In business conversations we often talk about expert opinion. It’s human nature to seek guidance from the people who ‘know best’. That doesn’t mean that people who aren’t considered experts or don’t have an insider view on a business’ leadership can’t provide valuable insight. I was told a story this week, by someone outside the insurance industry, that shone a light on a common problem for employees in smaller insurance agencies.
The story was about a 30 year old business with owners nearing retirement. It’s a good business but it could be better with more effective management and updated equipment. A buyer has come into the picture that wants to update the business and make better use of its potential. The person I spoke to wasn’t sure if the owners would sell but they could tell me that the employees are nervous.
They are feeling that same uncertainty that we’ve spoken about on the blog, when employees start to think ‘what will happen to me?’ This situation is slightly different though, because the employees are starting to think that a sale may be the best thing for the business. They feel it’s becoming slowly out of date and change is required. Either the owners need to make those changes or make the sale, otherwise the employees fear the business will go under.
We have encountered many insurance agencies with owners who may inadvertently be damaging the business by staying too long. These owners become complacent or set in their ways and while it doesn’t happen immediately, they get slowly left behind. Now more than ever, insurance agencies are dealing with new types of coverage and new technologies. Agencies that don’t stay on top of these trends or lose sight of the agency’s future often fall into difficulty.
In most cases a sale can give these agencies a new lease of life, but the owner is often the last to see that. They are so involved in the running of the business that they can’t see what’s coming down the road. Employees often see it first because they can take a less personal perspective.
Employees aren’t experts in business strategy, they don’t have the experience of running an agency, but they have a unique understanding of the business itself. As an owner, it makes sense to listen to employee opinion and encourage them to share it. They may not be experts, but they might know best.
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