Mindfulness can improve your relationship with your client.

At a recent financial service industry event on the need for financial advisers to engage with their clients in the present moment, President and Founder of US Based i-Impact Group Mr. Claudio O. Pannunzio reminded the attendees of a famous saying by Henry David Thoreau “The greatest compliment that was ever paid to me was when someone asked what I thought, and attended to my answer”.

“The frequency with which we do things in an inattentive manner in our daily life is simply astonishing. From driving a car to interacting with a client or a prospect, way too often we are on auto-pilot, going through the motions but not being present”, said Claudio Pannunzio.

“The consequences of this inattentiveness are way too dangerous to be quickly dismissed”.

In his workshops, seminars and conference presentations for financial advisers, Pannunzio defines attentiveness as staying in the present or mindfulness. It is paying full attention to what is at hand – the note being written, the coffee being sipped, the person being spoken to, whatever is around as he / she move through their day. A client meeting, talking on the phone to a friend, shopping at the supermarket are perfect opportunities for advisers to test their ability to be mindful.

Mindfulness is something that everyone possesses and need to ensure for survival. However, its nature is highly elusive. As an adviser sits down with a prospect, completely determined to convert them into a new client, despite their best efforts, the ability to mindfully listen can disappear in an instant. It takes a fraction of a second for the mind to lose its focus and swiftly engage in worries, speculations, projections and fantasies about the future.

Pannunzio affirms that for advisers to practice mindfulness they do not have to drastically change their life. “They will continue to perform their daily activities and chores – however, they will carry them out with a different level of awareness. That heightened degree of awareness will trigger some changes in behavior. They will not change who they are, but will become more fully present with every situation. As a consequence, they will be able to better observe thoughts, feelings, and preferences”.

“Mindfulness makes us more sensitive to the present moment. It generates an energy that empowers us to actively notice new things, take advantage of opportunities as they manifest, and be able to produce more positive outcomes”, added Pannunzio.

For Pannunzio, life can best be described as a sequence of moments. Consequently, the more we focus our attention to make each moment matter, the more our life will matter. “During a meeting, the adviser should not let their mind race forward worrying or engaging in speculation about the meaning of the short pause the client made while answering a question. Rather, just notice it, acknowledge it in the mind and come back to the present, to the conversation, to the client”.

Listening mindfully is one of the hardest things for a human being to master. Many advisers experience unconscious barriers to good listening that prevent them from clearly recognizing when they are not listening.

Mindful listening is a magnetic and creative force. When advisers listen to what the client says, they experience a satisfying expansion and become highly creative. It is this creative force that actually enables ideas to spring forward and come to life.

“We experience it countless times but, regrettably, we easily forget. One of the most valuable rewards of listening in a mindful manner is the opportunity we get to learn something we might not know”, continued Pannunzio.

“Advisers conscientiously listening to their clients enables them to gather good intelligence about what they worry and care about, what motivates them and, ultimately, why they work with – and what they really ‘want’ from the adviser”.

By listening mindfully, advisers will be better able to facilitate their client’s pursuit for financial freedom, better address their demands, and even dispel some of their financial fears.

During a client meeting, Pannunzio encourages advisers to pose a question, such as “What are the most important challenges our firm has helped you successfully address?” Then, commit to mindfully listen to every word articulated by the client. The answer may yield valuable information, some of which may have been mentioned during past conversations, but because the adviser many have been on auto-pilot… missed.

“The ultimate goal of mindful listening for advisers is simply to listen – nothing more and nothing less. Focusing attention and activity on what they are doing in the immediate moment, whole-heartedly without getting side-tracked by premature ideas and projections of future personal gain, which incidentally are not pertinent to the present moment and may or may not happen in the future. When advisers are completely ‘present’ in that way, each activity becomes the most important activity they can perform for their highest and greatest good and that of their clients”, concluded Pannunzio.

The post Mindful listening – the need for advisers to connect with clients in the present moment appeared first on AdviserVoice.

