Habit Two: Declutter To Delete Your Stress

Some people have a method to their madness.  Midst all the jumbled notes, books and discheveled piles of folders, there's actually a sense of order and reason.  But mostly it's just clutter.  Not necessarily junk, but a confusing heap of tasks littered in a chaotic manner drowning your thought process and damming your creative flow.

Let's take a trip to your junk drawer in your kitchen.  I know you have one, everyone does.  That drawer where you put everything that doesn't have a place but you just can't bring yourself to throw it away yet.  There's probably several old batteries, an old remote to a TV that you don't own anymore, outmoded phone chargers, and possibly a marble.  A MARBLE!  Why are you holding on to that?!

The real question is does the top of your workspace resemble your kitchen junk drawer? 

I'm going to play Dr. Phil here and tell you that "it's not your fault" (did you hear his voice when I said that?).  There's a very normal, as well as scientific, reason that you hold on to things that you don't need and keep the mishmash of papers, folders and assortment of other "necessities" on your desk that make up your clutter.

The principle of Consistency. 

Dr. Robert Cialdini, a Regents professor of Psychology at Arizona State University and author of Influence: Science and Practice states:

"Like other weapons of influence, this one lies deep within us, directing our actions with quiet power.  It is, quite simply, our desire to be (and to appear) consistent with what we have already done.  Once we make a choice or take a stand, we will encounter personal and inerpersonal pressures to behave consistently with that commitment.  Those pressures will cause us to respond in ways that justify our earlier decision"

In essence you keep that book about social media on your desk because at some earlier point you promised yourself that you were going to read it and master LinkedIn and Twitter.  Despite the fact you literally haven't looked at it in two weeks, if you put the book away, you are subconsciously admitting that you were wrong in the first place.  Normally not an easy concession to make.

Why?  Because there's a genuine physical pain associated when your brain submits to the fact that you made the wrong decision.  Recently a group of researchers at the Yale School of Medicine discovered  that when you choose to rid yourself of items that you once deemed important, you activate certain areas of your brain associated with conflict and pain.  Letting go of that clutter can actually cause you grief, anxiety and discomfort.  The same feelings akin to a smoker trying to quit.

Unfortunately, the medical community hasn't developed a patch to help with clutter withdraw.  So how are you going to clean up your mess?  How will you rid yourself of the hodgepodge that's scattered across your office?  It's not going to be easy, but you can do it.  Rather than trying to clean everything up in one fell swoop, Cindy Glovingsky, MSW, a psychotherapist and professional organizer suggests "Create a pocket of order."  Don't just dump the entire mess. Find single items that can be thrown away or scanned and put into an electronic file.  If there's an item on your desk that hasn't been used in two days, file it away.
 
Organize your Outlook mail folder.  Delete and answer those emails that can be done so immediately.  After that prioritize the rest into time sensitive needs and create folders for those needed for future reference.  Utilize Outlook's calendar function to set yourself reminders rather than jotting down on a legal pad or post it note.

There are a lot of resources out there to help you de-clutter.  Do a Google search and you will be inundated with a whole mix of links to websites, blog posts and books to provide you the wherewithal to accomplish your task.  Follow this link for a very informative article on WebMd to help get you started.

In the end, clutter control is a mindset.  Whether it's an important purchase, an impulse buy, or a scribbled down phone number.  Begin to think in regards to items helping you fulfill your life's purpose, not the other way around.

Habit One: Prioritization

"Failing to prepare is preparing to fail."

-Benjamin Franklin

A well-known professor at a university is giving a pre-exam lecture on time management.  On his desk is a bag of sand, a bag of pebbles, some big rocks and a bucket.  After introducing his items to the class he asks for a volunteer to come forward and place all three smaller items into the bucket.   One of his clever students duly steps up to carry out the task, starting with the sand, then the pebbles, then the rocks, which do not all fit in the bucket.

"This is an analogy of poor time management," declares the lecturer, "If you'd have put the rocks in first, then the pebbles, then the sand, all three would have fit. This is much like time management, in that by completing your biggest tasks first, you leave room to complete your medium tasks, then your smaller ones. By completing your smallest tasks first you spend so much time on them you leave yourself unable to complete either medium or large tasks satisfactorily.”

