Although February marks the end of the fiscal year, tax returns are only due to be filed in a few months time. That means you've got time to do some strategising.

Do you complete tax returns on behalf of your clients, or do you refer them to a qualified tax consultant? In our environment of increasing specialisation, developing strategic alliances is vitally important. By referring a client to an expert in the field of personal income tax, you could be providing a service that saves your clients a lot of money. It should also create an ideal climate in which the tax consultant can reciprocate by providing you with referrals.

Sharing clients between strategic alliance partners is a professional way of ensuring that all parties benefit and the client receives the highest level of service possible.

Here's the thing. In view of the complexities surrounding modern financial products and services, going it alone is no longer practical - let alone wise. What you need to do is form alliances with experts who deliver professional services that compliment your client offering.

Now it becomes a question of managing relationships. No longer is it just you and your client; third parties come into the mix and your responsibility as the principal advisor is to see that everyone does what is required of them. And that includes ensuring that your clients meet their obligations.The final result is that your client gets the best service, your alliance gets a new client and you get to keep your client - now completely satisfied.

We're getting to that time of the year when we start thinking of winding down. But there is so much to do before we can take a break that November is often the busiest month of the year.

Two activities, in particular, are very important - saying thank you and planning for next year.

What we would like to suggest is that you make a special effort to meet with your business associates - those professionals to whom you refer your clients for services that you do not offer.  How about a lunch to say thanks and to discuss your plans for next year.

Are you managing for an upturn?  Maybe you should be.

They say that one should beware of being caught in a rut.  Well, we've been in an economic rut for the best part of a year now, and there is every risk that we might find ourselves caught in it.

Are you thinking ahead?  Looking for opportunities?  Waiting to communicate with your clients about changes that foretell a turnaround?  Make sure that when the economy does improve you're in a position to make the most of it.  Look for the positive factors and be the first to take advantage.

Do you have an advisory board?  If not, maybe you should give it some thought.  

A previous winner of the prestigious SA Best Practice of the Year award has an advisory board that includes representatives from their accountants and their clients.  They meet quarterly and inform the board of their marketing strategies, business plans and other matters of importance or interest.  

Apparently the feedback they receive is invaluable, particularly from the clients.

Next time you visit a construction site, ask the foreman to show you the building plans.  Chances are they're pretty grubby and covered in marks and scribbles.  That's because they've been well used, frequently. 

Now take a look at your business plan for last year.  Does it look well used with lots of pen or pencil notes?  It should.

Make sure that next year's plans start out looking pristine and end up worn and tattered.

When it comes to developing action plans, you need to make it personal.  When you are accountable your actions, you make things happen and you reap the benefits.

But making it personal doesn't mean keeping it to yourself.

Sharing your plans, even with your spouse, provides you with a reality check and ensures your commitment.  Your partner will tell you if they think your aims are unrealistic and, once they know what you're after, they can encourage you in achieve it.

We're getting close to the end of the first quarter of 2008.

Have you maintained your New Year's momentum?  Now is a good time to pick up the pace and make sure that you smash your 1^st quarter goals.

Remember that with the Easter weekend ahead, the coming week is the most important one of the month!

Happy Mid Year!

You may have heard it over and over, but this is the time to review your 2008 business plan.  How are you doing in terms of your goals and objectives?  Where have you achieved your greatest successes and can you capitalize even further on these areas?  What do you need to boost - your productivity or your efficiency?  And what can you do to increase the momentum?

Take time out - maybe an afternoon - and think carefully about what you want to achieve for the rest of the year.  Remember to thank those who provide you with support - staff and family - and then put your foot down.  To make 2008 another fantastic year you are going to have to operate at full throttle.

Too often we see a business plan as a detailed statement of sales targets and expense budgets. 

But we should see these as objectives that we want to achieve.  Something to shoot at, as they say.

The real benefit in drawing up a business plan is to list and evaluate the activities that you will undertake in order to achieve your objectives.  That is the working end of your business plan and what will make it happen.

Objectives do not get things done.  Activities do.  How much do activities feature in your business plan?

How's your planning going for next year?

A little advice from the experts: Once you have developed your game plan, watch out for negative commentary from your peers. Often when a financial advisor breaks away from the rest, they are resented ... for displaying the courage to make a change. Unfortunately competitive attitudes are common in a distribution environment.

Don't get despondent when your ideas are shot down. Believe in yourself and make it happen.

The most successful advisors are those who "work their plan, stick to their goals and pay no attention to the self appointed experts".

