practice management for financial advisors

Advisor Practice Management

Building capacity for financial advisors through key practice management processes

Prepared By :Grant Hicks, CIM

Advisor Practice Management909-17th Avenue SW,Calgary, Alberta T2T 0A4ph. 587-390-3148

© www.advisorpracticemanagement.com 2015

For discussion purposes only – do not copy or distribute

www.advisorpracticemanagement.com 2

Preparing for the future - Advisor opportunities

Regulatory changes : Fee based opportunities

Capacity : More time for ideal clients

Finding new ideal clients: Growing revenue at 15%+ per year


Practice management challenges Process, Process, Process

43% of advisors have NO documented

unique value

proposition

73% of advisors have NO written service

agreement

processes

85% of advisors have NO formal

client feedback

system

75% of advisors have NO formal definition of ideal client

43%

85%75

%73%

The Future of Practice Management, an inaugural study by the FPA Research and Practice Institute a program of the Financial Planning Association® (FPA®) -December 2013


Top 10 challenges for advisory firmsLack of capacity to serve

clientsBuilding value in the practice

Improving efficiency

Getting better clients

Offering value-added services

Keeping pace with technology

Developing specific expertise internally

Maintaining a life outside of the business

Time management

Managing growth

01

02

09

03

10

08

04

07

06

05

From the Book “Practice Made More Perfect”, Mark C. Tibergien & Rebecca Pomering Bloomberg Press 2011


Key Metrics for financial advisors

Source : thinkadvisor.com pursuing practice excellence study By Spenser Segal and James J. Green Investment advisor group and Actfi 2012 http://www.thinkadvisor.com/2012/05/22/pursuing-practice-excellence-the-advisor-perspecti


Where advisors need help?

Source : thinkadvisor.com pursuing practice excellence study By Spenser Segal and James J. Green Investment advisor group and Actfi 2012 http://www.thinkadvisor.com/2012/05/22/pursuing-practice-excellence-the-advisor-perspecti


We Challenge YouOur role is to challenge advisors to think differently and prepare for the future in a positive way

We ask challenging questions to innovate your thinking.

We use key practice management industry research

Are your ideal clients completely engaged and satisfied with your advice and fees?What is your

capacity?

Are your clients ready to go fee based?

Are you growing at 15% or more per year, benchmarked like the top advisors are?

How many ideal clients do you have and want?


Advisor Practice Management Capacity Model ©

Ideal Client win-win

Services+communicatio

n

Revenueand cost

step 1.Marketing and Client Acquisition

step 2Key

practice managem

ent Processes

step 3Ideal Client

experience

step 6Ideal

Lifestyle

step 5Ideal

Capacity

step 4Ideal

Business Metrics


Capacity Innovation Model© components

Ideal client profile

Case studies

7 sentence marketing plan

Unique value proposition

Client board

Magic 6

5 touch process

Guerrilla Marketing

Referral process

Trust process

Feedback process

Communication process

Workflows

Technology processes

Fee ready process

Fee ready process

Enhanced client experience

key metrics

Benchmarking

Business model

Mastermind

Segmentation

Human Capital

Outsourcing

Acquisitions

Equity and valuation

Succession and transition

Time management and ideal lifestyle

Client acquisition

key processes client experience

ideal metrics

Idealcapacity

Ideallifestyle


3 Critical Business Questions?

Where is my business model today and why?

How does my business innovate to get there and achieve desired results on the way?

Most importantly, when do you do it?


Focus on key metrics to success

MORE REVENUE

MORE CONTROL

MANAGING RISK

HUMAN CAPITAL

EQUITY MANAGEMENT

Defined by your business model

Business processes

Creating and managing capacity to build scale

Keeping up with regulatory change

Building for your family’s future


Advisor Practice Management Capacity Innovation(c)

Ideal revenue per clientBreakeven service costsIdeal revenue on assetsIdeal household revenue


1 2 3 4

Problem AnalysisDiagnose blind spots

and opportunities

Key Metrics Create action plan

and implement key processes

Strategic Plan Implement through

coaching, consulting and research

Problem Solving Implement and measure

key metrics and benchmarking

How we work, Research based Analysis, Research, Strategic Plan


Practice Management Program Benefits

Ideal RevenueIdeal Client Acquisition Ideal Client ServiceIdeal Business metricsTackle your number 1 Challenge

Time

Perc

ent A

dopt

ion


Our Why

We started Advisor Practice Management because we discovered that major regulatory and industry changes are putting a tremendous pressure on financial advisors and their firms.

Financial advisors and their firms need to implement key practice management processes into their businesses today, not tomorrow.


About Us

Advisor Practice Management is anindependent organization specializing in practice management advice and solutions to the financial servicesindustry.

We help financial professionals build their business through our unique coaching and consulting programs. We partner with organizations in the financial industry that focus on key practice management processes for financial professionals.


Published author, professional speaker, coach and practice management consultant. He is the founder and National Director of Practice Management at Advisorpracticemanagement.com , with 25 years of unique experience in the financial services industry, and over 20 years as an advisor. His passion is helping advisors implement key practice management processes in their business and focuses advisors on three keys,

> ideal clients, > ideal capacity and> ideal lifestyle.

ABOUT USMeet Our Founder GRANT W. HICKS, CIM

National Director Practice Management


We wrote the book on practice management

Coming fall 2015 by: Morgan James Publishing Ltd. New York.


Business Health - AustraliaGlobal Practice Management Research

Quotemedia Technology

Advisor Research

Canadian Research

Strategic Partners

Thank You.

Advisor Practice Management

Grant Hicks, CIMwww. advisorpracticemanagement.com [email protected] 4039708895

www.AdvisorPracticeManagement.com

practice management for financial advisors

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