PFMM: Management and Leadership Principles · PFMM: Management and Leadership Principles ....

PFMM: Management and Leadership Principles

Wednesday, September 25 2013, 1:00 p.m.

Jack Randall, CIC, PCLA, PFMM Executive Vice President

Randall Resources International

Cameron, Mo.

Jack C. Randall is a visionary leadership specialist who helps companies facing tough decisions achieve their

goals of success with clarity, direction, and confidence.

As a sought-after author, national speaker, consultant, and executive coach, Jack works with individual

leaders as well as a wide range of corporate and nonprofit organizations. His clients include both United

States- and internationally based companies. Jack has more than 34 years of marketing and upper-

management experience, which includes the reinsurance, insurance, and agri-business industries. In addition

to his membership in the National Speakers Association and Global Speakers Federation, Jack’s designations

include Certified Insurance Counselor, Property Claims Law Associate, and Professional Farm Mutual

Manager.

Jack’s passion is to challenge people and organizations to fully discover, understand, and actively pursue

God’s unique calling for them and their individual roles as leaders. His hobbies include restoring old cars,

tractors, and motorcycles. Jack’s latest book is titled “Man In The Windmill®: Perceptions, Choices, and

Pursuing Your Calling.”

© 2013 Windmill leadership

Steering Your Mutual Towards Success…

or Just Out for a Joy Ride?

Jack Randall, CIC, PCLA, PFMMRandall Resources International, LLCCameron, MO

MAN IN THE WINDMILL® Windmill Leadership® principles

© Copyright 2013 – All rights reserved


Opportunity?

or Nightmare?

Which way should we go next?

2013 NAMIC Annual Convention - Randall Page 1 of 73


Opportunity?

or Nightmare?

Which way should we go next?

Are we travelling with a purpose?


• Bus -Your Mutual• Driver -Manager• Passengers -Clients• Key -Attitude• Fuel -Surplus• Condition/Paint -Image• Service Provided -Mission• Windshield -Vision• 2-Way Radio -Board Communications• Dispatch Office -Board Room

Roles, duties, purpose, goals must all be clear!



Session Objectives:1. Understand the principles associated with strategic planning2. Learn how to develop and write a company mission statement3. Understand the relationship between the mission statement and

planning purpose 4. Understand the strategic planning process and who should be

involved5. Know what should be included in a one, three, and five-year

business/strategic plan6. Know who should be responsible for implementing the plan and

monitoring progress7. Determine the appropriate means of reporting the progress to the

directors, management and staff8. Understand the importance of the strategic plan in relation to

underwriting, claims, marketing, and technology department goals and guidelines

© 2013 Windmill Leadership

Eating the Elephant Today…

1. The Case for Strategic Planning2. Why the URGENCY?3. What Exactly is Strategic Planning?4. What is Needed to Formulate a

Strategic Business Plan?5. Compiling, Implementing, Monitoring


The Case for Strategic Planning


Section 1:

Is your future brighter than your past?

How many have a Strategic Plan for your mutual?

In WRITING?

And, one for you personally?



Discussion Question:

Why are some mutuals successful?

Question 1 © 2013 Windmill leadership

Why do mutuals fail?

A. Lack of Focus

B. Lack of Direction

C. Lack of Action




Step behind the curtain to examine a secret…

Successful farm mutuals simply DO NOT get their success from pure, dumb luck. They plan and act for success on purpose!


Analogy



How many parts of a windmill can you name?

Question 3

© 2008 Randall Resources International© 2013 Windmill leadership

Strategic Planning provides the

Focus and Direction


“How do we identify an Opportunity?

We can create our own ‘directional system’ to guide us

called Strategic Planning.

It is our role to synthesize our own ‘luck’.”

- Jack RandallWindmill Leadership® Principles

© 2008 Randall Resources International© 2013 Windmill leadership

“Luck is what happens when preparation meets opportunity.”

