19 Sep What’s the E&O Culture of Your New Acquisition?
A few weeks ago (August 1), the subject of the weekly blog involved the preparation and planning that goes into acquiring a new firm. Whether the new firm has 10 staff or 100, it is a lot of work. One issue (when acquiring an agency) that might not get the attention it deserves involves its level of E&O awareness and commitment to quality and the key Best Practices.
More often than not, when the question “What is their E&O culture?” is asked, the response is, “we don’t know.” While truthfully, that is a fair response, it is probably a good idea to make a concerted effort to get an E&O assessment and to get them to “drink the Kool-Aid.” The last thing you want is for one of your new acquisitions to have an E&O claim that impacts the solid reputation your agency has worked so hard to achieve. This is where the various resources of E&O Plus can come into play.
Overall, E&O Plus looks for newly acquired offices to get into E&O compliance and to be integrated into the overall corporate operation within two years from the close of the acquisition. This is in recognition that instilling your E&O culture into your new acquisition could take some time. Since it may take some time, beginning the process as soon as possible is best. The process needs to be managed since it is tough to say emphatically how the “new agency” feels about being a part of your firm.
Some things to consider when getting the process started:
- Make the new agency aware that your firm is part of the E&O Plus program and that compliance and commitment to quality are very important and expected. Without a doubt, some (hopefully all) of the new staff will welcome this focus. Realistically, this may involve change for some, and we all know that not everyone reacts to change similarly.
- Provide the key “new” staff with the E&O Plus Operations Guide, which details the new issues and Best Practices. The Guide clearly references the 22 Key Components.
- If possible, during your next upcoming annual review, ask if the E&O Plus reviewer can do an E&O session for all of the agency or just for the new firm if that is the approach you want to take. During the annual review, I have often visited one of their new acquisitions and done an E&O class. They have always been well received, with some great questions and commentary.
- Look to get the new staff signed into the blog. My philosophy is to build an E&O culture “one person at a time,” and the blog helps to impact E&O awareness and the need for quality and compliance.
- Over the last 6-8 years, E&O Plus has worked hard to build an extensive webinar program with all webinars recorded and accessible in Passport. Make the new staff aware of these sessions.
- Using the Operations Guide as the main tool, make a sincere attempt to assess the compliance level of each division of the agency. This is essentially the process the reviewers take when new agencies join the E&O Plus program. It is designed to determine, using the Key Components, what areas of the firm are doing well and what areas have some work yet to be done. Often, for new agencies joining the program, it is common for the reviewer to identify over 20 areas with suggestions on areas to work on. That begins the process of improvement.
- It is always best for branch offices to have an “E&O Champion” onsite. Look to identify that person who can carry the message continuously.
Hopefully, these suggestions will help to begin a strong focus on quality and compliance in the new acquisition shops. Don’t hesitate to contact your reviewer for their thoughts and guidance. While we may only be in your agency once a year for a day or two, realistically, we are available 24/7/365. We are here to help, and as we often say: “our goal is to be part of the team.”