The Right Seats
Getting the right people in the right seats on the bus starts with redesigning the bus. There has never been a more appropriate time for employee benefit advisory firms to reevaluate their business model and infrastructure to ensure future viability. And it starts with an assessment of the firm's current organizational structure.
Asking difficult questions can bridge structure gaps.
Take a look at your organizational structure and how current and prospective customers are serviced. Do you assign your account service teams based on producer or do you assign account service teams based on alphabet split? In our experience, these models can create challenges due to the size, sophistication and overall needs of the client. A producer driven or alphabet split assignment process will also create potential drain on quality resources. Why would your best service person work on any account under the top 20% in size or quality? These also cloud the reporting structure and make it more difficult to bring in specialists who are independent from the teams.
New School Consultants
New school organizational structures are built with the goal of institutionalizing the client relationship.
The structure follows three basic philosophies:
- Success starts at the top, so appoint willing and capable employee benefits leadership.
- The sales team is responsible for new business generation and proactive servicing on larger relationships.
- Separate the traditional service team and sales team from the firm’s specialized resources.
This structure helps maximize on-staff efforts by implementing a tiered servicing model.
This model involves assigning accounts to client-centric service teams separated, for example, by large group, self-funded, mid-market, small group and individual. The evolution of employee benefit brokers has also spawned several new(er) roles, many of which are on-staff but may also be outsourced.
The addition of these resources help the firm remain competitive and relevant. The quality employee benefits leadership then aligns appropriate, profitable resources throughout the employee benefits book.