Other difficult questions to answer include:

• How can we capitalise on the growth and connect with key business decision makers?

• How do we navigate the digital landscape, map a business growth strategy and effectively manage risk?

• How do we build an effective digital strategy, manage implementation and measure results?

 And, above all things;

‘Where do we go to get quality advice?’

To be fair, there are many excellent practitioners currently advising on social media. Equally though, there are many people whose only qualification is they have a Facebook page or Twitter account – making them an expert.

Michael Field, strategic marketing consultant specialising in digital strategy, says:

“It reminds me of the lead-up to the year 2000 with Y2K experts offering advice and expertise. Similarly today we have the ‘social media expert’- willing to advise businesses on social media without linking the social media activity to the organisational strategy or business objectives.”

If you are considering appointing a social media expert, it’s important to ask for proof of where they have built a business, and how the growth in the business is directly attributable to the social media efforts and activities.

The post Are social media experts the new Y2K experts? appeared first on AdviserVoice.

• The Federal Government has proposed a new tax on carbon emissions of $23 a tonne to apply to 500 of the biggest corporate emitters from July 2012.
• The aim of the tax is to increase the price of goods produced by carbon-intensive industries and thus change behaviour of consumers and businesses. But the extent of the compensation mechanisms substantially reduces the effectiveness of the tax. If consumers are no worse off, and in fact many are better off, then you don’t have the incentive to change behaviour.
• The cost to the budget over the next four years is $4,281 million, including assistance packages for the steel and coal industries ($2,906 million in 2011/12). The Government expects the carbon tax to reduce emissions but income per person will be lower than in the absence of the scheme. Employment is tipped to increase by 1.6 million over the next nine years after rising by 2.18 million over the past nine years.
• The proposed tax on carbon emissions could work to reduce global emissions provided other countries moved at the same time. The risk of moving too quickly before other countries is that it reduces the competitiveness of Australian industries.

What does it all mean?

• The good news is that the release of details of the proposed carbon tax reduces uncertainty. The price of carbon is finally known as are the compensation mechanisms. The bad news is that the uncertainty has only just begun for consumers and businesses. Now Australians will be inundated with the pros and cons proffered by politicians, industry associations and interest groups.
• The Federal Government is proposing a tax on carbon emissions based on the theory that the global increase in carbon emissions is contributing to climate change. If you believe in the theory then it is reasonable that efforts are made to reduce carbon emissions. But a global problem requires a global situation. Australia represents just 1.5 per cent of global carbon emissions. So without significant efforts by large countries – China, India and the United States – then Australia’s efforts will have negligible effect.

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• At the end of the day, a tax on carbon emissions would work to reduce global emissions provided other countries moved at the same time. The risk of moving too quickly before other countries is that it reduces the competitiveness of Australian industries. Ahead of similar measures to price carbon by other countries, a better move in the interim may be to legislate for the gradual reductions of carbon emissions by companies.
• Unfortunately, as Greens senators acknowledge, there is the real risk that the Kyoto Protocol agreement to reduce carbon emissions will not be renewed when the United Nations climate change summit is held in Durban later in the year.
• In practical terms, the efforts to tax carbon emissions represent a lot of effort to produce little benefit. Australian consumers are likely to be rightly sceptical about whether their cost of living will rise. The Government says 5 million households will be super-compensated for the carbon tax. But until the compensation comes through, consumers will remain sceptical, entrenching “consumer conservatism”. While it is proposed that 90 per cent of households will be compensated, it still means that 10 per cent will be made worse off by the introduction of a new tax.
• In pure economic terms, there will be debate that the carbon tax – as currently proposed – is the right approach. As Professor Judith Sloan pointed out in The Australian on July 9/10, taxation measures are assessed on three grounds: efficiency, equity and simplicity. Professor Sloan argues that the tax fails on all three grounds. Clearly the tax is far from simple, as the Prime Minister acknowledged at the press conference. On efficiency grounds, the tax falls short of ideal for the simple fact that other countries are not moving at the same time. And on equity grounds, some in the community are actually made better off by the introduction of the carbon tax while others are made worse off. In addition, the extent of compensation measures reduces the effectiveness of the tax as it fails to change consumer and business behaviour.
• In political terms, the Federal Government faces significant risks in proposing a new tax on carbon. The tax is far from simple, making the selling job more difficult. The “Clean Energy Future” documents alone total 250 pages. And, rightly or wrongly, the fact that Julia Gillard ruled out a carbon tax ahead of the election will mean that consumers will be sceptical that they won’t be worse off with the introduction of the new tax. Consumer confidence is currently weak with the principal concern being on the rising cost of living and impact on household finances. The new carbon tax won’t ease those concerns – especially in the short term.· If opinion polls show a substantial fall in support for the Government then this will increase political uncertainty. Understandably foreign investors will be reluctant to put money to work in Australia until the carbon tax legislation is passed. There will be on-going hesitancy to invest until the tax begins in July 2012.

