Making 2013 Your Breakthrough Year for New Clients

Thursday, February 14th, 2013

With the first month of 2013 behind us, many of those res­o­lu­tions at the begin­ning of Jan­u­ary relat­ing to diet, weight or exer­cise are dis­tant mem­o­ries. That’s why this might be an oppor­tune time to con­sider a new res­o­lu­tion for 2013 relat­ing to your busi­ness – and that’s to make this the year that you get really seri­ous about bring­ing new clients on board.

I was reminded of this by two dif­fer­ent con­ver­sa­tions last fall from two dif­fer­ent branch man­agers frus­trated by the lack of prospect­ing activ­ity among the advi­sors in their branches. There was a con­sis­tent theme to their com­ments: While the large major­ity of advi­sors do a rea­son­ably good job of com­mu­ni­cat­ing with exist­ing clients, other than hop­ing for refer­rals from their client base, most advi­sors in their branches dis­played lit­tle empha­sis on prospect­ing activ­ity and on attract­ing new clients.

In con­ver­sa­tions with advi­sors, there are four pri­mary rea­sons for the lack of prospect­ing focus: loss of con­fi­dence, lack of pri­or­ity, no clear prospect­ing plan and fail­ure to estab­lish a prospect­ing rou­tine. Let’s talk about what you can do in 2013 to address each of these.

Con­fi­dence

When talk­ing to poten­tial clients, you need to believe that prospects would be bet­ter off work­ing with you than where they are now or with other advi­sors. But for prospects to believe that, first you have feel that way.

I’ve talked to advi­sors who lack that fun­da­men­tal con­vic­tion and are ques­tion­ing the value they  pro­vide to their clients.  I recently spoke with an advi­sor who feels that over the past fif­teen years she’s let clients down, as tough mar­kets have meant that plans that clients had back then have had to be adjusted down­wards, with retire­ments post­poned, hol­i­days deferred and lifestyles scaled back.

The first nec­es­sary con­di­tion to be develop prospect­ing momen­tum is to have the gut feel­ing that prospects would be for­tu­nate to work with you. If you don’t have that con­fi­dence, then you’re unlikely to be suc­cess­ful in devel­op­ing prospect­ing momen­tum. Some­thing that helped one advi­sor was adding an agenda item to his Mon­day morn­ing team meet­ings, in which some­one shares an expe­ri­ence from the pre­vi­ous week where a client thanked them for the job they’d done or the dif­fer­ence they’d made. Alter­na­tively, they select a plan update they’ve reviewed the week before and talk about the how the client is bet­ter off as a result of the deci­sions that were made.

Pri­or­ity

When most advi­sors entered the busi­ness, prospect­ing was a sur­vival issue — if you weren’t suc­cess­ful in attract­ing new clients, your career in the indus­try would be a short one. This is a stark con­trast to today’s mind­set — while most advi­sors know they should prospect, many see this as a “nice to do” activ­ity rather than a crit­i­cal issue for the health of their businesses.

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Tags: Branch Managers, Breakthrough Year, Confidence, Consistent Theme, Conversations, Conviction, Distant Memories, Fifteen Years, Good Job, Gut Feeling, Lifestyles, Momentum, Necessary Condition, New Resolution, Opportune Time, Priority, Prospects, Referrals, Resolutions, Retirements
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Changing the Culture of a Firm for Improved Performance

Wednesday, June 6th, 2012

by Bob Simp­son, Syn­chronic­ity Per­for­mance Consulting

The fol­low­ing is a white paper I wrote recently that includes ideas to help firms to improve both advi­sor and firm per­for­mance.  The ideas are based on “out-of-box” think­ing to help gen­er­ate changes that are vital to the long-term suc­cess of finan­cial ser­vices firms:

The finan­cial ser­vices indus­try is a rel­a­tively new indus­try and as such, it is an indus­try of con­stant change and improve­ment. Advi­sors, by nature, are not a patient group and would like to see the rate of change accelerated.

This white paper is writ­ten to inspire change and improve the cul­ture of firms. I have con­sid­ered the risks involved and am com­fort­able that the ini­tia­tives below can help firms to not only change but also pros­per from these changes.

Firms, that have the abil­ity to change quickly, can gain a com­pet­i­tive advan­tage over the com­pe­ti­tion. Cul­tural changes improve advi­sor hap­pi­ness, which will result in advi­sors being more pro­duc­tive, more effec­tive at man­ag­ing client rela­tion­ships and bet­ter at sales.

By cre­at­ing a pos­i­tive envi­ron­ment, you cre­ate an atmos­phere in which every­body in the orga­ni­za­tion can thrive. Do you want to dou­ble the num­ber of advi­sors in your firm? Get your advi­sors telling your story to other advi­sors. Get your branch man­agers so enthused about the firm and their abil­ity to build some­thing unique and fun in their com­mu­nity that they are inspired to tell the firm’s story to other advi­sors, com­mu­nity lead­ers and other cen­ters of influence.

