Leadership Perspectives

Integration: A Mark of Business Maturity

by Dan Salomon
SVP, M&A Integration Management

“Welcome to the family.”

I love saying those words to every business we acquire. They mean that the Integration Management team has yet another opportunity to help grow the NFP story and introduce new employees to our resources and culture. We’re plugging the acquisitions and their capabilities into our company as quickly and effectively as possible — and simultaneously maturing the operating model they plug into.

Where Integration Begins
Our team works closely with the Mergers & Acquisitions team, our business line leaders and the Legal team to evaluate the business we’re acquiring. And we work heavily with the regional teams, which provide solid information on each area’s capabilities and needs. Being involved in the early stages helps us understand the people, the makeup of the business and the appropriate integration strategy. All of this knowledge creates fluidity in how we ultimately transition that acquisition. We’re also able to build personal relationships with the owners and managers, making the actual process much easier for everyone involved.

The process, quarterbacked by Brent Perkel, vice president of M&A Integration Management, begins with back office fundamentals like IT, marketing, human resources, accounting, finance, banking and branding. Making sure that new employees aren’t pulled away from client-facing responsibilities is essential to our first major objective: preserve the book of business we purchased.

At the same time, we look for ways to grow the book organically — anything from enabling integrated selling with other NFP offices and consolidating carrier contracts to reducing costs through smart procurement initiatives (more on that in a bit). We also do everything we can to help acquisitions leverage our company’s scale and collective knowledge so they can do what they do best even better, as well as offer expanded solutions to clients.

But integration isn’t all “doing business.” We’re determined to create a successful personal and professional path for every new employee. NFP acquires firms that, like us, believe in being good people, doing a great job and doing the right things, so we’re always proud to introduce them to PeopleFirst. We want to make sure they know how to take full advantage of the program’s numerous education, recognition, community service, financial strength and well-being opportunities.

A Focus on Standardization
All of the new people and capabilities added through acquisitions are a critical part of our company’s evolution. That evolution hinges on the Integration Management team’s charge to standardize an operating model and shared services across every region. The goal is to make sure every office, regardless of where it’s located or its focus, has the same set of tools to work with and the same insight into NFP business, carriers and clients. We’ve already come a long way in a short period of time.

For example, all of our major retail benefits businesses now use Salesforce, a customer relationship management platform. It’s incredible to see how dedicated everyone involved has been in making Salesforce a successful tool for us, and the insight we’re gleaning from this tool is adding tangible value to our business. Under the guidance of Integration Management team member Rachel Harbaugh, associate vice president of P&C Agency Operations, our P&C businesses are migrating to Epic, an agency management system that integrates with Salesforce. We’re also implementing a new companywide commission-tracking tool.

In addition, we’ve moved beyond standardizing shared services like IT and financial accounting. Although we’ll continue to mature those services, we’ve been driving other important functions, including procurement and real estate management, into single, coherent – and extremely cost-effective – structures that benefit all our offices.

A Better Kind of Procurement
Procurement is a great example of how standardization results in big wins. As we compete with larger peers, we have to leverage our size to buy goods and services in a much more consolidated way. That’s why we look at the purchasing patterns of every acquisition.

Locally, if I’m responsible for shredding in my office, I might think, “Hey, this isn’t really a big budget item.” But if a new national shredding contract can provide 20 percent savings, those savings add up and positively impact everyone’s bottom line. Those savings become even more meaningful as we grow. In addition, we can create 360-degree partner relationships with vendors. When they become our clients as well as our providers, we both grow.

Under the guidance of Lara Nichols, senior vice president of Procurement, we recently launched several significant procurement initiatives, including:

• An office supply contract with W.B. Mason that instantly reduced costs by 20 percent nationally and significantly improved service. The company now gets its employee benefits through NFP. On our request, W. B. Mason also launched a promotional items store where you can buy NFP-branded merchandise.
• A Xerox printer and copier contract that results in more than 40 percent savings annually and includes all support costs for printer maintenance.
• A new pricing agreement with FedEx that gives us an additional 5 percent discount.
• Ovation, the new NFP travel program, provides significant discounts to employees as well as one-stop booking for air, train, car and hotel reservations. The program also makes submitting travel expenses fast and paperless.