What are the details of the proposed tax? (note: much of the detail below is directly taken from Government documents)

• The Federal Government has proposed a “Clean Energy Future” program” that involves:
  • introducing a carbon price
  • promoting innovation and investment in renewable energy
  • encouraging energy efficiency
  • creating opportunities in the land sector to cut pollution.

• The Government has committed to reduce carbon pollution by 5 per cent from 2000 levels by 2020, and by up to15 or 25 per cent depending on the scale of global action. These targets will require cutting expected pollution by at least 23 per cent in 2020. The Government also commits to a new 2050 target to reduce emissions by 80 per cent compared with 2000 levels.

Carbon price

• The Government is proposing a tax of $23 per tonne on carbon emissions to begin from July 1 2012. The carbon pricing mechanism will be fixed for the first three years and will rise at 2.5 per cent per annum in real terms. On 1July 2015, the carbon price will transition to a fully flexible price under an emissions trading scheme, with the price determined by the market.
• A carbon price will be applied to domestic aviation, domestic shipping, rail transport, and non-transport use of fuels. A carbon price will not apply to household transport fuels, light vehicle business transport and off-road fuel use by the agriculture, forestry and fishing industries. Household fuel is exempt from the tax. The Government intends to apply a carbon price to heavy on-road transport from 1 July 2014. This measure was not agreed by the Multi-Party Climate Change Committee.
• There will be a household assistance package and it is estimated that 50 per cent of the revenue from the carbon tax will be spent on household assistance.
• The Federal Government claims that the average household will see cost increases of around $9.90 per week, while the average assistance provided will be around $10.10 per week. The effects of the carbon tax are estimated to lift the Consumer Price Index by 0.7 per cent in 2012/13.
• The cost of electricity for the average family is expected to increase by $3.30 a week with gas up $1.50 a week and food up by $1 a week.
• The Federal Government is also proposing that the revenue raised from the carbon tax will allow the tax-free threshold to be more than trebled to $18,200 in 2012-13. From 2015, the tax-free threshold will be further raised to $19,400.
• The Government estimates that 4 million households will be better off – that is, they will receive assistance that covers at least the average price impact of the carbon price on their cost of living.· Pensions, allowances and benefits will also increase. Pensioners and self-funded retirees will get up to $338 extra per year if they are single and up to $510 per year for couples, combined. Families with two children will get up to $220 in extra Family Tax Benefit Part A, and other families will get up to $110 per child. Families will get up to an extra $69 in Family Tax Benefit Part B. Allowance recipients will get up to $218 extra per year for singles,$234 per year for single parents and $390 per year for couples, combined. Self-funded retirees on the Commonwealth Seniors Health Card (CSHC) holders will get $338 per year for singles and $510 per year for couples, combined, through their Seniors Supplement.

The Climate Change Authority (CCA)

• The CCA will be established by legislation as an independent body to provide expert advice on key aspects of the carbon pricing mechanism and the Government’s climate change mitigation initiatives. The Government will remain responsible for carbon pricing policy decisions with significant and far-reaching implications. A Clean Energy Regulator will be established to administer the carbon pricing mechanism within a limited and legislatively prescribed discretion.

