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)?