The lecturer then re-fills the bucket, big rocks first, then pebbles, then sand, shaking the bucket between each so that everything fits.

Unfortunately I can’t lay claim to the above analogy but I think it’s a strong illustration.  Often times making your day fit into your finite schedule can seem like a Herculean task.  While you toil away at a sluggish pace with your output, your inbox continues to grow faster than the national debt.  It’s not a matter of working harder; it’s a matter of working smarter.   An easy way to overcome this is to be prepared and simply make yourself a list of priorities starting with the largest matters first and working your way to the smallest.

Prioritizing your tasks for the day or week removes what I like to call activity anxiety.  That feeling you get at night when you’re trying to fall asleep but unable because of an uneasiness thinking that you are forgetting something very important.  As I relate this article to Stephen Covey’s 7 Habits of Highly Effective People, making a priority list helps you become what Stephen calls being proactive instead of reactive.   You’re choosing to act rather than be acted on. 

So when do you plan?  Making a plan as early as possible is the key to taking advantage of what limited time we are given.   Remember, there is no such thing as “extra time”.  Don’t tell yourself you will do it when you get an extra minute or two.   Take thirty minutes at the end of your day and make a plan for tomorrow.   Again, be proactive, remove your activity anxiety and be free to relax with a clear mind once you get home, ensuring you will be fresh to tackle any items on your list the next day.

7 Habits of Highly Effective Insurance Agents

One of the most powerful books I've ever read that made a huge impact on my life, apart from the Bible, is Stephen R. Covey's "The 7 Habits Of Highly Effective People."  The subtitle, "Powerful Lessons in Personal Change" could not be more accurate.  No matter what your career field, Stephen's recommendations on how to operate personally and professionally have the power to change your life.  Reading this book was a small investment in time, but more importantly a colossal investment in my personal transformation.

Due to space and time constraints, I can't use this post to talk about the entire book, however I want to point out one of my favorite parts.  It just happens to be Habit 1:  Be Proactive.  Stephen says:

"Highly proactive people recognize responsibility.  They do not blame circumstances, conditions, or conditioning for their behavior.  Their behavior is a product of their own conscious choice, based on values, rather than a product of their conditions, based on feeling."

That one quote is how I choose to live my life and how I have chosen to operate professionally.  It's one of the main reasons I do this blog. 

With all of that aside, it got me to thinking how can I relate this to what you do as an insurance agent.  I have decided to come up with what I think are the 7 Habits of Highly Effective Insurance Agents.  Ideally I have come up with seven habits I want to recommend you adopt into your professional life.  They are:

Habit 1:  Prioritization.

Habit 2:  Clutter Free

Habit 3:  Work now/Play later Mentality

Habit 4:  Questioning/Risk Placement

Habit 5:  Follow up

Habit 6:  Marketing

Habit 7:  Continuing Education 


Over my next seven posts I will expound on each habit and open your mind to its benefits.  For now I suggest writing these down or printing them out.  Keep them in a highly visible place, and refer to them daily.    I think that you will find they can provide a strong foundation in your evolution into the next generation.

Just Who Is Talking To Your Insureds?

When was the last time you met with any of your renewing customers?  Aside from having to because of a claim, when was the last time you sat down to discuss changes or even sent a letter to any customer you wrote over six months ago?  I would bet it has been well over six months.  The sad truth is that the industry average is only once every few years.

Just who is talking to your customers?  For starters, they know Flo very well.  They know her so well they dress up as her for Halloween. They're also very familiar with and see a little green Gecco on a daily basis.  Ever heard of Dennis Haysbert?  He's most famously known for his deep voice and role in the movie "Major League" but now he represents AllState.  He gets pretty chummy with them too.   He even tells them he’s going to give them money back!!

Picture of my Mom as Flo for Halloween
 

 Ironically those of us in independent insurance agencies tout how great our personal relationships are and how our personal touch keeps our retention strong.  Would you want to put your money where your mouth is?  Unfortunately you probably already do and don't realize that in actuality your customer relationships aren't that solid.  For example, how many existing insured's came through your door today that you had to ask their names?  