Inspire your advi­sors to start build­ing their busi­nesses again. Most firms are heavy in mature advi­sors who have found a com­fort zone and stopped grow­ing. This has huge impli­ca­tions on asset and rev­enue growth and share­holder value. Mature busi­nesses have devel­oped strong client, busi­ness and per­sonal net­works that fuel growth. As an advisor’s busi­ness grows, the rate of growth should increase, not decrease.

Happy advi­sors drive brand aware­ness. Develop strong brand loy­alty within your advi­sor com­mu­nity and you can lever­age your mar­ket­ing dol­lars. A national or regional net­work of advi­sors will spend well in excess of your cor­po­rate mar­ket­ing budget.

Here are some ideas to cre­ate a pos­i­tive envi­ron­ment in your firm:

Let’s start with senior man­age­ment. The role of senior man­age­ment is to develop and man­age a vision, advi­sor loy­alty plan and develop a pos­i­tive envi­ron­ment. Firms must con­sis­tently keep all employ­ees updated on progress of all ini­tia­tives and demon­strate the abil­ity to keep promises. Advi­sors must be com­pletely engaged in the vision.

This can be achieved by hav­ing an indi­vid­ual or team respon­si­ble for the corporation’s Advi­sor Expe­ri­ence. This can be achieved by repo­si­tion­ing a national man­age­ment team. National or Regional Man­agers need to be more involved in help­ing advi­sors to achieve improved per­for­mance, rather than focused almost entirely on com­pet­i­tive recruit­ing and rev­enue. They need to have per­sonal rela­tion­ships with all peo­ple, includ­ing man­agers, advi­sors and admin­is­tra­tive staff in branches in their regions. By focus­ing on improv­ing the processes, rev­enue will take care of itself.

Advi­sor Expe­ri­ence, regional or national man­agers need to focus on all aspects of national, regional, branch and advi­sor per­for­mance. They under­stand the cur­rent sta­tus of all advi­sors’ busi­nesses, plans and tar­get dates and team devel­op­ment plans. They are respon­si­ble for man­ag­ing or col­lab­o­rat­ing with other national man­age­ment team mem­bers and insur­ing that lines of com­mu­ni­ca­tion are clear, improve­ment is con­stant and promises are kept.

Man­age­ment cur­rently views advi­sors as highly inde­pen­dent and entre­pre­neur­ial and dif­fi­cult to chan­nel. This leads advi­sors to seek solu­tions from sources out­side the firm to improve their busi­nesses. This leads to a high degree of inefficiency.

Sim­i­larly, advi­sors are all over the map when man­ag­ing invest­ments. This approach has a neg­a­tive impact on invest­ment returns, which impacts client reten­tion and achiev­ing greater share of wallet.

By estab­lish­ing a cul­ture of col­lab­o­ra­tion, advi­sors can both improve prac­tice and invest­ment per­for­mance. This can be achieved by estab­lish­ing quar­terly meet­ings that are deliv­ered across a branch net­work or through tech­nol­ogy. Each meet­ing focuses on invest­ment for half a day and prac­tice man­age­ment for half a day.

The pur­pose of the invest­ment meet­ings is to dis­cuss invest­ment and port­fo­lio strate­gies, invest­ment man­ager selec­tion and related issues. Advi­sors should be able to leave these meet­ings with client meet­ing pack­ages to help them improve the qual­ity and effi­ciency of client pre­sen­ta­tions and lever­age their time.

This allows an Advi­sor Expe­ri­ence Man­ager to man­age his advi­sor rela­tion­ships in an effi­cient man­ner and free time to ful­fill other respon­si­bil­i­ties, such as recruit­ing and proac­tive man­age­ment of his ter­ri­tory. It also cre­ates unique­ness and dif­fer­en­ti­a­tion to improve recruit­ing performance.

This col­lab­o­ra­tive approach also lends itself to improved client acqui­si­tion. Advi­sors, as a group, are not effec­tive at busi­ness devel­op­ment. They are not skilled at mar­ket­ing, such as devel­op­ment of mar­ket­ing mes­sages, mar­ket­ing mate­r­ial and web­sites. They are start­ing to play around with LinkedIn, Face­book and Twitter.

Sim­i­larly, it will help in devel­op­ing new advi­sors and improv­ing prob­a­bil­ity of suc­cess by pro­vid­ing them with turnkey solu­tions instead of allow­ing them to develop their own solu­tions. New advi­sor devel­op­ment is impor­tant to the suc­cess of orga­ni­za­tions heavy in mature advisors.

