HR Tech Best Practices: Lockton Shares their HCM Secrets
In any industry, certain companies become titans. They identify winning tactics and strategies, find some secret sauce, and go rule their industry. In Benefit Solutions and Human Resources Technology (HR Tech), Lockton Companies, the world’s largest privately held insurance broker is one such giant.
But what are the secrets of Lockton's success?
They say it is understanding the essence of talent management.
Less acquisitions, more talent management.
Business Insurance, recently published a fascinating article, detailing Lockton's reaction to their "top broker" status. Our takeaway from their words of wisdom is it’s because they’ve made finding and empowering the best people a main focus point.
It's a simple strategy that simply works.
In other words, people are what actually drives growth; and it's time to prioritize accordingly.
The cynic in us might argue that sounds nice (“Go Team!”), but wonder how just how profitable talent management can be as a top priority.
Well, it’s been lucrative for Lockton.
They saw a 10.2% increase in their brokerage revenue ($1.23 billion), making them "No. 10 in Business Insurance’s 2015 ranking of the world’s largest commercial insurance brokers.”
Clearly, this "people centric" leadership model has a high ROI.
People first, everything else second.
Many of us likely claim that "people are our first priority," but make actual decisions based on a myriad of other factors. But Lockton actually chooses their office locations based on where their talent lives:
"Where we find great people, we will add great operations,” said Lockton President and CEO, John L. Lumelleau.
Their actions directly reflect their people first, everything else second attitude.
Renowned HR Influencer, Josh Bersin would likely approve. Bersin recently wrote a briliant article arguing current HR Tech trends have made effective talent management now, more than ever, crucial to achieving company success.
If people really do drive success, it makes perfect sense to find talent first, and build everything else around it.
Serve your partners.
True Human Capital Management (HCM), isn't just about finding and recruiting the best talent, it's about nurturing and leveraging that capacity. It's about investing.
At the end of the day, Lockton is at the top of their game because they empower.
They’re successful, because they know success begins with equipping those who work for you, and with you, to actually do what it is you need them to do.
Investment can look like a lot of things. It might be practical tools: better HR systems, HRIS, or vendor management software, that allow your people to do less busy work, and more core business. It might mean more "checking in" and less "checking up." Whatever the tactic, the point is to act like our company success is completely dependent on our advocates getting what they need.
Because it is.
“Empowered people, powerful results,” reads one of Lockton's website tag lines. And regardless of our particular niche or industry, it’s a lesson we can all take to the bank.
The key conclusion.
Essentially, what we must realize, is our ability to deliver top notch client service and solutions isn’t something we can do by ourselves.
We rely on others to make it happen.
Which is why we need to invest in anyone we entrust with our company mission and support all of our vision “executors.” It’s why we must enable our employees, and empower our vendors.
Better client service begins by serving our own partners first.
Start empowering them now, with an RFP process that serves both Buyers & Vendors.