For financial advisers only
CHANGE, CHALLENGE AND CLIENT COMMITMENT
How to ensure you are fully remunerated
by your clients for your value and worth
Lawrence Emm
Business Change Specialist
For financial advisers only
Session 1 - Summary
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
STRATEGIC BUSINESS ISSUES
Shift to client agreed
recurring income
Adviser behaviours
and remuneration
Profitability and
Financial Management
Service and Pricing
Increase profitability and
maintain capital
adequacy
Implementation with
new and existing
clients
Back office
supporting
processes
Processes
and IT support
Effective management
Training and skills
development
Change Management
Communication
Consultation
Clear Direction
People
THE VALUE OF FUTURE BUSINESSES?
Sustainable
recurring
income
Owners
seeking
immediate exit
Clear advice
proposition
Owners hold
key client
relationships
Adapted from source material:
Ernst & Young/J P Morgan
Profitable
cases
Reliance on
small group
of clients
Loyal
clients
High
quality
advisers
Brand, USPs
Innovation
VALUE ENHANCERS
VALUE DETRACTORS
Poor records
and back
office
Poor and
inconsistent
compliance
process
No access to
high value
clients
Business Strategy
Where are you going and how will you get there?
Service Proposition
Who are your clients, what will you do for
them, how much will you charge?
Process
How do you provide excellent service at
low cost?
People
Have you got the right people in the right
jobs?
Marketing
How should you acquire and retain clients?
Financial Control and Growth
How is the business performing
and
how will you sustain and fine
tune growth?
For financial advisers only
Session 2 - Summary
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
SERVICE DESIGN PROCESS
Assume you are designing this for Day One of a new business
Determine the number of client groups – no more than 3
Give each list a SERVICE name
List ALL the service components for each client group
Price each service and estimate likely client numbers – check
these against RI and support capacity and turnover and profit
targets
List all of the processes that are needed for each service
Identify what jobs/roles you will need (accountabilities) to
deliver the processes
For financial advisers only
ADVICE AND SERVICE PROPOSITIONS
Financial Wealth Management
”We provide financial consultancy for business and private clients with
complex affairs – we will work with other professionals to create and
manage a comprehensive and evolving strategy on a bespoke basis”
Financial Planning
“We provide straightforward financial advice to make sure you have the
right advice and product solutions for your immediate and future needs”
Financial Advice
“We will arrange to transact particular financial products at your request”
For financial advisers only
Session 3 - Summary
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
For financial advisers only
PRICE NEEDS TO BE BASED ON PROFITABILITY
For financial advisers only
THE CLIENT’S PERSPECTIVE
“Price is what you pay,
value is what you get …
… and the value of anything
is the difference it makes”
For financial advisers only
Session 4 - Summary
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
For financial advisers only
CLEARLY DEFINED STAGES OF THE PROCESS
CLIENT
ACQUISITION
CLIENT
ENGAGEMENT
ANALYSE
AND PREPARE
SOLUTIONS
IMPLEMENT
SOLUTIONS
REVIEW
AND
RETAIN
For financial advisers only
MAP BUSINESS PROCESSES
the complete client experience
STAGE ONE
First point of client
contact
Transfer information to
software
Corporate Brochure
sent to client
Telephone follow-up
call to client
Welcome Pack and
First Meeting Pack
preparation
First Client Meeting
STAGE TWO
STAGE THREE
Gather client information
2nd client meeting
Set up or transfer agency
Back Office – Financial
control
Client data input to system
Research and Analysis
Back Office - input of service
elements and tracking flags
Client Report – Outline
document sent to client
Back Office - Marketing
Telephone follow-up call
and make appointment
Report and
Recommendations
Obtain client specific
illustrations, quotations
and support materials
Review client file prior to
2nd client meeting
Back Office – New Business
Administration
Compliance Checks
On-going Client Servicing
Annual Review - Flag
Annual Review - Analysis
Annual Review - Collation
STAGE FOUR
Telephone call to client to
make Annual Review
Appointment
Review Pack despatched or
delivered to client
Annual Review Meeting
Back Office - input of
revised service elements
and revised tracking flags
(next 12m)
Compliance Checks
For financial advisers only
ARE CURRENT ROLES STILL APPROPRIATE?
Financial Planner:
“ADVICE”
To acquire new clients and maintain key
introducer and client relationships
Para-planners:
“TECHNICAL
SUPPORT”
“ADMINISTRATION”
To provide extensive technical support to the
Financial Planner(s)
Client Support Services:
To provide comprehensive administrative support
to the PPs and FPs
For financial advisers only
ASSESSING BUSINESS CAPACITY AND CAPABILITY
For financial advisers only
Session 5 - Summary
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
For financial advisers only
CLIENT RE-ENGAGEMENT PROCESS
For financial advisers only
CLIENT ENGAGEMENT – PLANNING TEMPLATE
For financial advisers only
SETTING THE RIGHT TONE – CLIENT REASSURANCE
Dear Mr Williams,
You will be aware from recent press and media reports that significant changes
are scheduled to take place within the financial services profession from January
2013. Here at Tollarday Wealth Management you will be pleased to know that we
have operated ahead of these industry benchmarks for some time and pride
ourselves that all our advisers, and a number of our client management team, are
already qualified to Chartered Financial Planner status which is higher than the
new professional standard set by our regulatory body.
At our next review we will guide you through how we intend to simply formalise
the way we have worked in partnership with you over the last 8 years while
managing your tax and estate planning. We will also discuss how you will
continue to receive the same high levels of ongoing advice and service in the
future as one of our valued clients.
If you have any questions in the meantime please do not hesitate to call me on
01234 567890.
For financial advisers only
THE LANGUAGE OF VALUE AND WORTH
OLD WORLD
NEW WORLD
FREE
“AT OUR EXPENSE”
NO OBLIGATION
COMMITMENT
SALES
ADVICE
COMMISSION
FEE – SERVICE CHARGE
ADMINISTRATION SUPPORT STAFF
CLIENT MANAGER - EXECUTIVE
“EASY 5 MINUTE JOB”
“USING OUR COMPREHENSIVE AND
SPECIALIST TOOLS AND EXPERTISE
WE WILL SORT THIS OUT FOR YOU”
UNSTRUCTURED SERVICING
ROUTINE AND AGREED CONTACT
For financial advisers only
SELLING THE SIZZLE
For financial advisers only
SELLING THE SIZZLE
For financial advisers only
TODAY:
CLIENT
NEEDS
PROPOSITION
SERVICE
CONTENT
PRICING
PROCESS
AND
IT
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
PEOPLE
CAPABILITY
For financial advisers only
IMPLEMENTATION
With only 5 months left till R-Day,
how do we get our ideas into
working practice?
For financial advisers only
KEY BUSINESS ISSUES
KEY ISSUES have these characteristics:
 What is REALLY important?
 What can we INFLUENCE?
 What is ESSENTIAL for this plan to deal with?
Key issues can:
 exploit specific strengths and opportunities
 deal with specific threats and weaknesses
For financial advisers only
TYPICAL IFA ISSUES











