Benchmarking and accountability lead to record-breaking growth

Whether gaining a brokerage via acquisition or inheriting the family business, new owners often find the key to unlocking their firm’s full potential lies in evaluating legacy systems and producers. Stagnation is the enemy of innovation. It can be challenging to ascertain which systems and people serve you well and where changes are needed to accelerate growth.

Some questions new owners need to explore: 

• Should existing systems be kept, modified or replaced?
• Can key staff be motivated to meet new standards?
• What improvements are needed to achieve and sustain enhanced revenue goals and organic growth?

Through PHP (Perspective for High Performance) benchmarking and analysis, MarshBerry advisors identified three high-level challenge areas to prioritize:

Team Accountability and Minimums

Company Culture and Environment

Technology and Business Processes

After the initial consultation, MarshBerry advisors provided action items for each business area. The firm turned to MarshBerry Connect to find best-practice solutions and expert advice for accelerating its long-term growth goals.

Membership in MarshBerry’s executive peer exchange, Connect, offers brokers access to Strategic Issues Groups (SIGs). These peer groups meet in person twice a year at Connect Summits and are comprised of noncompeting firms of similar size and business composition. These Summit events go beyond simply networking. They are dynamic sessions where members share business solutions and strategies – while providing real-time actionable tactics and accountability.

After joining Connect, the firm worked with its MarshBerry strategic and SIG peers to address each challenge area. 

During an early Summit event, participation in their SIG revealed the firm’s history of keeping people on board that no longer added value. Addressing this issue would be one of the most challenging aspects of changing their culture, but the best start to quickly get on the path to improvement. That, combined with the support of their MarshBerry advisor and SIG members, sparked the validation and motivation the firm leaders needed to implement a culture shift. 

Everyone is having similar issues: recruiting, finding acquisition opportunities, compensation…these sessions allow us to talk more in depth about these.

Connect Member CFO

It was through uncomfortable, but necessary, conversations that the company gained the knowledge needed to develop new processes to improve producer productivity and accountability by setting defined goals and expectations and, if necessary, transitioning under-performing producers out of roles faster. 

Their participation in Connect, and the value from their SIG peers, made them truly understand the potential worth of their firm and what could happen if they applied what they learned. 

Another profitability challenge was creating team member accountability for minimums and their book of business. The firm developed new initiatives and refinements to their sales process and commission structure through participation during their SIG sessions.

First, they began putting producers on similar contracts 40/25 commission splits and established Small Business Units (SBUs) comprised of accounts below a certain commission dollar amount handled by dedicated service staff. 

Next, the firm redefined its value-add services and began revaluating and aligning its books every couple of years to refocus its resources and provide improved client support. 

Tech Support for a New Generation

Lastly, implementing new technology to support efficiencies and accountability in sales staff was the next step in driving organic growth for this firm. Upgraded technology made it easier to keep track of producer goals and activities. 

Inspired to continue advancing its technology, the firm hired programmers to build a pattern rating system to help organize information and introduced a leading sales CRM to help further systemize processes.

By implementing and managing the initiatives developed through their partnership with MarshBerry advisors and their Connect SIG, the firm saw a 160% increase in gross revenue, a 68% increase in revenue per producer, and a 162% increase in working capital.

They increased representation across the U.S. and achieved several big-picture business goals, including acquiring an $800k revenue niche book in food manufacturing and perpetuating another 50% partner 13 years after their initial perpetuation event.

MarshBerry, as the exclusive financial advisor to the firm, enabled the owner to secure a strategic acquisition with an independent insurance distribution firm, the perfect fit to help them further enhance and accelerate their specialty and middle-market segment capabilities. 

Building relationships was the perhaps the most rewarding experience and genuine competitive advantage of working with MarshBerry advisors and Connect SIGs.

In addition to accessing member-only events and proprietary market data and research, the firm owner developed life-long relationships with advisors, counselors, and other industry leaders who genuinely want to help them succeed.