Parker, Smith & Feek

At 29,035 feet, Mt Everest is the tallest mountain on earth. Since it was first explored by a geological expedition in the mid 19th century and established as the world’s highest peak, climbers have been drawn to the challenge of summiting this mountain located in Nepal. Not until May 29, 1953 was the summit successfully reached by Sir Edmund Hillary and his Sherpa guide Tenzing Norgay. Since then, 3,000 climbers have stood atop its peak.

220 people have perished on Everest. Most were killed descending the mountain after they had spent all the energy they had to get to the summit, ignored bad weather or reached the summit too late and ran out of oxygen. 150 bodies remain on Everest, a number of which are still visible to passing climbers.

Mountain climbing, as a metaphor for business and life, crystallized for me in 2011. Early in the year I read ‘High Altitude Leadership’ by Chris Warner and Don Schmincke , which compares the challenges and dangers of mountaineering with business, and how similar they are in terms of the leadership, vision, teamwork, and risk management necessary to survive and thrive in that environment.

Later in the year I also had the opportunity to meet the great Seattle mountaineer, Ed Viesturs and to hear him speak. Ed stood on the top of Everest seven times. His motto has always been that climbing has to be a round trip – ‘getting to the top is optional, getting down is mandatory’ - and he has a strict personal risk management philosophy. His book, ‘No Shortcuts to the Top’, along with Jon Krakauer’s, ‘Into Thin Air’, share many things in common with ‘High Altitude Leadership’ (HAL).

The authors of HAL explore factors common to mountaineering and business – fear of death (fear of failure), selfishness, arrogance, lone heroism, cowardice, tool seduction and comfort, many of the same conditions that Krakauer and Viesturs talk about in their books and how these endanger climbing expeditions as well as businesses. With every famous business failure – Enron, Lehman Brothers, Bernie Madoff, and in our own back yard, Meridian and of course Washington Mutual, we see many of these characteristics evidenced, and from time-to-time we can see some of them in our own companies and in ourselves.

Another concept prevalent in HAL is that of ‘compelling saga’. Why do we climb this mountain, what compels us to strive in our business and personal lives? The authors suggest that every organization have a compelling saga – a common goal or ambition that binds all together in a common journey.

As I have explored HAL, I’ve thought a lot about this, and personally, I think I have a good idea of what my mountain is, and probably what it’s been since I first started in business. As I have talked with friends, family and colleagues, I see that our goals, our compelling sagas, can be quite different, however. Some are more short term. Some are readily achievable and some are big dreams.

We all have different motivations and drivers, and I’m sure there are a variety of reasons why mountaineers do what they do. What seems consistent, however, among the best climbers and the best businesses, is that irrespective of the differences in their overarching goals, all the travelers are similar in one regard – how they go about their journey. There’s something there that’s not about what you do or what your business is, but why you are doing it and what it means to you. As is often said, the quality of the journey is just as important as the destination.

2012 marks the 75th anniversary of Parker, Smith & Feek. No organization could survive and thrive that long unless there was a compelling saga. Parker, Smith & Feek’s saga, I believe, is more about the journey than the destination, and is more defined by a shared culture and business philosophy than the fact that we are insurance brokers. It’s not what we do as much as it is how we do it and why. We are not unique in that. Many of our most successful clients have a strong culture that aligns their actions and business objectives and keeps them moving toward the top of their mountain.

In past entries I’ve explored some of the factors that define our culture, such as value creation and a commitment to community. In 2012 I plan to share more about our journey over the past 75 years and what we believe will take us into the next century.

Here’s to reaching your summit and doing it in a way that gives you pride and purpose.

Most all of us have interest in increasing the value of our own personal investments. Over the last several years there has been much concern with the economy, the market and how it affects our livelihood as it pertains to our investments. These same questions occur within Boards and management as they work to grow the value of the companies they manage and/or oversee.

One age old benchmark or metric that has been used by companies and individuals over the years is “Return on Investment” or ROI. A simple calculation of taking your year-end profits and dividing by the Stockholders Equity determines what your ROI was for the year (example: If you made $100,000 profit on an investment of $1,000,000 you would have a ROI of 10%. 100,000/1,000,000).

Within a company there are several ways to increase profits. The more successful a company is at driving these areas typically the better the ROI will be.

• Increased Sales
• Increased Gross Profit
• Decreased Inventory
• Decreased Receivables
• Decreased Expenses
• Marketing and Branding
• Relationships, Service and Support

Now here is the challenge or opportunity for each and every employee within a company they work for. You as an individual or within a team can directly or indirectly have a positive effect on one of the processes above. Your own observation and/or creativity with effective communication can assist with being a “change agent” to improve the Return on Investment for your company. The results end up being a win/win situation with much gratification and feeling of accomplish for all!

