The new relationship manager – a key position in advice practices

A very different and much needed role will be required by the financial planning industry as it moves to increase the education levels for both new entrants and current advisers said Connect Financial Service Brokers (Connect) CEO Paul Tynan. New planning business models will develop over the next decade and with this, the need for a very different style of relationship manager role will emerge.

Commenting further, Paul Tynan said “During the past 10 years there has been very little focus on the soft skills of the planning role instead the spotlight has been on lifting technical standards and as a result the fundamentals of building client rapport, interpersonal engagement and relationships has been lost”.

The new generation has been bought up in a world demanding total adherence to every aspect of technical and compliance proficiency that has been forced on the industry for a myriad of reasons. As a consequence the business skills of organic growth and business development have been neglected…indeed the new generation prefers long distance communication via social media and shies away from soft skills of face to face engagement. Furthermore, they lack the confidence in this often confronting and challenging area.

The soft skills are in reality those hard and often confronting activities of prospecting, developing centres of influence, obtaining referrals, etc that Baby Boomer predecessors were required to use in order to build their practices from scratch when they first went into business.

Paul Tynan repeats the comment and greatest concern he receives from HR consultants and business owners who are looking to employ planners and that is “…they have excellent technical skills but I can’t put them in front of a client…”

So if the current generation lacks the skills, persistence and energy to develop referral networks and business development opportunities – then who asks Paul Tynan?

The answer is that in the post FoFA era it will require the financial planning industry to reinvent the relationship manager’s role and require him / her to undertake two key strategic roles / functions for the business with remuneration based on success.

The first function is the communication role –

§ Meet and greet new clients

§ Articulate the mission and values of the business

§ Detail the client value proposition of the business i.e. the advice and service offering

§ Then to connect the clients to the most appropriate adviser within the business

The second function is business development and referral management. This service role will require the provision of general information only – no personal or financial advice will given and entail –

§ Develop and monitor referral relationships

§ Identify referral opportunities

§ Build multiple referral points

“The way we communicate is changing and new social media devices and mediums are readily on hand however people will always seek advice from individuals they trust especially as the larger businesses continue to move further away from their customers”.

“In this rapidly moving hi tech social media era, the relationship managers will be of immense benefit to practice owners utilising the skills and experience of Baby Boomer advisers that have either just retired or sold their practices to develop new networks and business relationships’” concluded Paul Tynan.