QCF Level 4 – Gap Fill - SPS
CPD
Sourcing and retention of the right clients
Remuneration – clients and advisers
Develop and enhance database – client management
Increasing client and adviser productivity
Define pricing strategy and associated service levels
People – recruitment, retention, qualification and training
Further develop management infra-structure
Exit plan and/or acquisition policy
Electronic commerce and technology
This is a major shift of emphasis –
by way of income, client/adviser management and infra-structure
For financial advisers only
KEY ISSUES
“Usual Day to Day
Activities”
Straight forward change in
working practices
Significant
Changes
Complex change –
requiring extra resource
Quick over-night
change
Review and analysis
required
Relatively non
contentious
Structured
implementation
No time or cost
implications
Time and cost
implications
For financial advisers only
EFFECTIVE BUSINESS PLAN











Turnover and profitability
Clients – numbers and types
Advisers – numbers, types and productivity
Administration and other staff – skills, job types, numbers
Organisation structure
Service and charges – different levels for different clients
Sources of business
Business mix – by product or area of financial planning
Processes and technology
Premises
Acquisition policy
To provide direction
SCALE
RESOURCE
BUSINESS
INFRASTRUCTURE
GROWTH
For financial advisers only
BUSINESS PLAN - OUTLINE
For financial advisers only
IMPLEMENTATION
 How do we get from now to the future?
 What are the priorities?
 What needs to change?
 Where should we concentrate our effort?
 Who will undertake the work?
 When will we complete it?
Effective implementation
For financial advisers only
TYPICAL IFA ISSUES











QCF Level 4 – Gap Fill - SPS
CPD
Sourcing and retention of the right clients
Remuneration – clients and advisers
Develop and enhance database – client management
Increasing client and adviser productivity
Define pricing strategy and associated service levels
People – recruitment, retention, qualification and training
Further develop management infra-structure
Exit plan and/or acquisition policy
Electronic commerce and technology
This is a major shift of emphasis –
by way of income, client/adviser management and infra-structure
For financial advisers only
PROJECT PLANS
Project Name
Reasons for project
Project Objective
Specific Actions
Responsibility
Timescale
Resources
For financial advisers only
PROJECT PLANS - EXAMPLE
Confirm objectives
Objective:
To out-source
investment
management
to begin
March 2012
Plan the work
Responsibility,
timescale and
resources
Resource:
Actions:
• confirm internal requirements
• who
• identify possible suppliers
• when
• research their methods
• additional resource
• develop short list
• invite candidates to tender
• review against our criteria
• consult across the business
• contact and appointment
For financial advisers only
ABSOLUTE CLARITY AND FOCUS
For financial advisers only
IMPLEMENTATION TEMPLATE
For financial advisers only
IMPLEMENTATION TEMPLATE - 2
For financial advisers only
REHEARSE AND PRACTISE
We can learn from the experiences
of Heathrow T5 …
Businesses need to move
from concept to
implementation by
engagement and buy-in
of all staff.
By necessity this will
mean significant
investment in rehearsal,
practise and review as
well as the business
setting clear expectations
and managing
performance.
For financial advisers only
For financial advisers only
This presentation is designed for and directed at professional financial advisers.
It should not be relied on by consumers.
This document is based on Skandia’s interpretation of the law and the HM Revenue and
Customs practice as at January 2012. We believe this interpretation is correct, but cannot
guarantee it. Tax relief and the tax treatment of investment funds may change.
For financial advisers only
www.skandia.co.uk
Calls may be monitored and recorded for training purposes and to avoid misunderstandings.
Skandia provides you with access to its investment platform, known as Skandia Investment Solutions. Within this
platform you can open an ISA and Collective Investment Account provided by Skandia MultiFUNDS Limited, and a
Collective Retirement Account and Collective Investment Bond provided by Skandia MultiFUNDS Assurance Limited .
Skandia Life Assurance Company Limited, Skandia MultiFUNDS Limited and Skandia MultiFUNDS Assurance Limited
are registered in England & Wales under numbers 1363932, 1680071 and 4163431 respectively. Registered Office at
Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom.
All companies are authorised and regulated by the Financial Services Authority with FSA register numbers 110462,
165359 and 207977. VAT number for all above companies is 386 1301 59.