The Brokerage Resource, Inc., Durham, NC
The Brokerage Resource was incorporated in December of 1992 in Columbus, OH, and began limited activity until the Corey family moved to the “triangle” area of North Carolina. The agency opened for business in June 2003 in Chapel Hill, NC, the home of the University of North Carolina.
Sam Corey, Jr., and his wife, Trenna, started the agency from scratch in a new town in a new state. According to Sam, “We knew no one, and our first product was a private label and either a souped-up or dumbed-down major hospital product. Probably wasn’t the best product to start with, but at least it got us started.”
The Corey family’s 117-year life and health insurance legacy began in September of 1896 when William B. Corey (Sam’s grandfather) was employed as an “office boy” for The Provident Friendly Society in Philadelphia, PA, at age 14. This predecessor company ultimately grew into Provident Indemnity Life Insurance Company, where William B. worked for 70 continuous years, rising through the ranks to chairman of the board. “A phenomenal record,” according to Sam Corey, Jr., “not only for continuous service with the same company, but that he accomplished this with a formal education that lasted only through the fifth grade.”
The legacy continued with William S. Corey (Sam’s uncle), who joined the same company in 1933 and ultimately retired in 1977 as chairman of the board. Sam Jr.’s father followed in 1946, retiring in 1983-you guessed it, as chairman.
Corey said, “I realized I was doomed during my freshman year at the University of Georgia and changed my major from forestry to business with an insurance major. March 1965 found me plodding through the snowdrifts in Erie, PA, collecting my debit and selling new policies face-to-face and door-to-door.”
When the Coreys opened The Brokerage Resource, Inc., in 2003, it was just Sam and Trenna doing whatever it took. He was “the title on the door and Trenna was secretary, treasurer and faithful advisor to help keep the wheels on-a role she still continues.”
Sam Corey, III, joined the agency in 2004 and immediately jumped into sales, giving the brokerage agency more horsepower to pursue the senior medical markets.
Middle son Lee Corey began in 2007 to apply some of the skills he learned from his MBA from Fuqua at Duke to do some critical accounting work on a large block of Medicare business that enabled The Brokerage Resource, Inc., to recover substantial monies that had been improperly accounted for. Lee continues to consult with the agency on an as-needed basis.
MetroDI, Jericho, NY
MetroDI was founded by Leonard Gardner in 1963 to provide disability income insurance products to agents. After graduating from college in 1980, Karen Gardner joined her father in the business, followed by her sister, Lorraine Skoglund in 1996. In 2009, Karen’s son, Jordan Albala, felt drawn to the challenges of working in the family business and, two years later, another of Karen’s sons, Matt, decided to embrace the business as well. Today there are three generations of disability income specialists working together to raise awareness about the need for income protection. They are but one of the many services that can be found in the area (which can be seen here: https://www.findnctrianglehomes.com/local-services/) but their niche is very important. Leonard, who is currently 85 years old, still comes to work every day to share his wisdom and knowledge and watch his children and grandchildren grow the business he started 50 years ago.
Q: If you were writing a family business leadership handbook, what is the most important issue that you would include in it?
Sam Corey, Jr.: The most important issue was clarified and condensed by Woody Allen when he said that “80 percent of success is to show up.” For a new family member it’s not only to show up, but to find the area of the agency that they can get passionate about and continue to get better in the job. The other issue that is as important, or more so, is to understand that the founders established and built the agency to this point-and the new generation’s responsibility is to keep it going and growing.
Karen Gardner: Writing a family business leadership handbook would not be different from any business leadership handbook. It has been proven by companies all over the world that success requires these ingredients: Treat your staff with respect, pay them fairly for the job they are doing, be considerate of their time, and communicate your expectations.
When family members are involved, keeping boundaries, respect and expectations appropriate for each individual becomes more of a challenge. Managing expectations and communication is the most important part of running any business. Not all family members are created alike or can perform the same tasks as well. Finding the niche for each family member in the mix and incorporating their strengths has helped to advance our corporate identity and grow our company.
Q: In your opinion, what is the best way to deal with education, conflict, direction and ownership issues in a family business?
Gardner: When it comes to conflict, direction and ownership issues, a family-owned company operates very differently from other businesses. When encumbered with a difference of opinion it is magnified when you are taking a stand against your parents, siblings or children. The best conflict resolution is an opportunity to separate and allow for cooler heads to prevail. We take a time out, and then agree or we let it go. You cannot have two bosses making decisions about the same issues. Pre-establishing rules for conflict resolution and sticking to them helps to manage our differences.
Plus, we make changes to the rules whenever necessary, but never during times of conflict. Outside of the office we generally don’t dwell on work/business issues, which allows us to still enjoy family time together without feeling like we are at work.
Corey: Dealing with the issues. Family members who are employees of the business have to care as much about the business as anyone else in the agency. It is their responsibility to see that the task or job gets done-and done correctly.
Education is another important issue; you can never stop learning. Family members (and any other staff members) have to commit a serious amount of time and energy to learning, whether that is college or graduate level courses; professional designations like CLU, ChFC, CFP, LTCI, RHU; or courses, webinars and seminars sponsored by carriers, marketing groups and professional organizations. You can only fake knowledge for a short time. If you are in a meeting and think that you are the smartest person in the room, you aren’t.
Q: Succession is a necessary part of any business-but particularly when there are multiple generations of one family involved. What should be considered when setting up a succession plan?
Corey: Ownership can be a real challenge, and I think each situation is different. An agency is an asset just like any other asset that a principal owns. Just because one or more of the family works in the agency doesn’t mean that others are shut out. Other family members should have a real interest in seeing the agency continue to do well and prosper. Perhaps now is not the right time for a family member to join the agency, but maybe in two or five years it will be. We finally met as a family group to discuss these issues and to see where everyone’s heads were and what part of the agency would be part of their lives. All of us with families involved in the business are blessed to have interested individuals who want to carry on with what was created years ago. [SC]
Gardner: A succession plan is defined as the process of allowing a business to continue operations with the least possible disruption in the event that an owner is no longer able to perform his duties. While the whole is greater than the sum of its parts, somebody has to be placed in charge, and that person has to have an intimate knowledge of all aspects of the day-to-day business, not just the skills to be great at their current position. That person needs to be chosen based on their abilities, and emotions must not be a part of the decision.
In order for a business to succeed for multiple generations, it is important for all family members involved in the business to appreciate the value of the business entity and its past. We are mindful of my father’s accomplishments and vision for the company, without which there wouldn’t be a MetroDI. I remind the third generation that their job every day is to continue to grow while maintaining our original mission statement which still applies 50 years since MetroDI was founded.
Bottom line: Treat your customers like family and your family like customers. [KG]
The Gardners can be reached at MetroDI, 350 Jericho Turnpike, Suite 306, Jericho, NY 11753. Telephone: 866-638-7677.
The Coreys can be reached at The Brokerage Resource, Inc., 1502 West NC Highway 54, Suite 401, Durham, NC 27707. Telephone: 800-928-4998.