Federal Government initiatives

• Clean Energy Corporation: The Federal Government will invest $10 billion in a commercially orientated Clean Energy Corporation. Of the total $5 billion will be dedicated to investments in renewable energyprojects. The other $5 billion stream will fund investments in renewable energy, energy efficiency and clean technology.
• Australian Renewable Energy Agency (ARENA): The Government has proposed establishing a new,independent statutory body – the Australian Renewable Energy Agency (ARENA). “The Australian Government is funding around $3.2 billion in renewable energy investment to promote the research and development of renewable energy technologies”.
• Carbon Farming Initiative: The Government proposes a Carbon Farming Initiative for farmers and landholders that take steps to reduce carbon pollution. It will do this by creating credits for each tonne of carbon pollution which can be stored or reduced on the land. These credits can then be sold to other businesses wanting to offset their own carbon.
• Clean Technology Investment Program: The program will support manufacturers by providing $800 million in grants to upgrade to less polluting equipment and cleaner technologies. It will boost their international competitiveness and help keep manufacturing strong. Funding will be provided on a co-contribution basis,with industry providing three dollars for every dollar provided by the Government.
• Clean Technology Food and Foundries Investment Program: The Government will provide $200 million in grants to help companies in food processors, metal forgers and foundries industries to upgrade to less polluting equipment and cleaner technologies.
• Clean Technology Innovation Program: The Government will provide grants of up to $200 million through the Clean Technology Innovation Program over five years to support business investment in renewable energy, low emissions technology and energy efficiency. This could support manufacturers to develop new clean technology products.
• Energy Security Fund: The Government proposes an Energy Security Fund. The Government will seek to negotiate the closure of around 2000 megawatts (MW) of generation capacity by 2020 and provide transitional assistance to the most strongly affected coal-fired power stations.

Carbon permits

• The Government will allocate Australian carbon permits to the most emissions-intensive and trade-exposed industries. This will shield eligible businesses from the full impact of a carbon price, while retaining incentives to reduce carbon emissions.
• The most emissions-intensive and trade-exposed activities will initially be eligible for 94.5 per cent shielding from the carbon price. A second category of assistance will provide an initial shielding level of 66 per cent of the carbon price. This will apply to activities assessed as having a lower risk of carbon leakage. LNG projects will also receive a supplementary allocation to ensure an effective assistance rate of 50 per cent, in recognition of the wide dispersion of emissions among some prospective LNG developments. The assistance rates will be reduced by a carbon productivity contribution’ of 1.3 per cent a year to provide additional incentives over time for these industries to reduce pollution.

Assistance for small business

• The Federal Government says that small businesses will benefit from being able to claim an immediate tax deduction for assets costing up to $6,500 under changes to business tax deductions. This will help business invest in more energy efficient equipment and help small businesses to respond to the carbon price. The small business instant asset write-off threshold will be increased to $6,500. This applies to businesses with a turnover of less than $2 million a year.

The Jobs and Competitiveness Program

• The Jobs and Competitiveness Program will support local jobs and production, and encourage industry to invest in cleaner technologies. The ongoing program will provide $9.2 billion of assistance over the first three years of the carbon pricing mechanism, targeted at companies that produce a lot of carbon pollution but are constrained in their capacity to pass through costs in global markets. Assistance will be provided to around 40-50 of these ‘emissions-intensive trade-exposed’ industrial activities, such as steel, aluminium, cement and zinc manufacturing. Businesses producing over 80 per cent of the manufacturing sector’s emissions are expected tobe eligible for assistance under this program.

Additional measures proposed by the Government:(additional to that agreed by Multi Party Climate Change Committee)

Treatment of heavy on-road transport

• The Government intends to apply an effective carbon price to fuel used by heavy on-road transport from 1 July2014 through changes in fuel tax credits. This will significantly broaden coverage of the carbon price as heavy on road vehicles account for over 25 per cent of road transport emissions. Moreover, as rail, domestic shipping and domestic aviation will face an effective carbon price, extending coverage to include heavy on-road vehicles will provide consistent treatment across the freight sector.

Steel Transformation Plan

• The Steel Transformation Plan will provide assistance worth up to $300 million over five years to encourage investment and innovation in the Australian steel manufacturing industry. This will help the sector transform into an increasingly efficient and economically sustainable industry in a low-carbon economy. The Steel Transformation Plan is designed to improve the environmental outcomes of steel manufacturing and promote the development of workforce skills.

Coal Sector Jobs Package

• The Coal Sector Jobs Package will provide assistance over six years to the most emissions-intensive coal mines. The Government has allocated $1.3 billion to this program.

