Practice management: making your advisers champions

One of the most critical challenges in running a profitable financialplanning practice is finding people with the right skill set and clientfacing experience who can hit the ground running, converting prospectsand generating profit straight away.

However, with a skill shortage currently being experienced in ourindustry, finding these ‘skilled’ advisers is hard.There are many new advisers who have completed their mandatorytechnical training and have all the bells and whistles on paper,however they are unable to convert prospects to clients due to a lackof experience.

These new advisers are often technically sound and have a heightenedsense of compliance and fantastic product knowledge, however they areunable to really connect with and convert prospective clients when putin front of them. You might argue that it takes many years as anadviser to gain the intricate knowledge of client psychology andbehaviours that generate a high success rate in winning over andestablishing long-term relationships with clients and that it is notpossible to inject 10 years of client facing experience into a newadviser overnight. Or is it?

It is the speedy transfer of skills and experience to new advisers thatis one of the keys in running a profitable practice.

With a constant need to stay competitive in these times of change andturbulence in the markets, many practices value one-on-one coaching asa way to help their new advisers develop communication and clientengagement skills faster, as well as assisting their more experiencedadvisers to improve their performance and profitability.

As a new adviser today, you don’t have to wait three yearsbefore actually acquiring three years’ worth of client facingexperience. You can often pick up the same level of skills andexperience in three months by having one-on-one coaching and specificfeedback. Coaching speeds up the on-the-job learning process and savespractices time in training and up skilling new advisers.

An increasing number of financial planning practices are looking beyondthe traditional way of up skilling their new advisers through workshopsand traditional training, which are costly and take up too muchvaluable time, and seeking a more focused approach to developing theiradviser’s potential using the services of a coach for drivingeach individual towards their personal best.

Instead of new advisers relying on trial and error to develop andadjust their client engagement strategies, which may take many months,they can use the services of a coach to get immediate feedback andidentify exactly how to overcome any behavioural gaps or blockages thatmay be holding them back and affecting their performance. This is afocused approach and works well, as each individual is different andhas their strengths and challenges to overcome. Using this tailoredapproach for the individual adviser through coaching on the job allowschange and improvement to take place much quicker and reduces downtime,as the adviser does not have to be away from the office for longperiods of time

What is coaching?

Coaching is recognised today as the leading technique for performanceimprovement and development of people’s potential, whether itis on a personal or professional level.

The word ‘coaching’ simply means transferring aperson from where they are now in their current situation to where theydesire to be. Coaching is conversational and may range from a singlesession that may be 20 minutes long to a number of sessions run over anumber of months depending on the complexity of the change required.The conversation is structured and goal oriented, which allows thecoach and individual to remain focused and effective.

A coach examines and builds the bridge between where an adviser is andwhere they want to be as a professional. This may be related toimproving conversion rates, running a smoother practice, managing staffbetter or simply getting a better balance between the personal life andprofessional life.

The most recognised form of coaching comes from the sporting world,having evolved over thousands of years. There may be a contradiction inhaving someone who can’t do what you can as well as you canhelping you to improve. A tennis coach can’t playprofessional tennis as well as the world’s number one tennisplayer can, yet the coach plays a vital role in improving the tennisplayer’s game.

Coaching is about supporting the implementation of new behaviour thatis necessary for the adviser to become more successful in their role.Coaching is about providing advisers with the tools and the‘how to’ knowledge to reach their full potential.An adviser may know that they have an issue or problem with the waythey are engaging their clients, but they may not be able to identifyexactly ‘how to’ fix this. Using a coach toidentify the gaps and come up with specific options to improve and geta real focus on what the desired outcome is allows advisers to come upwith the ‘how to’ a lot quicker than if they weretrying to work it out on their own.

Coaching is not the same as counselling or therapy. Coaching is allabout developing the individual’s potential and improvingtheir performance by looking into the future to envisage their desiredstate and not at the past performance or behaviour as counselling does.Seeing a coach is not indicative of a performance problem. More oftenthan not, it is high-potential individuals and practices that want toimprove their profitability and performance by making an investment intheir people that seek out coaching.

Effective one-on-one coaching of individuals in a practice is a majorkey to improving practice performance and the practice’sbottom line. This is a highly tailored approach and allows the practiceto focus on improving each individual in areas they need it the most. Asurvey by the International Personal Management Association (IPMA)conducted in 2004 that looked at the return on investment (ROI) ofcoaching versus training showed that training on its own can improveperformance by 22 per cent. Coaching can improve performance by 55 percent. And training accompanied by coaching can improve performance by88 per cent. Coaching focuses on the qualities of each individual anduses modelling to assist the individual to improve their performanceand therefore is a more focused way of investing in theindividual’s professional development, giving much higherprofitability results and ROI.

