Lisa Lacey, CTIE
Performance management, as defined by Investopedia, is “a tool that helps managers monitor and evaluate employees’ work. The goal of performance management is to create an environment where people can perform to the best of their abilities and in alignment with the organization’s overall goals.” (Tardi, 2023)
For a travel agency utilizing independent advisors as a sales force, performance management can be a balancing act. On one hand, both the advisor and the agency benefit when goals are set and progress is measured. On the other hand, a formalized performance review may cross the line when it comes to the legal classification of workers, as a mandated performance review blurs the distinction between employee and independent contractor. Performance management also presents a challenge for implementation. To be truly effective, it must be timely; achievements must be celebrated quickly and areas for improvement identified while there’s still time to make adjustments.
A wealth of resources, both theoretical and practical, are available online and in libraries to guide the development of a performance management system. While each author offers unique ideas and inspiration, I found four components key to a good performance management system:
- Shared Purpose – The intent is to help workers succeed and to ensure their work aligns with the company’s mission and values.
- Collaborative Goal Setting – Workers have input to set their personal goals in alignment with the company’s goals.
- Mutual Accountability – Both workers and management have a clear understanding of expectations and a shared responsibility for achieving them.
- Continuous Feedback – Feedback is ongoing rather than based on an annual performance review.
In 2022 and prior years, I conducted end-of-year reviews with each independent advisor working under the umbrella of Joyful Journeys LLC. During those reviews, we discussed high points and challenges for the year, compared actual sales to annual sales goals, set sales goals for the following year, and briefly discussed the IC Agreement to be renewed. The conversations were friendly, often over coffee if the advisor was local.
As I was preparing for review week in early December 2022, I became convinced that reviews would be more effective if they happened earlier in the year, while there was still time for advisors to make changes to impact their annual sales. I also desired the process to be more about growth and less about renewing an IC agreement. I introduced the idea of voluntary quarterly coaching sessions for 2023, and all of my advisors were accepted the change. At the time, I didn’t understand that I was implementing a true performance management system. I also didn’t fully realize the investment of time this new schedule would require. I was just excited to give it a try and await the results.
First Steps
To ensure the success of our upcoming quarterly coaching sessions, I knew we needed a solid foundation.
I created a worksheet to help advisors reflect on 2022 and prepare for 2023. This thinking exercise guided discussions during the end-of-year reviews in December 2022 and laid the groundwork for our quarterly coaching sessions in the new year.
Reviews were conducted via Zoom for everyone’s convenience.
Together, travel advisors and I discussed sales and each advisor set an annual sales goal for 2023. For some, the goal was a flat dollar amount. For others, the goal was a percentage of growth or a specific number of traveled bookings. As long as the goal was measurable, it was acceptable.
We also discussed non-sales goals for 2023. These, of course, varied greatly among the advisors, but they tended to focus on work-life balance, developing workflows and automations, and stepping out of their comfort zones to try new things.
In years past, the end-of-year review served as a closing point. This year, however, I had a different vision. January, February, and March – the first quarter – hold immense potential for generating new bookings and establishing habits that will pay dividends throughout the year. Planning for a successful Q1 became a central concern. To encourage reflection, I created a series of thought-provoking questions, including:
- Considering your sales goal for 2023, how will you measure that you are on track at the end of Q1?
- Considering your non-sales goal for 2023, how will you measure that you are on track at the end of Q1?
- When you meet your 2023 sales and non-sales business goals, how will your personal life be impacted?
Breaking our annual goals into quarterly milestones proved to be essential. It made big goals feel less intimidating and allowed advisors to develop a step-by-step path to success. It wasn’t just about hitting numbers; it was about seeing how their business achievements could positively impact their personal lives. This added meaning and motivation to the process.
To further empower them, I asked advisors to share specific ways Joyful Journeys could support them in achieving their goals. This provided an excellent opportunity to discuss how their goals and the agency’s goals can be aligned and how that alignment benefits both parties.
After each session, I emailed the advisor a quick recap of the goals and milestones we discussed. This handy reference sheet became their go-to resource throughout the year, helping them stay on track and celebrate their achievements.