Coal Mining Abatement Technology Support Package

• The Coal Mining Abatement Technology Support Package will provide transitional assistance to help the coal industry implement carbon abatement technologies. Assistance will be provided in the form of grants on a co contribution basis. The Government has allocated $70 million over six years to this program.

What are the implications for investors?

• The United Nations climate change conference in December may not renew the Kyoto agreement on carbon emissions. Simply, there has been a re-assessment of the climate change theory. While the Clean Energy Future documents warn of global warming and point to a similar situation in Australia, long-run figures from the Bureau of Meteorology indicate that the gradual upward trend in temperatures has occurred for almost 150 years. The risk isthat Australia ends up leading the world on an issue whether there is less agreement on the right response.
• The Government gives the impression that it has created the perfect tax – where no one is worse off, in fact some are better off, and Australia takes a lead over other countries to price carbon emissions. But if it was that easy and painless then Governments would have done it years ago.
• The simple fact is that there is a cost to the economy – the budget bottom line is worse off by $4.3 billion with much of that impact actually made in the current financial year. Employment and income are expected to increase with the carbon tax, but will do so at a slower pace than without the carbon tax.
• Foreign investors will continue to be cautious on investing in Australia. If the carbon tax is introduced and runs successfully then foreign investors may warm to Australia – but success is unlikely to be proven for a number of years. There are risks in Australia moving at a faster pace on pricing carbon than other countries. The economy will be negatively affected in the short-term, albeit modestly. And then there is the mining tax, which has yet to be passed by Parliament.
• The Australian dollar is unlikely to be significantly impacted. If anything the impact is mildly negative, but that clearly would be welcomed by miners, rural producers, manufacturers and tourism operators.
• The extent of change and uncertainty for the coal and steel sectors as well as manufacturers will lead to a softening of investment support in the short term.
• While the Government has been generous with income and taxation support for households, consumers are likely to remain sceptical. It is important to remember that household incomes have been rising but the sharp lift in the cost of living – especially gas and electricity bills – has still made consumers cautious about spending. Electricity and gas are inelastic goods meaning that substantial changes in prices lead to only small changes in demand.
• Any increase in the headline rate of inflation makes the Reserve Bank nervous. So the Reserve Bank is more likely to lean in favour of rate hikes in the first half of2012/13 as the new tax gets bedded down.The other risk relates to the potential for business to lift prices in response to higher electricity and gas prices.

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And that’s why I maintain that regulation won’t lift our collective reputation and our individual service to our clients unless something inside us all changes.

At the end of my Grow Your Business program on the weekends on Sky Business, I always end the show with “if nothing changes, nothing changes”. Yes, I know it is a cliché but it is the kind of provocative
advice I offer for many of us who are weighed down by complacency. And the change I believe our industry is crying out for is leadership.
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I reckon MLC’s boss, Steve Tucker, showed it when he railed against commissions years ago and put his team on percentage fees. Sure the purists can argue that flat dollar charges are purer but at least he was
prepared to question the prevailing paradigm.
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However, the leadership that is overdue in the financial planning fraternity is the one that should be practised and learnt on a daily basis in every financial planning business in the country.
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It is an irony but many of us think leadership is the preoccupation of the likes of executives of big organizations but the truth is leadership is needed when you lead a small business, a sporting team, a classroom and a family.
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But wait there’s more.
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We need leadership skills when we deal with our clients. In fact, we are in a leadership position when someone comes through the door hoping to put their financial life in order. We clearly have to be great at our product knowledge but we also have to be aware that these people, who are paying us to fix up their financial future, want us to lead them to a better position.
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So, how does someone engage with leadership?
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The first step is to admit that you have a leadership inadequacy but how do you know that? Well, if you have trouble influencing your teenage sons and daughters, your Gen Y staff or family or even your partner in a relationship, you have to be realistic that it could be your leadership that is letting you
down.
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If your conversion rate of customers is not as high as it should be, well, once again it could be your leadership that needs some work. Okay, if you can be honest with yourself that your leadership quality
could be the missing link in your life and your business then don’t delay by changing what you are currently doing.
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If you are not reading books on leadership or listening to DVDs on the subject when you are driving then you are misallocating your precious time.
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In Dubai two years ago, I MC’d a conference where the US leadership guru — John Maxwell — was speaking. He has penned a number of books that have been on the Wall Street Journal’s and New York Times best seller list and he has sold over, wait for it, 20 million books! My favourite is The 21 Irrefutable Laws of Leadership, which the great Stephen Covey, the author of The 7 Habits of Highly Effective People, said of the book: “It will change the way you live and lead.”
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To me Maxwell’s greatest advice was: “Leadership is developed daily, not in a day.” When that happens you change permanently and the influence you wan to have on your customers, your staff and your family becomes more effective. If you want a great business, Maxwell says, everything rises and falls on
leadership — everything! He argues that if you are a 5 out of 10 leader you will probably have a four out of 10 business, but never 6,7 or 8. And forget 10!
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This is my number one business tip — if you get leadership right, you will know what to do, who to recruit, where to go and who you need help from to build a great business.  For more business tips from Peter Switzer, visit www.switzer.com.au

