Transcript Slide 1

Building a Better Business
Best Practices for Practice Management
Tim Highland, Business Development Director
This material is for financial representative
use only and not for distribution to current
or potential investors.
July 19, 2006
Legal Disclosures
The content of this material is intended for use by advisors. You should check with
your firm to determine whether or not you are appropriately licensed/credentialed to
engage in the activities discussed.
Russell Investment Group is a Washington, USA corporation, which operates
through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life
Insurance Company.
Copyright© Russell Investment Group 2006. All rights reserved.
Securities distributed through Russell Fund Distributors, Inc. member NASD,
part of Russell Investment Group.
First used: July 2006
RFD 06-5391
Financial Professional Use Only
How Fast Can You Grow in 14 Months?
Actual FR Production
8/2004
10/2005
Clients
750
300
AUM
$110 M
$165 M
Gross Revenue
$650,000
$775,000
Revenue/Client
$866
$2,583
These numbers represent results by an FR who attended High
Speed Strategic Planning and put the ideas into practice. Your
results may vary.
Financial Professional Use Only
How Fast Can You Grow in 20 Months?
Actual FR Production
8/2003
4/2005
Clients
190
166
Gross Revenue
$508,630
$1,423,707
Revenue/Client
$2,677
$8,577
These numbers represent results by an FR who attended High
Speed Strategic Planning and put the ideas into practice. Your
results may vary.
Financial Professional Use Only
Russell’s approach to Practice
Management
Purpose & Guiding Principles
Mission and Goal Setting
Marketing
Strategies
Sales
Strategies
Service
Strategies
Organizational
Strategies
Strategic
Focus
Fact Finding
SPIN
Client Engagement
Road Map
Value Proposition
& One-Pager
Tracking Verifiable
Outcomes (Rline)
“WOW” Quarterly
Reviews
Service Teams
Functional Org
Chart
Organizational
Efficiency
Viral Marketing
Leveraging Your
Existing Client Base
Defining Service
Models
Effective
Compensation
Customer
Satisfaction
Business Benchmarking & Client Analysis (Rplan)
Strategic Analysis – “IDA”
Financial Professional Use Only
Laying the groundwork
 Gain Insight
 Make Decisions
 Take Action
Financial Professional Use Only
Ineffective Habit:
Cast a broader net to catch more clients.
 You catch a lot of snails, slugs, garfish
and a lot of suckerfish fish
 It prevents you from becoming a
specialist
 This spray and pray approach prevents
effective viral marketing
Financial Professional Use Only
Create a Community Via
Your Strategic Focus
Client Segment
Opportunities
Geographic
Opportunities
Product/Service
Opportunities
Referral Source
Opportunities
Financial Professional Use Only
Strategic Focus
 Cornerstone to your marketing effort
 Use the “common sense” principle
 The tighter the focus, the more appetizing the
opportunities (outside your focus) must be.
Financial Professional Use Only
Ineffective Habit :
The best way to drive client satisfaction and retention is
as a fee-based Investment Counselor.



Too much of the perceived value is based on the
performance of a client’s portfolio
An Investment Counselor is viewed as a next
generation stock broker (new age stock jockey) –
one that is more objective but lacks the valueadd to justify a fee over time
Clients expect an Investment Counselor to
respond to short-term performance
Financial Professional Use Only
Consider the role of a Wealth Manager



Gives you the differentiation to build a value
proposition that rises above the noise of the
investment marketplace
Puts you in a position to do higher order work
with clients
Your clients’ cost benefit analysis = client
retention
 Cost of acquisition
 Life-time revenue value
 Life-time referral value
Financial Professional Use Only
Client
Needs
Wealth Manager
12
Financial
FinancialRepresentative
Professional Use
UseOnly
Only
Develop a service model that ROCKS!




