Einstein’s definition of insanity: “Doing the same thing over and over again and expecting different results.”
In a financial services world which has been turned upside down in so many ways, it seems only reasonable to ask: For those involved in designing/ delivering practice development services and support for advisers, what are they doing differently from, say, 12 months ago?
As we’ve worked with advisers both here and overseas over the past year, it has become clear to us that their needs (and expectations for that matter) have altered significantly. Advisers are looking for more and different services from their dealers and product manufacturers. While we wouldn’t perhaps embrace completely the following views of one leading US commentator, he certainly poses a view that warrants serious consideration.
Ray Schlafani, president of ClientWise LLC, says: “There is a massive need in the industry for the transformation of the wholesaler (the equivalent of a PDM/BDM in Australia). Generally speaking, as an industry group, they haven’t kept up with the changing role of the adviser. Their behaviours simply aren’t changing fast enough.”
While certainly not wishing to treat every adviser in the same way, we feel that, for “practice developers” there are a number of golden rules to play by in this changed world.
1. Adopt an adviser mindset and resolve to help
Just as advisers have to “know their clients”, we wonder just how well Australian BDMs really understand their advisers’ businesses? What are the biggest challenges advisers are facing and how can they as development managers help overcome them?
We know that very few BDMs (or their employers) actively seek feedback from their advisers in a structured, objective and confidential manner and even fewer still track changes in adviser satisfaction over time.
Given the somewhat isolating and insular nature of running a successful advisory practice, we have found many principals are also very interested in understanding industry “best practice” standards and (more importantly) how their BDMs can help them run a more profitable practice. BDMs should share their experiences, latest trends and success stories from the broader marketplace.
2. Implement a structured communication program
From our Business HealthCheck database, it is clear that those practices that communicate frequently and meaningfully with their clients run a more profitable business. BDMs should take a leaf out of the advisers’ “best practice” handbook and implement a structured communication program.
Relevant and timely communication – coupled with regular, meaningful face-to-face meetings – is critical to developing a valued business-to-business relationship. And, just as advisers do with their clients, BDMs should also follow up each meeting in writing and confirm the key action items agreed to.
3. Value add in ways advisers can’t
The most valued BDMs truly act as the quarterback for their advisers. They have a compelling value proposition that resonates with successful practitioners. They understand what their advisers want, need and value and build tailored solutions around this.
Bringing like-minded advisers together for workshops, study groups and special briefings are great examples of BDMs doing something that advisers traditionally struggle with. Overlay the event with sourcing an external expert (someone who advisers respect but wouldn’t normally meet or engage with) and BDMs can clearly differentiate themselves in an increasingly cluttered marketplace.
4. Value and promote your reputation
This is increasingly important in the world of financial services, especially given the events of the past 12 months. Business Health research clearly shows that if there’s one thing that affects adviser satisfaction above all else, it is BDMs simply not doing what they say they will.
Does your BDM have a set of defined service standards and have these been conveyed to you and all the people in your practice? And a health warning for BDMs: don’t automatically assume your advisers know and understand exactly how you can help them. Reinforce this message at every opportunity.
5. Offer a differentiated level of service to your best advisers
Another lesson to be gleaned from the best advisory practices: while all clients deserve to be treated fairly and all clients deserve to be treated with respect, not all clients deserve to be treated equally.
Successful BDMs truly understand this segmentation ethos and while no one receives poor service, their best advisers receive their premier support.