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David Hunt, National Manager Licensee Select, welcomed Simon to the role and said the appointment came as the business continues to experience unprecedented growth.

“Simon will focus on working closely with our key stakeholders to support the continued growth of the Licensee Select business. At the same time, he will have responsibility for ensuring that the ongoing delivery of products and services to our clients is both efficient and effective.”

With more than 12 years’ financial services experience, Simon brings extensive skills in project and stakeholder management, and business process improvement. He also has broad experience in sales and distribution support.

Simon was most recently a senior member of the AdviserNETgain business within BT Financial Group and has previously held various roles with AMP Financial Planning and Asgard Wealth Solution

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Ms Hey was previously CEO of Ericsson in the UK and in Australia. She worked with Ericsson for more than 20-years in finance, marketing, sales and leadership roles in Australia, Sweden, the UK and the Middle East.

She said she’s extremely pleased to be joining the Bank’s Board.

“When I think about Bendigo and Adelaide Bank, I think about its strong and trustworthy brand, its focus on customers, partners and communities and its ability to innovate,” Ms Hey said.

Chairman, Robert Johanson, said Ms Hey’s expertise lies within the technology, telecommunications, sales and marketing spheres – key drivers in the future success of any bank.

“Jacquie complements the existing skills and experiences of our directors and brings with her a very distinctive background,” Mr Johanson said.

Ms Hey added, “Coming from outside the banking and finance industry allows me to bring a different perspective to Board discussions, particularly around technology and how customers interact with it, how the bank can use technology to connect with its customers and how it can help customers in the future.”
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Mr Johanson said Ms Hey’s appointment brings the number of women on the Bank’s board to three. “Gender is one of a number of important criteria we look at to ensure the board has a wide experience in dealing with its business,” he said.
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Ms Hey commented, “I’ve been lucky enough to work with companies and people that have treated me fairly and with respect, and have evaluated me on my merits throughout my career. This is very important to me and I’m happy to have found it in Australia with Bendigo and Adelaide Bank.”
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Ms Hey will join the Bank’s Audit, Risk and Change Framework and Technology Governance Committees. She is the Honorary Consul of Sweden for Victoria and was appointed to the Board of the Special Broadcasting Service (SBS) last week.

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• Australia’s trade surplus widened by $716 million to $2,333 million in May – a seven month high. Exports rose 3.2 per cent with imports up 0.4 per cent.
• The trade surplus with broader China (China and Hong Kong) has risen from $10.3 billion to $25 billion in the space of a year. The increased surplus is the equivalent of $650 for every man, woman and child in Australia.
• The Performance of Services index fell by 1.4 points to 48.5 in June. The sector has been contracting for 12 out of the last 14 months. Sales expanded at a slower pace while new orders recorded a modest improvement. Both input and selling prices fell in the month.

What does it all mean?