An Ongoing Journey
What’s really exciting to me about integration is watching its impact on the overall trajectory and maturity of our company. Everyone’s really thinking about operating as one unit and presenting themselves that way externally. Our single brand voice, backed by a standardized operating model, is leading to tremendous advantages for us and our clients. As NFP continues to grow through acquisitions, we’ll explore new ways to make the most of the huge opportunity each one offers. The integration journey never really ends, but there’s no question we’re positioned to make the most of its opportunities.

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PeopleFirst

Thanks for Listening to Our Company Call

Thank you to everyone who joined us on the company call Wednesday, Sept. 7. These calls are instrumental in keeping all of us informed of our company’s successes and ongoing strategies.

Did you miss it? Listen to the call recording by logging in to the PeopleFirst Portal.

Portal login questions? Contact PeopleFirst Portal Administration at pfpadmin@nfp.com.

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RECOGNITION

Unsung Hero, Penny Davis

Penny Davis is a lifeline in our San Jose, CA, office. As an account manager for our Life and Benefits divisions, she has both the knowledge and the energy to take charge of key accounts, even helping with other people’s work when they’re out on vacation or sick leave. Penny excels at her job and exceeds expectations by staying on top of complex book of business work and comprehensive experience reports. She’s up to date on technology tools such as Ease Central — and has even trained her local team on the software! Penny is a go-getter and files Forms 5500 for the office as well as her clients. She’s an unsung hero who never complains and always keeps her clients happy!

Penny is a proud mom of two boys, eight grandchildren and her dog, Lucky. She loves taking walks with Lucky and, when time allows, they take road trips to Utah to visit the kids. Penny also spends time giving back to the community and helping people in need.

Unsung Hero, Jill Jacquinto

Jill, a large-account benefits consultant in our Warrington, PA, office, knows how to give her all. She stepped up to the plate and took on the giant task of developing and organizing an underwriting training class at the same time she was preparing for the “busy season” with her clients. That busy season was made even busier because, in addition to managing her own accounts, Jill took over several accounts from a recently retired senior consultant. The goal of the five-week training Jill implemented was to ensure that all six newly hired consultants were prepared for their renewal season. For several, this was their first exposure to underwriting. Jill was patient and informative, bringing out the best in her new co-workers. With her help, they did an amazing job, and everyone is thankful she’s part of the team!

Jill loves traveling and spending time with her family, and she’s a fabulous baker.

Know an Unsung Hero? Submit a nomination form to humanresources@nfp.com.

Work Hard, Play Hard

Our Plainview, White Plains and New York City offices came together for a company picnic to end the summer with a bang. Employees relaxed and mingled with Northeast Managing Director Stuart Wilkins and CEO Doug Hammond at the Crescent Beach Club in Bayville, NY. As a company, we believe in our employees and want to recognize them for their hard work. Thank you for all you do.

Stuart Wilkins and Doug Hammond


Employees in the Northeast enjoy a picnic celebration.

On the Hunt

The New York Corporate Services team enjoyed a scavenger hunt around the Midtown East area of New York City. Aetna, one of our insurance carrier partners, sponsored this annual employee appreciation event. The friendly team-building competition concluded with an employee happy hour, so in the end, everyone was a winner!

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COMMUNITY

Project Sunshine Golf Classic

This month our CEO Doug Hammond was honored at Project Sunshine’s Golf Classic, an event that raised over $460,000 for children and their families around the world who are facing medical challenges. For the past three years, Doug has led NFP’s involvement with the charity, and this year we gave our proud support as the Title sponsor. The Golf Classic has raised over $2 million in the last six years, and it’s definitely a worthy recipient. Thanks to Doug and the NFP members of the host committee for making a difference.