Most advisers work with a coach for the same reasons they might seek apersonal fitness coach: they want to improve their performance. A coachcan help you develop an agenda that focuses on building your strengthsand sharpening your skills to shore up areas that need improvement.Performance coaching is an individualised but collaborative processthat has time limits and focused goals. It’s designed to helpyou solve problems, increase your strategic thinking, improve yourcommunication skills, create a politically savvy, positive self-imageand develop ongoing career goals. Like its sports metaphor, businesscoaching is results oriented — there are systems ofaccountability incorporated into the process to move you forward ordeepen your insights. And because you are accountable to your coach,you are more likely to implement new behaviour and therefore experiencemore rapid change and improvement.

The role of your coach

Your coach is your partner. They are not your mentor or manager.Coaching is partnering with clients in a thought provoking and creativeprocess that inspires them to maximise their personal and professionalpotential. The ongoing partnership creates a safe environment for theclient to grow.

Coaches are trained to listen, observe and customise their approach toindividual client needs. They seek to elicit solutions and strategiesfrom the client; they believe the client is naturally creative andresourceful. The coach’s job is to provide support to enhancethe skills, resources, and creativity that the client already has.

Coaches are different to managers. Managers focus on higher order taskssuch as day-to-day operations and planning ahead for the business andthe team. The coach’s role is to help people ‘getabove’ what they are doing and see things from a differentvantage point.

Coaches tend to work at a more personal level than managers as well.The coach’s role is to help someone develop the habits theyneed to be successful; personal habits such as how we think,communicate, act, plan, behave, organise, and so on. The coach workswith the individual and their attitude, their approach, and theirthinking. These are more personal things than most managers tend tohave permission to work on with people.

How does coaching work?

Coaching is a process that can be broken down into three stages thatallow advisers to explore, engage, and excel through any challenges toachieve their goals to improve performance.

Coaching is usually a conversation between the coach and the adviserthat can be conducted on the telephone or as a face-to-face meeting.

The first stage of coaching or the ‘explore’ phaseis the start of the coaching process. Here the coach and adviser startgetting to know each other and get familiar with the issue or challengeat hand that will be the focus of the coaching session. Before thefirst coaching session the adviser would complete an inventory of wherethey are at currently. This inventory can be in the form of aquestionnaire designed by the coach that the adviser completes beforethe initial meeting. In this ‘explore’ phase, thecoach needs to get a good understanding of the adviser’scurrent situation. It also allows the coach to get a very goodunderstanding of the background and situation related to the issue orgoal to be worked on.

Once the inventory is complete, the coach and adviser continue the‘explore’ phase by then having a discussion aboutthe adviser’s desired outcome or goals. Through conversationand by asking in-depth questions, the coach will clarify what theadviser’s desired goal or objective is. It is the quality ofthe coach’s questions that allows the adviser to clarify whattheir desired outcome is. The coach may even get the adviser tovisualise their desired outcome and to see things as they would be oncethe goal has been achieved. This allows both the adviser and the coachto get a clear picture of where they are headed. This is importantbecause without the ‘what’, it is impossible forthe coach to facilitate the ‘how’ or facilitate thechanges that will clarify the stepping-stones to theadviser’s desired outcome.

Coaching is only effective if the person being coached sees thepersonal value in it and is committed to making a behavioural change.

The purpose of the ‘explore’ phase is to alsodetermine the adviser’s readiness and commitment to changeand to identify emotional intelligence strengths and developmentalareas that would enhance his or her personal and professionaleffectiveness.

Advisers who succeed the most utilising coaching have the followingcharacteristics:

• they are highly motivated tomaximise their full potential;
• they are open and honestwith themselves and the executive coach;
• they realise that if theywant different results they need to do things differently;
• they are open to learning abetter way — often tapping into their own inner resources; and
• they are enthusiastic aboutmaking a commitment of time and money and follow through with actions.

Once the coach has a clear idea of where the adviser is and where theydesire to be, the coach assists the adviser in prioritising their goals(if there is more than one) and deciding what the most pressing goal totackle is. This takes the coaching process to its second phase, the‘engage’ phase.

Because coaches adopt the principle that the person being coached knowsmore about their own situation than the coach does, they engage withthe adviser and facilitate the conversation so that the individual cancome up with their own solutions to the challenge at hand. This is amajor difference between coaching and managing/mentoring. The coachbelieves in the ability of the individual adviser to create insightsand ideas needed to move the situation forward. The task of the coachis to use the advanced skills of listening, questioning and reflectingto create a highly effective conversation and experience for theindividual and ‘engage’ them in the process andfacilitate solutions or options for change and moving forward.