(Click here to read the first instalment in this series and click here to read the third and final instalment.)

First Contact! Managing the interaction

The scene: a potential new client has made contact with your business by phone or, for example, a ‘Contact us’ email from your website. That’s a great start but what comes next is crucial to transforming an enquiry to a fully-fledged client.

So ask yourself – do you have a process to manage this aspect of your business’ operations?

Think about these questions in relation to your business:

• When a potential new client phones your office who will she speak to about making an appointment to see you? Is that person your receptionist – your assistant – or does the person speak to you to make an appointment – or – is it whoever picks up the phone?

• Will this person get a sense that your business (at the end of the day, you) cares about them and is prepared to understand their needs in providing professional advice?

• Or do they get a sense that you are too busy for them or that you are really only interested in making a ‘sale’?

• Is the process formal yet welcoming? Or is it so casual that it conveys an impression of a carefree approach to the way you conduct your business?

• When they make their appointment, do you follow-up with written information to keep building on the contact they have had with your firm so far?

• Do they know what to bring to the meeting?  Do they know what to expect in the meeting or will a lack of information make them apprehensive about the first meeting?

If you have handled your initial interaction well, by the time they first meet with you the client should feel like they know you already something more about you than just your name. When they attend the appointment, overall, the discussion should be much less about you and much more about them.
The manner in which you conduct that first meeting in person will be the major influence on whether or not the potential client formally engages you as their adviser.  Please note – it is this first meeting that will set the tone for the remainder of your professional relationship if there is to be one.
During this meeting, your primary objective should be to ask meaningful questions and listening – very carefully – to the answers.  And of course, a good listener knows that the answer to one question very often leads to another question and so on.  Enabling your client to comfortably and securely explain their situation and needs is critical to creating an atmosphere of trust.

Questions – answers – listening – questions . . .

You should be aiming to get to know their financial situation on terms much deeper than their balance sheet and taxation return. Questions, listening and more questions will allow people to feel safe in disclosing more about their goals, their fears and their personality than your website or LinkedIn profile can.

As you might have experienced, some people have not actively considered what they want from life and what they truly want to achieve with their financial resources. A successful first meeting – for the client – should be that your questions and listening helped them to more easily articulate what it is they want to achieve.

Some advisers conduct their initial meetings with clients in a way that explores their personal values and lifestyle more than simply their financial affairs.  Some advisers use systems such as the American Bill Bacharach’s ‘Values-based’ financial planning techniques and yet there are others who do not follow a ‘script’ but who do keep their initial meetings with clients to qualitative aspects of the client’s life, in addition to their financial details.  Such advisers do not ‘sell’ themselves or go into solution mode at that point; they are simply taking in all the information – the spoken and unspoken – the client is providing and beginning to build a deep understanding of the client.

Listen – hear! Seven listening tips

1. Don’t speak when the client is speaking
2. Put the client at ease with your body language – e.g don’t fold your arms – open the palms of your hands – lean forward a little
3. Show you want to listen – look at the person speaking not through them
4. Remove things in your environment which can distract you from what clients will say – e.g. visual and auditory distractions (people walking past your office, noises/voices outside your office)
5. Show empathy with your eyes – some clients have difficult situations and events in their lives and they need to see that you have heard them
6. Be patient – take your time in listening and allow the information to come forward
7. Ask questions and keep listening to what is being said

The Family Tree

A method used by some advisers to stimulate discussion with clients and assist them to more fully understand their potential new client is to write the client’s family tree on a whiteboard in your office.  A whiteboard for some or written notes for others – the medium is not that important.  Rather, the manner in which you ask questions and what you do with the information are the critical issues.
Such a conversation should move the discussion beyond the level of superannuation held and the value and type other assets and liabilities, important though they are, to other important things in their life, like family. List the names and ages of all members of the family and, through delicate, considered, questions try to gain more insight into the client.
The information that emerges from that type of enquiry might allow you to foresee financial issues that could arise in the future such as parents going into a nursing home, risk insurance needs of children or siblings, perhaps even financial implications of becoming care-givers to grandchildren or nieces/nephews

Branching out

Let’s look at this example of a family tree – the clients here are husband and wife, Bob and Mary have three children and their siblings and parents are as follows:

Take a few moments to look at the family tree – what sort of potential life events or issues can you foresee with Bob and Mary?

