Outsource Your Agency – Part 2

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Capacity and strategy were questions left unanswered in the last post.  Let’s take both and see if it makes sense to outsource some of your service work.

1.  Capacity.  Is there room for staff to grow your book of business?  The magic number here is 700-900 clients per CSR.  Beyond that there is no room to grow new business.  These numbers have been corroborated through various insurance studies.  Some agencies may be able to push into 1000 customer range if their staff is extremely efficient with their work.  Another way to look at it that might be easier is around 1 million in WP per CSR.  Again beyond that there is no new growth.  If you desire growth, then the decision is to outsource or hire more staff.

2.  Strategy.  If you take work away from staff, new business does not automatically happen.  Have you heard of Parkinson’s Law?  It will kick in here.  It says that “Work expands so as to fill the time available for its completion.” The new time will be filled with other activities.  Either things will get slower or new unproductive tasks with take place.  Determine what you want the new time to filled with, and put into place at least 30 days prior to launch.  Your staff will feel overworked but it will create habits and relief will be felt on launch day.

What kind of strategies could be put into place to make up for less service work?

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