L to R: Dan Lussier, Doug Hammond, caddy, Mike Flynn and Mike Walsh

Giving from the Heart

Anita, Cyndi and Lauri send their thanks to our generous employees for donating toward the relief effort in Baton Rouge. They wrote, “We are truly grateful for all the donations being received. The last month has been a very difficult time for all three of us. With the outpouring of love and support from family, friends and co-workers, it has made this difficult time easier. We are extremely thankful to you all.”

These three ladies’ homes were among the 100,000 homes and livelihoods devastated by recent flooding. Our Plainview office was particularly generous in providing relief from the devastation. They hosted a Good Humor ice cream social, donated recycling materials and raised over $2,000!

L to R: Andrea Griffin, Ingrid Amato, Roger Blumencranz, Diana Caporale and Ron Cubicciotti

There’s still time to contribute if you want to make a donation to the McArthur Sanchez Flood Relief Fund’s GoFundMe page. Every donation makes a difference.

And the Holiday Card Contest Winner Is …

Congratulations to all the NFP children and grandchildren who participated in our first holiday card art contest! The competition was close, with 43 wonderful artists contributing original artwork. View the finalists’ artwork here. After much deliberation, the executive committee chose Ava Arseneaux Pecorella, the daughter of Jennifer Arseneaux from our Dennis, MA, office, as the grand-prize winner.

Ava’s original artwork, which will be formatted for the holiday card you can order for your office soon.

Ava won a $100 gift card — AND her beautiful artwork will be featured on the company holiday card! Stay tuned to next month’s edition of NFP News for information on how to order cards to send out to your clients. Thanks, Ava, for making our holidays a bit happier!

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WELL-BEING

Are You At Risk?

Of the three primary types of diabetes – Type 1, Type 2 and gestational – Type 2 is the most prevalent and the most preventable. Are you at risk? Know your risk factors to help prevent, diagnose or treat this disease. Risk factors associated with Type 2 diabetes include:

• A family history of diabetes
• Being overweight
• Eating an unhealthy diet
• Physical inactivity
• Increasing age
• High blood pressure
• Ethnicity — some ethnicities are more prone to diabetes than others
• Impaired glucose tolerance (IGT)
• History of gestational diabetes
• Poor nutrition during pregnancy

Some risk factors, such as your age, race, gender and family history, are beyond your control. But being aware of them can help you take smart steps to lower your risk. Not sure if you’re at risk for Type 2 diabetes? Take the test on the ADA website.

Are you participating in one of the ADA Step Out: Walk to Stop Diabetes events? Click here to access our team page, find a walk near you and join your NFP teammates as we join together to walk to stomp out diabetes.

Friends of Faith Fun Run

Employees in our Lafayette, CA, office proudly participated in the 12th Annual Faith Fancher Breast Cancer Challenge 5k walk/fun run at Lake Merritt in Oakland, CA. Money raised at this event enables the Friends of Faith nonprofit to provide grants to local community-based organizations that support low-income women and men undergoing treatment for breast cancer. Thanks to all the participants for taking steps to make a difference.

L to R: Susan Warren, Lynn Jones, Denise Childs

Have You Completed Your Vitality Check?

We want you to improve your health and earn prizes by completing your Vitality Check!

What’s a Vitality Check? It’s a biometric assessment that helps identify which areas of your health are strongest and which may need some work, as well as your risk for any potential health problems, like diabetes or heart disease. The check includes physical measurements and a blood draw to determine one's fasting blood glucose levels, blood pressure, total cholesterol and body mass index (BMI).

How do I complete the Vitality Check? It’s simple! Visit Vitality, hover over the “Learning Center" tab and click on “Guide to Vitality.” On the left side of your screen, click on “Vitality Points” and then "Vitality Check" to find more information and instructions on how to submit.

Why should I do this? You can earn 125 Vitality Points for each of the four core biometric screening measures. In addition to those points, you can also be rewarded for results that fall within a healthy range. You get 1,000 points for a BMI that falls within a healthy range and 600 points each for submitting good blood pressure, fasting glucose/HbA1c and total/LDL cholesterol numbers. That’s a potential 3,300 points that you can earn!

Not yet a Vitality member? Sign up today.