-Seneca (Roman philosopher)


List the benefits of Strategic Business Planning:• Provide direction• Prioritize activities• Denote responsibilities• Provide timelines• Promote

communication• Promote ownership

• Identify opportunities NOT to pursue

• Identify your competitive advantage

• Allocate resource $• Build team spirit• Benchmarks• Boundaries


Group Activity:


Who benefits from your mutual’sStrategic Business Planning?

Question 4

- Policyholder- Company- Agent- Manager- Board- Staff

- D&O Provider- Reinsurer- Insurance Dept- State Assoc.- Industry- Everyone!



“You’ve got to know you before you can know who.”


Experience has shown….


Your top 5 reasons farm mutuals don’t utilize Strategic Planning:

1.2.3.4.5.


Discussion Question::


My top 5 reasons farm mutuals don’t utilize Strategic Planning:

1. Never had to do it before2. Lack of understanding3. Busy-ness (or laziness)4. Fear5. Pride


1971What have you been going by since then?


Why the URGENCY?

© 2013 Windmill leadership© 2013 Windmill leadership

Section 2:




Statistics!:Recent MAMIC stats per Ron Borders:

Missouri FM’s 25 yrs ago = 140Missouri FM’s now = 82 (41.5% less!)Policy count stagnantTrue growth only from only a few FM’sMany financially struggling

----------------------------No new mutuals being formed!

Activity - Discussion Question:

Why is the number of farm mutuals decreasing nationwide?

Question 6 © 2013 Windmill leadership© 2013 Windmill leadership


We are in a war for our existence!

Where do the greatest threats to a farm mutual come from?

From outside sources?

From within?




Our greatest threats?

From within!

“Nobody makes a greater mistake than he who does nothingbecause he could only do a little.”

- Edmund Burke

Defining Question:

Is your future brighter than your past...

- for your mutual?

- for you personally?



Who is responsible to determine the future

DIRECTION of a mutual?

The Board


Who is primarily responsible to run the day to day

OPERATION of a mutual?

The Manager



Roles &duties

must be known &followed!

© 2008 Randall Resources InternationalUsed with permission: Stoesz, Edgar. Doing Good even Better.

Know & respect the roles!


Group Activity:

Writing exercise:

• Write your name• Now write your name

using your other hand

Describe how you felt


We need to get comfortable “writing with the other hand”!

Our future success will depend on:1. Our Ability to Learn2. Our Ability to Change3. Our Ability to Accept Uncertainty

- Jim Harris“The Learning Paradox”



What do you “see”in the following Farm Mutuals?....


What Exactly Is Strategic Planning?


Section 3:



Strategic Planning:

-Webster’s dictionary definition:

Plan: (n) “… a method of acting… developed in advance.”

Strategic: (adj) “..characterized by...strategy. Mil: …intended to make the enemy incapable of making war …a strategic bombing mission.”



Strategic Planning:

-Jack’s definition:

“A written game plan to give focus and direction.”

Donald Trump’s Apprentice question:

“Are you playing to win?”

Principles of Strategic Planning:

1. Get input and agreement

2. Plan the details of “attack” in advance

3. Document it in writing

4. Implement




Types of Strategic Planning

Business Planning Action PlanningSuccession PlanningDisaster Recovery PlanningMarketing PlanningRe-underwriting PlanningEtc.

Understand How Human Nature and the Human Mind Work…..



© 2010 Randall Resources International

Do these words go together?


Do these words go together?

But did our expectations match?

Great expectations!



Great Expectations!


But do your expectations match that of others

in your mutual?

Great Expectations!


© Randall Resources Int’l

• Words

• Vocal Tone

• Body Language

= 7%= 38%

= 55%

Source: Dr. Albert Mehrabian

In-Person Communication Phone

= 14%= 86%

Email

= 100%

Effective communication?

Painting clear pictures!



Strategic Planning helps to assure everyone’s perception and understanding is ALIGNED.



Strategic Planning

It’s about painting a picture in the form of a written plan, so everyone sees the same thing!


The critical importance of a Company’s Mission and Vision:

- MISSION sets the Direction & Focus.

- VISION should provide a clearly defined“picture” of the ultimate results & details.