Implement the Client Engagement Road Map
Do good work for your clients and remind them
of it
Play the role of the Wealth Manager
Put the “WOW” in your business
Financial Professional Use Only
2nd Quarter
• Goals Review
• Roadmap
• Retirement Planning
• Investment Planning
• ED: Lifeboat Drill
1st Quarter
• Data Gathering
• Financial Goals
• Risk Tolerance
• Long-range plan
• ED: Diversification
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Survivor Income
• ED: Long-term View
Year 1
4th Quarter
• Goals Review
• Roadmap
• Tax Strategy Review
• Family Meeting
• ED: Legacy Planning
Roadmap
for
Mr. & Ms. Client
Year 2
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Long-term Care
• ED: Alt. Asset Classes
Financial Professional Use Only
4th Quarter
• Goals Review
• Roadmap
• Investment Review
• Estate Planning
• Client Satisfaction
1st Quarter
• Goals Review
• Roadmap
• Investment Review
• Education Planning
• ED: Equities
2nd Quarter
• Goals Review
• Roadmap
• Investment Review
• Disability Income
• ED: Fixed Income
2nd Quarter
• Goals Review
• Roadmap
• Retirement Planning
• Investment Planning
• ED: Lifeboat Drill
1st Quarter
Data Gathering
Financial Goals
Risk Tolerance
Long-range plan
ED: Diversification
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Survivor Income
• ED: Long-term View
Year 1
4th Quarter
• Goals Review
• Roadmap
• Tax Strategy Review
• Family Meeting
• ED: Legacy Planning
Roadmap
for
Mr. & Ms. Client
Year 2
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Long-term Care
• ED: Alt. Asset Classes
Financial Professional Use Only
4th Quarter
• Goals Review
• Roadmap
• Investment Review
• Estate Planning
• Client Satisfaction
1st Quarter
• Goals Review
• Roadmap
• Investment Review
• Education Planning
• ED: Equities
2nd Quarter
• Goals Review
• Roadmap
• Investment Review
• Disability Income
• ED: Fixed Income
2nd Quarter
Goals Review
Roadmap
Retirement Planning
Investment Planning
ED: Lifeboat Drill
1st Quarter
Data Gathering
Financial Goals
Risk Tolerance
Long-range plan
ED: Diversification
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Survivor Income
• ED: Long-term View
Year 1
4th Quarter
• Goals Review
• Roadmap
• Tax Strategy Review
• Family Meeting
• ED: Legacy Planning
Roadmap
for
Mr. & Ms. Client
Year 2
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Long-term Care
• ED: Alt. Asset Classes
Financial Professional Use Only
4th Quarter
• Goals Review
• Roadmap
• Investment Review
• Estate Planning
• Client Satisfaction
1st Quarter
• Goals Review
• Roadmap
• Investment Review
• Education Planning
• ED: Equities
2nd Quarter
• Goals Review
• Roadmap
• Investment Review
• Disability Income
• ED: Fixed Income
Now Really Give Them Something
to Talk About!
The WOW Factor!
Karl Albrecht
The Only Thing
That Matters
Financial Professional Use Only
Consider being the quarterback of a best-of-kind
team!


Outsource when you do not provide unique
value-add
Outsource when external expertise and/or
scale supports customer satisfaction and/or
profitability
Visible to Clients
 Estate attorney
 Tax attorney
 Accountant
 Insurance Agent
Transparent to Clients
 Performance Reporting
 Accounting
 Compliance
 Billing
 Manager selection
Financial Professional Use Only
Ineffective Habit :
Direct marketing is an effective way to reach
prospects



This is not how the vast majority of profitable
clients make decisions about selecting an
advisor
Direct marketing efforts tend to stroke your ego
and cause you to kid yourself about results and
ROI
You do not have enough marketing spend to
have any impact on demand generation
Financial Professional Use Only
ABC Viral Marketing
Asset
Gatherer
Backer
Profitable
Clients
Financial Professional Use Only
Existing Clients
&
Centers of Influence
Creating a COI Backer
1.
2.
Data mine existing target clients for pockets of
centers of influence
Brown Bag



3.
4.
5.
Listen-Listen-Listen
Present the One-Pager
Repeat – out of sight, out of mind
Mutual clients engage COI
Referral
Wow the referral and more will come
Financial Professional Use Only
Create a Value Proposition in the form of
a One-Pager
Value Statement:

Help successful executives create, protect, and preserve multigenerational wealth.
Proof Points:



Forty-five years of successful professional relationships
Relentless commitment to excellence and integrity as guiding principles
Ongoing pursuit of professional competence (CLU, ChFC, CFP)
How we deliver these results:



Provide customized Client Engagement Roadmap that crystallizes
expectations
Provide solutions via QB of best-of-kind providers in area
Leverage Russell’s investment manager research to implement
diversified portfolios
Strategic Focus:




Client Focus: Corporate Executives
Service Focus: Wealth Management
Geographic Focus: Greater Seattle area
Referral Source Focus: Current Clients & Estate Planning Attorneys
Financial Professional Use Only
2nd Quarter
Goals Review
Roadmap
Retirement Planning
Investment Planning
ED: Lifeboat Drill
1st Quarter
Data Gathering
Financial Goals
Risk Tolerance
Long-range plan
ED: Diversification
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Survivor Income
• ED: Long-term View
Year 1
4th Quarter
• Goals Review
• Roadmap
• Tax Strategy Review
• Family Meeting
• ED: Legacy Planning
Roadmap
for
Mr. & Ms. Client
Year 2
3rd Quarter
• Goals Review
• Roadmap
• Investment Review
• Long-term Care
• ED: Alt. Asset Classes
Financial Professional Use Only
4th Quarter
• Goals Review
• Roadmap
• Investment Review
• Estate Planning
• Client Satisfaction
1st Quarter
• Goals Review
• Roadmap
• Investment Review
• Education Planning
• ED: Equities
2nd Quarter
• Goals Review
• Roadmap
• Investment Review
• Disability Income
• ED: Fixed Income
Consider a Team Approach
Financial Advisor
Senior Client Manager
Senior Client Manager
Asset Gather
Manages clients roadmap
Manages clients roadmap
- Initial Meeting
Day to Day Client Contact
Day to Day Client Contact
- Fact Finder
Quarterly Reviews
Quarterly Reviews
- Proposal
- Agenda for meetings
- Agenda for meetings
The Plan for each client
- Supporting Documents
- Supporting Documents
Investment Philosophy
Group Plan Meetings
Group Plan Meetings
Office – Bills, Payroll, etc.
In Force Marketing
In Force Marketing
Opportunity Identification
-Term Conversions
-Term Conversions
-LTC
-LTC
Russell Proposals-PSD
Russell Proposals-PSD
Investment Policy/Allocation
Investment Policy/Allocation
Analysis
Analysis
Long Range Planning
Long Range Planning
Implementation of Invest
Strategies
Implementation of Invest
Strategies
PPA/NaviPlan
PPA/NaviPlan
PSD
PSD
Financial Professional Use Only
Operations Manager
Junior Client Manager
Junior Client Manger
Oversee
New Insurance Policies
New Insurance Policies
- New Accounts
- Schedule Exams
- Schedule Exams
- Transfers
- Follow up on AP
- Follow up on AP
Trades, Qtrly Rebalancing
- Past Due Letters
- Past Due Letters
Ops Problems & Issues
- Track Underwriting
- Track Underwriting
- Transfers
- Split Dollar
- Split Dollar
- Cost Basis (splits, mergers)
- Illustrations
- Illustrations
- Decedent Issues
New Investment Accounts
New Investment Accounts
- Etc.
Review, fill out & submit apps
Review, fill out & subm apps
Business Reports
- Transfers-Submit, Track, Verify
- Transfers-Subm, Track, Verify
Transition plan
- Cost Basis
- Cost Basis
PPA data entry
- Trade Confirmation
- Trade Confirmation
Special Projects
- Acct Maint-PIPS, DIST, Wires,etc
- Acct Maint-PIPS, DIST, Wires,etc
Payroll
Client Qtrly Report prep
Client Qtrly Report prep
Computer Conv., Issues, etc.
Phone
Phone
Filing
Filing
Schedule Appointments
Schedule Appointments
Office Hospitality
Order Office Supplies
Document Handling
Dictation/Typing
Licensing
Document Handling
Financial Professional Use Only
Ineffective Habit :
Sales activities drive sales


Being busy and productive are two different things
It can lead to becoming a professional visitor
Financial Professional Use Only
Focus on Verifiable Outcomes
1 Qualified Prospects
2 Fact Finder
3 Light Weight Planning
4 Comprehensive Solution
$
5 Signed Documents
Financial Professional Use Only
Track verifiable
outcomes!
Track Status:
On Track
Slowing
Stalled
Closed Sale
Financial Professional Use Only
Resources
Financial Professional Use Only
Ralph Waldo Emerson
Good thoughts are no better than
good dreams, unless they be
executed.
Financial Professional Use Only
Auckland Chicago London Melbourne New York San Francisco Sydney Tacoma Tokyo Toronto
www.russell.com
Financial Professional Use Only