In any business, effective leadership is critical for anagency's success. As the insurance market evolves, insuranceleaders need to be visionary and adaptable. The prevalence of smallbusinesses in the industry, however, requires a different approachto the traditional leadership model.

Although there are exceptions to the rule, as some agencies havesophisticated business models, many small agencies lackstructure.

“Ours is a small business industry, which typically signifies abusiness with little structure,” said Tom Barrett, president of theMidwest and Southeast regions of SIAA, Inc. “These agencies donot have detailed marketing and business plans, do not follow salesprocesses, have not created business budgets and take orders ratherthan selling products. Most have an inventory of nine coveragelines to sell, yet they only offer three. These agencies providewhat the customer asked for rather than selling additionalvalue.”

With the shifting market, however, strong leadership is criticalfor navigating the changes within the industry. No matter what sizethe business may be, an effective leader can guide the agencytoward success, profitability, and higher employee morale.

“Rates are increasing, carrier and agency appointmentqualifications are tightening and carriers are requiring minimumperformance standards. You will see a real need to have someoneleading your organization,” Barrett said.

Click through the following slides for 10 Characteristics forEffective Leadership in the industry.

1. Leadershiprequires effort. Being in a leadership role does notnecessarily make someone a leader. Leadership is earned. Wheremanagement may control and direct people, leadership requiresmotivation and coaching. Leaders must have a clear understanding ofthe goals for the future of the agency, but also knowing how theagency can achieve them. They also must develop plans andbudgets that follow a relatable sales process, creating a roadmapfor their agency for guidance. At the same time, however, theleadership role is not autonomous. Good leaders need to seek theskills, knowledge, effort and resources needed to accomplish theagency's goals.

2. Leadershiprequires followers. Leadership cannot be an assumed role;rather, it is earned through proper selection of key positions inthe agency. While criteria exist for determining competent CSRs,these criteria do not necessarily match the traits andcharacteristics of top producers in the industry. Strong leadersneed to know how to choose the best personnel for their agency,orchestrating the mission and the process. If there is a level ofmutual respect between employees and the leadership, they willtrust the leader's decisions. The opposite, however, is alsotrue.

3. Leadership isbeing a maestro. Understanding how employees' uniquetraits contribute to the work environment and job description areimportant for leaders to coach and motivate their employees.Employees need to fit within the framework of cooperation betweenleadership and team members. As a maestro, the leader needs tolearn and understand individual employees' unique skills and workhabits to encourage productivity, effectively manage conflicts andfoster growth and improvement among employees.

4. Leadership demandsaccountability. Leaders must create benchmarks foremployee performance, instilling employees with satisfaction andcompany loyalty. At the same time, setting annual goals andobjectives help employees constantly provide feedback, whichcreates an environment of accountability for all agency employeesand develops a strong, collaborative environment.

5. Leadership createsculture. Leaders focus on total enterprise value. Strongleaders must strive to create an environment where all employeesstrive to leave the customer or prospect in a better place thanwhere they were found. Establishing a positive customer experience,in turn, leads to a unique and memorable contact with the agency.Agencies benefit from the subsequent loyalty, long-termrelationships with customers, cross-sales opportunities, referralsand increased income and equity for the agency.

6. Leadershiprequires honesty and humility. Openly displaying honestyand integrity when communicating with any member of the team isalways important, but especially in leadership roles when youremployees, and even friends neighbors, and community members, arewatching you. Leaders must always be open and honest with theirteam members on all occasions.

7. Leadership meansyou. Employees, family, friends and the communitycontinually watches you, making it imperative for leaders todevelop strong standards that touch every facet of his or her life.The direction, culture, reputation, work ethic and professionalismof the agency begin with the leader's behavior, and theaccomplishments of the business begin with a leader's personalactions, whether they are at the office or at home. Leadersunderstand that their actions drive the reputation of theircompany.

8. Leadershiprequires conditioning and endurance. Being in a leadershiprole should not be a burden. It is a privilege. Although being aleader comes with an incredible amount of responsibilities,effective leaders understand that they set the pace for the rest ofthe agency. In order to expect strong earnings, productivity, longwork hours and company loyalty, strong leaders lead by example.Being mindful of the work ethic that you promote to your team, asthey often mirror the acts of the leader, can impact the way thatthey treat clients and prospects, but also other team members.

9. Leadership ispower. Leadership is more than sheer force. It isinfluential, and leaders must persuade people to act toward theirgoals.

10. Leadership is the most reliablepredictor. Hay Group reports that there are 75 keycomponents to employee satisfaction, and the most important iscommunicating three areas to the team: understanding the overallbusiness strategy, helping employees understand how they cancontribute and sharing information about progress. For the successof the company and team satisfaction, trust and confidence inleadership is key.