the economy continues to heat up, and unemployment levels off at 4 percent or so, it’s going to be nearly impossible to find talent. • Be a best-in-class employer and push the envelope on providing a flexible work environment (including virtual office space). • Utilize collaboration tools that allow you to provide your team the ability to be effective, in any location at any time.

September/October 2018

Halloween Fun Facts

Black cats and witches aside (people in the Middle Ages believed witches turned themselves into black cats, hence we don’t cross their paths), we thought it would be interesting to learn a few facts about All Hallows Eve. During All Souls’ Day parades in olde England, families would give beggars pastries called “soul cakes” in return for their promise to pray for the family’s dead relatives. Referred to as “going a-souling,” children eventually began visiting houses in their neighborhoods to beg for “treats.” The Celts of a few hundred years ago believed they would encounter ghosts if they left their homes on Halloween. To avoid being recognized, people would wear masks when they left their homes after dark so that the ghosts would mistake them for fellow spirits. The name “jack-o’-lantern” first originated from an Irish folktale about a man named Stingy Jack who tricked the Devil over and over again until Jack died and was forced to walk the Earth with only a carved-out turnip and burning coal to help light his way. When buying Halloween candy for trick-or-treaters, stay away from the most-hated types of candy of 2017: Circus Peanuts, candy corn, wax coke bottles, Necco Waffers, Mary Janes, Tootsie Rolls, Smarties, black licorice, and Good & Plenty.

Now that fall is approaching, we can all start thinking about the fun holidays associated with the season, with Halloween front and center. Whether you go all out, planning your costume and decorations for weeks (months?), or you are satisfied admiring the get-ups of the neighborhood kids, All Hallows Eve is a lot of fun. Halloween’s origins date back to the ancient Celtic festival of Samhain, when it was believed that the ghosts of the dead returned to earth. They celebrated their new year on November 1, which marked the end of summer and the harvest and the beginning of the dark, cold winter. The Celts believed that on October 31, the boundary between the worlds of the living and the dead became blurred.

On the flip side, Reese’s Peanut Butter Cups were 2017’s most popular Halloween candy, as well as Snickers, Twix, Kit Kat, Nerds, Sour Patch Kids, and Skittles. Due to safety concerns, trunk-or-treating was introduced in 2000 as an alternative to hitting the pavement for candy on Halloween night. Cars are parked in a circle at a school or church parking lot, with event-goers decorating their open trunks and dressing in costume in order to hand out treats. Thanks to Woman’s Day (www.womansday.com) for the info.

September/October 2018