Health & Wellness Webinars

UnitedHealthcare offers free, interactive online seminars and events focused on keeping you and your family healthy. The next seminar is “Be More Productive” with Audrey Thomas on Oct. 11 at 12:30 p.m. ET. Visit the UHC website for more information and to register. You’ll get 10 strategies most people aren’t yet using that are designed to increase your personal productivity both at home and at work.

Vitality offers a wellness webinar on the third Thursday of each month at 3:00 p.m. ET. Earn 50 points when you attend a live webinar or watch a recorded one you haven’t seen. Log on to powerofvitality.com, hover over the “Learning Center” tab and click on “Health Resources.” Click on “Health FYI Webcasts” to access recorded webinars and find out when the next webcast will be.

Manage Prescription Drug Spending

Whether you and your family are on a high-deductible health plan or a traditional PPO, the cost of prescription drugs can play a significant role in what you’re spending on your overall health care needs.

According to the 2016 Peterson-Kaiser Health System Tracker report, prescription drug spending jumped 11.4 percent in 2014 and was projected to grow 9.6 percent in 2015. And a government study indicates that more than 12 percent of U.S. adults have skipped taking medication or simply not filled a prescription in order to save money.

As you do with your other day-to-day expenses, you may be able to save money on prescription medication by being a savvy consumer. Here are some tips on managing your out-of-pocket spending for prescription medication:

• Talk to Your Doctor and Consider a Generic. On average, generic drugs cost 80-85 percent less than their brand-name counterparts — so be sure to ask your doctor if there are generic alternatives to the drugs they recommend. Concerned with quality control? The FDA requires that generic drugs have the same active ingredients, strength, dosage form and route of administration as the brand-name drug. And generic manufacturers have to prove their drugs are the same. All manufacturing, packaging and testing sites must also pass the same quality standards as brand-name drugs.
• Review Your Formulary Prescription Drug List. Either during or after a consultation with your doctor about a new medication, log in to your health plan’s online account to review the prescription drug formulary list and see under which tier it will fall. If it’s on a high tier of your plan’s list, that means your out-of-pocket costs will be higher, so ask your doctor if there’s another option that will be more cost effective. Your health plan’s prescription drug list will also give you insight into limitations, exclusions and prior authorization requirements.
• Use the Mail-Order Pharmacy. Log in to your health plan’s online account to review which of your prescriptions are eligible for the mail-order pharmacy and what the cost would be if you were to pick it up at a retail pharmacy versus ordering through the mail program. Your medication may be less expensive through mail order — and having your prescription delivered may also make life a little easier. Prescriptions are auto-refilled, set up for direct debit and will arrive before your run out of your current dosage.
• Take Advantage of Free Resources. Prices for prescription drugs vary widely among pharmacies due to contractual arrangements with pharmaceutical companies. Thankfully, technology and health care experts have developed extremely user-friendly websites that compare prescription costs at nearby pharmacies so you don’t end up paying more out of pocket than necessary. Visit GoodRx.com or your health plan’s online account to help you budget for your new prescription and determine the lowest-cost pharmacy.
• Stay On Track and Organized with Doses and Refills. Reduce the risks of missing doses and taking double doses by using a product or smartphone app that tracks your doses and refill needs. Some top-rated examples include Medisafe, Tabtime Vibe Vibrating Pill Reminder and Med Minder.

Adherence to your prescribed medications improves your chances at better overall health and well-being — and can prevent unnecessary doctor visits and hospitalizations, lowering your future medical costs. Be healthy; set up your reminder system today!

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DEVELOPMENT

Got Licensing?

Need your Life & Health license? What about your Series 6 & 63? Visit the NFP Pre-Licensing Center, which can also be found in the NFP Education Center, today.

We’ve partnered with ExamFX to provide discounted pricing to NFP employees. ExamFX goes beyond the typical services offered by online pre-licensing exam preparation providers. The platform starts with standard services, such as quizzes and simulated exams, flashcards and videos, but ExamFX offers many additional services as well, providing the best online learning experience available.

These online courses are the only ones on the market to include both testing-provider and state-specific exam simulations. Combine that with the fastest-to-market state updates, and it’s easy to see why ExamFX students are the best prepared. It’s no wonder that ExamFX customers’ first-time pass rates are among the highest in the industry.

