Attracting Top Talent…Do’s and Don’ts

One of the best sessions at the recent NAPFA National conference was one presented by Janet Briaud, Sarah Buenger & Joe Gonzales.  Much of it is common sense but warrants reminder because it’s easy to get bogged down in other things and forget about your most important asset…your team.

One important point they drove home with which I wholeheartedly agree is the firm with the best talent wins the race!  At the end of the day, this is really what makes the difference to your clients, your revenue and your quality of life.

If you’re in the market for some new talent now, don’t be tempted to underpay because you’ve been told this is an “Employer’s market”.  It is but if you underpay now, they will leave you when the markets turn and someone makes them a better offer (it won’t take much to get there).

Some other items from their presentation:

* Your firm vision should drive your hiring decisions;

* Always develop a description for the position (what are the reponsibilities, what need is this position filling?) before you begin your search;

* Develop an interview guide.  Try and be consistent with the questions you ask each candidate so you can compare apples to apples;

* Check references!

And one courtesy reminder.  Respond to each and every candidate (even if it’s a “template email”) who sends a resume.  Remember, finding a job can be a tough, stressful and demeaning situation. 

They’re out there…now go get them.

Let me know if I can assist.  Ginny

If you say you’re going to do it, then “DO IT”

Risk questionnaires, IPS’, Client contracts…all necessary in a well run RIA.  However, beware…all of these documents “can and will be used against you in a court of law”.

I recently attended the NAPFA pre-conference compliance day which was excellent.  One of the most important takeaways for me was “if you say you’re going to do it, then you MUST do it and DOCUMENT IT CAREFULLY!  It’s not enough to have a conversation with a client, it must be documented.  Best method?  In my opinion, it’s an email follow up.  Emails are archived and will show proof of your conversation.

Tom Giachetti & Bob Veres played out a wonderful and highly enlightening “mock trial” of an advisor who, despite his best efforts to do what is best for his clients, finds himself being sued by a client who claims various omissions by the advisor.  Of course, the advisor cannot document any of these conversations because after all, there is a trust there right?  Your clients would never turn on you because they trust you.

Advisors are sweethearts…everyone knows this. You truly have your client’s best interest at heart and because of this, you sometimes forego the actions that you know are necessary to protect you and your business because after all, you have this great relationship with your clients right?  What could go wrong?

Plenty…as the old adage goes…”you never really know someone until you divorce them”.  The same is true here…you  never know a client until a lawyer gets a hold of them.  In these tumultuous markets, the scene is set for trouble!

Document everything!  When you have meetings with clients, send them a recap of the decisions/discussions by email.  Set your CRM to get a receipt of delivery if it’s available.  Review your client contracts…are you fulfilling your duties.  Review client IPS’ and questionnaires.  If you asked a client “what is the largest lose in their portfolio they could be comfortable with” and they’re below that, meet with them ASAP.  If your client contract calls for certain services to be delivered and they’re not, either get a new contract signed or get the services delivered.

I know your heart is in the right place but unfortunately, I doubt if I’ll be on the jury.

Take care and call or email me with any questions or comments.

A Great Way to Keep Your Batteries Charged!

I’m sitting here in the Reagan-Washington National airport on my way home from the NAPFA 2009 National Conference.

These guys continually out do themselves and this year was no exception.  The pre-conference session on Wednesday was an incredibly helpful (if not extremely eye opening) look at what is on the horizon,compliance wise, for RIA’s.  Some of it will be only minor if noticeable blips, others will be more substantial.  Over the coming week or two, I will do my best to sort it out for you and send it to you via my blog and my emails.  If I don’t have your email address and you’d like to receive my email communications, please send it to me.

The following days and nights were full of great sessions on a wide variety of topics, lots of time to spend with great exhibitors and evenings of socialization with a variety of sub groups of NAPFA.

I know that many of you are viewing these conferences as a luxury expense but I would argue that during these tough times, they are more important than ever.  They allow you to bounce ideas off of your peers, informally benchmark yourself through conversations and recharge your batteries…remind yourself why you have chose this noble profession and that now more than ever, your skills are needed and are in high demand.  NAPFA’s next few conferences are running lean and mean, under $100 for members and under $200 for non-members.  What a great deal!

Many of the speakers suggested you use this period of time to get you processes in place, train on software, systemize as much as you can and in general, get your office in order for the coming days.  Additionally, focus your energies on your current clients, answering their questions, working with them and in general, keeping them happy and content (if not with the markets, with your service level).

If I can assist in any way, please do not hesitate to give me a call.  Thanks!

Mid-year review

Despite the fact that I cannot figure how it is already Memorial Day, it is.  With mid-year quickly approaching, now is a good time to gather your team (or make some time for yourself if you’re solo) and review your strategic plan.  If you don’t have a formal strategic plan (seriously?), then at least sit down and review where you wanted to go this year and how close you are to reaching that point.

If you have made good progress in your goals, congratulations!  You are managing to keep yourself on track and away from most of the day to day distractions.  You have either outsourced well, hired a competent COO or you’re a great time manager.  Great job!

