The number of agencies continues to shrink because of acquisitions and mergers. More and more agencies are establishing multiple locations. Because standardization and training are so important to computerized businesses, automating insurance agencies with multiple offices presents many unique issues that must be addressed.

The challenges for multiple offices involve planning, technical expertise, and business philosophy. Mastery of these challenges will depend on the degree to which an agency is willing to expend the time, money, and energy necessary. For the agency willing to go the extra mile, the rewards are enormous.

Planning is probably the most important step toward multiple agency automation. It provides agents the opportunity to incorporate the technical aspects of automation with the agency's way of doing business. Planning also provides benchmarks for measuring the progress of the automation, since the owner or manager creates a timetable for completing tasks such as acquisition of equipment, training, procedure implementation, and transactional filing.

Get the right equipment for the job! Too many systems don't fit the needs of their agency. Even if the automation is free, it costs the agency money if it doesn't function as the agency needs it to. For example, does the system allow the satellite agencies to function as totally separate entities and still prepare a consolidated profit and loss statement? Will it be able to operate at the same speed as at the main location?

The technical considerations depend on the type of equipment and software provided by the vendor. An old saying goes, "You don't know what you don't know." Almost all vendors will reassure the agent that their system will support satellite offices, but the degree of support varies greatly between them.

Training is another area that the agency should address. The most common complaint I hear from agency personnel involves the lack of training and communications. A computer coordinator must be appointed. This person's responsibilities should include training all personnel in all locations. An analysis of training needs should be completed for all personnel, and a training schedule be established to address the needs of the agency and the employees.

Training alone will not guarantee effective and consistent use of the automation. Workflow and desk procedures must be established, explained, and implemented. For the best results, these procedures -- addressing responsibility, authority and accountability -- should be put in writing, and a process should be established to ensure compliance by all. Communications is another area of concern for agencies with multiple locations. Automation linking the offices can greatly improve communications, and also fosters a better sense of belonging for the satellites' managers and employees. Internal E-mail, achievable in most database-management systems today, will also enhance that sense of "family."

In the event that the system is interrupted, the agency should have a plan of action. A survey performed by my firm determined that the average agency loses six days of productivity per person every year as a result of the system being down. Agencies with written plans are able to react immediately to the down time and transfer the same energy to other, planned tasks. Agencies that don't plan for down time have employees that resemble characters in the movie, Night of the Living Dead, wandering aimlessly throughout the office looking for something to do.

It's exciting when an agency branches out into multiple locations. Taking the precautions I just described will go a long way toward keeping that excitement positive.

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