Clear directions are Easy to follow!


“You’ve got to know you before you can know who.”




Myths about Strategic Planning:

• Wait for “right” time• “Clean” process• One right way• Order un-important• Must be trained first• Long / complicated• Too costly• Unwritten plans fine• A failed plan “terrible”• A facilitator doesn’t help

• Start ASAP• “Messy” process• Lots of ways • Order IS important• Learn as you go• It is what you make it• It is what you make it• Written plans are best• Be firm, yet flexible• A facilitator can help a lot

Myths Truths


Talking about specific goals….

What is a Benchmark?


Question:


…A measurable, agreed upon standard© 2013 Windmill leadership

What is a “Benchmark” in your Plan?

A measurable, agreed upon standard



So what exactly is BENCHMARKING?

Setting certain standards thateveryone agrees must be met.



S.M.A.R.T acronym:Specific

MeasurableAttainable

RealisticTime bound


How long a period might you wish to benchmark?

- It depends


“If you can’t measure it,you can’t manage it!”

- Anonymous



Important!

All other departmental goals for underwriting, claims, marketing, and technology MUST FIT intothe overall company Strategic Business Plan or they must be revised until they do!



Overall Strategic Plan

Financial Plan Marketing PlanClaims &

UnderwritingPlan

Marketing ActionPlan

Financial ActionPlan

Claims & UnderwritingAction Plan


Planning also assists in…..

Succession PlanningStaff and Board EvaluationsManager reviewsStaff reviewsEtc.

“How did we do in working toward the goal?”



What is Needed toFormulate a Strategic Business Plan?


Section 4:


Who should be involved in the planning process?

Management and Board(at a minimum)


Question:


What are possible benefits ofusing an outside facilitator?

- Fresh perspective- Can raise tough questions- Tools, insights, strategies- Allows mgmt. to give input.


Question:

Question 10

Great expectations!



Activity:

When is the ideal time to plan?


Time scope of plan?

Five-Year Plan Annual Action Plan

So, what about a 3-Year or 10-Year plan?



How often refer to?

How often to re-draft?

It depends, but at least monthly

-Five Year Plan = Every 5 yrs-Annual Action Plan = Annually



Planning is a lot like baking…

Order is Critical!2013 NAMIC Annual Convention - Randall Page 42 of 73

The Essential Ingredients:A. Statistical Data Reports

- Standardized- Run annually- Purpose:

Examples:5-Year Financial Trend Analysis

Assists in setting financial benchmarks


Five Year Financial Trend AnalysisProperty Study

A Part II CompanyManager: Reinsurance Program: Address:

County:Phone #

A B C D E F G H I J K L M N O

YEAR $GRIF

%INC

GRIF

POLICY COUNT

% POLICY COUNT

CHANGE

$PREM

INCOME

%INC

PREM

$AVG

RATE/M

$INVSTMTINCOME

%INV

YIELD

$ OTHER

INCOME

$ADMITTEDASSETS

$SURPLUS

%INC

SPLS

$SPLS/M

$NET

PREM/ SPLS

2004 95,000,000 1,949 701,000 7.38 82,000 4.7% 2,757 1,737,994 1,441,112 15.17 .4:1

2005 100,000,000 5.3% 1,886 -3.2% 696,000 -.7% 6.96 92,500 4.8% 10,892 1,937,575 1,655,923 14.9% 16.56 .4:1

2006 101,222,333 1.2% 1,800 -4.6% 646,000 -7.2% 6.38 70,000 3.5% -65,354 2,014,308 1,777,618 7.3% 17.56 .3:1

2007 99,000,000 -1.0% 1,720 -8.8% 643,000 -7.6% 6.49 105,000 4.4% 78,186 2,371,750 2,074,035 25.2% 20.95 .3:1

2008 98,000,000 -3.2% 1,633 -9.3% 694,000 7.4% 7.08 135,000 5.4% 45,634 2,503,902 2,255,618 26.9% 23.02 .3:1