The fact is, direct writers have done a great job taking fictional characters and giving them personality.  Their words comfort us, make us laugh, and sometimes give us false hope.  They tell your customers they can name their own price for insurance! Have you ever done that?  I bet (and hope) not.  It’s your job to explain to them just why it’s impossible to do that.

 It's true that a majority of the customers that leave your agency to "go direct" will probably return with a bad taste in their mouth after dealing with a claims issue or missed payment.  Most like having a local agent to rely on and someone they can they can visit with in person.  However, if you acted a little more pro-actively you wouldn't lose them to promises of saving 15% in 15 minutes.  If you only spent 15 minutes with them in the first place, they might not be so tempted to leave.

Make A New Year's Revolution

We are now eight days into the New Year 2014.  Have you stopped smoking yet?  Have you cleared the clothes and dust off the treadmill?  If my assumption is correct, I'm going to guess that's a big fat NO!  It's true that you still have some time left to get started, but with each passing day motivation to start becomes harder to find and excuses for the status quo become easier to make.  However, don't feel too bad about breaking your resolutions, there's actually some science behind it.

Why do resolutions fail?  One answer to that question is the "all or nothing rule." Simply put, we think in terms of black and white which means we either keep the rule or we break it. We do so well keeping up with the resolution while we're enjoying the successes but completely let go at the first sign of failure. According to Rajesh Bagchi, Ph.D., assistant professor of marketing at Virginia Tech, "people tend to take a break-- a well earned breather--after achieving a sub-goal." Unfortunately it's rare that we resume our efforts after the break.

 The second reason we break our resolutions is because as individuals we lack vision. I'm not talking about eye sight. I'm talking about "the act or power of anticipating that which will, or may, come to be." When our progress stalls our end goal becomes harder to anticipate and disappointment clouds our image to our path of success.

So this year I don't want you to make the same old New Year's resolution, destined to fail.  This year you're going to have a New Year's Revolution, quite simply a "sudden, complete or marked change."  This is the year to make a difference. Don't just start a diet; instead change your lifestyle. Don't just say you're going save money; call your bank tomorrow and start the 52 week challenge. Easier said than done? Exactly! That's why you can't just say it, this year you're going to make a personal vision statement.  What's the difference you ask?

Having a vision statement takes your focus off of the sub-goals and places it on the end goal. If you made a resolution to earn your CPCU designation, you may or may not get around to actually taking the first test. However, you might be more inspired to carry out this monumental task once you know and understand the root of the motivation or desire to accomplish the goal, such as career confidence, the ability to advance at work, or just the prestige.

State Auto Senior Sales Consultant Brian Ahearn, one of only 27 Cialdini Method Certified Trainers, states:

 "I often tell people one of the most impacting books I've read is Steven Covey's The 7 Habits of Highly Effective People. The reason I say that is because I took Covey's suggestion and wrote a personal mission statement. For more than 20 years now I've reviewed parts of my mission statement daily as a way to remind myself of who I am, who I'm trying to become, and what's most important in my life. As I look back on life it's apparent my mission statement has impacted my thinking, choices and behavior in very positive ways." 

Remember, your vision statement is the picture of yourself that you see in the future. It's who you're working to become. This picture is only bound by what constraints you place on it. For example, here is an excerpt of my own personal vision statement:         

            "I am a salesman. At all times I will know my product, my company and my customer. I will continually learn from those with more experience and share my knowledge with those I can teach. Ethically and humbly I will strive to offer my services at the highest standard of excellence." 

Take my lead, challenge yourself to create your own vision statement. Write it on a note card, sign it in ink, and keep it handy so you can look at it every Monday morning. When you create and buy-in to a vision statement for yourself, you will begin to develop the framework to reach your goals. 


For more information on creating and keeping a vision statement visit http://www.mindtools.com/pages/article/newLDR_90.htm. 

Is Your Website User Friendly?

Have you ever purchased a product that came with one of those clever little registration cards?  Like a blender or a washing machine?  Generally the sales person tells you at the point of sale that there's a warranty included and all you have to do is visit a website answer a few questions and give a little data about yourself. How can it go wrong?

It's so convenient, just type in the address and let technology do the rest.  However, once you get over to the company's website you find it's not the modern marvel of technology that you had imagined. In fact it's just the opposite. Understanding what you are supposed to do or even how to answer their vague questions proves to be more trouble than it's worth.  After toiling for twenty minutes and pulling out your hair the perceived value of your purchase/warranty is falling and will continue to plummet until you struggle through or just give up in aggravation.