• The economy may be going through a soft patch but the dollars keep rolling in. The impact of the natural disasters on the trade balance is all but finished and Australia is again paying its way in the world. Australia has now notched up a total trade surplus in excess of $26 billion over the past 14 months. Despite the boost to Australian coffers the impact has yet to have a resounding effect on the economy. The weakness in business and consumer spending suggests the additional income is being saved rather than spent.
• However, as the Reserve Bank has highlighted, increased savings will eventually mean a pickup in spending down the track. It is the multiplier effect that essentially the Reserve Bank is banking on to spur domestic growth over the coming year. At present the additional income is not being spent, but as the recovery gains traction it is likely that Australian businesses and consumers will follow through on spending and investment plans.
• Higher commodity prices and increased demand for coal and iron ore has helped insulate the Australian economy in the near term and will be the catalyst for the robust 4½ per cent growth that the Reserve Bank is anticipating over the current financial year.
• Interestingly Australia is now as reliant on China as it was on Japan in the late 1980s. The trade surplus with broader China (China and Hong Kong) has risen from $10.3 billion to $25 billion in a space of a year- and it is still rising. The increase in the surplus is the equivalent of $650 for every man, woman and child in Australia. If the money was handed out to households chances are that it would be spent, but at present the dollars are heading back to mining companies and being paid out in wages, bonuses, tax, and dividends. For most Australians the effect will be felt in superannuation returns over the years to come.
• Australia is now as reliant on China as it was on Japan in the late 1980s. And it is still early days. While we will ride China’s successes in coming years we are also vulnerable to its stumbles.
• The data last Friday highlighted a surprising improvement in the manufacturing sector (from a level of substantial weakness) however there is no such turnaround taking place in the service sector. The services sector has contracted for 10 months out of the past year and there is no real catalyst to suggest a turnaround.
• There are a couple of factors driving the weakness in the services sector including higher interest rates, a stronger currency and the conservative buying behaviour of consumers and businesses.
• Businesses are under substantial pressure at present with costs edging higher and consumers driving hard bargains. Business margins are constrained, thus depressing profitability. On an encouraging note the forward looking index of new orders recorded is back in expansionary mode and holding at 8-month highs. However it is still early days and a period of interest rate stability would clearly help the situation. If the Reserve Bank stayed on the interest rate sidelines over the next couple of months, activity levels should improve.

What do the figures show?

• Australia’s trade surplus widened by $716 million to $2,333 million in May.
• Exports of goods and services rose by 3.2 per cent while imports of goods and services rose by 0.4 per cent. Exports are up 5.7 per cent on a year ago while imports are up 8.1 per cent.
• Rural exports rose by 6.4 per cent in May while non-rural exports rose by 0.6 per cent.
• Within imports, consumer imports rose by 4.0 per cent in May. Capital goods imports fell by 7.7 per cent while intermediate goods imports rose by 1.8 per cent.
• Consumer goods imports are down 5.1 per cent on a year ago but capital goods are down 3.6 per cent and intermediate goods are up by 18.6 per cent.
• The trade surplus with broader China (China and Hong Kong) has risen from $10.3 billion to $25 billion in the space of a year – a lift in the surplus that is the equivalent of $650 for every man women and child in Australia.

Performance of Services

• The Performance of Services index fell by 1.4 points in June to 48.5. The sector has been contracting for 12 out of the last 14 months. The key 50.0 level separates expansion from contraction.
• Four of the nine sub sectors expanded in the month – unchanged from the previous month. Sales expanded at a slower pace while new orders recorded a modest improvement. Both input and selling prices fell in the month.

What is the importance of the economic data?

• The monthly International Trade in Goods and Services release from the Bureau of Statistics provides estimates on exports and imports of physical goods (such as coal, beef and computers) and services (such as travel receipts). The balance of goods and services (BOGS) is a narrower description of Australia’s external position than the current account estimates. The import data is a useful gauge of consumer and business spending while exports reflect global demand as well as domestic influences such as drought.
• The Performance of Services index is released by Australian Industry Group and the Commonwealth Bank each month. The PSI is designed to provide a guide to conditions in retail, financial and other service sectors.

What are the implications for interest rates and investors?

• Not surprisingly the strength of the Australian dollar continues to have a detrimental impact on the services sector. Australia’s notched up a record $973 million services deficit in May. It was the 16^th consecutive services deficit and clearly highlights why the services sector has been contracting in recent times.

• No doubt the strength of the currency is making Australia a less attractive destination for overseas tourists and potential international students. Interestingly when the Aussie fell below US70c in 2009 the services sector notched up a series of surpluses.

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But at some stage it will be worthwhile taking the time to improve your practice management.  It’s about working on your practice as well as in your practice.

The benefits of doing so include higher revenues and profits and a higher business valuation.

There are a number of key goals you should strive for when designing your practice management methodology, which I call the Ten Commandments of Practice Management.