By engaging the adviser in creating their own solutions, the coachallows the adviser to develop the best options for their situation tomove forward. Of course, the coach can guide the adviser and assistwith the brainstorming of ideas. The coach can also point outbehaviours that need to change, which is crucial in moving thesituation forward to achieve the chosen goal.

As part of the ‘engage’ phase, the coach alsoassists the adviser to develop an action plan for a self-directedchange process. This action plan then becomes the guidelines tailoredfor the adviser in moving forward. True behavioural change happens whenthe desired change helps people achieve personal goals in addition tothe business’ goals. Giving advisers the freedom to developtheir own action plan motivates them to focus on and takeresponsibility for addressing real life, heartfelt issues and allowsfor immediate application of the coaching received.

The confidential nature of the coaching, coupled with the freedom toshape the outcome of their experiences, allows participants to exploreareas of vulnerability in a non threatening, mutually respectful, andsupportive environment.

The ‘excel’ phase or the third phase of thecoaching process focuses on the individual successfully achieving theiroutcome as a result of the coaching conversation. This outcome may be anew self-awareness of the situation, options created for moving forwardwhen there were none previously, or a solution to a challengingsituation that may not have been obvious before.

Self-awareness is an important part of this third phase. Self-awarenessafter all is the cornerstone of emotional intelligence. It also iscentral to improving our sense of well being, especially in turbulenttimes. An accurate self-assessment of our current behaviour is neededto determine precisely what we need to do differently to meet ourgoals.

In the ‘excel’ phase, ongoing support is vital toachieving true change. Developing the adviser’sself-awareness and assisting them in achieving new results meanschanging some ingrained behavioural patterns. Changing deep-seatedhabitual behaviours takes commitment, practice, and feedback, and thesesteps take time and support. This is where the adviser staysaccountable to the coach and stays open to ongoing feedback.

The ‘excel’ phase involves providing ongoingfeedback on goals, giving relapse prevention support, doing follow-upcoaching, facilitating workplace interactions such as sitting in onadviser client meetings (if client engagement is the goal), andensuring that the individuals remain focused and motivated. The coachcan also offer advisers tailored exercises, resource materials, andother tools to support the goals of their action plan.

The ultimate goal of the coaching is to achieve behavioural change. Thefocus of the ‘excel’ phase is also to measure, inthe context of the personal goals that have been established, to whatextent they have been achieved and have improved individual performanceand overall practice profitability. To assess progress, the advisersmight meet with the coach three to six months after the coaching hasended. In addition, tools such as follow-up 360-degree assessmentinterviews can be held to determine the impact of the coaching on theparticipant’s performance and on those he or she works with.

How does coaching help

Coaching helps by developing emotionally intelligent advisers. Researchshows that the key indicator of failure for new advisers in their firstfew years is their inability to develop empathy with the client due toa lack of emotional intelligence.

In today’s market climate and with clients becoming savvier,advisers no longer can rely solely on their technical and intellectualcompetence to distinguish themselves and their practice. Compellingresearch compiled in 2006 by the Consortium for Research on EmotionalIntelligence in Organisations (CREIO) confirmed what most advisers knowintuitively but have not articulated clearly until recently: foroutstanding performance as an adviser, emotional intelligence is moreimportant than intelligence quotient (IQ) and technical skill.

Emotional intelligence is the capacity to understand, value, and wiselymanage our emotions in relationship to others and ourselves. Emotionalintelligence and IQ are distinct yet complementary forms of our overallintelligence. While people need a certain baseline of IQ to performwell in their work and in life, emotional intelligence is whatdifferentiates outstanding advisers from the average ones.

Coaching as an investment— your ROI

When a your practice makes a capital expenditure, it typically expectsa return on that capital. This return on capital is also known as aROI. Coaching is a capital expenditure. This expenditure should produceresults and these results should be quantitative and qualitative. Thismay seem difficult at first, but with a little creativity it ispossible.

If you’re potential or even existing coach cannot demonstrateROI, then find another coach who can. Do not believe any executivecoach or business coach who tells you that determining potential ROI isnot possible.

The basic equation to use is shown in equation 1.

Example: Coaching that results in increasing an adviser’sconversion rates with prospects from three in 10 to six in 10 willresult in a 50 per cent increase in conversion rates.

If each client converted is worth $10,000 per annum and the cost ofcoaching is $1,500 for the sessions required to increase thisconversion rate, then:

The formula is shown in equation 2.