P Q R S T U V W X Y Z AA BB CC DD EE

YEAR$

PAIDLOSS

$LOSS/M

%LOSS

TOPREM

$COMM

EXP

%COMM

TOPREM

$OPEREXP

%OPER

TOPREM

$REINSPREM

%REINS

TOPREM

$REINSRECOV

%REINSRECOV

$NET

PREM

$NET

LOSSES

%NET LOSS

TONET PREM

$U/W GAIN

(LOSS)

%U/W

COMBND RATIO

2004 219,177 2.31 31.3% 149,792 21.4% 163,835 23.4% 85,396 12.2% 39,408 46.1% 615,605 179,769 29.2% 122,209 82.6%

2005 283,780 2.84 40.8% 155,065 22.3% 179,516 25.8% 80,026 11.5% 80,442 100.5% 615,974 203,338 33.0% 78,055 88.8%

2006 230,972 2.28 35.8% 145,834 22.6% 186,343 28.8% 84,658 13.1% 41,768 49.3% 561,342 189,204 33.7% 39,961 93.8%

2007 206,736 2.09 32.2% 147,060 22.9% 184,286 28.7% 82,061 12.8% 113,199 137.9% 560,939 93,537 16.7% 136,056 78.8%

2008 313,584 3.20 45.2% 147,778 21.3% 197,522 28.5% 83,563 12.0% 26,293 31.5% 610,437 287,291 47.1% (22,154) 103.2%

Footnotes:


P Q R S T U V

YEAR$

PAIDLOSS

$LOSS/M

%LOSS

TOPREM

$COMM

EXP

%COMM

TOPREM

$OPEREXP

%OPER

TOPREM

2004 219,177 2.31 31.3% 149,792 21.4% 163,835 23.4%

2005 283,780 2.84 40.8% 155,065 22.3% 179,516 25.8%

2006 230,972 2.28 35.8% 145,834 22.6% 186,343 28.8%

2007 206,736 2.09 32.2% 147,060 22.9% 184,286 28.7%

2008 313,584 3.20 45.2% 147,778 21.3% 197,522 28.5%

The Essential Ingredients :A. Statistical Data Reports

- Standardized- Run annually- Purpose:

Examples:5-Year Financial Trend AnalysisLoss Totals and Ratios Fire / Wind / Liability (1yr / 10yr)Profit by L.O.B. by Agent / Total (1yr / 10 yr)Growth by L.O.B. by Agent / Total (1yr / 5yr / 10yr)Risk Profiles (Dwelling & Outbuildings) (annual)Rate Change History (10yr).

Assist in setting financial benchmarks



The Essential Ingredients :A. Statistical Data ReportsB. Additional Self-Analysis Tools

Purpose:Examples:- “S.W.O.T. Plus 3” Analysis

Helps to prioritize areas needing attn.



Your S.W.O.T. + 3 Analysis

1.What would success look like to your mutual?2. Which accomplishments are you most proud of?3. What traits of your mutual concern you the most?

Strengths Weaknesses Opportunities Threats

(Simply a self-snapshot / variety of purposes / update as needed)



Purpose:Examples:- “S.W.O.T. Plus 3” Analysis- “FITS” Analysis




‘Fits’ exercise(Source: LeBlanc, Mark)

Horrible – Wrong – Bad Good – Right – Perfect



Purpose:Examples:- “S.W.O.T. Plus 3” Analysis- “FITS” Analysis- Your “Hedgehog Concept” (Jim Collins “Good to Great”)

(Helps you focus on who your company truly is).




Construct Your Hedgehog Concept

GivesYouFocus!

What you are deeply passionate about?

What you can be the best in the world at?

What drives your

economicEngine?


What is your Mutual’s “Hedgehog Concept”?


Question:

The Essential Ingredients :A. Statistical Data ReportsB. Additional Self-Analysis ToolsC. Company Articles, By-Laws, State

Chapter codeReview as neededPurpose: Helps identify legal parameters




Chapter codeD. Company Mission Statement


What is your Mutual’s Mission Statement?


