For those of you who are not familiar with Hurley, he is the CEO of Fiduciary Network, a financing company that provides succession capital to advisors.  Hurley has just released a new white paper entitled, “The Brave New World of Wealth Management.” http://www.fiduciarynetwork.com/brave-new-world-of-wealth-management/

In this latest iteration of his consolidation prediction, Hurley argues that, “the wealth management industry is at a crossroads: heightened competition, increasing operational complexity, accelerating compensation costs and the inevitable retirement of many of the industry’s pioneers are poised to reshape the industry.”

As a result, according to Hurley, there will only be 150 mega-firms left standing that will have a systematized infrastructure, be profitable and operationally efficient.   There will be about 2,000 “tweener” firms that have size, but not the scale or systems to make the leap to the mega firms and will be gobbled up by the mega firms or relegated to the 18,000 RIAs that are merely “books of business” that are not sustainable and have no real business value.  The owners of these firms will be forced to work harder for less compensation, with no transferable equity in their firms when they retire or move on to the next phase of their lives.

While there is clearly a self-serving agenda to this type of content, what Hurley is pointing out is an industry problem.  Too many advisors have not developed or invested in the systems, infrastructure, technology and human capital to create sustainable, profitable and enjoyable businesses that can live on beyond the founder.

However, we take a different approach to solving this problem.  Rather than being bailed out by expensive financing, advisors can solve these issues on their own over a relatively short period of time, when provided with a guided system of customizable organized tools and templates to get it done.

For example, in our latest white paper, The Integrated Practice^TM (download it from our home page at www.FoxFinancialPlanningNetwork.com) we detail a step by step process that advisors can implement to achieve scale, efficiency, profitability and a more personally satisfying experience as a financial advisor. 

To solve this endemic industry issue, the white paper introduces the concept of The Integrated Practice^TM, which is a process of business management that connects all of the moving parts of a firm to create an efficient organization and bring it to life.  The four key areas of The Integrated Practice^TM include systems, technology, practice management and human capital.  While for many firms each of these areas have been addressed as silos, we believe that they should be connected together. 

The concepts and methodologies in this whitepaper are a direct result of the nearly 30 years of experience we have gained in applying them to our own advisory business.   In our daily consulting work with advisors we see many firms struggle with these issues, so it is very motivating for us to build out a set of solutions that firms can adopt so that they can continue to thrive and build valuable businesses, while efficiently meeting the ever increasing demands from their clients.

So, if you find yourself as a “tweener” firm, or worse yet, a “book of business,” don’t despair.  There are solutions that you can embrace to take control of your destiny and not end up in Hurley’s industry dustbin.

Let us know if we can assist you with putting in place a systematized infrastructure so you too can not only be more profitable and operationally efficient, but can achieve a work/life balance for you and your staff and can stand out from the crowd.

However, for those of us who are practicing financial advisors, I think there is another meaning of the definition of integration and that is to integrate systems, technology, practice management and human capital to create an efficient, profitable and enjoyable financial advisory business.  These thoughts and concepts are captured in our second white paper, The Integrated Practice^TM. 

Here are some highlights: 

Despite experiencing excellent growth over the past decade, the independent advisory industry is reaching a critical point in its evolution and is currently being challenged by inefficient operations and a lack of systems.  Due to the lack of standard business practices being applied, independent firms are finding they are not able to evolve with growth, are becoming capacity constrained, are not delivering a consistent service to clients and ultimately, are becoming less profitable.

These issues are causing disruption in service delivery and are limiting their ability to manage growth and meet client demands. 

Leading firms, however, are finding solutions to these fundamental challenges by bringing a focus on business and process management and applying it to improve their firms.  These firms are combining the optimal use of systems, workflows, technology, practice management and human capital to create a thriving business operation that is efficient, is able to scale with growth and has a high level of profitability. They are creating The Integrated Practice^TM .

Advisors can achieve these results by following the recommendations and ideas contained in the report. These actionable strategies and innovative approaches can be thoughtfully incorporated to transform the ways advisors operate today.

By doing so, advisors are positioned to build a great business that seamlessly delivers a high level of service, is profitable and increases in value that can later be monetized upon their retirement. 