Quite noticeably the family’s youngest member is Liz’s daughter Molly and the question here is who would care for her if Liz were to die? As a single parent, Liz would likely hope that her parents, Bob and Mary, would support Molly along with the financial implications such a situation would entail. This is clearly something for which the family might prepare in terms of managing the financial risks. While Bob and Mary might decide they could financially support Molly they might also need to implement an insurance policy on Liz’s life.

With Mavis aged 81 the question is what is her health like? Is she still living at home or is she in a nursing home or is that on the horizon? Similar questions apply to Dot and Jim and then there is Lewis and his younger wife.  What plans are in place to care for Joshua if something was to happen to Lewis and Ayla? Who would take care of him? And what are the financial implications of such events?
By drawing the family tree with the clients it enables a discussion around issues which the family might have not previously considered and opens up additional avenues to get to know your clients better and for them to get to know you better through the way in which you listen to their answers.  Importantly, it can help to identify possible future issues and the association risks that might require contingency planning.

If you have asked the right questions and carefully listened to the answers provided, by the end of the first meeting, you should have a good sense of whether or not you can help them and make suggestions as to how to progress the advice process from that point.  Similarly, by the end of that meeting, the client will have seen and heard enough to help them reach a decision on whether or not you are the trustworthy professional person they were hoping you would be.

We’re ‘engaged’ – now what?

If the client says, or you get the sense from their comments, that they wish to engage you, it might be appropriate to seek to arrange the next appointment prior to them leaving your office. Note that it is at this point vital to have a process in place to ensure that you – or the designated staff member – can gather any outstanding information that you will need to prepare your recommendations – the Statement of Advice – and to do so in a timely manner.
During the intervening period between appointments, what processes do you have in place to keep the client connected? If it we look to post implementation phase, what communications process do you have in place to reduce the chance of ‘buyer’s remorse’ emerging?  And looking even further ahead, how will you build on the relationship such as it is at that point?
In the early stages – the time before the clients formally engage your firm as advisers – it really is quite important not to rush the development of the relationship.  Never assume that you have a fully-fledged new client until such time as the agreement, or engagement document, is signed by the client.  In those early meetings and conversations it is wise not to use words that ‘jump ahead’ to an assumption that the client will engage you. The decision is entirely the potential client’s to make – not yours – and as a professional person you need to give them the time, space and authority, to engage you when and if they are happy to.  Read – take it slowly.

If you are looking for an enduring professional relationship with clients it is important to design your processes so that your potential clients get to know you in a series of meetings and contact points.

This brings us to the third element of building a deeper connection with your clients – video.

It’s powerful, it’s massive and it’s very effective

You might be surprised to learn that YouTube is the world’s second largest search engine and for financial services businesses it is another very powerful medium that you can use to enhance client engagement, especially at the point of first contact. There are over 800 million unique users of YouTube each month and as an initial marketing tool, YouTube videos can help ‘break the ice’ for people who want to know more about you before they meet you.
In initial marketing, you can enable clients to get to know you and do their research in a visual medium that is far more effective than just reading words. As part of your ongoing relationships with your clients, you can also use video to connect with them in a personal way between your meetings and phone calls.

Using video in your initial marketing

When people search for information on businesses or individuals, they will often start with Google then click on the YouTube video links in the search results.
As mentioned earlier, people are looking for a financial adviser with whom they can feel comfortable and can trust and as such it follows that they might respond well to a medium in which they can use their auditory and visual senses to process information rather than simply cognitive in reading the written word.  A potential client will likely gain a better insight to you by watching and hearing you speak than just through reading information about you and your business.
However, if you choose to create a promotional video, be careful not to simply record a copy of your marketing brochure, or the like, as we have seen on some occasions.  The very best promotional videos about you focus on who you are and why you do what you do with a very low emphasis on what you do.

