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What Comes First—Changing the Tech or the Staff?

Firms are struggling with technology adoption because they believe their executives or staff can’t change or learn new methods of operating. So they stop implementing the tech (aka the change) and instead start interviewing potential hires to replace their current staff who appear unwilling to change and learn. This stoppage and hiring effort creates a dark cloud over the mood of the staff. It sends a message that the firm isn’t prepared to improve nor invest in change management. Rock star-quality staff take this stoppage as a sign and ultimately stop recommending improvements and cease their championing of change. If the stoppages happen often, your best staff might even start interviewing at other firms or start their own firm.

How do I know if my staff are able to learn new systems?
The easiest way to test the team’s ability to learn is to sell the change before implementing it. As the firm owner, you must believe in the change, know the benefits, and persistently encourage productive feedback. Remember that the administrative person might care about reducing data entry work, while the adviser will want this change to help them onboard a new client more efficiently. Staff that can’t adopt the change will stand out immediately. If they are your key team members, have your executive team talk with them and explore why they are resistant to the changes. Then, and only then, will you know if it is time to search through the resumes and start to recalibrate the staff with a new hire.

Do I lay off a loyal staff person when they can’t learn?
We all know it is very expensive (money, energy, time) to lay off and hire someone new. Any new hire requires you to use energy and time to train them on your firm’s method of operating, philosophy regarding client service and expectations. It is best to NOT lay off those who seemingly can’t embrace change and instead invest in training and change management first. Training can be in the form of scheduled weekly webinars, paying an outside expert or software provider to provide customized training, or having a staff person train his/her peer. Change management comes from the top. If you are not sure you are managing change properly, you can hire a coach to learn how to do this effectively now and in the future.

While you invest in training and management, you should also be scouring the earth for potential hires. A great employee, successor, or partner hire won’t fall into your lap the minute you decide you want to re-calibrate your team. It is never too soon to start networking and doing informational interviews and building your pipeline of candidates. If the training and change management does not produce the results you want, you know you can call upon a pool of qualified candidates.

Change isn’t easy—if it were, everyone would be doing it! Remember that any meaningful technology change—even implementing a new software program—takes more than 66 business days to adopt. Give your staff time to embrace the new tech and provide continuous training, positive reinforcement and examples of the long-term benefits. Most importantly, be sure to give yourself time to lead the troops with a positive attitude and realistic change management goals. Progress may be slow but as long as you’re seeing change transpire, rest well knowing your firm is on the right track.

Jennifer Goldman

 

Jennifer Goldman
Founder
My Virtual COO
Boston, MA

Editor’s Note: FPA members receive a $500 member discount on a My Virtual COO consulting engagement. You can find more information here


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The W’s of Successful Outsourcing

There was a time when the word “outsourcing” was barely mentioned. Today, outsourcing is as common in the office as a laptop or smart phone. Outsourcing has allowed companies of all sizes to grow quickly while reducing costs—which only adds to the bottom line.

Professional outsourcers can handle virtually every type of task, from answering emails to marketing and website development. It doesn’t stop there and can include compliance, reporting, ghost writing and much more.

WHEN do you make the choice to outsource?
When your firm experiences the following:

  1. You need a quick turnaround time on certain projects
  2. Staff is overloaded
  3. There is no time, ability or resources to train the staff on a specific skill
  4. Staff has no interest in doing certain types of work

WHAT do I outsource?
The easiest items to outsource are non-client facing, back office work or repetitive, non-technical work. The favored outsourcers currently are: bookkeepers, portfolio reconcilers, compliance firms, website designers and virtual planners. We believe these are the favorites as they have clearly defined roles and are not client-facing. Managing a person with client-facing responsibilities can be nerve wrecking for a newbie manager. Also, client-facing staff members are valuable and should be part of your core team. Your clients value your staff and the personal relationship your firm offers with them.

