Practice principals can't be complacent in 2013
With regulatory changes and increased professionalism set to dominate 2013, "doing nothing is not an option" for practice principals, according to Seaview Consulting director David Fotheringham.
Financial services practice principals are faced with the stark choice of either exiting the industry or "fac[ing] the challenges and get[ing] on with the job", he said.
"History is littered with examples of previously successful businesses that resisted change and failed to adapt their businesses," Fotheringham said.
Up-to-date and accurate reporting is vital for planning practices in the new environment - and all performance reporting should be available no later than 10 business days after the end of the month, he said.
There should also be a clear understanding of the cost to the business of delivering services - and that effort and cost should be clearly articulated to the client, Fotheringham said.
"Without a thorough understanding of the process to deliver services there is limited scope for identifying areas for improvement," he said.
In addition, there should be close contact between the administration side of the business and the client, Fotheringham said.
"Refocus staff's efforts onto activities that impact the client, consider tracking the time to complete specific activities in order to monitor efficiencies, and identify causes of delays," he said.
Fotheringham also recommended keeping wage bills down by utilising shared labour costs, such as: receptions with co-tenants, virtual personal assistants, or paying employees for outcomes and results.
"Look to support growth through utilising services on a 'completed task' basis rather than fixed salary," he said.
When it comes to the planners within a business, they should be regularly converting prospects into clients, Fotheringham said.
"A general rule of thumb is one new client every two weeks per adviser," he said.
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