Here's the question:  If you're making money, do you really need a business plan?

Maybe not, but here are a few more questions:

Is what you're making worth the effort you're putting in?

Could you be making more if you could do some things differently?

Do you find you achieve your objectives and targets or are they just out of reach?

Are you bogged down or are you spending enough time doing the things that you really want to do - like advising clients face to face?

Are there things that you know you should be doing that you're not doing?

Do you have enough free time to do "other things"?
Does your family feel that you have enough free time? Point is, if you answer yes to any of these questions, a business plan could change your life!

From the Practice Management Team - all the very best for 2010.  May it be your best year ever.

Let's start the year by prioritising - making the most of your time.  As you go about scheduling your days and weeks ahead, here are two thoughts that could help you prioritise your activities:

Firstly, make sure you know the difference between important and urgent.  Important means that the task should be done as soon as convenient.  Urgent means you must perform the task immediately and get it out of the way.

Secondly, accept that you can't do everything.  Being able to delegate means that more will get done - better.

During the recent SA Best Practice of the Year competition, 34% of the participating practices stated that they have a written business plan and, of these, more than two thirds reviewed the plan within the previous 6 months.

So what, you might ask.

Well, on average, those practices with a written business plan generated eight times the return than those who did not.

Is this not sufficient motivation for you to ensure that your business plan is brought right up date before the end of the year?

We've reached the midpoint of 2007. Now ask yourself six critical questions:

1. How close are you to achieving your goals for 2007?

2. What aspects of your business plan have worked for you?

3. How do you do more of these things?

4. What aspects of your business plan have not worked?

5. Should you stop doing these things, or do them differently?

6. What are you not doing that you should be doing?

Start the second half of the year with a serious review of your business plan and you can expect things to get even better.

Warren Buffet once said, "Someone is sitting in the shade today because someone planted a tree a long time ago."

There are times when you must concentrate on the here and now.  And this is one of those times.

But do not do so at the cost of tomorrow.  Keep your eye on the ball, but also find space in your plans for your longer term goals.  Things will change and when they do, you must be ready for the transformation.

Are you thinking about your business plans for next year?  If so, here are three questions you might want to consider:

• Do you have contingency measures in place to deal with a downturn in the economy?  

• Is your target market likely to be adversely affected by a change in the economy? 

• Does your planning ensure that you spend most of your time with your most valuable clients?

We recently had the opportunity to discuss business plans with several leading financial advisory practices around the country as part of the SA Best Practice of the Year Audits and, although most of them were of a very high standard and contained concise goals and objectives (qualitative and quantitative), there were often two elements missing - elements that could make the implementation of the business plan that much easier:

1. Staff participation and involvement - All too often, the advisor does the planning and makes the decisions without consultation with those who will be expected to do what is necessary to achieve the objectives.  People don't commit unless they take ownership.  By involving employees and encouraging their input you make them part of the team and, more importantly, part of the solution.

2. Executable action plans - No matter how clear the objectives or how stimulating the SWOT analysis, the business plan has little chance of success unless it incorporates action plans. A few action statements linked to an objective tell people what is expected of them and by when.  Action statements provide a place to start, often the most elusive aspect of planning.

Many people have said that it is not the plan but the fact that planning takes place that is important.  We tend to disagree.  Success is all about getting things done and that requires action - by everyone involved.

Every now and then, it's important to reflect on your practice and check if there is anything that you could do differently.  Why not take a little quiet time and do so this week.  It may help to consider a few prompting questions:

• Is there an opportunity to switch your focus from new clients to revisiting existing clients?
• Are you doing something constructive about getting referrals and introductions from your A-category clients?
• Could a "meet the heir" strategy be valuable in your practice?
• Do you make a point of visiting a number of A-category clients each month?
• Have you considered gauging what your clients are really thinking by means of a client satisfaction survey?

If just one of these ideas lights a spark for you, it could have long-lasting positive results.

Within the next week we will be into the final quarter of 2006.  No doubt your clients have been talking about next year's budget - the favourite topic at this time of the year. Come to think of it, you need to haul out your business plan and update it for 2007. Why not take whatever is most important in your life, make that your primary objective and then build your business plan around it?
 

Frightening thought, but you probably only have 10 months left to achieve your targets for 2008 - assuming you're going to take another well earned rest in December.

Why not concentrate on picking the low hanging fruit?

Set yourself several smaller, easily achievable goals for the month of February and then go full out to crack them.  That way you will get into the wonderful habit of winning.

What's more, as soon as you achieve a short term target, you will be able to give yourself a reward - rather than having to wait until the end of the year.

Let's make next week "Communication Week."

There is much to talk about with high inflation, increased interest rates, unprecedented oil prices and escalating power costs.

Take your A- and B-category clients and make two lists.  In one list, include those who are likely to be adversely affected by all the factors mentioned above.  In the other, list those who stand to gain from any of the factors mentioned.

Decide what you would like to say to the clients on each of the lists and then call 15 clients each day from Monday to Friday.

Do your clients enjoy receiving your call? Here are some pointers to making calls to clients (or prospects):

If you have a lot to discuss, use an agenda.

Minimise the small talk and get to the point.

Allow your client to ask questions at the right time.

Control your surroundings - cut out noise and disturbances that may be picked up by your client over the phone.

Turn off e-mail or any other programs on your computer that may be distracting.

If you are using a mobile, walk around but be careful of doing this where wind, weather or traffic could create a disturbance.

User your hands. Animate. Your client may not be able to see you, but the actions carry through to your voice.

Smile. It makes you sound even better.

E-mail is probably one of the greatest time-saving inventions of recent history. In a flash your message is communicated across town, across the city, even across continents. You can communicate with an individual or an entire group of people on a personalised basis - quickly and effectively.

But the flip side of this highly efficient business tool is the curse we know as spam or junk mail. Unsolicited e-mails clutter up "In boxes".

Make sure that you are not guilty of abusing this most important communication channel. Use e-mail because you need to, not because you have nothing better to do. Keep the content of your messages crisp and clear and always, always make sure it is relevant. Oh, and by the way. Apply the same principles to the use of SMS messages.

Are you planning a well earned break? You should be - it's been a hectic year for most and now it's time to relax and recharge the batteries. Before you go, there's something you need to do and it only requires 5 steps:

1. Make a list of your top 20 clients.
2. Give them a call, tell them you've had a fantastic year, thank them for their support, wish them the best over the festive season and tell them you're looking forward to seeing them in the New Year. Also tell them where you will be and let them know who to contact, if necessary.
3. Prepare an end of year client message, including the names of contact persons and contact details while you will be out of office.
4. E-mail this client message to all your clients, including the top 20 (it gives them the contact details in writing).
5. Sign off for the year and have a good holiday.

Have you communicated with your A-clients this week?  Our research tells us that advisors do communicate with their clients regularly, but often not frequently enough.

Another matter is the content of our communications.  We tend to talk to clients about the performance of their portfolios - but what else has happened in our world over the past fortnight?

Consider a controversial 50-basis point interest rate hike, an unprecedented spike in oil prices and a strengthening of the Rand.  These are just three of the issues that could be troubling your clients right now.  Will they be getting their answers from the media - or have you given them a call?

Talk to advisors at the moment and many of them will indicate that they are receiving a number of phone calls from concerned clients and, in some cases losing these clients. And all the bad news in the media isn't helping either.

It makes one wonder how they communicate with their clients in good and bad markets, and what they told them to expect. If you sold your ability to offer superior returns, it should not be surprising that some of your clients are jumping ship. However, if you sold your ability to assist your clients in meeting their long term financial goals, and to review their plans, especially when markets are taking strain, you could be on a winning wicket.

Position your service offering to your clients correctly upfront and let them know that you are in this together, for the long haul, in good times and bad ... and stay in touch

Technology changed the way we communicate and social media revolutionised it. But the best thing about social media is that you get what you choose. You can choose to be on Facebook. Or not. The same goes for twitter and Linked In. You decide whether to read a blog and if you like it, you can tell the author with a click of your mouse. Best of all, you can opt out if that's your choice. Remember too, that your clients will also be making use of social media. If you have a Facebook page, for example, there is every chance that your clients may look you up - or follow you on Twitter. So make sure that what you communicate is what your clients will be happy to read.

Marketing is changing and with new age technology making the world a smaller place. Information sharing is quicker and your clients and prospects are a lot more accessible. The potential for people to hear about you and your business is greater than ever before.

Fact 1: Currently in South Africa, there are 4.5 million Facebook users, of whom 48% are male.

Fact 2: Women appear to favour twitter at 53% and the most popular times for tweeting are between 11am to 3pm.

If your practice is not aware of the various opportunities available in Social Media, do something about it. If you're not Tweeting or Facebooking your client, someone else may be.

What are you talking to your clients about? If it's about their needs and your services then that's the main purpose of your job. But there are other issues that warrant attention.