Using video post engagement

You can also use video to enhance your relationships with your clients after they engage you. The most powerful time for you to build your relationship with your client is the time you spend face-to-face. And yet the human brain can only take in so much at any given time. Your clients could be totally engaged in what you are saying, and engaged with their financial plan, but when they leave the office, other aspects of their lives take precedent and before you (and they) know it, it will be twelve months since you last met with them.
Some advisers are using video to help keep clients engaged between meetings. For example, you might choose to record some technical or educational videos to help clients understand some of the strategies you are deploying for them. Many advisers have great ways of explaining certain concepts and find themselves sometimes repeating the explanation several times. While some clients prefer an in-person explanation, others might – if given the opportunity – prefer to be able to view the information in a format such as video which they can replay from home.
By recording your explanation on video it will both enable your clients to refresh their understanding of the technical concepts of the recommendations explained by you.
On a more personal level, you can also record messages to individual clients using video. Imagine your client has just left your office after having their financial planning review meeting – a meeting that was heavy with content and detail and you have additional matters to work on before they return to your office for the next meeting.  In regard the detail at the most recent meeting, one option is to video record yourself presenting the information again – to camera – recapping briefly what you discussed in the meeting, explaining what happens next and remind them of what they need to do before the next meeting.
You can do this very simply using a webcam or an inexpensive video camera in the same office you met with them.

Remember this

In a study at the University of Texas, Metcalf, T. (1997) concluded that the level of information retention in human being is largely dependent upon the sensory receptors, or combination thereof, through which they gain the information.

In the study Metcalf identified that the highest level of retention was achieved when people received information both aurally and visually – hearing and sight.  This research suggests that the use of video presentation is a perfect match for increasing the level of information retention by both potential clients and actual clients.

In our third and final article in this mini-series, we will guide you through how to produce your own to-camera videos and where to post them so potential clients can find them. We’ll also take a look at social media and how it might help you and we’ll finish off with ways to ensure your clients can receive service that really is about them.

Note: The accreditation for this CPD article is no longer current. Please visit our CPD section for current CPD quizzes. 

The post 5 Ways to Create, Strengthen and Retain Client Relationships (Part 2) appeared first on AdviserVoice.

This mini-series is centred on 5 key components to establishing, building and retaining client relationships. In part 1 we examine how you can make the process of establishing client relationships more consistent while also backtracking to the point of making sure a client’s first impression of you is likely to build good rapport.

(Click here to read the second instalment in this series and click here to read the third and final instalment.)

For decades now the financial services sector has been faced with constant change and advancement on several fronts. There has been a veritable barrage of change in areas like legislation, technology and service delivery.  Amid it all however, it would be very easy for advisers to lose sight of some of the fundamental aspects that create, build and retain professional relationships with clients.  To this end it’s instructive to recall an old French proverb: ‘The more things change – the more they stay the same’.

While technology to improve efficiency is now in abundance it is important to remember what clients are really looking for in a professional relationship with an adviser. They want to have strong rapport with you and they want to receive tailored, unbiased, advice from you. Clients also want to know that you have genuinely understood them and that you sincerely care about them. These are needs that can be aided by technology however it is the ‘human’ components, that are interwoven with technology use, which fortify client engagement with their adviser. Building stronger, longer and closer professional relationships with your clients will see both you and clients profit and we have identified five key strategies which can help you.

1. Process

The very best professional adviser-client relationships do not happen by accident – they are most often the result of implementing a process, no matter how sophisticated or otherwise, it might be. If you do not already run an effective, process-driven, client acquisition and retention process in your business then there is a process for you to follow to get there.  And if you do already have established client management processes in place then what follows might still assist you in, for example, cross-referencing what you are already doing.

