Planners must break bad habits
TYPICAL planning practices are caught in a cycle of continuing to do business in certain ways because they have always been done in that manner, according to BT Funds Management Asset Accumulation head of distribution Chris Freeman.
He says many practices continue with the planner as the head of everything, even when it is not the best strategy for the group.
“Planners should be able to delegate roles. If someone can do the job 70 per cent as well, then it should be passed on. Bear in mind that Frank Sinatra was not paid to move pianos,” Freeman says.
However, he expressed concerns over those businesses that were not identifying these issues and encouraged them to crystallise the management processes in their business through discussions with business coaches, consultants and business development managers.
Freeman also says planners should corporatise their businesses and avoid selling themselves exclusively to clients in the event they can no longer work with them.
“Don’t over-promise and under-deliver but ensure you stay loyal to clients,” Freeman says.
He says part of corporatising a planning business includes segmenting the client base and phasing out those clients who are not benefiting the business.
“Eighty per cent of your business comes from 20 per cent of your clients, so why continue to service the bottom end?” Freeman says.
AUTHOR
Jason Spits
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
