Troy Theobold (left) and Gil Gordon

Extraordinary people can make up for very ordinary systems, but when you have extraordinary systems, then you can work with ordinary people.

That saying resonates with Gil Gordon, a consulting senior financial adviser and owner at RI Newcastle and Lower Hunter, a practice that embarked on a corporatisation journey some years back.

Since then, its error rate dropped phenomenally and its revenue per adviser has risen by about 40 per cent as has the number of clients per adviser.

“The number of Statement of Advice documents a year has gone through the roof and our new business has gone up dramatically because now we can handle it,” Gordon tells Professional Planner.

RI Newcastle has five advisers, a general manager, two client service managers, two client service officers and a paraplanning manager. It also has two client service officers in the Philippines.

“We used to struggle to get a [SOA] per adviser per week,” Gordon says.

“These days we can get four or five SOAs out per adviser per week. There are weeks where we’ll be handing over doing 15 or 20 SOAs, which is murder, but it can happen.”

The why

RFS Advice certified financial planner Troy Theobald says the responsibilities and reporting lines grow along with practice growth.

“While you do not have to lose the family office feel, there does need to be a corporate approach for separation of duties and responsibilities,” Theobald says.

“Otherwise, you will be a problem in your business. A corporate structure sets out clear reporting lines and duties.”

The Gold Coast-based adviser adds a large practice 10 years ago is a small business today.

“The corporatisation of practices is key to allowing this growth to continue,” Theobald says.

“Having specific roles and responsibilities enables a greater focus and dedication to tasks and this hopefully delivers greater growth.”