01 Why is systematizing your financial advisory firm important?
In today’s fast-paced financial landscape, systematizing your office is essential for efficiency and delivering exceptional client service. As technology continues to evolve, it provides new tools to streamline operations, but the core principles of systematization remain consistent. By implementing effective systems, financial advisors can ensure that they are managing their practices in the most efficient way possible. This not only helps in providing better service to clients but also enhances the overall productivity of the office.
02 How to create a systems mindset in your firm?
There are two parts to creating a systems mindset in your firm: systems thinking and systems implementation. Systems thinking is how you strategically think about systems and systems implementation involves how you tactically perform the systems you create.
Systems thinking involves viewing your business holistically, recognizing that every part of the business is interconnected. Changes in one area can affect the entire organization. Said a different way, systems thinking requires a deep understanding of the cause-and-effect relationships within your business. For example, how does your client onboarding process impact your client retention rates? How do your marketing efforts influence client acquisition and satisfaction? By analyzing these relationships, you can design systems that optimize your business processes.
When moving to systems implementation, drawing on insights from Robert Fritz, a leading thinker on structural and systems thinking, let’s look at Fritz’s concept of the “path of least resistance.” This concept illustrates that energy (or effort) naturally follows through the easiest route. So, to change behavior, you must alter the underlying structure.
In practical terms, this means creating systems that make it easier for your team to adopt and use them. This involves rewarding and recognizing system-compliant behavior and ensuring that using the system becomes the path of least resistance. This encourages consistency and efficiency across your firm. For instance, if you want your advisors to follow a specific client review process, make sure that the process is easy to follow and supported by the necessary tools and resources, provide training and incentives for using the system, and regularly review and update it based on feedback and changing needs.
To begin systematizing your office, start with a systems mindset, acknowledging that every action and process in your business is connected. Once this mindset is established, you can delve into specific systems needed for various operations, such as onboarding new clients or handling referrals for example.
03 What are the benefits of systematizing your firm?
Everyone adjusts to change differently, so sharing with your team the benefits for your firm is an important part of your systems mindset. Some of the benefits firms experience when integrating system are:
Time Management:
Systematizing your firm significantly improves time management by streamlining routine tasks and processes. When firms have clear, step-by-step procedures to follow, they can complete tasks more quickly and with greater accuracy. Automation tools and standardized workflows can also minimize the time spent on repetitive activities by reducing the time needed for administrative duties. Systematization frees up valuable hours for advisors and their team allowing those hours to be redirected toward activities that directly contribute to business growth and client satisfaction.
Consistency:
One of the most significant benefits of systematization is the ability to deliver consistent service and client experiences. When your office has well-defined processes and procedures, every team member knows exactly what to do and how to do it, ensuring that clients receive the same high level of service regardless of who they interact with. This uniformity also helps in maintaining professional standards and upholding your firm’s reputation. Inconsistencies can lead to errors, missed opportunities, and client dissatisfaction, but a systematized approach mitigates these risks by ensuring every action is performed to the same standard every time.
Team Confidence:
Providing your team with clear, repeatable processes boosts their confidence and competence. When team members have access to well-documented procedures and checklists, they can perform their tasks with greater assurance and accuracy. This clarity reduces uncertainty and the potential for mistakes, enabling your team to work more efficiently and effectively. Systematization also facilitates training and onboarding of new employees, as they can quickly learn and adapt to established processes. By fostering a structured work environment, you empower your team to deliver their best performance, which in turn enhances overall productivity and morale. Confident employees are also more likely to take initiative, contribute ideas, and engage fully with their roles.
Efficiency:
Systematization enhances efficiency by minimizing the mental and physical energy required to perform routine tasks. With automated workflows, standardized templates, and clear processes, your office can operate smoothly and without unnecessary interruptions. Efficiency gains come from reducing the time spent on redundant activities, eliminating bottlenecks, and ensuring that every team member knows their responsibilities and how to execute them effectively. Moreover, increased efficiency translates to a more responsive and agile organization, capable of adapting quickly to client needs and market changes. Ultimately, an efficient office maximizes productivity and profitability, providing a solid foundation for sustainable growth.
Systematization helps in creating a standardized way of doing things, which leads to greater predictability and control over the business processes. It ensures that everyone in the organization is on the same page and working towards the same goals.
04 What is the 5-Step Streamlined Operations Strategy?
Knowing where to start is often a stumbling block for firms who wish to put systems in place. But with this 5-step Streamlined Operations Strategy, you will be on the way to running a more efficient firm.
1. Process: The first step is to define the high-level steps required within the activity you wish to define.
Example: If you have selected the Client Review Process to systemize, the steps in this process may include scheduling the appointment, preparing for the meeting, conducting the meeting, and following up after the meeting.
2. Checklist: The next step is to break down the process into tasks that will accomplish each step.
Example: If you are creating a checklist for Scheduling the Appointment in the Client Review Process, the tasks may include identifying clients due for a review, reaching out to the client to schedule the meeting, and placing the meeting on calendars.
