Ensuring a smooth tech implementation for AFSLs

Licensees need to consider “what’s the cost of not doing anything” when it comes to balancing the need for new technology in their practice, as well as assign an ultimate owner to take control of the transition.

Speaking on a Money Management webinar, Stuart Alsop from intelliflo and Lanie Worsley from Morningstar discussed the benefits of adding technology to a licensee and the benefits it could bring. 

Director of sales at intelliflo Alsop said: “When you’re looking at a licensee level, if you want to make a change, what’s the cost of doing nothing? When you’re thinking about technology, it is a big investment and big change for any business, regardless of their size, but there are businesses who are very well-versed in carrying this out. 

“If you aren’t happy with the results that you’re getting, with the solutions you have, and you want to make that change but there are barriers to entry or commercial issues, then that’s when you need to think ‘what’s the cost of doing nothing?’

“Write down your must-haves and have a checklist of what you want the technology to offer you. Don’t go into the demonstration blind, look inward at the top five things that you need the technology to offer your firm.”

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Worsley, who is the director of customer success and client solutions at Morningstar, said: “Think about what are you trying to achieve and what is the long-term advantage? Especially if you’re looking at an overhaul, what are the resources you have in place?

“In the past, we have seen migration processes go wrong because there isn’t clear ownership of who does what at the AFSL and at the tech vendor perspective to ensure it is implemented correctly.”

As to who should hold this ownership, Worsley said there are responsibilities for both the AFSL and the tech vendor. 

“Where a licensee is making a decision, there should be an ultimate owner. They don’t need to do all the work, but with a large-scale project, you need to navigate all the moving pieces and the respective expertise within different areas of the business,” she said.

“The tech team might not understand advice delivery or compliance, it can depend on the size of the group whether that’s directed by the AFSL or the practice. As an AFSL, you want a tech vendor that you are confident has your back and has everything covered. As a tech vendor, you want the AFSL to have traction on these projects and be moving forward or projects can blow out and become painful.” 

Alsop added it is important to have a well-thought-out project plan to structure the rollout when it comes to bringing on the technology to its smaller practices within the licensee. 

“The psychology of change management and the emotions people go through in a period of change is really interesting. It starts off in denial that the change is happening and then moves into other emotions to be positive by the end. 

“Our aim is to smooth the curve to provide a ramp for the project which comes from communication and having champions of the technology at the licensee and practice level who are driving adoption of the technology. 

“Bring key stakeholders in the licensee along on the decision-making journey before the solution is picked is important to make them feel valued and will set a business up for a better process when it comes to implementation.”

If a licensee receives negative feedback from their individual practices, Worsley said it is critical for the licensee to explain ‘why’ the technology is implemented and the wider benefits it will bring over the long term. 

Worsley said: “Understand the ‘why’ each practice operates differently even if they are part of a wider group, so understand the needs of the individual and their business, and adapt the training methods to them. If they are still resistant, they might not understand the wider benefits over the long term or the benefit for them.”

To watch the full webinar, click here.