Learning How To
LEVERAGE TECHNOLOGY
Gina Lauer

MANY EXECUTIVES AT insurance and financial institutions assume that when you install new and powerful sales technology, the workforce will automatically take to it with gusto. Not so.

Just ask Scott Stathis, president of E-lancers (Groton, MA), an organization focused on helping financial services firms leverage sales technology. Stathis has found that financial services organizations have spent millions of dollars over the past several years deploying technology to their sales forces. But instead of watching sales and productivity figures skyrocket after deployment, these firms find that usage levels hover at about 15 percent.

Low usage levels
"What that means is that a lot of the potential for increased efficiency is just locked up in the applications, untapped," Stathis says. And low usage levels mean that companies are not realizing their return on investment (ROI).

That’s not to say that companies should scrap their technology or purchase something new. It just means that they need to follow through after deployment to ensure that the sales force is ready and willing to take advantage of the technology.

"I think the biggest problem companies encounter when they’re deploying technology is they assume that if they go through all the effort necessary to choose the appropriate technology—that it will magically get used, which never happens," Stathis says.

But don’t software and computer companies provide training when they sell their products? "No, they don’t," says Stathis. "All they do is ‘orient,’ which is vastly different than ‘training.’"

He emphasizes that real training involves becoming part of a company’s culture and not simply providing one or two training sessions. "The follow-through is what turns knowledge into skills, and the understanding of the company’s culture is what allows you to truly integrate the technology into the way they do business," Stathis says.

"Technology does not have legs, and it needs to be assimilated into a sales environment," agrees Gary Schulte, a former insurance consultant and senior vice president at MetLife. Schulte has worked with Stathis on several projects.

‘Certifying’ technology competency
That is why Stathis has developed a program that helps organizations boost technology usage levels from that dismal 15 percent up to 90 percent. (Higher usage than 90 percent is unrealistic because of job turnover.) His comprehensive training program turns financial consultants and supervisors into "financial information specialists." Those who go through the training program are "certified" in the technology requirements set by the financial services organization.

Is the sales force ready and willing to take advantage of the technology? Follow-through, including training, is often required.

But before the actual training on the software or technology system, the first step is to make sure the workforce has core computer skills, says Stathis, "because they’re never going to use the more-advanced stuff or the industry-specific stuff if they don’t know basic Windows."

Companies often take two issues for granted, he says: one, the basic computer competency levels of the workforce; and two, that everyone is a proficient typist. Often, the sales force is accustomed to conducting transactions with pen and paper, so just getting them to use the keyboard and monitor can be a major obstacle.

Stathis uses the analogy: "In this day and age, not taking the time to learn to use a computer is like not learning how to drive a car because you’re too busy walking everywhere."

Part of Stathis’ plan of attack is to have companies perform a gap analysis using a simple questionnaire that helps determine the computer skills level of each person. The information is then used to analyze the ‘gap’ between where they are and where they should be. From there, a computer training program can be devised either in-house or outsourced to bring individuals up to speed on their computer and typing skills.

At CalFed Investments, a survey conducted to determine the computer abilities of the staff readily confirmed the need to boost the technology skills of the sales force.

Some ‘pre-marketing’ can be done before deployment so reps understand the importance of leveraging technology to remain competitive, and to let them know that the system or software will make them more efficient and valuable to their clients.

A six-phase program
From there, Stathis’ six-phase program goes into action. His plan helps organizations give their sales reps the motivation and resources they need to reach a defined level of computer competency and usage, and then ‘certify’ their accomplishments. Briefly, here are the six phases:

2. Give sales managers personal training to get them to the certification level. This makes them more likely to push for and support the training of others.

3. Market internally to reps. As mentioned above, reps need to understand the importance of learning and using technology for their job, which incorporates high- tech and high-touch technologies.

4. Issue the challenge for everyone to get certified. This often entails a kick-off presentation at regional sales meetings to explain the certification requirements and rewards. (For example, the first 20 people to become certified might receive a $100 gift certificate.)

