Article / Risk Management
Lockton’s Future: Where Will We Be in the Next Decade?
Lockton’s Future: Where Will We Be in the Next Decade?  Hero Image

Kansas City Business Journal reports that Lockton plans to grow by 10,000 employees worldwide

When Jack Lockton started Lockton Companies 50 years ago, his mission was simple – do what it takes to retain clients and keep growing. The company has done just that with 50 years of consecutive revenue growth that can be attributed to Lockton’s culture.  

“We have a culture that is singularly focused on our constituencies, which is No. 1, our clients; No. 2, our Associates; and No. 3, our communities,” Chairman David Lockton said. “Clearly, worrying about our margin is not something we do on a daily basis. We built our model and our financial structure around those beliefs, and we have the lowest margin in the industry, at least of the companies that we know. That means we invest a lot more in our customer relationships and service, tools, products and skills.”

Since its inception, the company has been focused on building up Associate talent to best meet the needs of their diverse clients. Clients are looking for more than just knowledgeable experts in insurance risk management: they want experts who know about their line of business.

To meet these demands, Lockton has been building up its expertise and executive talent within the company and for the fourth time in 50 years, the company will have a new CEO in Glenn Spencer. Spencer has been preparing for this transition since he joined Lockton 12 years ago by working very closely with current CEO John Lumelleau. 

“The Lockton family has been very diligent in selecting a new CEO because it’s one of the biggest decisions we’ll ever make,” David Lockton said. “Glenn has been with us for 12 years. He’s been in the business for 30 years. He’s been essentially apprenticing behind John for 12 years. They’ve had offices right next to each other. They’ve worked very closely.”

While the CEO change will come May 1, the basic mission of making client’s business better will not. Spencer understands that to best serve clients, Lockton has to continue to grow its personnel and expertise which is why the company plans to hire 10,000 people worldwide in the next decade.

“That’s a big challenge,” Spencer said. “The numbers are getting bigger, and we’re absolutely dead set on maintaining the culture we have, which is predicated on hiring really talented people. We can’t reduce our standards. We’re tending to hire younger people into the organization, so Associate development becomes more and more important.”

Currently, millennials make up 30 percent of the workforce at Lockton, but by 2020 Spencer expects that number to grow to 60 percent. He adds that to attract the most talented workers and more importantly, to retain them, the company is reviewing their employee handbook to best meet the needs of the evolving workforce.

“We’re not buying the adage that they’re going to work at 10 companies throughout their career,” Spencer said. “We want to keep them here for a long, long time. Having high Associate retention means very little disruption for our clients and, in turn, high retention of our clients. That means continued growth for us. There are a lot of things you’ll see us do differently there, but it’s all about us being the best place for our Associates to build their careers.”

To learn more about Lockton’s culture and where the business is going, read the Kansas City Business Journal’s article "In Pursuit of Consistent Growth"

    
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