Question:



Company Mission Statement

Definition: One to Three carefully crafted sentences concisely stating your company mission in writing to form a picture.

It must encapsulate the: - “WHAT” and “FOR WHO”s that define the

core reason for your company’s existence.- “WHY” and “WHERE” may also be

important to list.


MAMIC (Missouri Association)“..To support our membership in successfully

meeting the changing needs of the public in a dynamic financial services environment. Our success is measured by the financial stability and perpetuation of our membership.”

Randall Resources“To challenge people and organizations to

fully discover, understand, and actively pursue God’s unique calling for them and their individual role as leaders.”

Mission Statement Examples:


Your Company Mission Statement

• WRITTEN Why?• Purpose: It guides the reader back to the

WHAT,WHY,WHERE,and for WHO’s that define your FM.



How to write one?1. Think short, easy to understand, to the point2. Use concise, careful wording3. Think your mission broadly, not just current function

(Example: Manufacture ice boxes vs. keep food cold)

4. Get board ratification




Rarely if ever change or modify Distribute widely.

Important:

The Mission Statement forms the foundation for the entire planning process. You cannot do effective planning of any type without your company Mission Statement in place.



Examples:

• Nike – “Just Do It!”

• Randall Resources –“Is Your Future Brighter Than You Past?”

Your “Slogan” or “Positioning Statement” is

NOT your Mission Statement


Confusion…Many mutuals want to get lucky and stumble across their NICHE

or their one big opportunity!

Niche: “…a place, employment, status, or activity for which a person or thing is best fitted <finally found her niche>…..”



- Look inside. A Niche is really a showcase of who you really are!

- Before you can uncover your niche, you first have to know you!

Key Concept

CAUTION!

It is highly advisable NOT to use “low price” or “lowest cost” as your niche!

Why not?



Randall Resources International

• Niche -Developing Effective Leaders

• Overall Mission Statement- “Our purpose is to challenge people and

organizations to fully discover, understand, and actively pursue God’s unique calling for them and their individual roles as leaders.”


Chapter codeD. Company Mission StatementE. Company 5-Year Vision



What is your definition of a “Vision”?Where does a “Vision” for your mutual come

from?a. From the Manager?b. From the Board?c. Both?c. Neither?

Is it hammered by creation or does it just come to you?

Is it really that important?Question 13 © 2013 Windmill leadership

Question:


• Definition: “A detailed story of what your future company will look like in 5 years, but set in present tense as if you were describing it existing right now.”

• WRITTEN

• Purpose: It “paints a written picture” so everyone can “see” the same future goal.

• Update as needed / recast every 5 yrs

Company Vision



“Where there is no vision, the people perish: But he that keepeth the law, happy is he.”

Proverbs 29:18

Company Vision


To get started, provide a skeleton of questions for participants.

Examples:1. Company target financial benchmarks2. Company size3. Writing Territory / number of agents4. Lines of business offered5. Etc.

Assemble as a storyWhen done, distribute with discretion.

Why?

Company Vision



Chapter codeD. Company Mission StatementE. Company 5-Year VisionF. Business Plan (5-Yr) w/ Annual Action

Plan


Business Plan (5-Year) w/ Annual Action Plan

The term “Business Plan” as used here can be defined as:

“…..your Strategic Plan distilled into a smaller, concise master document noting the Goals, Objectives, Actions, and Tasks.”




G - GoalO - Objectives (3-5 5-yr specific, financial benchmarks)

A - Actions (Annual Actions to support Objectives)

T – Tasks (Small steps to accomplish Actions)

G.O.A.T. Acronym - Darwin Copeman


Written and in automated format to allow for changes & updates.




OBJECTIVES (These items in BLUE help to clarify the GOAL. If we do these things, we will achieve our GOAL.)

OBJECTIVE #1 Establish Income Parameters/Guidelines and Monitor Progress

OBJECTIVE #2 Establish a Budget / Manage Operating Costs

OBJECTIVE #3 Establish an Effective Marketing Program

OBJECTIVE #4 Begin to Establish Opportunities for Residual Income Streams

ACTIONS (These items in YELLOW assist in broadly outlining each ACTION to be taken to support the OBJECTIVES.)