Firstly, you need to decide on the client experience you want to give to clients.

Consider what you would like your clients to experience from their first interaction with you and your business and then write it down. What experience do you want them to have from when they first meet you (or have first contact with your business such as via your website), through to hearing and reading your strategy recommendations, to signing documentation; right through to their ongoing relationship with you and your firm. Now think about how will you maintain that experience and your important role in your clients’ lives?

Successful processes can only be so if other people can replicate the tasks and actions within them with relative ease. In this regard if you have staff members who are great at their job get them to document how they carry out all of their tasks in your business.  For example, what they do when they book a client meeting; how they administer investment/insurance lodgements and so on.

The point here is that while many businesses have outstanding support employees, the business owners can be blind to the over-dependence on such employees. It’s a risk that too often is overlooked by business owners in all types of business. This over-dependence and the embedded risk are sometimes only identified when someone, who has been with the firm for many years, leaves and the business subsequently struggles. Service delivery and quality fall away simply because there was no written record of what that key person actually did in the business.

Take note however that in making a request to your employees to document what they do in carrying out their roles, you need to explain the reasons behind making the request. It’s not uncommon for staff to feel threatened or worried that they may be out of a job if they remove the ‘mystique’ of what they do.

Align then automate the on-boarding

Subsequent to a detailed written account of each employee’s role is the need to align the current processes with the type of client experience you want to deliver. By doing this with your administration support team, you will better understand where you have inefficiencies in your workflows.  And when you identify weaknesses or inefficiencies ask the people involved for help in solving the problems. They will see things you cannot see – the good and the bad – and the final outcome will very often be better for their input to devising a solution.

Once you have documented your processes it is important to automate them as much as possible either using ‘threads’ in software such as XPlan and the like or ‘workflows’ if you are using a CRM program.  Essentially this means the process is input to a series of the tasks that can be automatically delegated, diarised and flagged for completion.

For example in the case of the written ‘new client on-boarding process’, the staff member who receives the first enquiry has responsibility for activating the process.  After the first step is carried out by a staff member (e.g. received initial enquiry by phone), that person initiates the thread and the subsequent tasks are allocated.  Your support person might receive a task to send out a ‘Welcome Pack’ to the potential client and then another task on the day before the client meeting to contact the client and confirm the appointment. This person, for example, also might receive an automated task to prepare a new client file in readiness for your meeting with the potential new client the following day.

At first glance it might seem counterintuitive that in order to deliver a customised, very personal, service you need to automate and document processes into a standardised format.  However, automation serves to ensure the key tasks actually get done and done efficiently.

2. First impressions and beyond

The second stage of a plan to increase client engagement centres on your on-boarding process for new clients; the process you deploy from the moment of first contact with a potential new client.

Your capacity to successfully engage with potential clients in a very personal way will be greatly influenced by their very first introduction to you; this influence could even be at play before they meet you in person.  Getting the first impressions right can lay the foundations for a long and fruitful professional relationship with clients.

Take a moment to list all the ways a potential new client might become aware of you and your business. Start with the obvious, your website but then think beyond that to advertising, your business card handed to someone by another client, your brochures and so on. Try to be objective – what sort of impression do these items give?

Back to on-boarding and, ideally, you should be aiming to ensure that your on-boarding process is designed to remove, or at least reduce, fears that potential new clients will have.  This step should begin to place your clients on a footing of trust, right from the outset, regardless of whether they have been personally referred to you or found you from their own enquiries.  Be careful though – in the twenty teens – consumers are more and more ‘hard-wired’ to be suspicious of claims made by financial services people. Many will treat with, great suspicion, written or spoken claims of an adviser being ‘trustworthy’. It is the old saying of ‘actions speak louder than words’ situation.