If however, you have not made much progress, now is the time to look at why you have not.

• What is distracting you from your goals?
• Do you have the right staff or outsource partners?
• Are your clients confident in your abilities and not calling all the time?
• Are you a bad time manager?  Do you work from a model day?
• Are you overwhelmed, under served by staff or outsource partners or just generally drowning?

If any of the above described you, I beg you, get a good business coach to help you sort it out and stay focused and on task.  Hire a competent COO to run your business or switch outsource partners if need be. 

I know it sounds painful but in the long run, you will be so glad you did.  Just ask the folks who are “trucking along…”. 

Let me have your thoughts and input on what is dragging you down.

Thanks@

Get it in writing…

I frequently work with clients who tell me they’re having difficulty with their staff.  No one knows who’s supposed to do what, there is frequent redundancy in work, their are clashes among staff over who is supposed to do what.  Does any of this sound familiar?

If it does, my next question would be, do you have Position Statements for each of your staff including you?  If not, this is more than likely the cause of the discourse.

Again, you’ve heard me say this…most of us did not get into business for ourselves to manage folks.  However, if you’re going to have staff, either you’re going to have to do it or you  must hire someone to do it (those of you who know me know I always advocate the latter…a good COO can solve many of these problems).  However, one step you can take without hiring someone is to make sure everyone in your organization has a Position Statement…a document that lays out very carefully what they are specifically responsible for within your organization.  You write it (or hire someone like me to assist you), knock it around with the staff member until its accurate (there are more than likely things they are doing you don’t even realize and others you assume they are doing and they are not) and then you both sign it.  This document then becomes the basis for reviews, bonuses, etc.

The other thing it does is it clarifies very carefully what everyone is doing.  There is no more bickering over it, no more redundancy and it helps your organization run more efficiently and smoothly.  It also empowers the staff members to make decisions in their area of responsibility and become experts in those areas.

You can also include a comp plan in this document if you’d like.  However, either way, you should share the pages of the document that outline responsibilities with every member of the staff (post them on an intranet, put them in the employee manual but make sure everyone knows what everyone else is doing). 

Let me know if I can assist you in this endeavor. Take care, Ginny

Build it and they will come…

I know, I know…that phrase is used over and over again but it fits perfectly with what I want to talk about.

My clients, for the most part, are experiencing good growth during this period.  Their phones are ringing, they are getting referrals and they are enjoying what they do.  Okay, now does that sound like bragging…not meant to be.  Just a statement of fact. 

Now, I’m not really that surprised because they are focused and committed or they wouldn’t have called me and they certainly wouldn’t pay me.  We work together to identify the holes and what is causing pain and then fill those holes and eradicate the pain.

But, I still wondered, what was happening that caused the door to swing open during this turbulent time and I think I finally figured out (and one of my clients articulated it beautifully).  My clients are ready to receive new clients.  They  have hired the best folks, they have put processes in place, they have a strategic plan and they are positioned to be a resource to their community, their clients, their referrals sources, their friends and their family.

It’s really that simple.  I believe when you are struggling with being so involved in the day to day operations of your firm, you are simply not ready to receive and you are basically self sabotaging yourself.

Not that hard of a concept and yet so many have not figured it out.

Get your shop and your personal life in order…build it and they WILL come!

Take care, Ginny

No matter how hard you wish it…they won’t come flying in your window…

Qualified prospects…they’re out there in numbers greater than we’ve ever seen!  But one thing has not changed…no matter how hard you wish it, they will not come flying in your window and land in your lap.  You still have to do the work.

Now, when I say work, I mean having a well-thought out plan of reaching your ideal clients. This might include:

1.  Identifying the clients you want to duplicate.  You know, I’ve said it before but I’ll say it again.  People have an innate desire to help others if they can.  Your clients want to help you…it gives them a good feeling to match you up with their friends and have the relationship be successful.  One word of caution here.  Make sure you have educated your clients as to your referral process so they know what their friends and family can expect from you when being contacted.

2.  Talk to your Center’s of Influence. Again, as I’ve said before, these folks are just as befuddled as your clients.  Break down all the rhetoric for them so they can break it down for their clients.  They’ll appreciate the simplicity you are trying to bring to their lives and know their clients will appreciate it as well!

3.  Write, write, write…the media is hungry for information right now.  Be a resource for your local paper.  Again, it all comes down to keeping it simple.  However, don’t expect them to come to you.  They will value and treasure you if you send them well thought out and written pieces that are ready to go.  If you see some big news that day, be the first to call the business editor and find out what you can do to help them communicate it.  Do they want to interview you?

You get the idea.  It really doesn’t have to be hard.  It just has to be a priority, well thought out and consistent.  This is how you keep your pipeline flowing.

A parting thought…if you don’t have time to do these things, ask yourself why?  If it’s because you are spending the bulk of your day in your back office, this  is a recipe for disaster.  No matter how hard you work, this will NEVER change until you decide to change it by hiring a coach to help you figure out what you can delegate and to whom.  What are you waiting for?

