It’s All About Processes & Procedures
I have been spending a lot of time lately defining my various processes. What I am trying to do is create a scalable business model which can easily be replicated. After all, a scalable model is the backbone of every successful business and helps facilitate its continuous operation in the event the owner is absent. There are many facets of a business. Let’s examine two.
Meeting with a Prospective Client
In the very first meeting, the goal here is to determine if you can scratch the clients itch. Or to put it another way, can you provide the services the client is seeking? What process will you follow when meeting with a prospective client? What questions will you ask? How long will the meeting take? How will you alter it to suit different personalities? For example, if your prospect is an analytical, detailed individual, will you do anything different than you would if he were a bottom-line- just-give-me-the-facts kind of guy? I hope so. After all, one approach does not fit all as Henry Ford learned the hard way. Will you use any questionnaires? Again, the goal here – assuming you’d like to work with them, is to get them interested enough to either engage your services or at least agree to a follow up meeting.
New Client
What do you do when you gain a new client? Do you have a welcome letter? What about a letter to remind them when it’s time to review the portfolio? Do you send out birthday cards? Anniversary cards? Do you conduct any client surveys? After all, it’s a good idea to know what they’re thinking.
There are many facets to running a wealth management business. Sometimes, with all of the different tasks, it’s easy to feel overloaded. A well defined set of processes will help you through these times. In other words, if you have a good schematic in place, managing the business will be much easier.
As I travel this road, I am learning a lot. To be successful, you have to be more than a good advisor. You also have to be a good business manager.
Mike,
I am having a tough time formalizing processes and procedures in my small practice. What resources are you finding most helpful?
I too am process driven. In this particular area (client service/retention) a business can succeed by following the simple rule of treating each and every client as if they were a new client. This will ensure that each client is valued and treated as such. We all know that it is far easier and less expensive to retain a client than to search out and land a new client. Yet we forget this once a client comes in the door and transfers assets to us to manage. Yes, client segmentation does allow us to place clients into profitability buckets but the process for this must ensure that the client is still given the service and products they were seeking when you sold them your business. Consistent application of processes and procedures will ensure the client experience is preserved throughout the life of the relationship.
It is very important to differentiate between clients and make those fine adjustments, but making fine adjustments to meet the needs of a client should not be confused with creating one off exceptions, exceptions will only derail your business and create a grief in the relationship.
I agree. The majority of exceptions occur in two areas, both applying to profitability. Minimum assets to open an account and fees to be paid to the advisor for services offered. Just assuming that we are all ethical and follow a moral path in our business we can run afoul in a rapid way when pricing our services by exception rather than as a sane business model.
Hi Jeff,
I’m not using any program to define my processes. Basically, I’m dividing it into two areas (so far). Prospects and clients. For prospects, I am creating a general dialogue schematic so I make sure the right questions are asked and the right info is given. For clients, it will be things such as outlining my asset management and financial planning process as well as services issues.