The high level concepts we’ve identified above are some of the critical success factors we’ve identified.  To learn more, please download our free The Integrated Practice^TM white paper at www.FoxFinancialPlanningNetwork.com. 

You can also find me on Twitter @DeborahSFox for my latest thoughts.

Starbucks has mastered providing a consistent customer experience. How have they accomplished this? It has systematized the process of procuring coffee and turned it into an excellent customer service experience that is repeatable and creates not only customer loyalty, but raving fans.  So what can we learn from this?  I think quite a bit and this is the subject of our first white paper written specifically for financial advisors.  

Here’s a quick summary: 

Due to the evolution of the independent advisor industry, many firms have not invested in developing the core systems, workflows and infrastructure needed to efficiently provide a consistent level of service.  As a result, advisors are suffering capacity constraints exactly at the same time that macro forces, such as baby-boomer retirement, are driving a growth curve their way. 

The solution to this conundrum is to adopt systematized workflows for providing a high-level of service, similar to how industry leaders, such as Starbucks Coffee Company has done.  Through the automation of client service workflows, advisors can build an efficient foundation that will enable them to scale their businesses for growth and increased profits, all while building business value that can be monetized when advisors transition to their next phase of life. 

The challenge for many firms that is preventing them from systematizing their processes is that they typically don’t know where to start or feel that they don’t have the time or expertise. However, when breaking the project down into smaller, manageable steps, advisors can begin to organize and document client service workflows, leverage CRM technology and adopt the best practices of industry elite firms, consultants and experts. 

These steps and sample workflows are illustrated in our report and can be utilized by advisors to get started in building that efficient, scalable, profitable and sustainable practice that can help withstand volatile markets and tackle challenging compliance regulations. 

Firms who do adopt this approach can be richly rewarded by their efforts and the new business opportunities coming their way. For those who don’t, industry experts predict they are likely to struggle to maintain profitability and long-term sustainability. 

These are a few of the quick takeaways from our white paper. For a deeper dive, including specific examples of how to automate a client service delivery such as converting a new prospect to a client, download our free white paper at www.FoxFinancialPlanningNetwork.com. 

Don’t forget to follow me on Twitter @DeborahSFox!

As part of our commitment to transforming the way advisors operate by providing the tools, templates, workflows and consulting to systematize the delivery of financial planning/wealth management services, this space will provide the latest news, trends and happenings to help you create your ideal firm.

I’ve been a practicing financial advisor for 28 years. I feel so fortunate to have been able to work in a career that has provided me with so much job satisfaction. I created the Fox Financial Planning Network (FFPN) to leave a legacy to our profession. FFPN is the go-to platform for advisors looking to work more efficiently, increase profits and offer a higher level of service to clients without working harder.

We’re providing the templates, workflows and technology recommendations needed to systematize your day-to-day activities so you can provide a consistent, repeatable and standout service to every client.  You’ll learn specifics on how to unify systems, technology, practice management and human capital to bring your practice to life and create the ultimate working environment. By doing so, you’ll be able to build a unique, more profitable business that can scale with your growth and ultimately provide you with a way to do what you do best and bring back the enjoyment you had when you first started your firm.

As an industry, we are at a true inflection point with the prospects of amazing opportunities crossing with a more challenging business environment.  Never before have we seen such a massive wave of people transitioning from work to retirement which is creating an unprecedented demand for professional financial planning and investment management.  While that is the good news, we are also faced with increasing client demands, more compliance requirements and higher operating costs.

To respond to these interesting times, it is critical to have a solid operational foundation that you can leverage and scale to provide both an outstanding client experience and profitable firm.  However, trying to create that foundation on your own can many times be time-consuming and overwhelming.  That is why we have made the systems, workflows, processes, and templates we use in our firm on a daily basis available to our Network members so they can hit the ground running and not have to spend years building them from scratch.

I look forward to providing you with thought-provoking posts on this blog that will challenge you to rethink how you work so you can evolve your firm to thrive in the new environment we find ourselves. Please join me and hundreds of other financial advisors who are members of FFPN to explore how you can better run and scale your business.  We’ll provide our best thinking and views on the advisory business here, but for more timely updates, feel free to follow me on Twitter @DeborahSFox.