3. System: The final step is to document the detailed instructions about how each task is completed.
Example: If you are writing the system about reaching out to the client as part of the Client Review Process, the instructions might include a script for calling the client and when the advisor prefers for the client reviews to be scheduled.
4. Delivery: Once you have documented the process, checklists and systems, it is time to establish a repeatable way to deliver. This can be accomplished through a paper document, a fillable PDF, a training video, project management software, or automated workflows integrated into your CRM. This is where technology can play a significant role, automating routine tasks and ensuring consistency. By making the delivery process repeatable, you can ensure that your systems are used consistently and effectively.
5. T.O.A.R Method: Training is a crucial part of systematization as is regular observation and assessment to help identify areas for improvement.
- Train your team on the new systems so they are aware they exist and when and how to use them.
- Observe your team member working through the system and add additional clarification as needed.
- Assess your team’s adherence to the system by spot checking periodically and additional training as needed.
- Refresh your systems as changes are needed or as your team finds better ways to accomplish the activities.
05 Why solid processes are the cornerstone to effective technology implementation?
In the pursuit of operational efficiency, the temptation to dive into the latest technology can be strong. However, as Susie Cranston, President and COO of Cresset, highlighted in a recent podcast, the real magic happens when you align your processes before introducing technology. “Technology is the hardening of process,” Cranston explains. This means that for technology to be effective, it must first be built on a foundation of standardized, well-defined processes.
If your firm adopts technology without first solidifying its processes, you risk automating chaos rather than creating order. For instance, if you attempt to automate the account opening process without first standardizing each manual step, you may introduce inconsistencies or errors. Instead, focus on developing clear, repeatable processes that can be reliably automated, ensuring that everyone follows the same steps, which enhances efficiency and reduces the potential for mistakes.
As your firm grows, adding more technology might seem like a logical step. However, if each piece of your tech stack isn’t integrated to communicate with the other pieces of your tech stack, you could end up with a fragmented infrastructure that complicates your processes rather than streamlining them. By incorporating technology that integrates with others, you ensure a unified source of truth for your data, protect the client experience, and maintain consistency as your firm scales.
Ultimately, the firms that scale successfully are those that prioritize process standardization before introducing technology. This strategic approach ensures that the technology serves to reinforce, rather than replace, the solid processes that drive your firm. By asking yourself whether your processes are solid, empowering, and beneficial to all (advisors, team, and clients), you can make informed decisions about when and how to implement technology effectively.
06 Where to start putting systems in place in your firm?
When determining what systems to put into place in your firm, look for any activities which are performed multiple times weekly, monthly or annually. To define even further, look at the 5 areas listed below to brainstorm what is needed in your firm.
- Bringing in New Clients: Includes marketing and sales processes for attracting and converting prospects.
- Wowing Existing Clients: Focuses on delivering consistent, high-quality service throughout the client relationship.
- Mastering the Mechanics: Covers operational aspects such as investments, financial planning, and account management.
- Building the Team: Involves processes for attracting, training, and retaining top talent.
- Tracking Your Numbers: Encompasses tracking success metrics, including goals, revenue, expenses, profit margins, and client referrals.
Each of these categories encompasses a range of processes that are essential for the smooth functioning of a financial advisory practice. By systematizing these areas, you can ensure that every aspect of your business is running smoothly.
Determining where to start depends on your firm’s immediate needs and strategic priorities. While prospecting systems might bring immediate financial benefits, focusing on client experience can strengthen long-term relationships. Assess what is most crucial for your firm at the moment and prioritize accordingly.
Start by identifying the areas where you currently face the most challenges or where there is the greatest potential for improvement. This might involve conducting a thorough review of your existing processes, gathering feedback from your team, and analyzing your performance metrics. Once you have identified the key areas for improvement, you can begin implementing systems to address these challenges.
07 How to approach continuous improvement?
Systematization is not a one-time task but an ongoing process. Regular reviews and updates ensure that your systems remain relevant and effective in a changing business environment. This might involve gathering feedback from your team and clients, analyzing performance metrics, and staying up-to-date with industry trends and regulatory changes. And don’t forget to stay informed about technology updates as they can be a powerful tool for systematization. But, it is important to have a clear understanding of your processes before implementing any automation tools. This ensures that the technology is used effectively and enhances, rather than complicates, your processes.
Continuous improvement is essential for maintaining the effectiveness of your systems. By adopting a systems mindset, creating effective structures, and following the Streamlined Operations Strategy, you can enhance efficiency, improve client service, and ensure compliance. Ultimately, well-designed systems free up time and resources, allowing you to focus on delivering extraordinary value to your clients.
Amy Koenig is a financial advisor coach and the Chief of Operations at ROL Advisor. To hire Amy to help you make your office operationally efficient, enhance your client experience, and increase your profits, start by completing our brief business assessment.