Drive down costs by Increasing efficiency;

1. Increase revenue without increasing costs, e.g. increase fees;
2. Improve systems and processes, e.g. simpler SOA process – 15 pages.
3. Grow the size of the client base, by attracting more of your preferred type of clients;
4. Increase the profitability of each client, e.g. pricing relevant to the service you provide;
5. Reduce the reliance on a key person (i.e. the planner);
6. Develop and implement marketing and business plans;
7. Improve conversion rates for the first interview;
8. Increase conversion rate at seminars.
9. Highest possible compliance rating.

In order to succeed at achieving the Ten Commandments of Practice Management you need to develop a plan that is measurable, achievable and reviewed regularly.  To do this you need to focus on each of the key areas of the management of your business, and while all these areas are interlinked they can be broken down into five key areas of management:

• Commercial
• Marketing
• Client
• Operational
• People

Commercial management is ensuring that you have systems and processes in place that include cash flow management, capital and debt management, business planning, management reporting, financial management including management of expenses etc. With effective commercial management of your business you will be able to manage and drive down costs. (commandments  1, 2).

Marketing management includes developing an efficient and cost effective marketing plan, pricing, service offering, referral management, managing relationships with centres of influence, client retention etc. Many financial planners have marketing strategies that are costly and ineffective, and can significantly curb the success of the business.  The goals of the marketing function of your business should be to increase the size of the client base, increase revenues, increase the profitability of your clients, implement  effective seminar programs and other business development initiatives. (commandments  1,3,5,6,8,9,10).

Client management is primarily how you service your clients on an on-going basis and the information you provide them. Developing an ongoing private client services program that is focused on keeping clients informed, making on-going adjustments to their financial plans and re affirming they are on track to achieving their goals and objectives and doing this efficiently is a must. (commandments 1,3,6,)

Operational management is focused on product selection processes, recommended lists, compliance, use of technology, and administration. Without effective and efficient operational management all the other areas of the management of your business are unlikely to succeed. (commandments 1,2,4,7,).

People are the key assets of a financial advice business as with all professional service based businesses.  People management should focus on HR management, communication, STAFF RETENTION, key person dependencies etc. Remember losing a key person in this business may mean losing a large part of your client base – this is one of the biggest risks in our industry.

Implementing Your Practice Management Methodology –

What You Should Expect from Your Dealer

The management team of your dealership should have the skills to assist you in your practice on all issues – if they do not you are aligned with the wrong dealer.   The following is a guide as to how your dealer group should be able to help you:

Dealership Head:

The head of your dealership should be able to spend time with you defining and refining your business strategy and be able to assist you with its implementation. This implementation includes working with you to win over and activate centres-of-influence who can refer pre-vetted and pre-sold prospects. Remember it is in the dealer head’s interest that your practice is successful.

Practice Manager or Dealer Business Relationship Manager:

You should be able to utilise the services of a practice manager or BDM-type person to run a diagnostic over your practice to identify issues and deficiencies and work with you to coordinate the required expertise from within the dealership. This person won’t have all the expertise you require but should be a good starting point.

Marketing Manager:

Your marketing manager should be able to work with you to develop a marketing strategy aimed at growing your business via a lead generation program that targets higher quality prospects who fit into your preferred client profile.  Your marketing manager should also help you build your own profile in your local area as a financial planning expert.  They should also provide you with the tools which assist you to generate leads, educate clients and win centres-of-influence.

Legal and Compliance Manager:

The legal and compliance manager exists not only to protect the dealer group, but also to deliver a service to you that ensures your practice is running compliantly and in an efficient manner. This is a crucial component of practice management as practices with a poor compliance record will have their sale value discounted.

Dealer Services Manager:

Your dealer services manager should be able to assist you in implementing systems with the aim of making your practice more efficient, including client review processes, efficient SOA writing processes, work flow systems, efficient portfolio reporting, and so on.

Technical Services Manager:

The technical services manager is a resource to help you improve your technical  skills.  They should also help you win clients by being available to review and/or design appropriate planning strategies.  In addition, they should help you work with centres-of-influence by developing technical strategies that may be used by the centre-of-influence to market to their client base.

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Matt Englund, Head of Dealer Groups at BT Financial Group today announced that Minchin Moore Private Wealth has joined BTFG’s Securitor network.