HOW can I outsource while remaining compliant?
We recommend following these five steps to remain compliant and operate effectively:

  1. Seek vetted, experienced experts in the industry
  2. Establish CRM processes and repeatable tasks with instructions for the outsourcer to complete and you to monitor
  3. Use secure communication platforms such as document management systems, CRMs and encrypted email
  4. Sign a formal contract with the outsourcer that protects your data, your documents, your proprietary business procedures and your clients
  5. Schedule a biweekly call with each outsourcer to review outstanding tasks, answer any questions and provide overall guidance on how you would like them to operate

Finding and onboarding the right outsourcing company takes time. Be patient, ask peers for recommendations, and remember that the first few months are always have a learning curve for you and the outsourcer. Also, you will want to carve out time to monitor their work closely for the first 60 days and confirm they possess the skills and ability to deliver. After 60 days, you should be able to trust their work and method of delivery and more easily manage them.

The W’s of outsourcing don’t have to be overwhelming. Your staff, you, and clients will feel the positive effect of hiring an expert outsourcer. So try one out, follow the five steps, monitor the work and enjoy the newly reclaimed energy and time.

Jennifer Goldman

 

Jennifer Goldman
Founder
My Virtual COO
Boston, MA

Editor’s Note: FPA members receive a $500 member discount on a My Virtual COO consulting engagement. You can find more information here


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Fundamentals for Success: 4 Practice Management Themes for 2016

Every March I host the Independent Advisor’s Implement Now Practice Management Virtual Summit. I interview about two dozen industry thought leaders to crystalize the key how-to advice they have to offer to propel advisers to their next level of success. This year’s content reveals four practice management themes that entrepreneurial advisers must pay attention to if they want to achieve their full potential.

Here are the four fundamental focus areas for  advisers that surfaced from my conversations with the 24 entrepreneur industry experts who participated in this year’s summit, which was held on March 14.

1. Personal Brand: What is the story you want to share with the world? How do you relate and connect with people? Clever marketing tactics, fancy web sites, high quality video and daily social media blasting will not help if you are not 100 percent clear on who you are as the leader of your firm, what defines your value system, and what you want your audience to appreciate and understand. When you bring to life your personal brand and reinforce it consistently over time, you will stand out, especially in the digital arena. Personal and professional are no longer separate worlds. The intersection of the two is where most clients live, and you need to show up.

2. Technology to Scale: Technology for technology’s sake can be cool, but you should care about the innovation that occurs because it will allow you to scale your business. You can impact a greater number of people whom you want to help when you leverage technology to support you. Open your eyes to what’s possible now, learn and apply the tools you already have, try out new solutions to improve your service delivery, stand out against robo-advice, streamline your practice operations, support healthy habits, increase productivity and upgrade your overall lifestyle.

3. Build Teams and Systems: Michael Gerber’s The E-Myth Revisited is the most referenced book in Implement Now. Are you working “in” the business, mired in the technical or administrative day-to-day work? Or do you approach your business thinking in systems and processes that free up more of your time, money and energy to focus on leadership? Whether you offshore tasks to a virtual assistant, hire a part-time HR consultant or expand your firm with more advisers, you need to define clear systems and processes, be willing to delegate, and find the right kind of people for the job or jobs at hand. This will not only improve efficiency and increase the value of the firm but it’ll improve your life and relationships outside the office.

4. Financial Planning: With more low-cost money management solutions on the market and a growing consumer desire to address basic every day cash flow management both in Gen X and Y and the retiring boomer segments, financial advice cannot rely on the retirement portfolio. The financial planning element of advisers’ service offerings must take the lead. How are you helping your clients navigate the complex trade-offs and decisions they make to create a fulfilling life? When you are their go-to resource to make emotionally powered choices, your clients will stick with you in the ups and downs and happily spread the word about you.

The wrapper around all of these essential areas is clear, consistent and frequent communication with your prospects and clients both in a public domain and in one-to-one outreach. With a clear personal brand, technology and teams to support you and a focus on the planning your clients need, you will achieve more success—whatever that means to you—this year.

To learn the recommended actions behind these themes and view all the expert interviews, visit http://implement-now.com for participation details.

 Kristin Harad 2014Kristin Harad, CFP®
Marketing trainer for advisers
www.kristinharad.com
implement-now.com
San Francisco, Calif.

Editor’s Note: The following related Financial Planning Association content may be of interest to you: