In 1958, California Credit Life Insurance Group was incorporated in Los Angeles. CCLI?s initial product included all types of life insurance. Since its inception, CCLI has expanded its product line to include all types of insurance such as health, automobile, professional liability, pension and retirement programs, commercial packages, and related financial services. CCLI has 15 regional offices and 230 sales representatives. Area sales mangers typically supervise 15 people, a large number but manageable given the nature of the selling job. The sales reps work independently and do not need day-to-day supervision or contact with their area sales managers.
Area sales managers have hiring authority and can set base salaries with approval from CCLI. During the course of a year, each employee receives two performance evaluations. The performance is also based on meeting their quotas, which are set by the area sales manager based on guidelines handed down from Vice President of Sales, and negotiations between the area sales manager and each sales rep.
Area sales managers can recognize excellent performance by increasing the base salary and modifying a sales rep?s territory to cover better accounts. Sales reps receive a 3% commission on sales in addition to base salaries. The area sales manager based on sales reps performance distributes yearly bonuses. Promotional opportunities are limited, and turnover among the area sales managers has been very low.
1991, CCLI decided to open an office in the southeastern area of the United States ?as soon as all staffing and physical details could be resolved.? The southeastern region became reality in 1995, with James Bradford selected to be area sales manager. Bradford had been sales rep in the Dallas region and had been selected for the new position based on his excellent sales performance and his strong interpersonal skills. Soon after, it...