Monthly Archives: October 2011

Knowing is not enough; we must apply. Willing is not enough; we must do

J. W. Von Goethe

Retail Distribution Review – 4 C’s of success: No 3 – Consistency

Written by . Posted on October 26, 2011. Filed under Customers, Financial, Marketing, Proposition, RDR. No comments.

This week I want to explore C number 3 of the 4 C’s of success post RDR, namely Consistency.

I have worked with a number of advisers that simply did not have any predictable level of consistency in the way they deliver advice to new clients. This is often the result of high and potentially unmanageable workloads and the constant pressure to find new clients. Those same businesses often struggle to deliver client reviews on anything like a consistent basis, for exactly the same reasons. Key “moments of truth” and processes that have to be consistently delivered time after time in a successful advisory business include:

  • The initial advice process
  • What is said (promised!) to new clients at the point of advice (sale)
  • How you and all other advisers in the business, articulate who you are, what you do, how you do it and how you get paid
  • Creating a consistent high quality “client experience” rather than one that varies depending on which adviser is assigned to the client (or the day of the week!)
  • The client review meeting, from preparation to follow up actions
  • The adviser charging approach. I have come across businesses where the charges quoted are dependent on the level of confidence of the adviser (see below).
  • Management and “control” of advisers. This is always a difficult area, particularly where advisers are “self employed”, but too many owners seem prepared to let one or two rainmakers weald all the power and “do their own thing”. The question for me is… “Whose business is this?”

Constantly re-inventing the wheel or having limitless variability is a recipe for unnecessary complexity, excessive costs and low profitability, as well as an unsustainable workload!

Success is the ability to go from failure to failure without losing your enthusiasm

Retail Distribution Review – 4 C’s of success: No 2 – Clarity

Written by . Posted on October 19, 2011. Filed under Customers, Marketing, Pricing, Proposition, RDR. No comments.

The second key to success post RDR is Clarity.

Many advisory practices have historically lacked a “laser like” focus on both the type of clients they work with and what they do for them. To succeed in the post RDR environment advisory businesses must have clear strategic and operational plans that have been communicated to all stakeholders. They must also have complete clarity about…

  • Which types of customers they want to work with (and which types you don’t)
  • Which types of client they are able to add the greatest value for
  • What clients can (and can’t) expect from them
  • What they charge for what they do and when in the process they levy those charges
  • Where and how they add value in their client relationships

The commission model has allowed advisers not to have to worry about helping clients to see the value that they add, but post RDR, knowing where your value is, will be fundamental. Is it quantitative (speed, low cost, getting the job done) or qualitative (tailored, quality experience, accessible, responsive)?

Without a sense of urgency, desire loses its value

 

Retail Distribution Review – 4C’s of success: No. 1 – Culture

Written by . Posted on October 12, 2011. Filed under Customers, Marketing, Proposition, RDR. No comments.

In my next 4 blogs I want to outline what I see as the 4 keys to success in the post RDR world. I’ve labelled these the 4 C’s and today I’d like to start with the first of these, namely, Culture.

The single most important factor, in my opinion, is having a culture that is client centred. What do I mean by that? Well it means having amongst your core values the philosophy that, client needs come first. A client centred culture also has the following characteristics:

  • An understanding of which clients are most valuable to the business
  • An understanding of what an “ideal client” looks like for your business
  • A series of client propositions designed specifically with those ideal clients in mind
  • A proposition that is advice and service, not product, driven to underpin the development of long-term client relationships
  • Total focus on client needs and quality of service
  • A corporatised client relationship and collegiate structure where advice is delivered through teams playing to their individual strengths, rather than individuals trying to protect their “ownership” of the client.

For me having a client centred culture is non negotiable. Indeed many of the sector’s historic “mis-selling” scandals are the result of a lack of such a culture amongst some providers (product complexity and opaque charging structures) as well as a small number of advisers. This has undoubtedly changed and the RDR will bring further improvements which will improve client outcomes.

History has demonstrated that the most notable winners usually encountered heartbreaking obstacles before they triumphed

B. C. Forbes

Execution – the key to success

Written by . Posted on October 5, 2011. Filed under Leadership, RDR. No comments.

No, not the death penalty. Not execution in that sense. Execution as in following through, implementing strategy or change initiatives. Sticking to the plan. That execution. As Larry Bossidy and Ram Charan say in their co-authored book – Execution: The Discipline of Getting Things Done, “businesses don’t fail for lack of good ideas; they fail for lack of ability to implement them.”

Poor execution or implementation is almost always the cause of change initiatives which fail to deliver the expected results. Execution is also about more than just implementation. It’s about embedding change, such that it becomes part of business as usual; the way things are done here theses days.

When it comes to implementing change within any business, there are a few “pre requirements” for effective execution, which need to be considered to ensure success.

1.    Clarity

Make sure that there is clarity about what outcomes you want to achieve (e.g vision, goals objectives), what a great result will look like and the extent of everyone’s level of decision making authority, responsibility and accountability.

2.    Capability

Manage the initiative like a project with clear goals, budgets and measures. Apply project management disciplines and make sure you allocate the right jobs to the right people, those with the experience, expertise and personal characteristics that are required. Make sure they’ve also got the tools, time and technology they need to do what needs to be done. If they need training, make sure they get it

3. Communication

Consistent, frequent communication about progress, successes, blockages and barriers will help to keep things on track. Weekly tracking reports focused on the key deliverables will give everyone an early heads up on what’s working and where things are sticky (and why).

But the final and most crucial element is…

4.    Leadership

As well as providing the clarity up front, the senior team (if you are a multi owner- managed business) all need to be on the same page. This means they all need to…

  • Demonstrate unanimity and strong support for the project
  • Show genuine commitment to the change.
  • Model appropriate behaviour (your people are likely to follow what you do rather than what you say).
  • Actively coach and support the execution team (as well as holding them accountable and managing identified risks).
  • Share information, help remove blockages and talk about problems.
  • Commit to regular progress reporting and issue resolution
  • Be responsive and accessible so that the team can refer to someone able to make any decisions that are outside the team’s own level of authority.
  • Show flexibility to cover for each other to allow individuals to focus on the project more directly if required.
  • Willing to provide the required resources to get the job done (time people and money).
Your plan doesn’t have to be perfect, but it does have to be executed!

From “free” to “fee”: Adviser Charging – a crisis of confidence

Written by . Posted on October 3, 2011. Filed under Customers, Proposition, RDR, Webcasts Webinars and Videos. No comments.

In this webcast I share my experiences of working with adviser firms to help them move from “free” to “fee” in readiness for the Retail Distribution Review in just over 15 months time. Essentially the missing ingredient for most advisers is confidence. This webcast session will…

Explore why confidence is the key ingredient
Dispel some common myths about “fees”
Explore the typical “client journey” through your advice process to discover where the real value is
Help you to define your ongoing client relationship and service proposition

A BrightTALK Channel

Charge less, but charge. Otherwise, you will not be taken seriously.

Elizabeth Aston, The True Darcy Spirit 2006