Applied Users Forums

General Topics => Helpline => Topic started by: Sara Lieser on May 24, 2012, 06:30:36 PM

Title: To those who audit & try to enforce procedures - does it really work?
Post by: Sara Lieser on May 24, 2012, 06:30:36 PM
To those of you who have procedures and audit to see that they are followed - can you tell me about the pay-off?  Is a desk really not that bad when someone leaves?
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: Lance Bateman on May 24, 2012, 07:20:02 PM
It often takes some nagging - and coordination with any other supervisor/manager if there is one - but yes, it does have results.  I include those in reviews, and they impact raises also if procedures not followed.

Procedures are not only to improve customer experience, but to protect the agency.  Below is a brief note I often pass out to stress the impact of an E&O on the agency or producer.
----------------------
Additional impacts of an E&O

•   Assume you have an E&O, with a deductible of $6000.
•   Additional expenses incurred outside of the deductible are $1000 for this example.
•   Average premium on a new policy is $875; average commission is 11%; averaged share to producers is 50%.
•   Just to replace the expense of the deductible and additional expenses, you have to write 73 new policies if they are all "house" policies.
•   If the new policies are written by producers with whom we share commissions, 145 new policies totaling $127,275 in premium would be required to make up the loss to the company.

And this doesn't count the impact of lost business and company time!
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: DebAmstutz on May 25, 2012, 10:31:47 AM
Sara, I wish we had audit procedures in place here.  We had a commercial CSR leave and nearly NONE of her work was in TAM!  Not because she had not been taught, but because there was no audit process in place and she did things her way.  I truly felt sorry for the gals who had to try to figure out what she had done with client information - turned out that most of it was in Outlook, and not in TAM.  A desk can be more or less tidy, but what about computer files?  These days, that is what probably needs to be checked more closely than desks, especially if your agency does front-end scanning. 
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: Jan Regnier on May 25, 2012, 11:21:56 AM
Being a small office we don't have much (if any!) turnover - however, we do have procedure documents and we have a staff meeting every Monday.  We cover topics that are relevant to changes that co's are making or procedures we are changing or implementing as well as reviewing what renewals are coming up or status of current renewals and what if any issues we are encountering with the co.s  We do reports at specified times of the month to audit activities, claims and renewals/canx.  We have E&O discussions at least once a year and that may span a month of Staff meetings. 

The point of doing all this is so when someone leaves or is out of the office - those left to take of things CAN take care of things without re-inventing the wheel.  So, yes it is definitely worth it and it works.  And Yes, managers/management have to be on board to make it work.
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: Jeff Zylstra on May 25, 2012, 12:39:15 PM
Quote from: DebAmstutz on May 25, 2012, 10:31:47 AM
Sara, I wish we had audit procedures in place here.  We had a commercial CSR leave and nearly NONE of her work was in TAM!  Not because she had not been taught, but because there was no audit process in place and she did things her way.  I truly felt sorry for the gals who had to try to figure out what she had done with client information - turned out that most of it was in Outlook, and not in TAM.  A desk can be more or less tidy, but what about computer files?  These days, that is what probably needs to be checked more closely than desks, especially if your agency does front-end scanning.

That's a scary one, Deb!  Usually, other CSRs suspect that something isn't right about the work one their peers is or isn't doing.  I'm surprised they weren't screaming bloody murder about her.  Or maybe they were and you caught it before something REALLY bad happened.

Anyway, auditing isn't that difficult.  You just have to do it.  At it's most basic level, you just pick 5 random accounts and check activities, attachments, etc... to see if 1) anyone else can tell what is going on with the account, 2) if the records and documentation are complete, and 3) if that's how you want it handled.  Most issues will come out of those 3 "tests".  The problem is doing these things regularly.

 
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: Bob on May 25, 2012, 12:55:23 PM
I agree with Jeff.   Not difficult.  Finding time sometimes proves more difficult but you're basically spot checking your procedures.  Only way staff will respect authority is if they are on top and staff knows, periodic audits.   When they know you are checking they tend to follow the rules. 

We struggled with this for a long time and put off.  Like some found in not doing, people are taking short cuts in their work, or doing things their way.  Once we began auditing and addressing, everyone got on board and follows our procedures.

If you don't audit, you may find especially in commercial lines, apps incomplete.  Often they do online and just complete basics.  Next year when you renew/remarket you're left once again tracking down information that should be there.  Just one example of many things that can happen if you do not audit.
Title: Re: To those who audit & try to enforce procedures - does it really work?
Post by: Alice Mooney on May 25, 2012, 01:29:12 PM
Quote from: DebAmstutz on May 25, 2012, 10:31:47 AM
Sara, I wish we had audit procedures in place here.  We had a commercial CSR leave and nearly NONE of her work was in TAM!  Not because she had not been taught, but because there was no audit process in place and she did things her way.  I truly felt sorry for the gals who had to try to figure out what she had done with client information - turned out that most of it was in Outlook, and not in TAM.  A desk can be more or less tidy, but what about computer files?  These days, that is what probably needs to be checked more closely than desks, especially if your agency does front-end scanning.
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