A Copy of Cutting Edge Column published in The Adviser August 2011

This is an observation, not a criticism. In the many discussions I have with brokers and advisers I find that they are really good at articulating what they do, how they help their customers and what their customers (or what they think their customers) think of them.
But typically brokers and advisers find it difficult to actually genuinely understanding what’s important to their customers, what they value, what excites them and how to get them saying “wow”.
One common characteristic of successful business people is the ability to put themselves in the shoes of the consumer! To understand what’s important to them, the experience they are really looking for, how they think and what excites them.
The starting point in building our ability in this area is to think of our own experience as a customer. Where as a customer have you really been impressed with the service you have experienced?  Where have you dealt with a business where under your breath you have been so impressed you have said “wow”? What business have you engaged with where you thought “these guys really understand what I am looking for”? And where have you received service that is far and beyond what your expectations were?
For most people there are regular experiences which can provide answers to these questions. May I relate a couple of my own?
I recently stayed at a Hotel which was the venue for a large conference at which I was speaking. I arrived in my rental car and was met by a pleasant hotel employee who took my name, gave me clear instructions on the procedure in collecting the vehicle and directed me to reception. There I was met by name, welcomed to the hotel and checked in quickly. On return from using the car the following day I was met by another employee who greeted me by name. At dinner in the restaurant that evening all waiting staff used my name – how was your meal Mr Fox, would you like another wine Mr Fox and will I charge this to your room account Mr Fox. This establishment had learnt that people love to be referred to by name. They had designed a process to ensure that happened all the time. And they had instilled the discipline in all employees to make sure this happened. I look forward to returning to this hotel whenever I can.
The first visit to my favourite neighbourhood restaurant very close to where I once lived in Melbourne ensured I would return time and time again. Not because the Italian food was great, not because the wine was reasonably priced and not because the service was friendly and efficient. It was because I was welcomed by the maître de, a son of the owner, in a fashion I am sure would be the same welcome to his family home. I was made to feel that I was expected to stay for the entire evening. There was no hurry to order – I could relax by the log fire with my companions and we could move to our table when we were ready – not when it was best for the restaurant. And the maitre de visited us on several occasions throughout the evening, not to ask “was the meal satisfactory” but to reinforce that we were to feel at home! This business understood how people love to feel special and welcome – they understood their customers.
And finally on my first trip to Disneyland I was so impressed not by the excitement of some of the rides, not by the variety of activities and displays, not by the choice in eating options nor by the ease with which so many people were transported from car park to amusement park. I was impressed first and foremost with the cleanliness of the whole facility. There was not one piece of litter or rubbish on the ground for more than a nano-second before a cleaner in a white suit was there to pick it up. And these cleaners were smiling, could answer any direction queries and ended any customer interaction with “you enjoy Disneyland now”. A business thinking internally would hire cleaners from the cheapest labour supply, dress them in dark overalls and not be concerned if they spoke the language of many customers. But this business understood what was important to the customer and that their experience would be enhanced with a spotless environment.
I mention these examples not to influence brokers and advisers to call customers by name, make them feel special and have a clean office. I am sure all do that already. These are examples of businesses genuinely understanding what’s important to their customers. They have put themselves in the shoes of the customer to deliver an experience that the customer will never forget!

A Powerpoint slide presentation highlighting some of the sample output you could expect when working with ACC.

This year's study draws draws from financial and operating performance data from more than 700 independent advisory firms. The report marks the 14th industry review completed by Moss Adams since 1992.

A copy of an article from Investment Advisor providing an overview of the key findings of the most authorative study on the advisory business.

In this edition we attempt to counter the doom and gloom that dominates our industry at the moment to concentrate on some key trends that are emerging in advice businesses that continue to demonstrate success. These trends reconfirm that the business that will dominate the advice industry in the next few years will look very different to those that have held this position in the past.

