Autopilot not an option

(March 2008) Many advisors believe their current modus operandi has been the reason for their success and, consequently, they are reluctant to change any part of their practice. Failing to distinguish between the things contributing to your current level of success and the behaviours that limit, or even detract from, moving to the next level, though, is an issue that needs to be addressed.

As practices mature, changes in the business naturally occur — not overnight but gradually. When faced with a problem or challenge meanwhile, human nature is to do the same thing we’ve always done, only harder or more. It might work at first, but this does not work forever.

The only true way to achieve success is by doing things differently, by first accepting that business has changed. This acknowledgment allows you to let go of your ineffective practices and employ new client acquisition and business management strategies.

Next, you need to understand what your practice is about. Some questions to consider include:

• Is there a clear strategy for the practice that holds you and your team accountable for meeting goals?

• Have you surrounded yourself with talented team members to whom you delegate?

• Do your technology and business platforms help you compete in the current marketplace?

• Are you missing any key tools needed to serve your clients’ financial needs? If so, what is the plan to fill the gap?

• How much time is spent working on the business, relative to time spent working in the business? Do you use a business coach, mentor or study group to optimize time and resources and help stay focused on delivering top performance?

Why is doing a practice inventory important?

Having a mature practice means you are now in the business of competing for more sophisticated clients who already have advisors. Consider these other realities as well:

• As boomers get closer to the end of their working lives and their retirement prospects become real, they are likely to think about changing to a new advisor.

• Our culture is still transitioning from a do-it-yourself mentality and cultivating an appreciation for the value of the trusted advisor.

• New planning, contact management, communication and information management tools are being developed and deployed. As these tools mature and successfully integrate with one another, the ability to effectively deliver a customized and engaging client experience improves.

• The top 20% of clients (the same ones who control 85% of the wealth) are becoming educated about the principles of investing and the qualities they expect from their advisors.

• Clients will demand more from their advisors, creating the need for a powerful, engaging and customized experience. Consequently requirements for learning new processes and the tools necessary to meet client demands will continue to accelerate. This means it is imperative to understand which tools and processes are necessary and what amount of time will be required to learn and implement them.

• Fees and commissions for services will continue to compress. Be prepared to generate less income from each client-dollar.

What is the typical advisor up against?

Unusually successful advisors tend to adapt to changing circumstances quickly. Even more impressive is their ability to engineer their practices to focus on the needs and desires of their ideal clients.

Unusually successful advisors also have several practice strategies in common:

• They rally their practice around meaningful communication and education, maintaining a proactive communication discipline with their clients, prospective clients and referral relationships instead of simply reacting to concerns or requests.

• They use outreach messaging that is compelling and relevant, making it easy for a prospective client to understand what the advisor is able to do for them. They also avoid buzzwords or professional jargon.

• They focus on long-term client relationships, full engagement with clients and they make sure clients fully appreciate the value of all delivered services. They do so by appealing to individual needs and each client’s preferences.

Thriving practices do not have the option of running on autopilot. Clients want to work with financial professionals who can simplify their lives and address the full range of their financial needs. To do that, you must have a clearly defined offering, a strong team, consistent processes, fully employed technology and the ability to monitor and measure your success.

Cindy Jenner-Cowan is chief operating officer at Worldsource Financial Management. With more than 17 years of experience in the financial services industry, the expert in relationship management and value-added coaching recently developed FRAMEWORKS, a training program for Worldsource advisors, focusing on advisory practice life cycles. For more information please visit www.partnerwithWFM.com. You can also contact Cindy directly at (604) 376-9119 or cjennercowan@worldsourcewealth.com.

(03/24/08)