Transcript Introduction to AFGRI strategic discussion process

8 October 2010 & 20 January 2011
Leriba Lodge and Country Club Johannesburg
Facilitated by: Alan Kirschner
Purpose of workshop
 Review progress in implementing the Feb /
Sept 2008 strategic plan.
 Start the process of developing a 3 to 5
year strategic action plan of the FIA
We are talking strategy…
Overall strategic planning process...
Today: everybody will have input here
Current
reality?
Our Charter
Purpose
Focus
Areas?
Next month: Based
on your input, Exco
will identify key focus
areas and action
plans
How? i.e.
Action plans
Strategic alignment
FIA Charter
We are a recognised professional
organisation representing our members with
a code of conduct governing our behaviour.
We exist to serve our members and promote
our image through industry representation
and the provision of services including the
development of the intermediary market.
The FIA’s primary Purpose:We represent, protect, promote and
further the common interests of our
members.
Current reality
 Review of 2008 strategic initiatives
 Feedback from preliminary stakeholder
research
 Feedback from Epic research
 Advisory Council views –
 Hindering factors
 Helping factors
 Trends…
Review of 2008 strategies
 Three strategic focus areas
 Structural Blueprint & Design
 Communication: Internal and External
 Image and influence
Focus Area:
Structural Blueprint & Design
Definition of Success
1.
2.
3.
4.
5.
6.
7.
All members (Corporates and individuals) recognise the value of FIA
membership (The need for development and clarification of value
proposition)
Highly competent individuals in the secretariat with limited
dependence on volunteers, efficiently executing agreed action plans
Clarity on membership categories/structures, voting rights and fees
A recognised umbrella body exists (yes) which consists of all
financial services intermediary bodies in South Africa (not there yet)
We have efficient and effective structures (including committees,
divisions, branches) which meet the needs of members across the
country
An effective performance management process is in place for all
staff members
Effective and regular communication internally and externally occurs
during the blueprint rollout
Focus area: Communication Plan
 Definition of Success
1. Timeous and effective two-way electronic communication
2.
3.
4.
5.
6.
7.
8.
with all our members
Our members are well informed about FIA and relevant
industry issues
Timeous response from FIA to specific member concerns
An annual road show/conference for members/potential
members (more work needs to be done for potential
members)
Positive feedback from members on our communication
Existence of communications database which includes
appropriate employees of member companies (needs work
for larger member organisations)
FIA seen as a proactive, valued, regular contributor and
participant with financial press and industry bodies
Positive column inches on FIA
Image and Influence
 Definition of Success
1. Recognised by regulators, legislators and
government as the voice of intermediaries (great
strides; must continue the work with Treasury and
government)
2. Consumer knows the value of dealing with
intermediary (no)
3. Product providers make membership of FIA a
preference of granting agencies (great strides in the
short term and health space. Others no)
4. Sound and healthy and productive relationships with
SAIA (yes), LOA/ ACI/ ASISA (patchy), Inseta (great
strides), IISA(yes), FPI(yes), Council for Medical
Schemes(yes) etc... valued by them
Stakeholder research (preliminary)
 Respondents
Viviene Pearson (GM sustainability), SAIA
Godfrey Nti (CEO), FPI
Sandra Dunn (CEO), Inseta
Anna Rosenburg (Senior Policy Advisor – insurance and
regulatory issues), ASISA
5. Barry Scott (CEO), SAIA
6. Jonathan Dixon (Director – Insurance), FSB
7. Gerry Anderson Acting Deputy Executive: Market conduct
and consumer education
8. Peter Dempsey, Dep CEO ASISA.
9. Peter Stephan (Senior Policy advisor – marketing and
distribution), ASISA
10. Mr Craig Burton-Durham – Council for Medical Schemes –
couldn’t find suitable date.
1.
2.
3.
4.
What are the biggest challenges facing the
FIA 1?
 Building a bridge between the very different
needs and interests of the small and large
brokers
 Helping most members understand the
broader issues affecting the industry
 Providing value to membership base members want FIA to provide everything in
the sector. I.e.. Keeping members happy in
terms of value proposition
 Dealing with regulation - I'm happy with the
way they engage with policy makers (they
also engage early)
What are the biggest challenges facing the
FIA 2?
 It is not yet seen as the priority organisation to represent brokers and
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broking / corporate entities.
There are a lot of individual corporate entities that do not belong to FIA.
Make sure that the value of independent broker advice is properly
appreciated by the consumer vs direct market. Note: There should also
be a clearer distinction between independent brokers & tied agents.