Indus­try stud­ies have shown that advi­sors who spend in excess of 60% of their time in client-facing activ­ity earn three to five times the income of those who do not. Time spent on busi­ness devel­op­ment is part of the 60% but time spent on devel­op­ment of web­sites, etc. is a poor use of time, espe­cially when the qual­ity of the out­put is con­sid­ered. This becomes an even big­ger prob­lem when the col­lec­tive result is mea­sured in web­site rank­ings. Few advi­sors achieve good search engine rank­ings so their web­sites have few viewers.

If you look at web­sites devel­oped by the major firms, it is often dif­fi­cult to find advi­sors on those sites. Other than hav­ing some brand expo­sure on the Inter­net, there is lit­tle value.

By build­ing a cor­po­rate web­site that allows poten­tial clients to find and research advi­sors, you can improve the client acqui­si­tion capa­bil­i­ties of these web­sites. By allow­ing advi­sors to par­tic­i­pate by con­tribut­ing arti­cles as blogs, you not only pro­vide the advi­sor with excel­lent expo­sure but you develop con­tent that improves the rank­ing of the site and improved traffic.

Mar­ket­ing and com­pli­ance can more eas­ily mon­i­tor con­trib­u­tors and con­tent and insure that posi­tion­ing is in line with cor­po­rate ini­tia­tives. Quar­terly meet­ings, men­tioned above can be a dri­ver for devel­op­ment of content.

This ini­tia­tive alone can sig­nif­i­cantly redi­rect advi­sor resources, such as time and money, into more pro­duc­tive initiatives.

Another major com­plaint I hear from advi­sors is the dif­fi­culty to have mar­ket­ing mate­r­ial approved by com­pli­ance. The 80/20 rule sug­gests that 80% of advi­sors may uti­lized a cen­tral­ized mar­ket­ing plat­form but 20% will be out­liers and want to do their own. Suc­cess of the above ini­tia­tives will reduce the vol­ume of work to be processed by com­pli­ance. Com­pli­ance needs to be less con­fronta­tional and more sup­port­ive to improve the cul­ture of an orga­ni­za­tion and reduced vol­ume may allow them to improve.

To develop a more stan­dard­ized plat­form, such as CRM, that will gain advi­sor accep­tance, firms need to work closely with advi­sors to iden­tify solu­tions that pro­duce the best results. There are a broad range of prod­ucts and ser­vices avail­able which are sim­ply pieces to the puz­zle. Efforts need to be made to inte­grate solu­tions that cur­rently exist rather than cre­at­ing pro­pri­etary sys­tems. Cloud solu­tions are grow­ing in num­bers and make this task much sim­pler to accomplish.

I have been study­ing advi­sors for the past four­teen years and the above is based on this research and expe­ri­ence. These ideas pro­vide a plat­form on which addi­tional ini­tia­tives may be based.

Bob Simp­son is Pres­i­dent of Syn­chronic­ity Per­for­mance Con­sul­tants of Mis­sis­sauga, Ontario. He has pro­vided coach­ing and con­sult­ing ser­vices to advi­sors since 1998. Prior to found­ing Syn­chronic­ity, he was Senior Vice Pres­i­dent National Sales Devel­op­ment at Mid­land Wal­wyn Cap­i­tal Inc. and a top pro­ducer at Nes­bitt Thom­son, where he was a top 12 advi­sor with a book of $120 mil­lion in client assets.

Bob Simp­son

Direct Line:  905−502−0100

Toll Free:      866−646−6002

E-mail:  bob.simpson@synchronicity.ca

Text Mes­sage:  905−502−0100

Web­site:  www​.syn​chronic​ity​.ca

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Bio:            www​.syn​chronic​ity​.ca/​a​b​out

About Bob Simpson

Syn­chronic­ity Per­for­mance Con­sult­ing has been coach­ing finan­cial advi­sors since 1998.

Bob Simp­son, pres­i­dent and founder of Syn­chronic­ity has been involved, directly or indi­rectly in the finan­cial ser­vices indus­try since 1981. He has been a very suc­cess­ful finan­cial advi­sor with Nes­bitt Thom­son Inc., a major Cana­dian finan­cial insti­tu­tion. Between 1981 and 1989, he built a busi­ness with more than $120 mil­lion in assets under man­age­ment, was branch man­ager and SVP National Sales for Mid­land Wal­wyn and has been coach­ing finan­cial advi­sors since 1998.

You can fol­low Bob Simp­son via:

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Tags: Branch Managers, Brand Awareness, Brand Loyalty, Centers Of Influence, Client Business, Client Relationships, Comfort Zone, Community Leaders, Competitive Advantage, Financial Services Firms, Financial Services Industry, Firm Performance, Fuel Growth, Happiness, Mature Businesses, Patient Group, Personal Networks, Shareholder Value, Telling Your Story, Term Success
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