Quarterly Coaching Sessions
To ensure productive coaching sessions, advisors receive a pre-session email one week prior to the scheduled meeting. This email includes a summary of their personalized goals along with an up-to-date sales report. While some advisors are adept at utilizing our customer relationship management system (CRM) to generate reports, this standardized pre-meeting package guarantees that all participants have immediate access to information necessary for a focused discussion during the coaching session. It also increases the probability that they will come to the session prepared!
The coaching sessions are structured as casual conversations. They aren’t high-pressured, but they do encourage advisors to look truthfully at their goals and why they have or have not achieved them. We celebrate when appropriate, and we discuss strategies to get back on track when necessary.
Coaching sessions typically last 45 minutes to an hour. To maintain momentum, the next quarter’s meeting is scheduled at the conclusion of each session. Finally, a follow-up email is sent to each advisor, summarizing the key takeaways and action items discussed during the coaching session. This follow-up helps both the advisor and the agency continue working toward the same goals.
Results
Joyful Journeys achieved an impressive 20% year-over-year sales increase in 2023 utilizing the same size advisor team we had in 2022. Sales for 2024 are on track with those for 2023. Historically, a period of significant growth at Joyful Journeys is followed by a season of stabilization. Therefore, maintaining this level of sales is an achievement in itself.
Fifty percent of advisors met or exceeded their sales goals for 2023. Twenty percent of advisors increased their sales by substantial margins compared with 2022 despite falling short of their 2023 goals.
An impressive 64% of advisors had met their 2024 goals by the end of June 2024.
According to an in-house survey, 83% of Joyful Journeys advisors find quarterly coaching sessions more beneficial than year-end reviews for achieving their business goals. The reason is clear: frequent check-ins keep advisors engaged with their goals. These sessions encourage them to look at their numbers more regularly and to make course corrections if needed, maximizing their chances of success.
The benefits of transitioning to quarterly coaching sessions extend beyond increased sales. In the same survey, 83% report that these sessions help them define non-sales goals, not just for their businesses but also for their personal lives. Similarly, 83% credit coaching with sparking new marketing ideas. Beyond sales and marketing, 67% of advisors find the sessions helpful in maintaining a healthy work-life balance, while the same percentage value the chance to provide feedback directly to the agency owner, fostering a two-way communication channel.
In conclusion, the shift from annual reviews to quarterly coaching sessions at Joyful Journeys has yielded positive results. Not only have sales flourished, but advisors are taking ownership of their businesses by setting goals, holding themselves accountable, honestly evaluating their operations, and celebrating their accomplishments. Those actions have promoted self-confidence and have increased business awareness. As an owner, I better understand what makes my independent advisors tick and can better encourage and celebrate them in ways that are meaningful to each individual. I have also increased my rapport with my team, which makes future difficult conversations less stressful and creates a more comfortable atmosphere for advisors to approach me with their concerns.
More confident advisors and a more “in tune” owner set the stage for a stronger agency. As feedback is exchanged, an observant independent advisor may draw attention to situations management has not yet noticed. Owners can more easily identify the advisors who agree with and support the agency’s mission statement and values and develop a plan for bringing others into alignment with the agency culture…or take action more quickly if an advisor is not a good fit for the agency. Advisors become more loyal when they feel heard and appreciated; quarterly coaching sessions provide at least four opportunities each year for that to happen, but they also create a climate where impromptu feedback is welcomed.
Lastly, hosting quarterly coaching sessions forces owners to delve into their numbers on a regular basis. In turn, owners have an unobstructed view of their current business status and can therefore cast a clear vision for the future.
The program’s effectiveness lies in its commitment to the four cornerstones of a good performance management system: shared purpose, collaborative goal-setting, mutual accountability, and continuous feedback. These elements, like the cardinal points of a compass, guide both advisors and owners as they chart a new course to success!
References
Tardi, C. (2023, December 20). Performance management: Definition, purpose, steps & benefits. Investopedia. https://www.investopedia.com/terms/p/performance-management.asp
