Well-run advisory practices have job descriptions for key roles, from planners to administrators to client service. But here’s a description that I bet few firms have yet to fill.
Most of you know that I publish 16-20 pages every month in my Inside Information newsletter, reporting on topics that you will not find anywhere else (Recent examples: a detailed report on the many problems and glitches that TDA advisors were experiencing from the Schwab conversion; how one firm has found an entirely different way to provide a greatly enhanced client experience; the disturbing new trend of PE-backed (large) RIA firms outbidding the successors even with firms that have a viable succession plan in place). In addition, every month I summarize the best articles from Advisor Perspectives, Michael Kitces’ Nerd’s Eye View, and two industry magazines, which are all free without a “paywall.”
There is a constant stream of great information in all those sources (including mine) passing across your desk/screen which, if an RIA firm were to keep up with it, would greatly enhance client service, internal management, processes, marketing efforts and (as I recently wrote) the ”close” rate of prospects. But for most advisory firms, it is a wasted resource. The flow passes unnoticed, unread, and therefore the many potential benefits are never realized.
The most transformative step any RIA firm could take, starting tomorrow if not sooner, is to systematically collect all the great advice and ideas from the best columnists and information sources, and meet with your team to discuss the highlights on a regular basis.
But I often hear from advisors who say: I just don’t have time to read everything.
Of course, you don’t. You’re busy. I get that.
In years past, when someone gave me that (valid) excuse, I would shrug my shoulders and go back to providing an unfair informational advantage to those who did, in fact, find the time to read my materials. I know some advisors who go halfway; they collect this great information randomly, coming to Advisor Perspectives periodically and browsing to see what interests them, thumbing through the industry publications when there’s a free moment. But there’s nothing systematic or thorough, and most of the valuable information goes unread and, most importantly, un-acted on or un-considered.
Finally, somebody came to me and said, at our recent conference (this is literally verbatim): “I’ve heard great things about your publication, and the one issue I read was fantastic. I really wish I could read more widely yours and other publications, but I just can’t fit it into my day. So, tell me, Bob," he said: "What would you do if you didn’t have the time to read everything?’”
And suddenly, out of my mouth (Who knows where these things come from?) I discovered that I was offering him a workable solution.
I told him (and now I’m telling you) that the best way to harvest and digest and use all the great information that is available on this platform and elsewhere is to have a designated ”gatherer of information” on staff.
“You’re obviously the wrong person to be reading all these things yourself,” I told the advisor, who happens to be an older founder of a successful firm. “You’re too busy doing other things. But what if you had somebody on staff who was tasked with keeping up with the information flow. Somebody who enjoys reading, who would quickly pick up on which voices and sources are helpful [even if he/she didn’t lean on my reviews to help with this], who would periodically report back in senior staff meetings some of the things he or she found that would move the firm forward in all these areas.”
Suddenly, this amazing flow of information, this wasted resource, would become not just available, but actionable in a systematic way.
So (to take a random example from my own Inside Information service), he/she would read an article about a new software program that takes an entirely different perspective on comprehensive wealth management, whose calculations, methodology and output makes the traditional planning software look like a simple, glorified spreadsheet. Wouldn’t that be something to investigate?
Or the idea that the industry-standard 33% ”close” ratio can be raised to 73% with one simple change in the prospect meeting? Or the powerful ”staff first” mindset that an advisory firm has instituted, that is decisively winning the recruiting wars and supercharging the capabilities and skills development of its key team members?
Or (to pull from Advisor Perspectives) an advisor’s simple methodology for engaging a prospect’s rational, logical brain, bypassing the emotional part of the brain that typically makes decisions?
Or (to pull from Nerd’s Eye View) how to recognize when clients are tentatively, sometimes fearfully, disclosing things they really want out of life, and asking their advisor’s permission to pursue them even if those things don’t strictly make financial sense?
There is a lot of great information being published for the advisor community, and most firms aren’t close to taking advantage of it. Many senior advisors and founders have given up because they have so many other things on their plate.
Having a designated staff member systematically stay on top of the best ideas and innovations and advice pouring out of mine and other publications would bring enormous benefits to the firm, its staff and clients.
And… I’m guessing that if you’re reading this, you might be the right person to volunteer for this important, transformative duty at your firm.
Bob Veres' Inside Information service is the best practice management, marketing, client service resource for financial services professionals. Check out his blog at: www.bobveres.com.
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out our most recent white papers.
Read more articles by Bob Veres
Well-run advisory practices have job descriptions for key roles, from planners to administrators to client service. But here’s a description that I bet few firms have yet to fill.
