Sovereign Insurance - Goal Setting for RESULTS - SovNet

1. Goal Setting for RESULTS Best practices based on the direct observations of thousands of RESULTS.com client firms Presenter: Stephen Lynch Role: Head of Strategy & Consulting at RESULTS.com Email: Stephen.Lynch@Results.com Linkedin: linkedin.com/in/stephengeoffreylynch Slides: results.com/slides Software Demo: results.com/insurance

2. “However beautiful the strategy, you should occasionally look at the results” “However beautiful the strategy, you should occasionally look at the results”

3. RED = Unacceptable performance standard YELLOW = Watch closely. Problem? GREEN = Target performance standard Questions / Answers: #realKPIs || @RESULTSdotcom Tracking Metrics / Key Performance Indicators

4. RED = Project off track. Will miss deadline YELLOW = Project needs help. Problem? GREEN = Project on track Questions / Answers: #realKPIs || @RESULTSdotcom Tracking Strategic Projects

5. In the past, we used Spreadsheets

6. Now we use software

7. Everyone knows their individual accountabilities

8. We can see how other teams are performing

9. Drive the execution of Projects & Tasks

10. We can see how other teams are performing

11. We can see who is, and who is NOT performing

12. What’s happening here?

13. “92% of companies don’t measure KPIs”

14. 92% of companies don’t measure KPIs [3]

15. Create leads Convert leads into sales Provide product-service Delight customers Grow cash make profit

16. Questions to identify your KPIs 1. What are the key functional areas of my business? 2. What result or outcome am I looking for in each area? 3. What “activities” or “actions” drive this outcome? 4. What “effectiveness” measures let me know how well these activities are being performed?

17. # phone conversations # appointments booked # proposals submitted # policies issued % appointments conducted % submissions approved $ average API

18. Aim for the stars, even if you miss… you’ll still reach the moon

19. Questions / Answers: #realKPIs || @RESULTSdotcom

20. Create leads Convert leads into sales Provide product-service Delight customers Grow cash make profit

21. KPI Questions What result or outcome are you looking for? What “activities” or “actions” drive this outcome? What “effectiveness” measures let you know how well these activities are being performed?

22. Functional Area Team / Functional Area name = MARKETING (Create Leads) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN

23. Functional Area Team / Functional Area name = MARKETING (Create Leads) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN New Customer Phone Conversations Week 8 12 New Customer Appointments Booked Week 3 6 Influencer Meetings Week 0 1

24. Questions / Answers: #realKPIs || @RESULTSdotcom Single Point Accountability

25. Functional Area Team / Functional Area name = SALES (Convert Leads to Clients) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN

26. Functional Area Team / Functional Area name = SALES (Convert Leads to Clients) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN New Customer Appointments Held Week 1 4 Submissions Week 1 3 Appt / Submission Conversion MTD Week 70% 80% Issued Policies Week 0 2 Average API per policy Week $1200 $1500

27. Functional Area Team / Functional Area name = OPERATIONS (Provide Service) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN

28. Functional Area Team / Functional Area name = OPERATIONS (Provide Service) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN Existing customer phone conversations Week 10 15 Existing customer appointments Week 0 2 Lapsed Policies MTD Week 3 1 Referrals MTD Week 2 4

29. Functional Area Team / Functional Area name = FINANCE (Grow Cash + Profits) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN

30. Functional Area Team / Functional Area name = FINANCE (Grow Cash + Profits) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN Daily Cash balance Day $ $ Revenue MTD Day $ $ Monthly Net Profit % Month % %

31. - You are on an extended holiday in the tropics…. - All you can receive is a weekly email that contains a small handful of numbers (5 max) that tell you how well your business is performing - If the KPI’s are “green” you can go back to reading your book - If the KPI’s are “yellow” you need to ring the office to see what is going on - If the KPI’s are “red” you need to cut your holiday short and return home - What are the “critical success factors” for your business? Imagine this…

32. Business Model - Critical Success Factors (example) Industry Type = (e.g. Insurance Advisor) Performance Thresholds KPI Description Person Accountable Measurement Frequency RED GREEN New Client Appointments Week 1 4 Submissions Week 1 3 Appt / Submission conversion rate MTD Week 70% 80% Issued Policies Week 0 2 Average Annual Premium Income per policy Week $1200 $1500

33. Questions / Answers: #realKPIs || @RESULTSdotcom

34. In “The Red”? What’s happening here? What 1 thing can we do this week to improve this? What support do you need?

35. Accountability is meaningless without consequences What positive consequences can a person expect if their KPI is consistently in the “GREEN”? What negative consequences can a person expect if their KPI is consistently in the “RED”: • For 1 month? • For 2 months in a row? • For 3 months in a row?

36. “Leaders owe it to the organization & their fellow workers not to tolerate non-performing people in important jobs”

37. KPI performance thresholds Be conservative in the beginning Get everyone used to “winning” You can always raise the bar later

38. Goal Setting & Accountability – Getting it Right Growth inhibited by: - Wrong person in the role - Wrong Metrics / KPIs - Too many Goals - Unrealistic performance thresholds - Not keeping Goals and Tasks current and visible every week - Not running weekly team and 1-on-1 meetings to discuss results - Not holding each person firmly accountable for performance - No consequences for poor performance - Waiting too long to address poor performance Growth maximized by: - Right person in the role - Right Metrics / KPIs - Realistic “green” performance thresholds – adjusted regularly - Goals and Tasks kept current and visible every week - Weekly team and 1-on-1 meetings to discuss results - Each person held firmly accountable for performance - Good performance and progress praised and recognized - Poor performance discussed every week and addressed promptly

39. ★ KPIs drive “business as usual” (your current operating model) ★ Don’t just track outcomes or currency measures ★ Focus on activity & effectiveness measures that drive outcomes ★ Make performance visible on a dashboard ★ Weekly team and 1 on 1 meetings to discuss performance ★ Good performance praise and recognize ★ Poor performance discuss every week, “What’s happening here?” ★ Shame is not a motivator. Beware setting thresholds too high ★ Be conservative in beginning. Get everyone used to winning ★ Ratchet up performance threshold over time ★ Adjust thresholds every quarter to ensure relevance Metrics / KPIs - best practices

40. 10 Benefits of Software Dashboards 1. Radical Transparency - motivates action 2. Everyone can see what’s going on 3. Keeps people focused on critical success factors 4. Communicates “what” needs to be done 5. Delegate authority to staff to figure out “how” 6. Recognize progress when things going well 7. Early warning indicator when things going wrong 8. More effective meetings to drive accountability 9. Objective decision making based on data 10. Drives business execution and RESULTS

41. Thank you for your time!

42. Goal Setting for RESULTS Best practices based on the direct observations of thousands of RESULTS.com client firms Presenter: Stephen Lynch Role: Head of Strategy & Consulting at RESULTS.com Email: Stephen.Lynch@Results.com Linkedin: linkedin.com/in/stephengeoffreylynch Slides: results.com/slides Software Demo: results.com/insurance