With 2011 coming to an end, we have been busy; tying down loose ends and preparing for 2012. This time of year always sees us going through the customary budgeting process. This year it has been an even bigger challenge as we try to determine what the economy is going to do and how it will affect our clients.

There are signs that the economy is improving slightly and that 2012 will be a better year for the majority of the economy. However, some industries don’t share the same level of optimism and feel we may even slip back into a recession and worsening economy.

We understand that we cannot control what the economy will do - but our sole mission to “reduce our clients total cost of risk” remains firmly intact and will be even stronger in 2012.

We hope for all of our clients and the economy will prosper in 2012.

Happy New Year.

For unknown reasons, the Pacific Northwest has one of the highest incidence rates of multiple sclerosis in the entire world. In Washington, 180 per 100,000 people are known to live with the disease. In response to the high numbers, the Greater Northwest Chapter of the National MS Society is one of the most active groups within the organization, serving over 12,000 people living with MS in Washington, Montana, and Alaska. The regional chapter funds research and provides a wide range of support for people with MS and their families, from education and care management to financial assistance and advocacy.

Susan Brock, an Account Manager in our Commercial division, has been an active volunteer with the Greater Northwest Chapter since 2004. She focuses primarily on advocacy because it is an essential component of the organization’s ability to effect change; she is dedicated to making MS a local, state, and national priority through periodic meetings with public officials. Susan is the immediate past-chair of the Chapter’s Subcommittee on Activism and participates in Washington’s Annual Day of Activism in Olympia, where she shares the most pressing needs of the MS community with policymakers. Susan has also traveled to the other Washington for the National Society’s annual Public Policy Conference. Her advocacy work has resulted in tangible results that improve the lives of people with MS and their caretakers. One of the chapter’s most recent lobbying successes resulted in obtaining federal funding for the Lifespan Respite Care Act, which will provide grants to state agencies for providing short-term temporary relief for family-member caregivers.

Susan participates in the annual MS Walk and she would welcome your support for her team (Go Team Gleason!) in 2012.

As a firm, we are actively involved in our community, contributing time and money to organizations, and we encourage our staff to get involved on an individual basis. Susan exemplifies our commitment and we are proud of her work—and successes—with the regional chapter of the National MS Society.

For more information about the Greater Northwest Chapter of the National MS Society, visit http://www.nationalmssociety.org/chapters/WAS/index.aspx

On Monday, November 14th, the Supreme Court announced it will hear arguments on legal challenges to the Affordable Care Act. In the announcement, the court said it will consider the following questions involving the individual mandate:

• Is the "individual mandate" constitutional?
• If the individual mandate is struck down, is the entire law unconstitutional?
• Should the decision be put off until 2015? (There is an argument that the case is not valid until taxpayers are actually required to pay a penalty.)

And on a separate issue:

Can the Federal government force states to pay extra costs related to expanding Medicaid? Arguments in the case will be heard in March 2012 with a decision expected in June.

Please contact the PS&F Benefits Team if you need more information

There are so many factors that affect employees outside of work. For the past couple of years, I have certainly noticed that a lot of my own family and friends have been impacted in some way by this worsening economy and our employees are also seeing the affects that this downturn brings.

As an organization we wish there was more to make our employees feel better while at work. What we try to do is relieve as much stress as possible, through our wellness initiatives.

Our wellness program ‘Your Choice, Your Future’ has had mixed results so far. Some of our employees have jumped on board and are taking advantage of the wellness challenges and the new healthier snack options we have provided for them. However, some are worried that we are might be intruding on their lifestyles.

WE AREN’T.

We simply care about their health and their wellbeing. Our employees are Parker, Smith & Feek’s single greatest asset – to us it’s kind of like taking out an insurance policy on our employees.

So as we move into 2012, I will be sharing with you both our successes and failures as we try to improve the general wellbeing of our employees.

For the past two years I have had the privilege to be a United Way King County (UWKC) Ambassador. Ambassadors are typically business people who believe in the work of UWKC and volunteer their time to speak at corporate campaigns. Last year I wasn’t able to speak at any events due to a challenging fall calendar. This year, however, I got my first chance – at Nordstrom’s kickoff for their annual giving campaign. I spoke to 200 employees from their marketing department.