“We are delighted to welcome Minchin Moore Private Wealth into the fold as the quality of the business is the right cultural fit with Securitor: a boutique advisory firm specialising in personalised strategic advice firmly focused on the needs of their clients. This is a coup for the Securitor Dealer Group,” Mr Englund said.

Minchin Moore Private Wealth is the result of a merger between the highly successful Minchin Private Wealth practice that is already part of the Securitor network and Peter Williams’ established Sydney based practice that operated under a different AFSL.

Peter Williams, one of the founding directors of Minchin Moore Private Wealth has 25 years experience managing a financial advice practice catering to the needs of HNW and ultra-HNW clients. In 1984 Peter was a founder of leading Sydney chartered accounting practice Williams Hatchman & Kean, now part of the publicly listed WHK group.
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Nick Mundy and Tom Jeffries, formerly with BT Financial Group, have joined Minchin Moore Private Wealth as advisers and Jenny Wong, formerly AMP and Macquarie, has been appointed as operations manager.
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When asked why they chose Securitor Peter Williams said, “Securitor is renowned as a dealer group that provides freedom within a framework for established practices that want to grow. We wanted to join forces with a dealer group that would allow us to flourish within our own business model and that provides industry leading support services.”
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Securitor recently announced that they are actively looking to build their network.
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“While we are assisting our existing Securitor practices to organically grow their businesses we are also looking to bring in new practices but it is quality without compromise. The criterion has to be met as the culture and community of Securitor’s like-minded professional advisers is core to the strength of the group,” Mr Englund said.x

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One of Australia’s most successful diversified fund managers, Centuria Capital Limited (formerly Over Fifty Group Limited) announced today that Peter McDonagh has joined as Head of Reverse Mortgages.

With almost 30 years experience within the financial services industry, Mr McDonagh has extensive expertise in managing mortgage services teams and high-volume mortgage administration operations with up to 90 staff.

Prior to joining Centuria Capital, Mr McDonagh worked as the Performance Improvement & Quality Advisor in National Australia Bank’s (NAB) Group Business Services. Previous to this, he was the Funding Coordinator HomeSide Service Experience at NAB.

Mr McDonagh has also held senior roles within CBA’s Mortgage Services Business in Melbourne over many years and more recently held a contact role as Team Leader of Exceptions Processing at Australia Post.
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Matthew Coy, CFO of Centuria Capital said of the appointment: “As a business we pride ourselves on the strength of our team and also on our diversified offering. Peter’s appointment further demonstrates our commitment to this area of the business and we are pleased to have someone of Peter’s calibre join the team.”
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The Reverse Mortgages Business at Centuria currently manages 2,300 loans and has an aggregate size of mortgage book of $195 million. The average loan value is $85,000 with gearing equating to less than 20 per cent on current valuations.
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New mortgage origination has been suspended, however the group is managing all existing loans and honouring previously approved limits within them.
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Mr McDonagh will be based in the Melbourne office.

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ING Investment Management Australia’s business provides a number of investment strategies and products directly to the Australian institutional and wholesale markets.

The business had EUR 24.8 billion (AUD 34.0 billion) in assets under management as of 31 March 2011, the majority of which is managed on behalf of ANZ’s wealth management business, OnePath.

In a letter announcing the sale, CEO Steven Billiet writes “the  transaction supports ING‘s objective to actively manage its capital and portfolio of businesses to ensure an attractive and coherent combination for the announced potential IPOs of its insurance and investment management activities.

“ING has previously said it plans to divest its insurance and investment management operations by the end of 2013 through a base case of two IPOs: a European-led IPO including the European and Asian insurance and investment management businesses, and a U.S.-focussed IPO.

“With a strong presence in Europe, the Americas, and nine Asian countries, ING Investment Management remains well-positioned in relation to the attractive Australian market.
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“We continue to manage an array of off-shore strategies in our various international investment centres, which are available to our clients domestically, regionally, and globally.
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“The transaction is subject to regulatory approval by the Dutch government and is expected to close in the fourth quarter of 2011. ING IM will be working with UBS Global Asset Management to ensure a smooth transition for all clients, but there will be no changes to client relationships or the way funds are managed in the short-term.
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“We understand that you will likely have questions or need additional information and we remain committed to keeping you updated on developments. In the meantime, our focus remains on delivering superior investment returns and servicing the needs of our clients.”

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