5 Questions That Will Get You Fired

Imagine this happening on your best Upper Middle Market account (you know the one.)  You have grown with this account over the years, and you have provided them with a high level of risk management and risk financing solutions.

You are ‘Golden’ on this account... until something like this happens:

  • A new CFO comes in who runs the financial organization based upon metrics and analytics.

  • Your client brings in investment bankers who are solely focused on the ROI of their invested capital.

  • The management determines that professional services providers must demonstrate their financial impact.

As part of their assessment, the C-Suite has asked you to deliver a Stewardship Presentation and provide them with specific answers to 5 Questions. Your responses will determine whether or not the buyer perceives to have outgrown you (and if you are confused about these questions, chances are they already have.)

These are the 5 Questions that you must answer succinctly in quantifiable terms:

  1. What contributions have you made to our profit, EBITDA and Shareholder Value?

  2. Aside from the insurance transactions and claim payments, how have you improved our business organization?

  3. What was our controllable financial leakage prior to your representation, and how have you helped us recapture it?

  4. We are asking all of our professional suppliers to help us improve our Metrics.  What will be your contribution?

  5. What do you anticipate our costs to be for the next 24 months based upon your current client metrics and results?

What are your answers?  Notice I said quantifiable terms.  Can you answer these questions now or will you talk about premiums and loss ratios?  If so, you are going to get fired!

All because you have not stayed current with your client’s expectations.  You did not keep up with the changing financial expectations of your buyers.  You abdicated your position and are moving quickly to obsolescence.

So, if these 5 Questions create uneasiness in your mind, you better get a move on.  They will be asked increasingly over the next few years by your most sophisticated buyers (and prospects.)  Your answers will determine whether or not you retain the privilege of staying in the Upper Middle Market Business.

All the best to Consultative Brokers,

Rob Ekern
C.R. Ekern & Company

PS. If you had the Major Account Development System™ and TCORCalc® you would be able to answer all these questions and deliver a meaningful Stewardship Report.  If not, your account is now up for grabs.