Now think again about how your new clients currently find their way to you?  Do the current pathways for new clients begin to engender an atmosphere of trust? Your website? Your referral sources? Your other marketing? Note – this is not about even mentioning the word trust or its derivatives.  Rather, it’s about the overall impression generated by the sum of all that is presented – written and spoken and physical (your reception area, for example) – in representing you and your business.

For a potential new client, at every contact with you and your business in the early weeks and months, she is running the ‘trust radar’ to confirm that you really are trustworthy. After committing to, for example, engaging you to prepare a Statement of Advice, she is looking for that document – and the way you present it – to confirm her initial trust in you. The same can be said at the plan implementation stage and so on.  Trust is not a set and forget aspect of a professional relationship – it must be ever present in your every action for and on behalf of clients.

Your internet presence

What will a prospective client see if they search for you on the Internet?  If they view your website, your LinkedIn profile, or your business Facebook page, what will they learn about you?  How do all these sites ‘position’ you in the eyes of someone who hasn’t met you?  When you read the information about you on your website or LinkedIn profile, for example, how does it ‘sound’?  Try to explore your online presence as a client – with fresh eyes – and consider if these give potential clients a genuine sense of who you are, why you do what you do and your areas of advice expertise. If you don’t think you can ‘trust’ yourself to be objective, ask a friend or another professional person to give you a full and frank critique of what they see.

All of these things can be very powerful tools in enabling your potential clients and clients to get to know you.  Conversely, the reality is that if they do not position you well in the eyes of a potential client, you might never get to meet them – they might not even contact you.

In addition, when used with your existing clients they can be a great way to communicate ideas, inform them about financial concepts and keep them in touch with you and your business.  You can also utilise them to keep clients in touch with key issues and the economy and markets – even if that’s only to get comfort that you are keeping an eye on investment markets.

Be careful though.  This doesn’t mean you should publish an academic style thesis to show people how clever you are.  Rather, by simply sharing client stories, publishing comments on issues of interest and allowing people to get a sense that you are someone who can really help them, you will enhance the propensity for people to gain and retain trust in you.

In Part 2 of this series we will examine how to manage the interaction at the point of ‘First Contact’ and explore ways of creating the right first impression using the world’s second largest search engine.

Note: The accreditation for this CPD article is no longer current. Please visit our CPD section for current CPD quizzes. 

The post 5 Ways to Create, Strengthen and Retain Client Relationships (Part 1) appeared first on AdviserVoice.

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

The post Leadership is the key to business growth appeared first on AdviserVoice.

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.

The post The Ten Commandments of Practice Management appeared first on AdviserVoice.

Harden joins from ING Investment Management Ltd where he was chief executive officer of the Asia-Pacific business, comprising 1,200 staff across 10 countries, with $85 billion in assets under management.

“Alan has the skills and experience to lead the expansion of BNY Mellon Asset Management in Asia-Pacific as we continue to grow our retail offerings and institutional business in the region,” Arledge said. “Alan has strong credentials and is widely respected in the region having spent over 20 years in Asia and the Middle East in a variety of leadership positions. He has already demonstrated his ability to manage an Asian investment management business through a range of economic environments, including the recent financial crisis.”
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Harden, who is also named a member of BNY Mellon Asset Management’s executive committee, will be based in Hong Kong. In this new position for the company, he will have responsibility for all distribution, strategic, financial and operating plans and business development across Asia-Pacific for BNY Mellon Asset Management. He will support BNY Mellon Asset Management’s relationship with key clients in the region, including sovereign wealth funds. In addition he will work closely with BNY Mellon’s chairman of Asia-Pacific, Steve Lackey, in delivering the whole firm and ensuring clients have greater awareness and access to the company’s leading capabilities. Harden will also join the company’s Asia-Pacific Executive Committee which comprises the heads of each of BNY Mellon’s businesses in the region.
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Mitchell Harris, president of investment management at BNY Mellon, said: “The Asia-Pacific region continues to exhibit strong growth for investment management companies and is home to some of the most sophisticated investors globally. Alan’s depth of experience will help drive our business forward and sustain our momentum in meeting and exceeding our clients’ investment expectations. Placing a senior member of our Asset Management team in the region is a strong statement of our commitment and desire to deepen our relationships with clients.”
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Prior to joining ING, Harden served as chief executive officer of Alliance Trust PLC and was head of Citigroup Asset Management’s Asia-Pacific operations. He was a non-executive board member of the Court of St. Andrews University, a trustee of the Al Maktoum Institute of Aberdeen University (he remains an honorary fellow), and a non-executive trustee of the Scottish Community Charity Foundation. He is an Honorary Professor of the School of Finance and Accounting at Dundee University.
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BNY Mellon has been conducting business in the Asia-Pacific region for over 50 years. The company has 16 offices in 12 countries in the region, including full-service branches in Beijing, Shanghai, Tokyo, Hong Kong, Singapore, Seoul, Taipei, Melbourne and Sydney, and employs around 7,000 employees. Businesses represented in the Asia-Pacific region include asset servicing, asset management, treasury services, depositary receipts, corporate trust, broker-dealer services, alternative investment services and global markets.

