Change is the Only Constant G 2 + E = Success

Change is the Only ConstantG2 + E = Success Jeff Hughes CEO, GAMA International Share the tools

Welcome With a Purpose! • GAMA International welcomes you to the Distributor’s Summit. Our purpose today is to discuss: • distribution management growth • effective succession planning in the life insurance industry. Share the tools All information contained in this presentation is proprietary and non reproducible without written consent of GAMA International

Change, Change, Change • Without proper strategies, it could mean the end for your firm or agency. • Retiring baby boomers + a lack of women and minorities in the financial services industry = BIG PROBLEM. • Solution: • widen the talent pool by employing • younger generations • women • minorities Share the tools

With Change, Comes Opportunity • “Each generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after it” • George Orwell • So who’s in the ‘driver’s seat’ today? • BOOMERS Share the tools

Generation X = Who’s Next in Line? • Born between 1964 and 1980 • Individually focused, • Self-directed • Creative individuals • Looking for ways to maintain a certain lifestyle, while receiving recognition for personal accomplishments. • Must be transitioned into leadership positions ASAP Share the tools

Generation Y = The Future Advisors and Leaders • Born between 1981 and 1995 • Entitled, open-minded, and educated do-gooders looking to advance at a steady rate, receive frequent feedback and work in a team setting. • How do we recruit them? Share the tools

Technology: Get Used to It! • “Once a new technology rolls over you, if you’re not part of the steamroller, you’re part of the road” • Stewart Brand • Social media, tablets, and smartphones, oh my! It’s time to get tech savvy to stay afloat. • Jump in the deep end, the water’s fine! Share the tools

Gender-based Opportunities • “As an industry, we have an opportunity to make a profound difference in the lives of (American) women. Yet, as financial services leaders, we are nowhere near to capturing the enormous potential of this market” -Mary Quist-Newins • MENTORING! • Why are there such few women in leadership positions? • Gen X women like the flexibility of not having to adhere to a traditional linear career path. • Gen Y women and men seek the same process.

LIMRA. Krozel, Kathleen. Leading Indicators: Sales Leadership and the Future of Agency Distribution. 2010: Windsor, Connecticut. (p.21)

Building High-Performance Adviser Teams: The Start of Something Important • Two birds one stone: fulfill Generation Y’s need for a team-based environment and constant feedback and Generations X’s desire to specialize by creating high performance adviser teams.

Types of Teams

Set Expectations • What do you expect out of team members in terms of work and behavior? • How will you assign accounts to new agents?

Tracking Team Performance • Transitioning from individual accountability to a team setting requires you to clarify how a team’s effectiveness will be measured. • Sales • Marketing • Obtaining new clients • Retaining clients and managing activity

Initiating the Team and Building Synergy • Cohesion and synergy are imperative for a team’s success and will exist if all members are invested in making the team work towards the overarching mission. • Synergy = WINNING • How to build synergy? • Accountability • Trust • Reciprocity • Mutual Respect

Transition to Leadership • How do we move from personal production to management? • Senior advisors work as mentors to transition agents into leadership positions by handing over team responsibilities and offer coaching during the initial phases. • Transitioning agent to sample leadership responsibilities. • Mutual agreement to “cross the bridge” is made.

Recruitment and Selection • New leaders should be guided by experienced leaders during their early period of executing the recruitment and selection process so that, in turn, they can mentor and train new associates who follow them. Task

Training and Development • Mastery of the sales process is key to becoming a successful agent. New leaders can train newly selected agents with continued guidance from veterans. • Build the right habits and incite confidence. • Leverage the entire team to support the new advisor

Characteristics of a High-Performance Leadership Teams • Now that we know how to build advisor teams and transition agents into leadership positions, what do we look for in a successful leadership team?

Vision/Mission • “Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.” -Andrew Carnegie

Setting Hard Targets • Vision: the BHAG for the organization • Short-term, flexible goals that reflect the vision. • Strategy: a clear vision and hard targets provide direction for your organization. • Measurement, analysis and adjustment

Creating a Culture of Commitment and Personal Accountability • Accountability produces results and drives strong performance.

Building Harmony • Building open relationships between team members is inevitably central to success.

Building Trust Through Communication • Without trust, you cannot have harmony. • Without harmony, you cannot have trust

Achieving Alignment • To lead with one voice, a leadership team has to integrate the vision, strategy, and culture into one synchronized whole.

Developing a Leadership Team • How do you develop specific skills and know that your resources are being used properly?

Conclusion • A firm’s strategy for growing its distribution management and developing effective succession planning will determine if it will succeed in adapting to and adopting a changing landscape. • Generations • Gender • Ethnicity • Culture

Change is the Only Constant G 2 + E = Success