TASKS (These items noted in GREEN are the specific things needing to be done to reach our GOAL!)

Primary Completion Percent

Task Description OwnerObjectiveStart Date Date Comments Completed

Establish Realistic Income Goals

Discuss and set J/K 1 03/01/08

Document in writing J 1 03/01/08

Study What Types of Income Making Activities Need To Be Done and When

Complete a study and document J/K 1 03/01/08

Complete a Pro-forma to prove numbers against expenses J 1 03/01/08

Monitor Income Progress

Build a quicken report to show past month and also year-to-date income K 1 03/15/08

Monitor past month and also YTD J 1 5th of ea mo

Establish a Realistic Budget

Prepare a budget J/K 2 03/15/08

Document in writing K 2 03/15/08

Monitor Expenses

Build a quicken report to show past month and also year-to-date expenses K 2 03/15/08

Monitor past month and also YTD J 2 5th of ea mo

Prepare a Calendar for 2008 Noting Personal Holidays and Research Time

Put it in writing K 2 03/15/08

2008 Business Plan for Randall Resources International Version Updated: 2/11/08 Embraced by Mgmt. 2/11/08

OUR GOAL for 2008: Establish an Effective, Profitable Business TO EQUIP LEADERS!

Credit: Connie Costigan


OBJECTIVES (These items in BLUE help to clarify the GOAL. If we do these things, we will achieve our GOAL.)

OBJECTIVE #1 Establish Income Parameters/Guidelines and Monitor Progress

OBJECTIVE #2 Establish a Budget / Manage Operating Costs

OBJECTIVE #3 Establish an Effective Marketing Program

OBJECTIVE #4 Begin to Establish Opportunities for Residual Income Streams

ACTIONS (These items in YELLOW assist in broadly outlining each ACTION to be taken to support the OBJECTIVES.)

TASKS (These items noted in GREEN are the specific things needing to be done to reach our GOAL!)

Primary Completion

Task Description OwnerObjectiveStart Date Date

Establish Realistic Income Goals

Discuss and set J/K 1 03/01/08

Document in writing J 1 03/01/08

Study What Types of Income Making Activities Need To Be Done and When

Complete a study and document J/K 1 03/01/08

Complete a Pro-forma to prove numbers against expenses J 1 03/01/08

2008 Business Plan for Randall Resources International

OUR GOAL for 2008: Establish an Effective, Profitable Business TO EQUIP LEADERS!



Purpose and key role of this tool: To provide a handy, concise reference.

Must show ownership & timelines!

Update annually, but refer to monthly & adjust as needed.



Whose primary responsibility is it to report on / refer to this:

-at staff and board meetings?-for ownership of documenting changes / updates?

IMPORTANT: Consider this document as your Strategic Plan distilled into this one nutshell reference tool. All other “plans” must tie into this master document.




S.M.A.R.T acronym:Specific

MeasurableAttainable

RealisticTime bound

The Essential Ingredients :A. Statistical Data ReportsB. Additional Self-Analysis ToolsC. Company Articles, By-Laws, State Chapter

codeD. Company Mission StatementE. Company 5-Year VisionF. Business Plan (5-Yr) w/ Annual Action PlanG. Pro-forma



Pro-formaDefinition: A financial projection showing

that the “math” of your plan works.



Name:

$ Amount % $ Amount % $ Amount % $ Amount %1 INCOME2 Prem/Assessment Written-Less Refunds3 Fire #DIV/0! #DIV/0! #DIV/0! #DIV/0!4 Windstorm #DIV/0! #DIV/0! #DIV/0! #DIV/0!5 Liability #DIV/0! #DIV/0! #DIV/0! #DIV/0!6 Other #DIV/0! #DIV/0! #DIV/0! #DIV/0!7 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!8 Less Pd for PR or QS Reinsurance9 Fire #DIV/0! #DIV/0! #DIV/0! #DIV/0!