As I told them, I felt a bit like a minor league baseball player who’s been called up to the majors and his first at bat is at the World Series. It was an honor to be at a company like Nordstrom, so well known for quality, customer service, and a strong commitment to the community. Last year local seattle Nordstrom employees raised more than $1,500,000 for UWKC, not counting the corporate contribution. This is a huge part of their mission and the culture that Nordstrom inspires and promotes.

As I told my audience, a fundamental value of PS&F, as well, has always been giving back to the community that has been so generous to us. We are proud to be a supporter of UWKC, and I can’t think of a better way to spend some of my time than to be an ambassador for such an effective organization doing critical work in our community.

UWKC has three major initiatives. First, meeting peoples’ basic needs – addressing those in crisis and immediately at risk. Over the last three years, unemployment in our area has doubled, reaching nearly 9%; home foreclosures are at a record high; and record numbers of people are visiting food banks. UWKC initiatives like Hunger Relief Now invests in programs that keep people housed, end hunger, and provide access to existing public benefits – helping people get back on their feet.

The second major initiative is ending homelessness. Since its inception several years ago over 1400 additional housing units have been created, getting individuals and families off the streets, out of their cars, and into stable housing.

The third initiative is giving every child a chance to succeed. This is the proactive part of UWKC – focused on addressing the root causes that lead to at risk adults and dependency on social services . Examples include the Summer Lunch Program which supplements the school lunch program to ensure that every child gets at least one nutritious meal a day, even when school is not in session. The Reading Program is another good example and is based on the understanding that many disadvantaged children are coming to kindergarten unprepared to begin to learn to read because they had not been read to. Trained volunteers read to children and teach parents how to read to their own kids and to be better Moms and Dads.

There is a cruel irony that has taken place since the economy began it’s downturn in 2008. Today there is more need and fewer resources. All the philanthropic organizations that I am proud to be associated with feel the pinch, stretched to the limits to help an increasing number of people in need with fewer dollars, from either budget cuts at the state and federal level, or from reduced giving that is a direct result of the recession.

When you hear the stories of the people in need in our community there is a natural emotional reaction. But from a business perspective, as well, I am drawn to the work of UWKC. It provides a framework and strategy for helping those in need and stitches together all the organizations doing great work in our community, maximizing existing resources. And it does it in a highly efficient, effective way, where 97 cents of every dollar goes directly to issues and not administration - relieving immediate suffering, and also focusing on solving the core issues that face people today. For instance – teaching parents how to be parents.

Parker, Smith & Feek is honored to join Nordstrom as part of an elite group – 66,000 donors that raised almost $120,000,000 to help those in crisis, to give every child a chance, and to take one step closer of ending homelessness. It’s easy to understand the emotional appeal – no child should suffer, no family should go hungry. But there’s the intellectual appeal for us in business. I know the people we are reaching are future employees, future customers, who are also going to be imbued with a sense of community, philanthropy, and are going to pay it forward. All this is going to create a community that we can be proud to live and work in.

Again, hats off to Nordstrom and to all the corporations making King County a better place to live and work.

PRESS RELEASE

Parker, Smith & Feek inc., One of the top 50 independently owned Property & Casualty insurance agencies in the U.S., has been named "Agency of the Year" by National Underwriter Magazine.

President and CEO Greg Collins said: "We're very flattered by the recognition. As the only Insurance Broker in the Northwest to have ever won the award, it reaffirms our belief that we are amongst the very best in the industry."

"We do great work every day and have weathered a lot of different storms. It is something the entire company can feel really good about in what is still a very, very tough economy."

The Agency of the Year award recognizes agencies that serve as role models for their peers. This prestigious award evaluates agencies on growth and development, management of client relationships, technology aptitude and efficiency, innovative solutions to sales challenges, and maintenance of brand identity.

For the entire article from National Underwriter - click here

Against the recommendations of Washington business groups, L&I is requesting a 2.5% rate increase effective January 1, 2012 in order to increase their contingence reserve.

Below is a copy of the release published by L&I:

TUMWATER – The Department of Labor & Industries has proposed a 2.5 average workers’ compensation rate increase in 2012 – its lowest rate increase in five years. L&I said the proposed increase is a small step toward rebuilding the workers’ compensation reserves without harming the state economic recovery, something the State Auditor and many businesses and workers have said needed to be done. Without the recent reforms, a 10-14 percent rate increase would have been needed to cover costs and begin restoring the reserves. The public is invited to comment on the proposed rate increase at one of six public hearings around the state in October. The final rate decision will be announced in early December. Complete information is online at www dot rates dot wa dot gov.

For the full release visit - The Labor and Industries Website