Take care and let me know your thoughts.   Ginny

Be a Renewable Resource

I’m sure you’ve seen all the articles recently talking about how this market may be the best time ever seen in history for financial advisors to acquire new clients, especially if you are an independent.  Clients are questioning their advisors even when they come with big, fancy, old school names behind them. The tried and true has been tested and in many cases, has failed.  This has brought about a whole new fear for investors.  The “guaranteed” is no longer…

But there is another group that needs your help.  Your strategic alliances.  The CPA’s, attorneys and insurance folks who work with your clients alongside you.  They are experiencing the same fears as your clients AND in many cases, they are being asked for their opinions on what is going on.  Frequently, they don’t have any more answers than their clients.

You can help them.  Make is a policy in your office to take four or five pieces of information every two weeks or so and distill it down to five or six bullet points for for them to use with their clients. Give them the answers in a short and concise manner so they can answer some of those questions.  Also use this email blast as a way to educate them about your business and things are you doing to help your clients.

I believe if you do this, when they have a client ask for a recommendation on a financial advisor, they will think of you.  You have demonstrated the ability to simplify their lives and after all, isn’t that the Holy Grail we are all so desperately seeking?

Let me know how it works!  Take care, Ginny

Don’t Forget About Your Staff

Okay, I know, one more thing to think of in this awful market but hey, you wanted to be an entrepreneur so this is what it really is…so glamorous, isn’t it?

Just kidding, I love being an entrepreneur but it does involve keeping a lot of balls in the air and one of those is the successful management of your greatest asset…your employees.

These are scary times for all of us and it can be even scarier for your employees because they are not privy to your thoughts most of the time.  They don’t know what you’re thinking…can you survive this market, will you be able to retain everyone, will pay cuts, benefit cuts, etc. be necessary.  Other than quitting and taking another job, they have very little control over their destiny as an employee!

So what can you do?  Here are some suggestions:

1.  Plain talk – tell the truth, the good, the bad and the ugly…be totally honest about where things stand and what you’re thinking;

2.  Encourage them and reassure them where you can but don’t make promises you might not be able to keep;

3.  Listen to them – give them the freedom to express their fears

4.  Hold periodic rally sessions – have lunch together, reiterate your vision for the firm, talk about why what you do for folks is so important ESPECIALLY in these times;

5.  Team building – some great exercises can be found at www.teambuildinginc.com

A few other Do’s and Don’ts

1.  Don’t lie under any circumstances or gloss over the truth;

2.  Don’t let poor performance slide

3.  Do keep a compassionate heart

4.  Do seek out peer or coaching support for yourself

5.  Don’t be a caretaker – be the employer

Again, we’re all in this together.  This a great time to create even more team cohesion – be transparent, be honest and be compassionate and you’ll build even more loyalty and further cement your employees as fellow visionaries.

As always, I welcome your thoughts.

2009 T3 Conference…lots of “cool” stuff

I just returned from the 2009 T3 Conference in Dallas, TX.  Let me just say again, Dave Drucker and Joel Bruckenstein do a fantastic job with this!  Pulling together all this great technology in one room cannot be an easy job (just coordinating calendars has to be a nightmare!).  Additionally, the speakers and panels just get better each year.  If you’ve yet to attend, you should mark your calendars for next year (I can’t remember the date but watch their website at http://virtualofficenews.com/index.asp for updates – I do remember it’s being held in San Diego at Torrey Pines!).

I got a chance to see a lot of technology and kick the tires on several.  I’ll hit some highlights of what I saw:

Redtail Technology- this CRM has come a long way in the last year.  It is very robust and yet very easy to use.  I was impressed by the amount of data that can be stored but also by the ease with which you can find it.  They have an imaging add on for an additional fee but honestly, for a small advisory office, I can’t get my arms around the advantage.  However, at $65 per month for 15 users (yes, not per user but up to 15 users), with no conversion or set up fees, this CRM is, in my opinion, the front runner for advisors right now.  I highly suggest you visit their website at www.redtailtechnology.com

Finance Logix – this planning software will WOW you from the get go.  It is “real time” during use.  In other words, if you change a number on a screen, there are sliding bars that show the effect of that change immediately.  You don’t need to close the report, change the number and re-run the report.  There is also a client page where your clients or prospects (if you give them permission) can enter any amount of information and begin to see how their savings, withdrawals, retirement age, etc. are effected.  One potential downside- I have been told the audit trail (which is apparently a fairly good size Excel spreadsheet) is difficult to read so I would advise you check this out carefully first.  Still, definitely worth a look at www.financelogix.com

3.  Scottrade- I believe these folks are serious about improving their institutional presence.  They have just purchased portfolio director which is a portfolio management software that can run either as a desktop application or web-based. While it sounds as though it might be a while before you see this and it remains to be seen what features will be offered on their platform, this is definitely a step in the right direction.  Additionally, these guys have no minimums and welcome relationships with advisors who are just getting started.  Check them out at www.scottradeadvisor.com

I’ll probably have more to come in the days ahead but wanted to give you a heads up on these now.

Call me with any questions.  Take care, Ginny