10 Windstorm #DIV/0! #DIV/0! #DIV/0! #DIV/0!11 Liability #DIV/0! #DIV/0! #DIV/0! #DIV/0!12 Other #DIV/0! #DIV/0! #DIV/0! #DIV/0!13 TOTAL NET WRITTEN PREMIUM 0 0 0 014 Plus UE prem 12-31 prior yr15 Less UE prem 12-31 current yr16 Equals EARNED PREM CURRENT YR 0 0 0 017 Investment Income (less Inv Exp)18 Commissions Rec'd from Reinsurer19 Other Income20 TOTAL INCOME 0 0 0 021

FARM MUTUAL PRO-FORMA Compiled:

2003 2004 2005 Forecast 2005

Pro-forma



$ Amount % $ Amount % $ Amount % $ Amount %22 EXPENSES23 Gross Losses Incurred less Salvage 024 Fire #DIV/0! #DIV/0! #DIV/0! #DIV/0!25 Windstorm #DIV/0! #DIV/0! #DIV/0! #DIV/0!26 Liability #DIV/0! #DIV/0! #DIV/0! #DIV/0!27 Other #DIV/0! #DIV/0! #DIV/0! #DIV/0!28 TOTAL GROSS LOSSES INCURRED 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!29 Less Reins Recovery (Pd & Resv)30 Fire #DIV/0! #DIV/0! #DIV/0! #DIV/0!31 Windstorm #DIV/0! #DIV/0! #DIV/0! #DIV/0!32 Liability #DIV/0! #DIV/0! #DIV/0! #DIV/0!33 Other #DIV/0! #DIV/0! #DIV/0! #DIV/0!34 TOTAL REINS RECOVERY 0 0 0 035 NET TOTAL LOSSES INCURRED 0 0 0 03637 Claim or loss adj. Expenses #DIV/0! #DIV/0! #DIV/0! #DIV/0!38 Less Reimbursement from Reins #DIV/0! #DIV/0! #DIV/0! #DIV/0!39 Commission #DIV/0! #DIV/0! #DIV/0! #DIV/0!40 Agg & PR Exc of Loss/Cat Reins #DIV/0! #DIV/0! #DIV/0! #DIV/0!41 Allow ances to Managers & Agents #DIV/0! #DIV/0! #DIV/0! #DIV/0!42 Advertising #DIV/0! #DIV/0! #DIV/0! #DIV/0!43 Boards, Bureaus & Associations #DIV/0! #DIV/0! #DIV/0! #DIV/0!44 Salaries #DIV/0! #DIV/0! #DIV/0! #DIV/0!45 Employee Relations #DIV/0! #DIV/0! #DIV/0! #DIV/0!46 Insurance #DIV/0! #DIV/0! #DIV/0! #DIV/0!47 Directors Fees #DIV/0! #DIV/0! #DIV/0! #DIV/0!48 Travel & Travel Items #DIV/0! #DIV/0! #DIV/0! #DIV/0!49 Rent & Rent Items #DIV/0! #DIV/0! #DIV/0! #DIV/0!50 Equipment #DIV/0! #DIV/0! #DIV/0! #DIV/0!51 Printing & Stationery #DIV/0! #DIV/0! #DIV/0! #DIV/0!52 Postage, Telephone & Telegraph #DIV/0! #DIV/0! #DIV/0! #DIV/0!53 Legal & Auditing #DIV/0! #DIV/0! #DIV/0! #DIV/0!54 Taxes, Licenses & Fees #DIV/0! #DIV/0! #DIV/0! #DIV/0!55 State & Local Ins. Taxes #DIV/0! #DIV/0! #DIV/0! #DIV/0!56 Ins. Dept. Licenses & Fees #DIV/0! #DIV/0! #DIV/0! #DIV/0!57 Payroll Taxes #DIV/0! #DIV/0! #DIV/0! #DIV/0!58 All Other (Except Fed & Real Est) #DIV/0! #DIV/0! #DIV/0! #DIV/0!59 Real Estate Expenses #DIV/0! #DIV/0! #DIV/0! #DIV/0!60 Real Estate Taxes #DIV/0! #DIV/0! #DIV/0! #DIV/0!61 Miscellaneous Expenses #DIV/0! #DIV/0! #DIV/0! #DIV/0!62 TOTAL UNDERWRITING EXPENSE 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!63