Questions?
Contact learning@nfp.com.

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Regional Office & Platform News

Recent Acquisitions

We’ve expanded our capabilities with several new strategic transactions that complement existing proficiencies across the country:

• Serra & DelVecchio, LLC (SDV) is a full-service P&C and benefits broker headquartered in Shelton, CT, with 31 employees. SDV provides NFP with its first P&C brokerage in Connecticut. Its capabilities complement the existing platforms in the New England market.
• First West Brokerage Services, Inc., our longtime Benefits Partner member in Orem, UT, will now operate as part of the West region. The firm specializes in group health plans, with additional offerings in corporate retirement products, ancillary benefits, HR solutions and individual wealth management.
• SST Benefits Consulting, located just outside Sacramento, CA, has joined our Retirement division. They bring expertise in writing public sector defined contribution plans.
• Malpractice Insurance Agency, LLC, has joined NFP, and its experience and expertise add to our health care capabilities. This office enhances the client offerings in our existing medical malpractice division.
• Mackey Insurance, Inc. is now part of the P&C division in Middlebury, VT.
• Benefits Solutions Plus, Inc. is now part of the Benefits division in Anoka, MN.

Please join us in welcoming these offices to the NFP family.

Refresh Your Client’s Retirement Plan with a Committee Charter

Have you talked with your clients about starting a retirement plan committee? Establishing a committee by adopting a committee charter is a great way to introduce new ideas and centralize decision-making to better manage and mitigate risk and keep your clients’ plans successful.

A committee charter provides sensible, advised plan governance that’s designed for the best interests of your client and their beneficiaries, as required by ERISA Section 404(a). A charter also protects their named fiduciary and committee members by defining and delegating specific duties.

At your next meeting, why not suggest a committee charter to your retirement plan client? Come prepared with a sample document to get the ball rolling and help them select the right provisions for their needs. Show them how having a formalized committee charter may help insulate the company and plan fiduciaries from client complaints and lawsuits.

To make the most of the discussion, plan to talk about the purpose of the committee, how committee members are selected and how many they should have, as well as a list of topics the committee should cover. Help your retirement plan clients find the answers to their questions so you can guide them through the process and give them the right solutions for their needs.

RPAG members may access an Investment Committee Charter template in the Resource Center of the Practice Management Portal.

For more information, or if you have any questions about RPAG, contact Jeff Cheshier.

AvidInvoice to Streamline Invoice Approval Processing Nationwide

Coming soon to NFP offices across the U.S. — AvidInvoice, the cloud-based invoice approval processing solution from AvidXchange. AvidXchange is a provider of cloud-based software-as-a-service payment solutions. They’re also one of our 360-degree partners, which means they are an NFP client and obtain their employee benefits through us. We’ve successfully piloted AvidInvoice in several of our offices since April 2016. Our goal is to implement AvidInvoice throughout the company in five phases, to be completed by the first quarter of 2017.

AvidInvoice interfaces directly with Lawson’s accounts payable module, which will continue to generate payments and post transactions for financial reporting purposes. AvidInvoice will help our offices collect, process and manage invoices. They’ll make business easier by:

• Receiving invoices centrally via email and P.O. Box
• Enabling a totally paperless review and approval of all invoices
• Reducing the workload for local offices — no more invoice stamping and paper chasing!
• Offering greater visibility on payments through real-time reporting by company/department, account, timeframe and supplier

Stay tuned for direct communication about AvidInvoice from the coordinating leaders in your local office. AvidInvoice implementation team members Kris King and Eugene Melino will be reaching out to local offices to coordinate the process.

Want to learn more about how AvidInvoice works? Visit the AvidXchange website.

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Tools & Resources

The NFP Marketplace — Now with Term Life Insurance from Homesite

Your customers look to you for knowledge and expertise when it comes to corporate benefits. They trust you with their employees’ livelihoods and security. Isn’t it time for you to talk with them about securing their future with term life insurance?

