Netwealth IQ Webinar: Cracking the code to building a more efficient advice firm

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General use only – April 2024

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Before we get started

1 CPD available

Must respond to a postevent survey emailed to you

Webinar is being recorded

Slides will be sent to you after the webinar via email

Enter your questions in the meeting chat section of Teams webinar

We will get to them either during or at the end of the webinar

Introducing our guest speaker

Lana Clark, Senior Consultant at Elixir powered by VBP

• Speaker, Coach and Consultant

• Award winning mentor with over 25 Financial Services.

• Co-Author of the Elixir Consulting Adviser Pricing Models Research

• Published author on practice management and business development

• Founder of GSD Lab – strategy implementation and project management

Cracking the Code to Building a More Efficient Advice Firm

Lana Clark

WHO WE ARE

Great Outcomes Start with....

• Your Vision

• Right People

• Right Process

• Right Technology Solutions

• Right Partners

• Right Training

• Buy-In from your team

Management Strategies for

High Performing Teams

Leading With Purpose

• Lead by example

• Clear communication

• Empower your team

• Recognise and reward

• Diversity and inclusion is a no brainer

• Stay adaptable

• Train them

• Invest in team building

• Include them in business improvement activities

Creating a High Performing Team

• High performing teams are curated, not formed by chance

• Alignment with purpose and a growth mindset

• Think broader than the resume

• Problem-solving is not a task

• Shared commitment to excellence

Role Clarity and Structure

Management Strategies for High Performing Teams

One-to-ones

(30 mins)

Staff Review (1 hour)

Huddle

(10-15 mins) WIP Meeting (40-60 mins) Project Teams (40-60 mins) Team Offsite

(0.5 - 1 day) Planning

(1-2 days)

Moving The Dial On Culture

Creating a great culture is a long game

Culture is everyone’s responsibility

Manage behaviours, attitudes and mindsets well

Foster a culture of KAIZEN

Management Strategies for High Performing Teams

Relatively large business - 15 advisers, 30+ support staff.

When we started, there was a terrible ‘us and them’ culture divide between the advisers and the back-office staff. The business had been through a lot of turmoil with changing licensees, remediation etc. (Foundation SOAs had to be done for all clients - ugh).

Profits were diving and yet there were pockets of staff who were underpaid - quite a few staff wanted a pay rise, but the Principal was bleeding revenue, stressed there was still more to pay out in remediation and couldn’t work out how to pay more to some and not others, AND was over the bickering and non-performance.

CASE STUDY – PEOPLE & CULTURE

CASE STUDY –PEOPLE & CULTURE

How’d we help them fix it?

• Did a cultural survey to check in

• Did an all-team offsite and shared the findings with the whole of the team

• Shared the vision of the Principals, the Principals commitment to the team and clients

• Changed reporting lines and management structure - the Founder was trying to run things but had a full client book, they had an ops manager who was overwhelmed and not functioning properly in the role, so we brought in a GM

• Had a focus group whose sole project was to lift ‘The Vibe’

• Revisited their Values with the whole business and created a ‘Living our Values’ doc.

• Staff reviews - we trained up the leaders who were doing these so they could manage more effectively

• Redesigned pricing model, retrained advisers to implement it, benchmarked salaries and uplifted as the revenue started to flow from repricing.

CASE STUDY – PEOPLE & CULTURE

Start 2020 End 2022 End 2022

• Overall cultural score went from 62% in 2020 to 67% in 2021 (during COVID) then to 79% in 2022.

• Took a little more time for revenue and profit to flow. Profit increased by 4% in 2020, but, jumped by $637K or 88% in 2022 (net of coaching fees).

• Difference in what the business looked like in two years

• Culture ate strategy for breakfast in this business. Over 2 years they implemented a new pricing model, acquired a few businesses, and implemented a new engagement process and NONE of this could have been done if they didn't address culture first.

TOP TIPS ON PEOPLE

Lead from the front

Pillars of a high performing team

Culture matters

Find your operating rhythm and share it

Role clarity and structure

PROCESS DRIVES RESULTS!

Think process isn’t important – think again

Clarity & Transparency Risk Management Compliance & Audit Readiness Performance Management

Consistency & Standardisation Knowledge Preservation Scalability Onboarding & Training Improvement Change Management

Process Improvement

One Business, One Way!

01 Whether it's a process that isn't meeting expectations or crucial to a new strategy, highlight and label it clearly.

04 Redesign Revise the entire process from beginning to end to boost overall efficiency.

02 Consider the resources involved, the results achieved, and the timeline needed to evaluate the process effectively.

03 Analyze Analyse the gathered data and identify the bottlenecks & inefficiencies of the process.

05 Test improvements on a smaller scale to see how they measure up against the previous process. How is efficiency tracking?

06 Monitor Observe the results before standardising the process and implementing on a larger scale.

TOP TIPS ON PROCESS

 Team buy-in is everything

 Start with the end in mind

 Collaborate on process

 Optimise, prune and automate

 Test before you implement

 Document, document, document

 Communicate and then some

 Don't guess & don't make assumptions

 Be Consistent

 Process maps always come last

 One business, one way

Technology... where to start

Source: Netwealth – Advice Tech Report 2022 and 2023

DETERMINE YOUR NEEDS - UNDERSTAND

Source: Netwealth – Advice Tech Report 2022 and 2023

What's Underneath The Skin?

What coding language is being used?

Can you update it? Can you customise it to suit your business?

Can you build your own workflows OR at least amend/update any pre-built workflows? How easy is it to build automation yourself?

What’s the financial stability of the company including any capital investment?

Where is the product development team and how many are in the team?

What types of businesses are using their tech.?

Numbers References

What security certifications do they hold?

What’s their track record in the Australian market? Is a trial log-in available after initial demo?

Where possible have a subject matter expert help identify strengths and weaknesses of the software

What is the product development roadmap? Is development on schedule?

TOP TIPS ON TECHNOLOGY

• Understand your vision for technology

• Wants v's needs

• Due diligence is a friend indeed

• What's your clients to experience

• Think about workflow

• It's all about the execution

• Don't underestimate the importance of project and change management

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