Tips for choosing a coach

#1 Check out their credentialsand establish their level and depth of experience

It’s quite easy these days to position oneself as an expert,consultant or coach of this, that or the other and start charging moneyfor knowledge that someone has essentially learned from a book or byreading blogs/reports and articles without actually having put thatknowledge into practice.

Since coaching is a new profession and certification and licensing arenot yet required in most countries, there are many individuals who arecalling themselves coaches today. Many who call themselves coaches havenot been formally trained in specific coaching skills and aretransferring skill sets from other professions into their coaching.Often this results in an inadequate or ineffective coaching experiencefor clients.

Certification from the International Coach Federation (ICF) isextremely important when considering which coach to hire. It means thecoach:

• has received professionaltraining from a program specifically designed to teach coaching skillsin alignment with the ICF Competencies and Code of Ethics;
• has demonstrated aproficient understanding and use of the coaching competencies asoutlined by the ICF; and
• is accountable to the ethicsand standards set forth by the ICF — there are three levelsof coaching credentials from the ICF.

The ICF is a consortium of professional coaches and organisations thathave joined together under its auspices to shape and govern theprofession of coaching. The skills sets, competencies, ethics andstandards are a collective agreement between coaches from all over theworld who have made the commitment to maintain the very higheststandards you would expect from any other profession.

If you are considering hiring a coach, be diligent in asking the coachif they have been specifically trained in coaching skills and currentlyhold or are in the process of acquiring ICF credentials.Don’t be misled into thinking a coach is competent becausethey have other professional credentials or set high fees. Ifyou’re hiring a business coach for you or your financialplanning practice, you might want to check that they’ve gotthe relevant industry experience or have depth of experience in thespecific function/area you’re struggling with. Does the coachhave more than a few months of experience to fall back on? Have theyexperienced the things you want guidance on? A general business coachmay not know the critical points in running a financial planningbusiness or be familiar with the financial planning process, so makesure that you choose a coach that can understand you and your businessor, better still, has been in your shoes before.

#2 Do they walk the walk?

On a similar note, you might also want to check that the coach you areconsidering hiring walks the walk as well as talks the talk.

If you’re hiring a coach for your financial planning practiceor for individual advisers in your practice, it would be wise to findout what the coach’s personal experience and professionalexperience is of financial planning. Find out about the extent of theirknowledge and experience. Do they have a coaching practice that justfocuses on financial planning and financial services or are they ageneralist in the clients that they serve? Are they successful in theirown business and have satisfied clients who have achieved results? Dothey have a good track record and testimonials they can share? Are theyaccredited formally as a coach? What type of professional training andcertification do they hold?

#3 Does their style suit yourstyle?

In a one-on-one relationship with a coach, you need to figure outwhether their coaching/facilitation style suits your learning style.

Does the coach have the same values as you? Do they place importance onsimilar ways of being? Does their working style suit yours?

#4 Check out testimonials,references and websites

While information disclosed to the coach during coaching isconfidential, many clients are so pleased with the results of coachingthat they happily provide testimonial letters or references forpotential new clients of their coach. Some coaching websites orpublications contain testimonials, case studies of coaching results,useful tips relating to the coach’s expertise, or a littlepersonal background information to give you a sense of who the coach is.

#5 Ask questions

Don’t be afraid to ask whatever you want to know. What arethe coach’s fees? What happens when you need to cancel anappointment? What kind of intake session does the coach usually do?What is the charge for the intake? Does the coach use assessmentinstruments? Is their coaching style directive or supportive andexploratory? How long do clients usually maintain an active coachingrelationship? Is there flexibility in the structure of theappointments? Does the coach prefer in-person or telephone sessions?Does the coach offer workshops or training in addition to the coaching?What about e-mails or emergency calls between sessions?

#6 Compare thecoach’s credentials, life experience and expertise with thoseof other coaches

A number of websites contain listings of coaches or otherwise providethumbnail sketches of the experience, credentials, philosophy,specialty and personality of various coaches. The listing may includethe coach’s fee range or a link to the coach’swebsite for additional information. Many of the coaching organisationshave referral sections on their website. A good website where you canget some details on a lot of coaches in one sitting is:www.icfaustralasia.com/FindACoach.php.

#7 Try some sample sessions

The ultimate test of whether the coach is right for you is yourexperience with that coach. Many coaches offer a free sample session.When you narrow the possibilities down to your shortlist of coachingcandidates, ask for a sample session. By doing a little homework andhaving a test run, you will be well on your way to the coaching that isright for you!

Leyla Banaei is a professional coach and the founder of AdviserQuest,which is dedicated to coaching and training financial planningprofessionals ( www.adviserquest.com ).