Steer them to the NFP Marketplace, where exceptional term life insurance through Homesite is waiting for them. Homesite, a client of our Norwell, MA, office, is a group of insurance experts who believe – like we do – that our customers are always our focus. Let your clients know that term life insurance is extremely affordable and that it helps cover loss of income, educational expenses and mortgage payments, should the policyholder decease. Here’s more information on the benefits and options available:

Issue Age:

• 18 - 45 years old, 10, 20 or 30-year terms
• 46 - 50 years old, 10 or 20-year terms
• 51 - 60 years old, 10-year term

Coverage Options

• 18 – 40 year-olds can choose between $50,000 – $350,000 of coverage
• 41 – 50 year-olds can choose between $50,000 – $250,000 of coverage

Product Benefits

• Ability to buy online immediately, if approved
• No medical exam, just a few questions related to the applicant’s health
• Ability to apply online or over the phone
• No need to wait for the company’s annual enrollment period

Encourage your clients to visit the NFP Marketplace, where they can easily apply for affordable life insurance. They’ll thank you for your help in planning today for a secure tomorrow.

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Procurement

W.B. Mason Helps Us Think Green

It’s easier to be green than you may think … thanks to W.B. Mason. Did you know that 15 out of 26 of the most frequently ordered items from W.B. Mason are green or recycled? Pretty good, right? And we can take it even further. Only one out of those 11 remaining items can’t be swapped for a greener alternative on our company’s approved list. Just look for the easy-to-spot symbol for recyclable items and for green items on the NFP Office Supplies storefront through W.B. Mason. Here are some quick and easy ways to make our workplace more green:

• Instead of printing out slides for presentations and meetings, show the presentation on the screens that are set up in the conference rooms or email the presentations. Printing less is a huge save for the office, both environmentally and economically.
• At meetings, use pitchers of water and glasses instead of expensive and non-reusable water bottles. In some offices, there’s a functional dishwasher for those glasses and a sink with soap. Alternatively, W.B. Mason can provide green cups (Item #GMT93767) for the attendees.
• Recycling bins are on every office’s approved purchases list. This one-time purchase will save lots of trees, and bins are a convenient, visible reminder to recycle (Item #s RCP295673BE and RCP354075BE).
• Instead of using wasteful K-cups, use recyclable K-cups, where you fill the individual cup with the coffee of your choice. Or brew and drink from a full pot of coffee (Item #s GMT6405 & GMT6406).
• Pack your lunches (in a lunch box).
• Use reusable water bottles and mugs instead of plastic, paper or Styrofoam.
• Turn the lights off when you leave a room.
• Unplug electronics when they’re not in use.
• Turn off your computer at the end of the day.

NFP encourages us all through our PeopleFirst culture to strive to be more green. It’s healthier for us and our environment. Try it, and we think you’ll find it’s actually quite easy being green.

Get It While It's Hot – W.B. Mason's Keurig Promotion Extended

More time to sign and sip! W.B. Mason is offering free Keurig brewers to our offices that sign a one-year agreement to purchase K-Cup pods from the NFP storefront. Once signed, installation takes about 3-5 business days. This promotion is being extended to expire on Dec. 31, 2016. Smell the coffee and grab this offer before it’s gone.

Questions? Contact Silver Chaudry.

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Marketing

Check Out Our Shiny New Award

Ok, so maybe it isn’t shiny, but it is new. NFP has won a 2016 WebAward for Outstanding Website from the Web Marketing Association. Way to go, team! NFP.com is a winner, and we want to thank all involved for your time and effort in creating a site that truly reflects our company’s unique brand. Visit the NFP.com News & Perspectives page in the coming weeks for more information and to see the full press release on the award.

Social Media

Get the word out on your office events, charitable efforts and employees’ professional achievements.

1. Fill out the brief NFP Social Media Post Submission Form. The form is located on NFP Brand Central, where you’ll find tools and support you need for NFP-related branding, compliance, marketing and public relations.
2. Email the completed form and any related photos to communications@nfp.com.

Make sure you’re fully connected to NFP. Follow, friend and connect with us on social media!

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