Internally: Wrong structure and people. Less than complimentary about
the value & depth of FIA executive. Some are out of their depth and
others don’t add value to industry at large.
Externally: Need to get involved in national debate and in the future of
industry – not just brokers.
They have a broad congregation – creates challenges in meeting v.
different needs.
Limited no of paid office bearers – need to rely on regional volunteers.
How to make the industry attractive to young people – average age of
advisors is 53.
Require a different regulatory environment to access low income
section of society.
Increasing regulation adding to admin and cost burden of advisors.
Communication improvements 1
 Need more knowledgeable specialists who
participate and give leadership input and
substance (like Barry Taylor)
 Need more formal (quarterly) meetings
Communication improvements 2
 More structured quarterly meetings to track agenda
items. Most useful if it is two way. What do FIA see
as strategic imperatives. FSB and ASISA
 Improve quality of input and take broader view.
 Raise key challenges, trends & issues affecting
intermediaries in standing committee.
 Send PD & PS copies of FIA newsletter
 Need for more formalised meeting with PS and
ASISA. Esp. marketing distribution board committee.
Meet 1 week prior to fixed meeting to ensure FIA
voice is heard in meetings. Dates in report.
 Provide copies of FIA submissions on regulations to
ASISA & vice versa.
Overall when you think of FIA, in
what areas would you say they excel
or have been successful 1?
 Have some very competent people -
knowledgeable, experienced with drive and
energy
 A visible, organised, principled body that are
credible (to regulator) and flexible enough to
see things in terms of consumer interests
 Good personal relationships with secretariat
and leadership
 They know the industry
 Supportive of other associations
Overall when you think of FIA, in
what areas would you say they excel
or have been successful 2?
 They play an important role in bringing member concerns to FSB.
 In bringing together what was a fairly fragmented intermediary
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segment.
Come a long way in engaging on policy and regulatory issues.
Position themselves to constructively engage.
Progress in facilitating between regulator and members to explain
what regulator is trying to achieve. – the voice of reason.
Formulate position on regulatory policy issues.
Do well with response to specific legislation – e.g binder regulation
Members represent them well wrt STRIDE discussions
Overall when you think of FIA, in
what areas would you say they excel
or have been successful 3?
 Retained solid membership base – must be delivering something
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to members
Merger was a massive significant achievement
A more open (less suspicion) coming from FIA – elevated their
horizons. Collaboration vs. confrontation.
Good to bring outsider in (Manie) – he understands process of
lobbying.
FIA encouraging advisers to be proactive in embracing changes
and taking the opportunities of industry changes.
FIA are getting a mandate and making their voices heard. (not
always listened to, but that is not their fault).
Where do you think the FIA most
need to improve to meet your needs
1?
 Improve in input and participation - more
specialists, not generalists
 More regular formal interactions
Where do you think the FIA most
need to improve to meet your needs
2?
 Expand membership structures to include black brokers and organisations.
 They must be seen to add value by publicly applying rules & codes of

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conduct.
Engage in regulatory issues – do they have a structured approach to
consulting and getting input on their positions?
Become more proactive on regulatory issues with solutions /suggestions on
where the industry could be improved. (don’t just respond).
Extra point: Clarify FIA position;– proactive industry association versus a
professional development organisation
Adopt a broad term industry view not a ‘short term’ myopic view. Become
part of the national debate.
Make sure that volunteers do not use their position to gain competitive
advantage for themselves and their company. This is currently the case. I.e.
represent the FIA position.
Improve access to resources to deal with huge regulatory changes. Need
more deputy and more people. E.g. ASISA have 20 staff all with >15 y
industry experience incl. lawyers, accounting, actuarial staff.
Extra point: discussion on vision & role for Fin Service intermediary in next 5
to 10 yrs time.
Improve formal communication FIA-ASISA.
How does FIA compare to other
organisations 2?
 Compared to the other organisations FIA are
quite good. Similar to Masthead and FPI.
 They have done well. (We don’t interact
much with other intermediary orgs).
 The rest are a joke. Some don’t pitch up at
meetings, others have no continuity, mandate
or brief.
 FIA has much broader mandate. Moonstone
and Masthead are quite complementary to
FIA.
Advisory council feedback
 Responses from 43 of 65 (66%)
 40 responses to all 3 questions (62%) – a
few not totally legible.