2003 2004 2005 Forecast 2005


Name:

$ Amount % $ Amount % $ Amount % $ Amount %6465 NET ASSESSM ENT/PREM INCOM E #REF! #REF! #REF! #REF!66 REINSURANCE COM M ISSION RECD #REF! #REF! #REF! #REF!67 NET LOSSES INCURRED #REF! #REF! #REF! #REF!68 UNDERWRITING EXPENSES #REF! #REF! #REF! #REF!69 UNDERWRITING INCOM E (LOSS) #REF! #REF! #REF! #REF!70 INVESTM ENT INC (LESS INV & INT EXP) #REF! #REF! #REF! #REF!71 NET OTHER INCOM E #REF! #REF! #REF! #REF!72 GROSS PROFIT OR LOSS #REF! #REF! #REF! #REF!73 FEDERAL INCOM E TAX74 NET PROFIT OR LOSS #REF! #REF! #REF! #REF!7576 BEGINNING POLICYHOLDER'S SURPLUS #REF! #REF! #REF!77 NET PROFIT OR LOSS #REF! #REF! #REF! #REF!78 ADDITIONAL SURPLUS ADJUSTM ENTS79 ENDING POLICYHOLDER'S SURPLUS #REF! #REF! #REF! #REF!

Comments:

FARM MUTUAL PRO-FORMA Compiled:

2003 2004 2005 Forecast 2005


Pro-forma


Definition: A financial projection showing that the “math” of your plan works

Purpose: It helps to test your plans

Frequency: Complete /update as needed.

The Essential Ingredients :A. Statistical Data ReportsB. Additional Self-Analysis ToolsC. Company Articles, By-Laws, State Chapter

codeD. Company Mission StatementE. Company 5-Year VisionF. Business Plan (5-Yr) w/ Annual Action PlanG. Pro-forma




A Simplified Process Overview…

• Set aside time• Discuss / plan• Document in writing• Implement• Follow-up / monitor / adjust• Repeat annually• Ownership / accountability / timeframes.


Planning is a lot like baking…

Order is Critical!2013 NAMIC Annual Convention - Randall Page 66 of 73


Questions

What do you do once it is drafted?

A: - Ratify by board- Implement- Communicate- Review / update monthly- Revise annually.


Questions

What period of time should be scoped?

A: Five years.



Questions

When can we expect to be fully finished with this process?

A: Never.


Questions

?


Compiling,Implementing,Monitoring


Section 5:



Compiling, Implementing, Monitoring

Question:

What should be contained in the final completed Strategic Business Plan?

Company Mission StatementCompany Vision5-yr Business Plan w/ Annual Action PlanCritical supporting data reports (5-yr Financial Analysis)

Pro-forma.



Many hands will be involved in the planning process.

Who should ASSEMBLE the final draft of the plan?




- The board must ratify the Plan, but who isresponsible for IMPLEMENTING & MONITORING the Plan?

- What is an appropriate and effective means of reporting progress to the Board?



How often must the Plan be reviewed: By the Board?By the Staff?

What does “reviewed” mean?



Steering Your Mutual Towards Success…

or Just Out for a Joy Ride?

Jack Randall, CIC, PCLA, PFMMRandall Resources International, LLCCameron, MO

MAN IN THE WINDMILL® Windmill Leadership® principles

© Copyright 2013 – All rights reserved


How may I help your Mutual?•Strategic Planning•Succession Planning•Consulting•Executive Coaching•And many more services

More FocusedMore EffectiveMore SuccessfulMore Profitable

Results?


Contact: [email protected]


PFMM: Management and Leadership Principles · PFMM: Management and Leadership Principles ....

Documents

Transcript of PFMM: Management and Leadership Principles · PFMM: Management and Leadership Principles ....