8 October 2010 & 20 January 2011Leriba Lodge and Country Club Johannesburg

Facilitated by: Alan Kirschner

Purpose of workshopReview 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…

How? i.e.Action plans

Overall strategic planning process...

Current reality? Our Charter

Purpose

FocusAreas?

Today: everybody will have input here

Next month: Based on your input, Exco will identify key focus areas and action plans

Strategic alignment

FIA CharterWe 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 realityReview of 2008 strategic initiativesFeedback from preliminary stakeholder

researchFeedback from Epic researchAdvisory Council views –

Hindering factorsHelping factorsTrends…

Review of 2008 strategiesThree strategic focus areas

Structural Blueprint & DesignCommunication: Internal and

ExternalImage and influence

Focus Area: Structural Blueprint & Design

Definition of Success

1. All members (Corporates and individuals) recognise the value of FIA membership (The need for development and clarification of value proposition)

2. Highly competent individuals in the secretariat with limited dependence on volunteers, efficiently executing agreed action plans

3. Clarity on membership categories/structures, voting rights and fees4. A recognised umbrella body exists (yes) which consists of all financial

services intermediary bodies in South Africa (not there yet)5. We have efficient and effective structures (including committees,

divisions, branches) which meet the needs of members across the country

6. An effective performance management process is in place for all staff members

7. Effective and regular communication internally and externally occurs during the blueprint rollout

Focus area: Communication PlanDefinition of Success1. Timeous and effective two-way electronic communication with

all our members2. Our members are well informed about FIA and relevant

industry issues3. Timeous response from FIA to specific member concerns4. An annual road show/conference for members/potential

members (more work needs to be done for potential members)5. Positive feedback from members on our communication6. Existence of communications database which includes

appropriate employees of member companies (needs work for larger member organisations)

7. FIA seen as a proactive, valued, regular contributor and participant with financial press and industry bodies

8. Positive column inches on FIA

Image and InfluenceDefinition of Success1.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

1. Viviene Pearson (GM sustainability), SAIA2. Godfrey Nti (CEO), FPI3. Sandra Dunn (CEO), Inseta4. Anna Rosenburg (Senior Policy Advisor – insurance and

regulatory issues), ASISA5. Barry Scott (CEO), SAIA6. Jonathan Dixon (Director – Insurance), FSB7. Gerry Anderson Acting Deputy Executive: Market conduct

and consumer education8. Peter Dempsey, Dep CEO ASISA.9. Peter Stephan (Senior Policy advisor – marketing and

distribution), ASISA10. Mr Craig Burton-Durham – Council for Medical Schemes –

couldn’t find suitable date.

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 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 industrySupportive 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

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

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 generalistsMore 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

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 feedbackResponses 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 NoTrying to serve the needs of different membership groups effectively (small and large brokers) 14Member apathy: members not willing (or able) to participate in FIA activities and projects 13Marketing / branding of FIA & intermediaries to members, potential members including black brokers / public 13Internal communication e.g. Communication from national exec to members & vice versa 11 Structure not aligned to strategy including Branch & divisional structures (Linked with item 1) 9Lack of technical expertise and skills (including compliance officer services?) Split these 2 issues (part of value proposition issue) 9

Internal Hindering factors (continued)

Consolidated responses (continued)No clear focused value proposition for the intermediaries and provide value for money 7Other 7Lack of branch and divisional leadership / parochialism 6Members not willing to change and adapt 6Adequate training is not provided to members 3Lack of teeth leading to reluctance to act against intermediary 2Reluctance to use our power to put pressure on service providers 2Fee structure needs to change 2No 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 14Membership - 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 8Good co-operation & relationships with industry bodies e.g. FSB/ relationships / networking 8

Support and commitment of members 8

Use of Technology within FIA 3

External trends and factorsConsolidated responses #Legislation / increasing regulation 22Threat and attacks from direct marketing 14Other 11Membership - losing membership / age profile of members / not attracting new members to the profession (succession planning) 7Growing and improving relationships with regulatory bodies / trust & esteem of FIA 7Industry demand for Professionalism - market place demanding ethical, knowledgeable practitioners and professional organisations 6Need to belong to professional body 6Increasing cost pressures on intermediaries 5Emergence of entities regarded as alternatives 3Continuous lack of knowledge of the industry. 3Enhancement of technology 3Training / knowledge (incl education of consumers) 2

Lack of disciplinary measures/ removal of unscrupulous operators 2Unlevel playing fields. 2Limited Black members

Next steps…Have we given the executive all the

information they will need to develop a strategic action plan?

Actions:-

Additional hindering factors / issuesThe 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 > ZA = 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 PropositionAction Who? By when?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.

Manie Booysen 22 July 2011

2. Review and amend our Purpose in the light of member feedback and stakeholder research and get buy in from all members.

President 31 Aug 2011

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

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.

Manie Booysen 22 July 2013

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 InfluenceDefinition 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 InfluenceAction 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 pro-actively 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 Who? By when?1. Define an ideal structure for the FIA which gives effect to our strategy. (Value

proposition and Image and Influence)The President 30 Nov 2011

How do we ensure that the Strategic Action plans gets implemented?

1. Review and amend deadlines if appropriate and forward to Manie. Action – Manie Booysen, The President, Justus van Pletzen by 4 Feb 2011.

2. 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 2011.3. Communicate FIA strategy to membership. Action – Manie

Booysen by 28 Feb 2011.4. Review progress against approved strategic action plans using the

Traffic light report. Action – President at Exco and Board meetings.5. Update the Traffic light report with strategic actions as they evolve.

Action – President – ongoing.6. Communicate progress with the action plans on a quarterly basis.

Action Manie by 31 May 2011

Notes…Notes…

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Workshop facilitated by:Workshop facilitated by:

Alan Kirschner

Customer Diagnostics (Pty) Ltd

Tel: +27 (0)11 465-5182

Fax: +27 (0)11 465-2041

Mobile: +27 (0)82 891-4268

Email: alan@customerdiagnostics.com Web

site: www.customerdiagnostics.com 

 

PO Box 899, Fourways, Sandton, 2055

South Africa