An internal restructure and a high-profile departure have marked Alan Logan’s first month as chief executive of Australian Financial Services (AFS) Group, with further tweaks to strategy a distinct possibility over the next few months.
While Logan is reticent to call the goings on at AFS Group a changing of the guard, it is clear that the business is being reviewed to take into account both the views of “next-generation” adviser businesses and regulatory change.
All about the model
Logan (right) inherited the hot seat at the dealer group’s Melbourne head office in early September following the sudden departure of Peter Daly in late May.
The first major change has seen the role of head of distribution made redundant and, as a result, Mark Ryan will be leaving the dealer group.
Regional managers will now report directly to the CEO.
Logan says his priority has been to meet as many of the dealer group’s advisers as possible and he told Professional Planner Online he has so far met with 35.
“Some are shareholders in the business and some aren’t, but I have found broad alignment between both groups on a range of issues,” he says.
“It is all about the model and they want to know how we can add focused value to their practices.”
Take nothing for granted
He would not be drawn on whether Peter Daly had approached any practices with a view to jumping ship, saying only that he wouldn’t be taking any relationship for granted.
“Discussions have been candid and there is a recognition that our profession has fundamentally changed with real challenges ahead,” he says.
“We’ve agreed that AFS Group must evolve if it is to be relevant and deliver value.
“I’ve been pleased that there are a number of next-generation adviser businesses within AFS Group that are growing strongly and are enthusiastic about the future.”
Emerging direction
Central to the internal restructuring will be a decision on where in the market AFS Group wishes to operate as Logan acknowledges that the dealer group “cannot be all things to all people”.
He confirmed that Bob Neill and David Fotheringham of Seaview Consulting had been engaged to assist in a detailed strategic review that is expected to take between eight to 12 weeks.
“Once a range of fully costed scenarios are completed, we will speak with our advisers and key stakeholders, decide on the right direction and move quickly to implement,” he says.
Logan expects some clarity on the future direction to emerge this year but no major change is expected until the first quarter of 2013.
