Have you noticed the wave going through the insurance industry in recent years where authority is being shifted from the local level to regional and national levels? I recall the days when shop operators were very familiar with local insurer supervisors and their staff. There were regular meetings to evaluate performance and discuss labor rates, agreed-upon pricing for specific operations and the direction of the insurer and repairer. There was a special understanding and relationship because of the close proximity, shared customers, shared issues and mutual personal impact to each party and their local staff. Even though there was not always agreement, it developed a bond and often a professional friendship.
Even very recently, I’ve had the opportunity to interact with some of the insurance supervisors at retirement or holiday parties and other functions. We’ve maintained our friendships for years. The opportunity for such relationships is diminishing. To add to the issue, many insurers have been reducing staff significantly. I don’t bring this up to criticize insurers. Instead, it seems to be more a fact of life, too often the way the world and especially some businesses are going.
Even though our industry is often dysfunctional because of our many issues, the relationships within our industry network are one of our great assets. Those of us who have been in the industry a number of years probably have many relationships with people who have worked in multiple roles for different companies, some both on the insurer and repairer side. To me, it reinforces the value of people. Initiatives, technologies, policies, KPI scores and financial performance can come and go. It is the people who matter more, or at least they should.
I’ve seen insurance company contacts who at one time carried a high level of authority. They now have to report to a regional or corporate contact for decisions they used to make on a daily basis. Some not only perform robot-like inspections and audits, but even have the order in which they inspect vehicles decided for them each day. It creates a feeling of diminished trust and respect for the individual. It implies the individual can’t be trusted with authority to make decisions, causing one to wonder why and to perhaps even question how their judgment, values and intellect are perceived.
With authority comes a feeling of freedom. When people make good decisions, there is a feeling of gratification, empowerment, confidence and authority. The gratification of successful management can be key components to job satisfaction. These are human elements that determine our quality of life.
Many books on leadership will tell you that business models that provide empowerment perform better than those with a dictatorial style because of the improved human element, which drives a superior culture and thus higher levels of performance. Noted naval officer and author L. David Marquet in his book, “Turn the Ship Around!” states, “Leadership should mean giving control rather than taking control, and creating leaders rather than forging followers.” Another noted author, Stephen R. Covey, states, “We are in the middle of one of the most profound shifts in human history, where the primary work of mankind is moving from the Industrial Age of ‘control’ to the Knowledge Worker Age of ‘release’.”
One only needs to experience common air travel to feel the often cold, impersonal experience of being treated more like an object or a number than a human. Being herded through long security lines and in and out of planes like cattle is an example. Segregating people by their sales value to the airline company is another. We all know what it feels like.
As leaders of MSOs, we have the opportunity and ability to care for our people. Let us resolve as MSO business operators to recognize and respect the human element. While we need structure, process and performance, let us keep in mind how people think and feel and are motivated and fulfilled. Let us seek opportunities to empower people, establish significant relationships, help them grow and create a path for each to seek their own excellence and higher quality of life.
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