Consultative Broker Briefing




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The Consultative Broker™ Briefing
Volume VI, Number 6
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

Surviving The New CFO

Have you met Beelzebub (AKA the Devil)? Have you ever stared directly into the eyes of the Devil? Has the hair on the back of your neck ever risen without being combed? Have you ever sat in a meeting with someone that you know is not from this world? Of course the answer is yes… The day you met the NEW CFO!

Those of you with a little gray hair know exactly what I mean. You have just walked into your largest account and discovered that your longtime buyer is no longer the decision maker. You are gently escorted down the hall and are told that you will just love the “new guy.” “He’s really got some great ideas, and I know you will really hit it off,” you are consoled as you enter Dante’s Inferno.

While sitting in front of this buyer for the first time, you try all your good material to warm him up. But he doesn’t blink. In fact his eyes seem to shine strangely, and you begin to feel that his eyelids are opaque over emerald green lizard-eyes. Has it ever happened to you? Can you say, “Oh, Noooo!!!”

The day the New CFO walks into your life is the day that many of us take automatic pay-cuts. Why? Because they have a different agenda and all past bets are off. They really don’t care about what transpired last year. Their question is, “What value do you have now?” The insurance world is littered with brokers that did not answer that question quickly and succinctly.

This is not an indictment against all New CFO’s, merely a statement of the facts that many of us have learned the hard way. When the New CFO appears on the scene, there are a number of things you must do immediately:

Find out where they came from. Most of the New CFO’s come from the public accounting arena. They are used to dealing with teams of specialists. If you try to sell and service as an individual - IT IS SUICIDE.

Find out if they are in bed with another broker. Unfortunately, there are some CFO’s that regularly make their bones by using their broker friend to make your life miserable.

Find out why they are there. In many cases the entrance of a New CFO can mean a change in the structure of the business. Is the firm getting ready to make some acquisitions or merge? What about getting ready to go public or have a private equity placement? Did the investment bankers bring him in?

You must do a stewardship report ASAP. This is the only way to demonstrate to the New CFO how valuable your firm has been to their company. This stewardship report must show the quantifiable impact you have made along with the projects you are currently working on. In the event the New CFO is inclined to treat you straight, this is critical, as it answers the question - “What value have you brought us?”

Don’t be afraid to get fired. Sometimes, after trying all of the above, it takes having a frank conversation with the new CFO that is testing you. In this case here is the statement you should make: “My sense is that you might be happier dealing with another broker.” Then shut-up and listen! I know this strikes fear in some of your hearts. As a working broker, I used it twice. Once I was fired and once I retained the account. In that case the CFO was just seeing if I would protect myself. His thought was, “if you won’t protect yourself, why would you protect me?”

The entrance of the New CFO is one of the most dangerous developments that you will face as a broker. If you don’t believe me, just ask around your office. I am certain that more than one broker will have a “war story” to tell you. But take heart, it doesn’t need to have an unhappy ending. Just look Beelzebub straight in the eye and proceed with the steps outlined above. Over time he just might become your best client!

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Consultative Brokerage® Techniques are utilized by agents and brokers across North America in the development and retention of upper middle market revenues. The Consultative Broker Briefing is delivered electronically free of charge to selected agents, brokers, and other insurance professionals across North America. To subscribe to The Consultative Broker Briefing, please click here.