Yet the worst is when you don't even get a chance to start. You get to the website only to find that the "company's servers are experiencing technical difficulty" and you need to "try again later".

If you have a website you better make sure that it is user friendly.  Don't let it give the wrong impression about you or your agency.  For example, is your site only functional during "business hours?" Can prospects get a quote? Can they at least complete a Desires Needs Analysis (DNA)? 

Websites are for 24 hour a day people. It needs to provide functionality 24 hours a day. Users don't just need a way to find out your phone number or who you have as staff. They can use your Facebook page for that.

If you direct them to your website they better leave feeling like they've accomplished something.  If you don't have quoting ability then they should at least be able to complete a DNA and be followed up on within 24 hours.   Along with that, fill the site with educational information like importance of higher limits or an umbrella policy.
 

Finally, utilize videos of your staff and current customers.  Instead of someone reading about how flood insurance isn't included in a standard home policy have one of your staff do a video.  You could also post that on YouTube to guide prospects to your site.   It should also be noted that everything should look as professional as possible, don't half-do it.

 

Is The Hand Writing On The Wall?

This weeks post reminds me of one of my favorite Bible stories.  It comes out of the book of Daniel in chapter five.  It involves the old saying the "handwriting on the wall."

For those not familiar with the passage, King Belshazzar was a prideful and self-exalted King who knowingly went against the wishes of God.  During one of his lavish parties that he often threw a hand appeared out of no where and begin to write an inscription on the wall.  To make a long story short, Daniel one of the King's servants interpreted the writing to say that the days of the king's reign were numbered.  He had been weighed in the balances and been found wanting.  His kingdom would be divided.  

I find this story relevant because there seems to be a lot of writing out there that we, as independent agents, have been warned and that our days are numbered.

For example, I read an article today titled "Is Personal Lines Auto Worth Fighting For?"  It was written in response to another article that surfaced recently about a study done by the investment bank Nomura proclaiming the demise of the independent insurance agency (the handwriting on the wall). I highly recommend that you read both articles and have included links to each.  I only ask that you start with the Nomura study to read all of their data as to why our way of life is doomed.

I don't want to rehash each of the articles but I do want to point out that both elude to personal auto being a commodity. Which is very unfortunate, and only somewhat true.  For two reasons:

1. For years we have sold it as a commodity never explaining the differences in coverages or upselling subtle nuances but rather cutting as much as legally possible and reducing it to its lowest obtainable price.  We've been treating all personal auto insurance as non-standard auto insurance.
2. The Nomura study goes even further to state that "as company underwriting models evolve and become more intelligent, the need for front line underwriting or talented and trained agents diminishes."  So just like fast food you can pull up to a drive thru and pick and choose what coverage you need off of a menu.  That doesn't work for most people.

When you go on vacation are you willing to spend a few more dollars at a hotel with far superior service?  You could just pick the cheapest room available, besides a bed is just a bed isn't it? 

On your anniversary would your rather have Ruth's Chris Steakhouse or Taco Bell? 

When you have a devastating and unforeseen accident would you rather have a person on the end of the phone several states away explaining you only bought the state minimum requirements or would you rather have a trained and capable agent sitting beside you who spent the time to explain all of your exposures to you and sold you the coverage you truly needed coupled with an umbrella policy?

Here's my gist.   Selling insurance the way that we know it now might be a thing of the past.  I definitely won't totally discount what the Nomura study had to say.  So instead of calling ourselves insurance agents, and selling a commodity, maybe it's time that we market ourselves as Risk Managers.

I mean if the majority of your day involves taking change requests over the phone and cutting coverages or shopping companies everytime someone complains about price then I have to agree with the Nomura study.  The hand writing is definitely on the wall for you and your days are numbered.   Your services will soon be obsolete.

However, if you want to be a Next Generation Agent you must be willing to commit the time to:

1. Read and learn something new every day 
2. Obtain your CPCU, CIC or many other industry designations 
3. Recognize the importance of knowing ISO form language

When you do this you can become a true Risk Manager, someone there will always be a need for.  Not just someone who sells insurance.