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Private bankers from National Australia Bank won the categories of Outstanding Relationship Manager, Outstanding New Relationship Manager and Industry Thought Leader. In addition NAB Private Wealth itself was named runner-up in the category of Outstanding Institution ($10-$30m).

Leigh O’Neill was named Outstanding Relationship Manager, Vera Ou-Young was named Outstanding New Relationship Manager and NAB Private Wealth’s Executive General Manager Angela Mentis was presented with the Outstanding Industry Thought Leader award for a second time.

NAB Private Wealth topped the awards table winning more categories than any other private bank.

Speaking after the ceremony Angela Mentis said, “This honour from the Australian Private Banking Council reflects the dedication of all our relationship managers and our commitmentto placing the client at the centre of everything we do.
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“Winning both the Outstanding Relationship Manager and Outstanding New Relationship manager categories rewards the work we have done to enhance the capabilities and service levels available from private banks across Australia.
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”NAB Private Wealth’s emphasis over the last three years has been to introduce a more holistic, European style of private banking to Australia, an effort reflected in Ms Mentis winning the Outstanding Industry Thought Leader award, which she also won in 2009.
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“We have focused on developing talented individuals from a range of professions, providing them with a breadth and depth of banking and wealth management skills. We have done this by establishing a dedicated Development & Capability function to up-skill our managers, as well as introducing industry leading professionals to mentor our people.
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“NAB Private Wealth now has significant expertise in the European style of holistic private wealth management having recruited talented individuals from international private banks,including Michael Parsons (Deutsche Bank), Anna McCreery (Credit Suisse), Leigh O’Neill (Coutts) and Ingrid van Dijken Robinson (Union Bancaire Privée),” added Mentis.
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NAB Private Wealth winner of the Outstanding Wealth/Investment Advisor Award 2010, Catherine Robson, was a finalist in this year’s awards.

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“The union-backed industry superannuation funds are attempting to do what should be the Government’s work – that is, formulate policy, control legislation and police regulation,” said AFA CEO Richard Klipin.

“Evidence of the fact can be read daily in the finance press.”

Mr Klipin said union-backed industry funds and consumer advocate groups have been issuing regular “warnings” to the financial advice industry, via the finance press, that the FOFA reforms will become even more onerous if the advice community continues to contest them. The AFA has been lobbying the Opposition and Independent MPs in an effort to have proposals which are not in the consumer’s best interests changed.

“Clearly, the industry fund movement’s “warnings” tell us two things,” Mr Klipin said, “that members of the industry funds movement are trying to influence FOFA outcomes so that they can assume complete control of Australia’s superannuation savings; and that they are trying to silence our fundamental right to speak.”

Mr Klipin said the financial advice industry is now looking to the Government to see past the hysteria being stirred up by the industry funds and consumer advocate groups and provide independent modelling which proves FOFA reforms will result in better outcomes for consumers.

