to grow go virtual
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14 Practice Management Solutions | July/August 2012 www.Fpanet.org/practicemanagement
hr/staFF
Nearlyfouryearsafterthe2008financialcrisis—andamidstsmallbutpromisingsignsthat
theeconomyisgrowingagain—manyfinancialadvisersarelookingtogrowtheirpractices.Infact,the2011 RIA Benchmarking Study 1byCharlesSchwabrevealedthat87percentofRIAssurveyedplantogrowmoderatelyoraggressivelyin2012. Onewaytogrowwithouttakingonalotofoverheadintermsofstaffing,officespaceandin-housetechnologyisthroughvirtualstaffingandoutsourcing.TheSchwabstudyalsonotedthatmanyRIAfirmsareusingoutsourcingandnewtechnologytoboostproductivity.
Today,thelatestadvancesintechnology,includingcloudcomputingandrobustcustomerrelationshipmanagementplatforms,mayhelpthoseadvisersingrowthmodemoveforwardwithoutspendingthemoneyandresourcesrequiredinthepast. Considerthepotentialcostsav-ingsofnothavingtoonboardanewemployee,investintechnologyandofficespace,andpaybenefitsasareturnoninvestmentofusingvirtualstaff.Costsavingswillvarydramaticallydependingonyourgeographiclocationandthepositionyouseektofill. Also,trainingmaynotbeneededforavirtualstaffmember,becauseifyou
gettherightperson,heorsheshouldbeproductivefromtheget-go,saysJenniferGoldman,CFP®,presidentofMyVirtualCOO,anoperationsoutsourcingfirmforfinancialadvisers. “Youwon’thavetotrainthemonyourCRMorworryaboutcompliance,becauseknowingaboutallthosethingsispartoftheirbusiness,”shesays.
To Grow, Stay Focused on Core ActivitiesGinnyHudgens,presidentofconsult-ingfirmBackOfficeAdvisor,believesthatforadviserstogrowtheirfirms,theyneedtostaywithintheircorecompetencies—clientacquisitionandclientengagementactivities,formanyadvisers.Anyotherfocusdistractsadvisersfromdoingwhattheyloveandplacestheminthepositionofactingasadministrators,andthatmaynotplaytotheirstrengths. “Whenyoucanuseoutsourcingasawaytoleverageyourstrengthstobuildyourfirm,that’sthewaytogo,”saysHudgens.“Mostadviserswanttospendthemajorityoftheirtimedoingclient-facingactivities.”
What’s the ROI?HenryMorneault,presidentofopera-tionsoutsourcingfirmTransBridgeConsulting,believesadviserswhocanoutsourceavarietyoftasks—fromadministrativedutieswithavirtualassistanttohigh-levelstrategyandoperationalissueswithavirtualCOO—canrealizesignificantreturnoninvestment. “I’mawareofadviserswhohavesuccessfullyoutsourcedavarietyoffunctionsandthenareabletoincrease
To Grow, Go VirtualThe ROI on outsourcing may benefit youb y A m y E . B u t t e l l
Solutions0712.indd 14 6/20/12 8:56 AM
www.Fpanet.org/practicemanagement July/August 2012 | Practice Management Solutions 15
hr/staFF
thenumberofhigh-net-worthfamiliesservedandassetsundermanagementbecausetheyareabletodomoremarketingandclientacquisitionandbringinthreeorfournewclientstheyotherwisewouldn’thavebeenableto,”saysMorneault. TheROIinthesesituationsismeasurable,henotes. “Youcanmeasurethevalueofyourtimeindollarsandcentsversuswhatyouarespendingtohavesomeoneelsecompletethattask,”hesays.“Also,thinkabouthowyoufeelwhenyouare
spendingyourtimedoingwhatyouloveversustasksthatyoudon’tenjoy.Ifyou’respendingalotoftimedoingadministrativetasksandgetresentful,thosefeelingsspillovertoyourstaffandyourclientsandtothecultureofyourfirm.” GoldmanbelieveshiringvirtualstaffalsoprovidesROIthroughtheabilitytorecruittoptalentandemploythattalentinthewaythatbestsuitsyourfirm. “Yougetexpertknowledgerightoutofthegateinthespecificareayouneedit,”shesays.“Ifyouneedacompliance
expert,youcanfindonewiththeexperiencetomanagethatfunctionforyou;ifyouneedavirtualassistantwhohasexperienceworkingonaparticularplatformwithaspecificwirehouseorbroker-dealer,thatisavailabletoo.”
Get Creative With OutsourcingWhenitcomestooutsourcingwithaneyetowardgrowth,thinkbeyondthereceptionistorassistantpositions.Manyadvisersoutsourcetechnology;theydon’thavetoactastheirownITdepartmentandcanscaletechnologytotheirneedsastheygrow.Manyarealsooutsourcingotherfinancialplanningfunctionssuchascompletingthefinan-cialplanorexecutingtheinvestmentpolicystatement.TechnologyincludingcurrentCRMplatformsmakesiteasierthanevertoworkremotelywithstaffinasecure,compliance-approvedfashion,saysGoldman.
Not for EveryoneOfcourse,virtualstaffingandoutsourc-ingarenotmagicanswersforeveryadviser.Hudgensbelievessomeadvisersarebetteroffwithonsitestaffbecausetheyneedregularin-personcontacttobeassuredthejobbeinghandledisexecutedinacertainway. “Someadvisersworkgreatwithavirtualstaff,others,notsowell,”saysHudgens.“Youhavetobeabletodelegatewellandtotrustthatthepersonyouarehiringwillgetthejobdoneandletthemfigureoutthebestwaytodothatjob.Noteveryonehasthepersonalitytobeabletooutsource.” Ifyou’renotsurewhetheroutsourc-ingwillworkforyou,tryoutsourcingasmall,non-client-facingprojectandseehowitworks.Ifthatfirstjobgetsdoneandyouarehappyandcomfortable,tryitagainwithalargerproject.Ifnot,stayinyourcomfortzonewithonsitestaffmemberswhocansuccessfullyhandlethejobsyouneedcompletedsoyoucanfocusongrowingyourbusiness.
Amy E. Buttell is the owner of Lake Eff ect Creative
and is a frequent contributor to PracticeManage-
mentSolutions.
Endnote1.2011 RIA Benchmarking StudyfromCharles
Schwab,fieldedFebruaryandMarch,2011.
Studycontainsself-reporteddatafrom820
firmsspanning2007–2010.
tip: getting started
Fpa’s product and services
directory (www.FPAnet.org/Professionals/Connect/ServicesDirectory) connects you to
FPA Institutional Members, com-
panies that have demonstrated a
commitment to the fi nancial planning
profession and adhere to FPA’s Insti-
tutional Member Code of Conduct.
Many of these companies can help
with outsourcing needs from turn-
key asset management programs
(TAMPs) to back-offi ce support.
virtual solutions for advisers
(www.VirtualSolutionsForAdvisors.com) pro-
vides directories of virtual staff and
resources. Many companies listed in
the directories can provide informa-
tion and price quotes on a variety of
outsourced job functions.
“Technology including current CRM platforms makes it easier than ever to work remotely with staff in a secure, compliance-approved fashion.”
Solutions0712.indd 15 6/20/12 8:56 AM
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