5. Coach the field. This includes delivering training, using marketing assistants or top producers who have obtained certification to assist in motivating and training others, and incorporating various types of training, such as Web-based, video, and phone.

6. Reward certification. A test (usually a practice written exam followed by a proctored test) is given before a certificate is awarded. There may be a recognition ceremony or other rewards given upon completion.

Over the past five years, Stathis has worked to improve technology usage at such financial services companies as CalFed Investments (a unit of California Federal Bank before that institution was bought by Citigroup), MetLife, GreenPoint Financial, New England Financial, and Independent Financial Marketing Group.

CalFed’s technology strategy
Deborah Bernot, a financial services consultant and former president of CalFed Investments, used Stathis’ plan at CalFed to introduce technology to dedicated financial consultants in the bank’s investment program. "It helped us define technology, and, more importantly, it helped us put together a whole strategy of putting technology into the organization and ensuring it was going to be used," she says.

Bernot says a survey conducted to determine the computer abilities of the staff readily confirmed the need to boost the technology skills of the sales force.

"What we found was that many of them were almost technology averse. They were just scared of it—had never used it before," Bernot says. Even the top producers were resistant.

"Top sales people who had never used it before and weren’t comfortable with it had an aversion to even trying [it] because they figured, ‘Why do I need it? I’m already doing great sales,’" Bernot says.

To help the cause, the organization focused on several top producers, giving them extra time and attention to learn and feel comfortable with the technology. These producers were then used as ‘champions’ to show others that it could be done. And because they were recognized as the high producers, others in the sales force paid attention to what they said and did.

Although the purchase of California Federal by Citigroup interrupted the process, the sales force at CalFed Investments achieved technology usage levels of 90 percent, and was on its way to entering all orders online and retrieving forms from the database.

A job requirement
Much effort can be made to make the learning process fun. Nonetheless, organizations must make it known that certification will become a job requirement, Stathis says. In addition, there may be a renewal process for certification, such as when new technology is released or significant changes are made to existing technology.

"We tried to make a big deal out of being certified," Bernot says. "We tried to make it more ‘carrot’ than ‘stick.’" Rewards took the form of gift certificates and other prizes. "And later on, we built a few things into our comp[ensation] plan," she adds.

Schulte, who also worked with Stathis on the certification process, says Stathis "creates some online games or contests that make it fun and create a little competition."

In addition, the certification program gives bank program executives a valuable measuring tool. "By the time they became certified, we had [a] measurable change of behavior that could be tracked and monitored, and measured and recorded," Schulte says.

How long does the certification process take within an organization? That depends on the number of reps and the commitment of the firm. But Stathis estimates an organization with 100 to 200 reps could complete the process in about a year. "A bigger organization might take a couple of years, but still, it’s worth it." Once that "negative inertia" is overcome, the rest is easy, he says.

The same game plan works even if your sales force is selling securities or insurance. "The only difference is the definition of certification levels," Stathis says. Insurance companies tend to be more focused on illustration software, but lately they’re moving toward financial planning, too. "You’re starting to see a lot of the same applications being used, no matter whether it’s insurance or investments," he says.

Getting the support of the investment division’s information technology (IT) department and the bank’s IT department is also key. Because the use of technology often involves sharing and mining customer information, cooperation is important, Bernot says.

"I’ve heard stories from other banks, where that’s probably one of their biggest hurdles—getting someone to help them, pay attention to them, and not want to take it over," she says.

Stathis says the support of the IT department is critical for his projects. "Strategically, I become a bridge between IT, training, and sales," he says.

MetLife’s Schulte says Stathis’ experience in the financial services industry also makes him valuable in the software selection process.

"We used Scott first to give his insight into things like software selection—for example, in contact management. Without a third party to give you an objective evaluation, you’re at the mercy of the vendors," Schulte says.

In this era, technology is a necessity rather than an option in the financial services industry. Technology and the Internet have already created a more-savvy clientele, so financial consultants have no choice but to learn and take advantage of technology tools.

As Stathis says, "If you want to survive as a financial services professional, leveraging technology will not be a choice. It will be a mandate."