A report from Vital Business Partners has quantified the financial amount wasted by advisers focusing on admin tasks.
The figure, from the Optimum Operating Models for Advice Firms report, found that advisers would save $66,000 by passing on those admin tasks.
The finding relies on some assumptions – that an adviser is spending six hours a week on administrative follow-up (just over an hour a day) rather than higher-level tasks.
The report says redirecting that time allows an adviser to serve 35 to 40 more ongoing clients per year.
“Across three advisers, that’s almost $200,000 in regained chargeable time,” the report says.
“Even small refinements compound – trimming 15 minutes from each review for 120 clients saves 30 hours annually per adviser.”
| Calculation | Result (ex-GST) |
| Adviser charge-out rate $400 by 6 hours by 44 weeks | $105,600 p.a. |
| If delegated to support $150 by 6 hours by 44 weeks | $39,600 p.a. |
| Direct saving per adviser | $66,000 p.a. |
| Time released | 264 hrs (~7 weeks) |
| Source: VBP | |
The report identifies key efficiency benchmarks of top practices as having earnings before interest and taxes (EBIT) of 35 to 40 per cent, revenue of $1 million per licensed adviser, staff and client satisfaction scores above 90 per cent, and an employee cost ratio below 45 per cent.
The report says “sustainable capacity” for an adviser should be around 80 per cent to 85 per cent which is high enough for productivity, but low enough for flexibility.
“Running hotter leaves no room for learning, improvement, internal projects, or new business,” the report says.
“Low performers wait until teams are at 100 per cent before acting, by which point bottlenecks, delays, and turnover have already set in. High performers monitor utilisation continuously and act early, adding automation or support before pressure peaks.”
The report identifies three operational support models to boost efficiency depending on the size of the practice.
The “pod” model, which fits best for firms with four to nine advisers, creates small teams aligned to advisers or client segments, building accountability and relationships but risks those teams becoming isolated in silos.
The “pooled” model, recommended for larger firms with 10 to 19 advisers, involves centralising operational support across the entire firm, but requires strong leadership.
The “hybrid” model combines the efficiency of pooled support with the continuity of the pod model for adviser alignment and is recommended for smaller firms looking to gain scale.
“In practice, few firms operate entirely as pooled or pod based,” the report says.
“Most adopt a hybrid approach, balancing the efficiency of centralisation with the connection of adviser or client alignment. How that hybrid evolves as the business grows determines whether it becomes a bridge to scale – or a barrier.”
The report also notes the role outsourcing can play into these different models, whether it’s via an employed outsourced staffing model or task-based outsourcing.
