(From the March 2025 Edition of eFORUM)
By Jeff Thorsteinson
A successful financial advisory practice hinges on the effective utilization of several capabilities. You, your team, knowledge, skills, systems, education, office space, and technology are all capabilities. When these capabilities are systemized and aligned, you operate optimally. This piece offers a roadmap to recalibrating your business for success, promising a brighter future for your business.
You probably also know what life is like when you are not operating optimally — mistakes are made, and essential documents vanish. Delegation does not work because your team lacks the skills or you can’t find the time to teach them.
So, it’s well worth the effort to optimize your efficiency. Systemizing segmentation, core systems, and team alignment will have the biggest impact, so start there.
- Segmentation — categorize clients into service groups, then pair up an appropriate set of service “activities” to match.
- Core systems — automate the following three core systems and keep them top of mind for your team:
| Investment consulting | Create a systemized process, including multiple sub-processes, for clients and prospects. HNW clients require intense customization and personalization, while you may have a more standardized version for non-HNW clients. |
| Client service | Define service activities customized for each client group, then create an automated and scheduled delivery system. This supports and maintains your client base and systematizes value-add delivery. |
| Marketing strategy | Develop your plan and process to acquire larger or more opportunities. |
3. Team alignment — assign responsibilities to the people most suited to deliver each service event. This will require aligning your team to meet your new service expectations.
Remember that your team isn’t just the people on your payroll. Using customer relationship management (CRM) technology, project management websites, and communication services such as AdvisorStream or GetResponse can reduce your time investment and increase efficiency while improving your value proposition and client experience. Also, consider centers of influence — an insurance professional, a tax accounting professional, a lawyer, and a portfolio manager. These people are part of your team and should be aware of related client developments to help you wherever possible.
Segmentation, core systems, and team alignment work together to ensure that you have the time to focus on new opportunities, your clients will be looked after as promised, and your team members will be optimally efficient in their areas of strength.
Systemizing puts your value proposition into action
Once you’ve determined how to create value for your clients, you must communicate it. Lead by example. To demonstrate excellence, you have to practise it:
- Demonstrate how you deliver on your value proposition by thoroughly understanding client needs
- Show you have the capabilities to support client needs through the promises made in your value proposition
- Remind clients how great it is to do business with a professional with a well-articulated process
- Be consistent in your behaviour and trust-building efforts
- Demonstrate how you employ routine excellence: leadership, high productivity, high quality, and value-add
Seize your next, most enormous opportunity
Top advisors achieve the most success when they practise routine excellence. Everything is in its place. Everyone knows what to do — delivering what their service promises. Clients are getting more than they expect. Backup plans are in place for the unexpected. The back office supports your efforts working with clients.
As you raise your standards, new and better opportunities will present themselves. When you can rely on your team and your systems, you’ll have the confidence, time, energy, and focus to strive for growth and new horizons.
Jeff Thorsteinson is a partner in Advisor Practice Management, an organization that helps financial advisors build world-class practices through innovative concepts, tools, and systems. Jeff works with individual advisors, investment dealers, insurance firms, and fund companies. He can be reached at jeff@jeffthorsteinson.com.