 Three questions
1. Internal things that hinder our ability to
achieve our goals
2. Internal things that help us to achieve
our goals
3. Trends (positive and negative) outside
our control
Internal Hindering factors
Consolidated responses
Trying to serve the needs of different membership groups effectively
(small and large brokers)
Member apathy: members not willing (or able) to participate in FIA
activities and projects
Marketing / branding of FIA & intermediaries to members, potential
members including black brokers / public
Internal communication e.g. Communication from national exec to
members & vice versa
Structure not aligned to strategy including Branch & divisional
structures (Linked with item 1)
Lack of technical expertise and skills (including compliance officer
services?) Split these 2 issues (part of value proposition issue)
No
14
13
13
11
9
9
Internal Hindering factors (continued)
Consolidated responses (continued)
No clear focused value proposition for the intermediaries and provide
value for money
7
Other
7
Lack of branch and divisional leadership / parochialism
6
Members not willing to change and adapt
6
Adequate training is not provided to members
3
Lack of teeth leading to reluctance to act against intermediary
2
Reluctance to use our power to put pressure on service providers
2
Fee structure needs to change
2
No FIA orientation for new leadership and new members
Internal Helping factors
Consolidated responses
#
Credibility of the FIA - professional, track record, recognised, respected
22
Leadership and Board - strong, involved, effective, committed
Membership - representative, passionate, strong base, motivated and
competent
14
Communication - high standard and is effective
11
Structure of the organisation - national infrastructure and well organised
10
Committed, experienced & competent FIA staff / secretariat
Good co-operation & relationships with industry bodies e.g. FSB/ relationships /
networking
8
Support and commitment of members
8
Use of Technology within FIA
3
14
8
External trends and factors
Consolidated responses
#
Legislation / increasing regulation
22
Threat and attacks from direct marketing
14
Other
Membership - losing membership / age profile of members / not attracting new
members to the profession (succession planning)
11
Growing and improving relationships with regulatory bodies / trust & esteem of FIA
Industry demand for Professionalism - market place demanding ethical,
knowledgeable practitioners and professional organisations
7
Need to belong to professional body
6
Increasing cost pressures on intermediaries
5
Emergence of entities regarded as alternatives
3
Continuous lack of knowledge of the industry.
3
Enhancement of technology
3
Training / knowledge (incl education of consumers)
2
Lack of disciplinary measures/ removal of unscrupulous operators
2
Unlevel playing fields.
2
Limited Black members
7
6
Next steps…
 Have we given the executive all the
information they will need to develop a
strategic action plan?
Actions:-
Additional hindering factors / issues
 The value proposition for the independent
life brokers.
 The difficulty in accommodating tied agents
and independent brokers.
 Lack of clarity about who we represent and
what our role is.
Change equation
A+B+D>Z
A = Vision of a desired better future
B = Dissatisfaction with the status quo.
D = Knowledge of first steps.
Z = Pain of change (financial and
psychological).
Group A Input to focus areas.
1. Value proposition.
2. Image and influence.
3. Structure and blueprint.
Group B Input to Focus Areas
1. Value proposition.
2. Structure
 Distribution
 Leadership
 Capacity
 Resource
3. Communication strategy.
Identified focus areas from the Group
Input in the previous slides
1. Value proposition
2. Image and Influence
3. Structure
Focus Area 1: Value Proposition
Definition of success / desired outcomes:
1. All members (from sole proprietors to large brokerages)
know what features and benefits (tangible and intangible)
are derived from FIA membership. This is split by industry
segment.
2. All members acknowledge and appreciate the value
provided to them by FIA.
3. Achieving targeted membership retention and growth
plan.
4. FIA is acknowledged as the voice of intermediaries in SA.
Focus areas 1: Value Proposition
Action
1.
Conduct a member and potential member survey to assess:
a)
The key role of FIA?
b)
How well FIA is currently meeting your needs?
c)
Your unfulfilled needs?
d)
Changes in membership perception and requirements since the previous
survey.
Who?
By when?
Manie Booysen
22 July 2011
President
31 Aug 2011
2.
Review and amend our Purpose in the light of member feedback and stakeholder
research and get buy in from all members.
3.
Develop a value proposition for each segment and class of membership.
Manie Booysen
31 Oct 2011
4.
Develop a project plan to support the value proposition with a budget and timeline.
Present to Exco for ratification. Note: This must include a review of how our
structures hinder or support our value proposition.
Manie Booysen
30 Nov 2011
5.
Implement authorized plan.
Manie Booysen
1 March 2012
Manie Booysen
22 July 2013
6.
Conduct a member, potential member and stakeholder survey to assess the
effectiveness of prior actions in the areas of:
a)
The key role of FIA?
b)
How well FIA is currently meeting your needs?
c)
Your unfulfilled needs?
d)
Changes in membership perception and requirements since the previous
survey.
Focus areas 1: Value Proposition
Action
Who?
By when?
7.
