Welcome: Top Performer Workshop
Achieve top performance at every stage of your Financial Planning business life cycle
Introduction
Industry
How is or will AI & technology advancements affect your business?
40.5% constantly evolving to keep ahead of future industry changes
44.3% plans in place to reduce impact of future government policies & trends
8.5% adapting to advancements in tech as a tech leader
AI: Risk or Opportunity?
Client acquisition, engagement, marketing, scenario modelling, research, SOA, documentation, portfolio monitoring, admin automation, insights
Rapid advances in AI are a significant risk to all enterprises
1. How widely is AI used across your practice today?
O Embedded in all processes
O Used in some places
O Investigating
O Need to look into it
Performance
Benchmark your practice to identify strengths & weaknesses
29.3% have greater than 15% increase in annual revenue
67.92% with revenue per adviser exceeding $550,000
9.43% have service profit margins above benchmark for all services
2. Which KPI has the biggest variance (average compared to top 20%) in your industry?
O Sales Growth
O Profitability
O Cash Flow
O Risk Score
O Valuation Multiple
Sounding Board Services Pricing Model
Performance Action Items
Growth
Invest in process discipline to attract & grow profitable clients
51.9% attracting ‘ideal’ clients > $7,000 revenue per annum 17.9% have active strategies to increase # of services per client
47.2% need more expertise in, or are offering limited or no specialist services
3. How active are your existing accountant referral partnerships?
O Very active
O Medium to high
O Low to medium
O Low activity
O Don’t have any
Growth Action Items
Risk
Lower risks by analysing key financial & non-financial KPIs
72.6% have best practice systems for client advice & work papers
52.9% commercial terms or restraint of trade contracts to legally deter staff from procuring clients &/or employees
Activity 4
4. Are you confident that your compliance risks are well managed and controlled?
O Very confident
O Mostly confident
O Some gaps to address
O Not confident
Risk Action Items
Competition
Attract ideal clients by promoting a SME Family Office Services model
47.2% are not losing clients to competitors
35.9% brand, profile & reputation well ahead of competitors
Competition Action Items
Management Information Systems
Use smart data to target ideal clients
17.9% adopting value-based pricing supported by contribution margin analysis
48.1% ‘best of breed’ or upgrading Data Analytics & CRM systems
Activity 5
5. Would documented automated workflow processes benefit your practice right now?
O Definitely
O Likely
O Possibly
O No - already fit for purpose
Management Information Systems Action Items
Owner(s)
What’s your degree of owner/principal reliance?
Degree of Principal reliance is the highest concern for Financial Planning practice owners
1% believe their business can run well without them
High Principal reliance or personal goodwill can reduce the value of your business
Case Study Personal Goodwill
Who owns your customers?
Case Study Insights
“The business had no documented succession plan. Shareholder & staff agreements did not address key succession risks such as personal goodwill. The share sale was deferred.”
Activity
6. Are you effectively balancing time between working on versus in the business?
O Very effective
O Mostly effective
O Finding it challenging
O Not effective - bogged down in client work
Owner(s) Action Items
Clients
Increasing the number of services per client is a key profit driver
28.3% segment clients by life cycle stage &/or specific needs
28.5% have fully or partially implemented fee schedule for non-profitable clients
Activity
7. Rate your willingness to offload unprofitable clients:
O Very willing
O Somewhat willing
O Need to investigate further
O Unwilling
Clients Action Items
Staff
Rewarding performance is a win-win for owners & their team
73% believe there would be a high to very high impact if they lost key staff
55.7% have formal annual appraisal with documented bonus structure
15.1% include successor mentoring & development as an integral part of their strategic planning
Activity 8
8. Does your business plan include ‘Employer of Choice’ strategies to help you attract experienced staff and build the capacity needed to support your future growth?
O Yes
O Will consider
O Not required - capacity already exists
O No
Staff Action Items
Planning
What value do you need for financial independence?
71.7% ‘value gap’ risk
33.9% surplus existing capital for growth and succession
One in 10 are sale ready
9. Do you know the 4 big risks associated with succession planning?
O Yes
O No
O Unsure
Planning Action Items
Review & Next Steps
Scorecard
Financial performance & valuation multiples industry benchmark reports
Top Performer Report - Profitability KPI
Action items to address high concerns
Activity 10
10. Who will hold you accountable to implement the action items needed to achieve top performance?
O Myself
O External Advisor
O My wealth partner manager
O Unsure
O Need help
O Don’t need help
Learning Outcomes
1. Assess how widely is AI used across your practice today
2. Understand the KPI with the biggest variance in your industry
3. Review the activity level of your existing accountant referral partnerships
4. Determine current confidence level of compliance risk management and control 5. Examine practice benefits from documented automated workflow processes
6. Explore effectiveness of time allocated to working on vs. working in the business
7. Rate your willingness to offload unprofitable clients
8. Establish relevance of ‘Employer of Choice’ strategies to support future growth 9. Recall the 4 big risks associated with succession planning
Consider who will hold you accountable for improvement
O No O
Close: Top Performer Workshop
Achieve top performance at every stage of your Financial Planning business life cycle