“This is what should be the fundamental focus of FOFA,” he said.
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Mr Klipin said that financial advice is a highly valued partnership between adviser and client.
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“As Back to Basics research revealed, financial advisers are the third most trusted profession amongst those consumers who receive advice, after doctors and dentists,” he said.
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“This is no accident: AFA advisers have a 65 year history in successfully helping everyday Australians build, manage and protect wealth.”
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Mr Klipin called for a level playing field for all who operate in the financial advice space.
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“At the moment it is not a level playing field. In the interests of fairness and equality, and in the interests of consumers, we are calling on the industry funds to step up.”
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Mr Klipin said that it is time for industry funds to come clean and disclose, in dollar terms, how much their anti-adviser propaganda campaign is costing members.
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“We also believe they should disclose and fully unbundle their fees so that their members understand what they’re paying for and what they’re getting in return and can “opt-in” or “opt-out” of services they don’t want and/or don’t get.”
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Mr Klipin said the AFA would not fall victim to industry fund attempts to silence the advice profession.
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“In the interests of our advisers and the clients they serve, the AFA will continue to raise its concerns about proposed reforms which we believe run counter to the best interests of consumers, including opt-in and the banning of commissions on insurance within superannuation,” he said.

The post AFA: speaks out on FOFA, industry funds and fees appeared first on AdviserVoice.

To mark the opening of nominations for the 2011 AFA Adviser of the Year award, Zurich Life & Investments Australia (Zurich) has launched its Zurich Life TV channel on YouTube. The channel is designed to make it easier for advisers to access video content across more devices.

To celebrate the launch, Zurich has released a series of short videos featuring the finalists from the 2010 AFA Adviser of the Year award.

Across the ‘Tips from the Top” series, last year’s finalists share insights into the key drivers of their success, with individual videos covering marketing, networking, technology and client care.

“Whilst the fundamental drivers of adviser success have remained the same for decades, the nature of those drivers is clearly evolving” said Mr Colin Morgan, Chief Executive of award sponsor Zurich Life & Investments.

“Technology and marketing are just two areas where advisers are increasingly able to differentiate themselves and the evolving social media landscape really brings these two areas together.
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“That’s why we thought YouTube was the perfect medium to share the wisdom and insights of our industry’s most elite advisers,” said Mr Morgan.
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A Zurich survey of 700 advisers earlier this year found that 10 per cent of advisers owned iPads with a further 40 per cent planning to buy an iPad or other tablet device during 2011.
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“Online content is increasingly being accessed through apps rather than traditional browsers and the launch of our YouTube channel will make our content easier to view across more mobile devices” said Mr Morgan.
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Click to view The Tips from the Top series on YouTube
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Nominations for the 2011 Adviser of the Year Award open June 1st.

The post Tips from the Top:Business advice through Zurich YouTube channel appeared first on AdviserVoice.

Niche Marketing

“When I first started my financial planning business I had a dream of being all things to all people.”

“I thought I’d be helping a carpenter on Monday with his income protection, and a doctor on Tuesday with his investment portfolio.”

“I set up a fantastic website which contained loads of articles and plenty of information on how we could help people.”

“But pretty soon reality set in – it just wasn’t happening!”

So I quickly identified that I needed to target individual niches at a micro level.  To do this I set up a number of websites targeting specific occupational areas such as doctors, tradies, lawyers etc with specific information relating to those people and their individual problems that needed solving.

“The result?  After a few weeks I started to get some traffic trickling though.  Then after a month or two I started to get an enquiry or two each week, and within a year I was getting so many qualified leads that I had to start selling them to other advisers!”
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“What I discovered is that trying to be everything to all people is fine if you have a huge existing client base, but if you’re trying to establish yourself from a small base you simply have to specialise in order to give yourself a point of difference.
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“How do you do this?  Well first you need determine your ideal target customer.”

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Defining Your Perfect Client

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