Quantify the size of FIA’s potential market and market share in each market
segment. i.e. short term, life and investments, health, employee benefits, and
assistance services and other segments (e.g. Agri, Retail, Motor and Furniture.)
Justus van
Pletzen
17 Feb 2011
8.
Set annual target for growth and retention of membership by segment and a plan
to achieve these goals and present to Exco for ratification. This plan must link in
with the value proposition activities.
Justus van
Pletzen
05 May 2011
9.
Review the report on membership retention and growth by segment and category
to assess the plan.
Manie Booysen
At each Board
meeting.
10.
Develop a strategy to grow membership of black brokers and present to the Board
for ratification.
Justus van
Pletzen
05 May 2011
11.
Develop a strategy to formalize and form associations with black broking bodies.
Manie Booysen
Status update
by 05 May
2011
Focus areas 2: Image and Influence
Definition of success:
1. Members appreciate, value and advocate the benefits of
membership.
2. Consumers realise the value of the intermediary and particularly
the FIA intermediary.
3. The FIA through the Secretariat pro-actively contributes to all
matters related to the broader financial services industry, locally
and abroad.
4. FIA membership is a pre-requisite for contracts with all product
houses.
5. Regulators and financial industry bodies seek and value FIA input.
6. The Press seek definitive comment from the FIA on all relevant
issues.
7. We are attracting new talent into intermediation.
Focus area 2: Image and Influence
Action
Who?
By
when?
1.
Develop an effective communication plan to membership which highlights our activities and
the benefits to them with PR consultants and present to Exco. (Include Roadshows,
personal visits by secretariat, internet / website, magazine, You Tube, Social Networks,
Industry publications, Press interviews and editorials, product suppliers, other industry
bodies, industry functions, one-to-one telephone calls, sms campaigns…)
Manie
Booysen
05 May
2011
2.
Develop an effective publicity campaign (above and below line) to promote the role of the
intermediary to consumers and in particular the benefits of FIA intermediaries. Involve
product houses. Present to Exco with a budget.
Manie
Booysen
04 Aug
2011
3.
Identify the required knowledge, skills and experience of the secretariat to be able to proactively contribute input on industry issues. Conduct a skills audit and do a gap analysis
and present to Exco.
Manie
Booysen
04 Aug
2011
4.
Develop a plan to close the skills gap and present to Exco with a budget.
Manie
Booysen
04 Aug
2011
5.
Continue to sell the benefits of FIA membership to suppliers.
ALL
Ongoing
6.
Implement regular formal (generally quarterly) meetings with regulator and industry bodies
i.e. FSB, SAIA, ASISA, INSETA, CMS, FPI, IRF, IISA.
Manie
Booysen
30 Mar
2011
7.
Develop a plan to promote intermediation as a career path. Involve all industry
stakeholders including tertiary institutions.
Manie
Booysen
31 Dec
2012
Focus areas 3: Structure
Definition of success:
1. Highly competent individuals in all major disciplines in
the secretariat, with limited dependence on
volunteers, efficiently executing agreed action plans
2. We have efficient and effective structures which
deliver the value proposition.
3. Members are encouraged and able to participate in
effective local and national structures.
4. Defined roles and responsibilities exist for members
participating in local and national structures.
Focus area 3 : Structure
Action
1.
Define an ideal structure for the FIA which gives effect to our strategy. (Value
proposition and Image and Influence)
Who?
By when?
The President
30 Nov 2011
How do we ensure that the Strategic
Action plans gets implemented?
1.
2.
3.
4.
5.
6.
Review and amend deadlines if appropriate and forward to Manie.
Action – Manie Booysen, The President, Justus van Pletzen by 4
Feb 2011.
Present the strategic action plan to the board for their approval.
Action – The President by 17 Feb 2011.

Distribute to board members by 5 Feb 2011 requesting
written comment by 15 Feb 2011.
Communicate FIA strategy to membership. Action – Manie
Booysen by 28 Feb 2011.
Review progress against approved strategic action plans using the
Traffic light report. Action – President at Exco and Board meetings.
Update the Traffic light report with strategic actions as they evolve.
Action – President – ongoing.
Communicate progress with the action plans on a quarterly basis.
Action Manie by 31 May 2011
Notes…
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Workshop facilitated by:

Alan Kirschner
Customer Diagnostics (Pty) Ltd
Tel:
Fax:
Mobile:
+27 (0)11 465-5182
+27 (0)11 465-2041
+27 (0)82 891-4268
Email: [email protected]
Web site: www.customerdiagnostics.com
PO Box 899, Fourways, Sandton, 2055
South Africa