A Copy of Cutting Edge Column published in The Adviser July 2011

Many Cutting Edge readers will not be surprised to hear that at Advice Centre Consulting we engage in a lot of debate about the key ingredients of business success. While it is certainly acknowledged that everyone has the right to their opinion, in ours there are many commonly held beliefs that are time and again proven to be pure myth! Let’s examine just a few of these.
Myth one: We’ll continue to grow just doin’ what we’re doin! We understand that the temptation is difficult to resist. As business owners we have achieved a level of success by “doing things” a certain way. So why not continue to do so and continue to be successful? Answer: because the future is not the past. We have discussed in previous columns that there are a number of unstoppable forces which are currently changing the structure and economics of the advice industry – our changing and more demanding clients, the increasing costs of operating a business, the greater regulatory and political pressure, the challenge to attract and retain talented people and the industry wide addiction to growth.
The successful advice business of the future will not fight these influences – they will adapt their process, systems and people to realise the opportunities they create. And it will be the business leaders who sho the way!
Myth two: If we just focus on our clients we’ll go broke. Some things in business are simple – to be profitable we must generate more income than we spend. And we don’t generate income from insurance, or mortgages, or financial planning or even advice! We generate income from clients. A business can have the capability to design and deliver the best advice, sell more insurance and loans and put together the best investment solutions. But without clients, despite these capabilities, the business does not generate income! So understanding who the clients are with whom we wish to work, their financial related advice needs and how we deliver to those needs is critical to business success.
Myth three: Our clients won’t pay a fee for advice. This is “the myth” we hear the most at ACC, probably because many businesses have been unprepared when having the first fee discussion with clients or potential clients. The key in our experience is not how the fee is presented it is how the value is presented. And it is only the exceptional advice businesses that are comfortable and confident in presenting the value the client will experience through a relationship with them. Once there is this level of comfort and confidence in presenting “the value story” the acceptance rate of clients who will pay a fee will be unrecognisable.
Myth Four: To grow we need to employ another adviser. Perhaps this is not a myth in itself – but very rarely is this number one priority for a business which wants to embark on a growth strategy. Often business owners who genuinely believe that employing another adviser is the most important priority and strategy to kick-start the next phase of growth have been too close to their business to see how it really is at the current point in time. Often there are already advisers who are not spending the appropriate proportion of time on doing what they are good at – speaking to and developing and presenting solutions to clients. Too often advisers are devoting time to administrative tasks and non client facing activity. Therefore, before employing another adviser the priority for the growth orientated business is to attain optimum productivity from the current advisers, create greater efficiency from process re-design and refine accountabilities, or even add additional numbers, to current support roles.  
Myth Five: If I continue to grow the business it will be too expensive for someone to buy!  This is also a comment we hear quite regularly. And to this comment there is a simple response – growing, profitable businesses will always attract a buyer. It is the business that has grown in size but perhaps becomes unprofitable or the business which is unable to grow that would have a greater challenge in finding a buyer.
Busting these myths may be the first step for you in realising your true business potential!

In this edition we take a break from our focus on discussing components of the business model we believe will dominate our industry in 2012 to take a look at what the most successful firms are doing in the USA. Eliza De Pardo, a Senior Consultant with the respected US Consulting firm Moss Adams LLP, discusses how the successful implementation of key people initiatives is critical for growing firms..

A Copy of Cutting Edge Column published in The Adviser April 2011

Most advice businesses genuinely want to deliver a great client experience. However because the client engagement process is designed with a business-centric bias, this outcome cannot be assured. The process is dominated by what the business does in what sequence and at optimum efficiency. What the experience of the client is will be the outcome of these three factors.

But clients are starting to indicate that this experience is no longer acceptable. Clients are starting to enjoy experiences with other service providers which are lifting their expectations. They are experiencing new levels of service and facilities at sporting venues, airport lounges, shopping centres and malls, and motor dealership service centres are creating hospitality centres with client focused employees to care of customers who previously were greeted by tradesmen with grease stained hands and overalls.

In this edition we discuss the client experience that will differentiate the Dominator Business Model from most of those in the Advice Industry.