ACG - Agency Consulting Group

The PIPELINE

A national monthly newsletter for agency principals dedicated to agency management topic

Benchmarking

The Best Way to Measure Your Agency’s Performance Against Your Most Important Marker – Your Own History – and Your Second Most Important Marker, Your Peers.

Most agents mark their annual success or progress by keeping an eye on their checkbooks. If they have more money than they did last year, they consider the year a success. If not, it’s a disappointment.

But as good an indicator as ‘Money In The Bank’ has been, it doesn’t identify if you have become a stronger agency (maybe everyone made more money than you this year) or a weaker one (maybe NO ONE made money this year).

That’s why we started Benchmarking the industry over 20 years ago. We challenged agents to measure their annual performance against the only two things that legitimately gauge progress and success, their own histories and against the industry averages.

We applaud Best Practices and a few other distinguished agency groups established by esteemed competitors for what they are, gauges of the performance of selected “best” agencies toward which we can all strive to achieve. But our Benchmarks are more mundane. We collect data from thousands of agents, the Best Performers as well as more modest performing agents included. The results have been the Benchmarks of the average agencies in each size group reviewed.

Now that the agents can input their own data (with complete privacy) into the database (each getting an analysis of their performance vs. their Composite Group if they desire) we have been able to further segment the Composite Groups into State and Special Groups. So if you are an agent in North Dakota, you will be measured against your composite group of North Dakota agents (as long as enough have entered their data to validate a Composite Group). If your State or Special Group has responded with enough agents in all size categories, we will further measure your performance against your size group within your State (or Special Group).

We invite all State Associations to register with Agency Consulting Group, Inc. for their own State Composite Group made up of members from that state. We invite all Special Interest Groups to register and form their own Composite Group within the overall Agency Consulting Group, Inc. Database. All groups are dynamic, changing every day as new entries are made.

In the interest of privacy and anonymity, we will NOT maintain agents’ identification along with their data. Unfortunately, this keeps us from providing you historical as well as current benchmark comparisons. However, we have found that most agents maintain their Benchmark results from one year to the next to measure their progress against their historic performance. The smart agents begin using benchmark positions as goals from one year to the next in order to hone in on specific performance improvement areas every year.