Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
As we begin 2016, I want to specify goals for each of our advisors. I’ve been told it would be too “random” to assign a new asset number based on what I hope the firm to achieve in the coming year. What is the right way to set achievable goals? I don’t want to set the bar so low that they don’t need to work hard, nor can I afford to do that. At the same time, if I set it too high, all I will hear is grumbling for the first few months of the year. What’s an approach to get specific while also putting everyone in a position to achieve?
Ryen L.
Dear Ryen,
I have spent my entire career in sales, and this is the age old question – should goals be what the firm or leader needs, or should they be what people want and believe they can do or is there some scientific algorithm that helps accomplish both scenarios? After decades of looking at this question from a number of angles, I can tell you definitively that there is no right answer.
That said, I believe there are right ways to set goals to get your advisors on board and more enthused. First, review what’s been done in the past. If you can, gather data that shows historical numbers (assuming they’ve been somewhat good, of course). People like the black and white data. Second, review your compensation plan. While compensation isn’t directly tied to the number you will set, it’s directly tied to employees’ motivation levels. If they can make a very nice living without bringing in a new dollar of business, you will have a harder time increasing the goal. Consider whether there is a way to do some sort of profit sharing if the firm overall hits a certain new number in assets.
Third, have a conversation with the team as a whole. Bring the data on past results and discuss what’s possible and what the firm needs to continue to grow and thrive. They may want you to hire additional staff or invest in new technology, for example. Have a frank discussion about the new revenue level that would be needed in order to take on additional expenses. Wherever possible, be as specific as you can, tying the costs to the expectation for increased revenue from fees.
Lastly, be sure to publish the numbers you all agreed upon. Once you have a commitment to X% in new revenue, send something in writing to all of your advisors. Track progress every month and let everyone know of the results. The more focus you can put on the goals and where the firm stands against the goals, the more your advisors will pay attention to them.
Too many firms have a goal or set of goals, but then forget about them. You want to keep talking about your objectives and keep your advisors engaged in the discussion.
Dear Bev,
Another firm that employs accountants recently acquired us, and we are struggling with how best to tell our story so that they will bring us into all of their client meetings. Do you have any tips on what we can do?
Adam W.
Dear Adam,
Let’s start by setting expectations. I’m not sure it’s realistic for them to bring you “into all of their client meetings.” A better approach would be to bring you into meetings where the need is established and the client might be a good fit for what you do. The way we present words and ideas is very important, and sometimes people shut us down not because the idea is bad, but because we don’t present it very well. That said, I have seen this situation a number of times. There are a few things I encourage you to consider:
- Make sure your business model and client experience is clear. Are you a planning firm, an investment manager or an overall wealth management firm? I recently had a client situation where I interviewed 4 people from an advisory firm. Depending on the person I talked to, I had different impressions of what the firm actually did. This isn’t unusual. As a first step, define who you are and what you offer to clients.
- Describe what you will do with clients in enough detail so the accountants can “see” the client experience. If they refer, what will happen to their client? Outline steps – what happens first to their client (and to them), next, and so on. Don’t assume that because you have a clear view of what will happen that they do as well. These are their valued, hard won relationships, and they need comfort with the process before they enter it.
- Help them learn your story in two ways: through client stories and by establishing a clear “so what?” about what your firm does and why it is different. Client stories are important because they bring the process to life for the accountant. Take time to learn about their client profiles, and then select stories they can relate to. The “so what?” is the way you talk about what you do, but more importantly, why what you do is important to their clients.
- Spend time getting to know the accountants in your new firm. Have a meeting where you talk about the client experience and the stories. Build relationships with them one-on-one. Share wins and client stories as they occur. Give them examples of situations you can work with and problems you can solve. Just because they are in the same firm doesn’t mean they are automatically engaged, so treat them like any prospect or Center of Influence you want to win over.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. In 2008, she co-founded Advisors Trusted Advisor to offer dedicated practice management resources to advisors, planners and wealth managers. She is currently an adjunct professor at Suffolk University teaching undergraduate students Leadership & Social Responsibility. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including the Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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