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Four core principles guide Leavitt Group agency ownership:
1. Agency Managers are agency owners, thus sharing in the risks and returns of the agency.
Ownership makes good managers better. When managers bear ownership risks and opportunities, they work hard to increase revenues, control expenses, increase profits, and enhance long-term equity growth.
Relationships between Leavitt Group Enterprises and its co-owners are founded on jointly held objectives:
• Agency profit
• Effective client service
• Honest and effective risk selection
2. Leavitt Group Enterprises maintains a controlling interest in agencies in which it invests.
Leavitt Group agencies are separate corporations, usually owned 40% by the co-owner/manager and 60% by Leavitt Group Enterprises. With this agreement, each of the owners has an element of influence, yet neither has unbridled authority. Since the agency manager is responsible for the agency's clients, and the Leavitt Group maintains ownership and contractual control, each needs the good will of the other to foster success.
3. Co-owners need to be effective producers of business.
New production is essential to agency profitability. If the agency co-owner fails to contribute to the agency’s growth, the agency will either die (if no one else is producing), or those who are producing will quickly lose respect for the manager's leadership. Since neither of these results is desired, Leavitt Group Enterprises seeks effective producers to become agency co-owners.
4. The Leavitt Group expects integrity from every individual in the organization.
Honesty, civility, open communication and hard work are expected of all involved in the organization. Leavitt Group Enterprises seeks to operate by persuasion, reason, discussion, and consensus-building rather than by mandate.
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