What you also want to get from your clients is feedback. Typically advisors ask for feedback about their own services as client satisfaction is an important source of referrals. You can also talk about what impresses your clients regarding other businesses they deal with. You might pick up tips and innovative ideas by finding out what others, outside the industry, are doing in our highly competitive business world.

What could you do with an extra R1045 - every month?

That's the additional amount that a client will be paying on a R500 000 mortgage at prime rates, compared to the instalment that was payable in April 2005.

A number of 50 basis point hikes in the repo rate has meant a total increase of 3% over the past two and a half years.  But it's not the amount that's important.  What is essential is that you have communicated the effect of each interest rate hike to your A-clients.  If not, do so today.

Make sure that your communication policy keeps your clients informed and educated.  That's what makes clients want to be YOUR client.

What does your communication really say?

Today we all make extensive use of e-mail as a means of communication, but have you ever stopped to check what your e-mail message says about you?

Here are some rules to ensure that you come across as a pro:

• Address your recipient(s) by name (e.g. don't send out a bulk e-mail to Dear Client)
• Be brief but make sure your message is clear
• Make sure that your language is not offensive in any way
• Be careful of jokes - not everyone has the same sense of humour
• Avoid large attachments, it can cause problems for your clients, especially those using dial up Internet facilities
• Make sure that the e-mail contains your contact details, especially your telephone number.

Every weekend there's a chance that something in the press may concern or upset a client of yours.  What will you say to your clients when they call on Monday morning?

The media can damage your reputation without your even being aware of it, if you're not vigilant. 

Make sure that you have media response strategy in place.  You needn't spend the weekend pouring over the newspapers, but dedicate the first 30 minutes of each Monday to media awareness and damage control - if necessary.  And remember that sometimes the media has very positive things to say about the industry.  

Being proactive is what will build your reputation.  Call your clients before they call you.

Are you having real conversations with your clients?  Bob Clarke in the online Investment Advisor says there is a strong need to focus on the facts - the situation and what needs to be done.

During difficult times such as many of our clients are facing, empathy takes over and we get caught up in the emotions. Yes, empathy and understanding re essential but remember that you cannot solve a client's problems with a subjective view. Your best advice is going to result from being objective.

What you need to do is find a balance between being a good friend and an advisor so that you can get your clients to focus on what needs to be done.

There are more public holidays next week than we've probably ever had in a single week. No doubt many of your clients will take advantage and take a break. You might be doing the same.

Have you told your A-category clients and do they know who to contact should they need to get hold of your office.

Do you have a central register from which you can e-mail or sms your clients on a group basis. If not, chat to your IT technical consultant and find out how arrange this. Oh, and if you are going away, please drive carefully.

Do you practice Client Relationship Management or Client Relationship Marketing?

They both entail providing excellent service, but that's where Client Relationship Management tends to end - with the service element.

Client Relationship Marketing means making appropriate use of the relationship to cross-sell, up-sell and obtain referrals.

Client Relationship Marketing is not an invasive process.  It's a matter of communicating and keeping abreast of your client's changing requirements and expanding your client base by meeting more of the same kind of people.

If you don't practice Client Relationship Marketing, you could end up with fewer clients to manage, as other advisors do the follow-up on your behalf.

Do your clients trust you?

Ask yourself the following:

1. Do you invest time and energy into learning and understanding your client before you start the planning / selling process?
2. Do you ask tough questions that make your clients think about the important issues in their lives?
3. Do you answer the tough questions they ask you?
4. Are you truthful with your clients about their personal and financial circumstances, no matter how uncomfortable it makes them feel?
5. Do you truly listen to your clients (without trying to fill a need with one of your products)?

Trust is built based on the quality of your questions and how you listen and not by your statements.

Have a good break - but tell someone. The week ahead is full of public and religious holidays and chances are you will be taking time off. So too will many of your clients.

Before you leave office at the end of the week, send out an e-mail to your clients wishing them well and telling them you will be away if this is to be the case. Also give them an alternative contact in the case of an urgent requirement. And don't forget to include an appropriate "Out of Office" message in your e-mail service.

Finally, if you will be travelling over this period - please drive carefully.

(Please note that there will be no Tip of the Week next week. Normal service will resume the week thereafter.)

How comprehensive is your client data?  And does it really work for you?

Too much or too little is often the situation when it comes to client data.  With too little data, you might lose out on opportunities because you simply don't have the information you need.

Holding too much information means lots of hard work keeping everything up to date.

Make sure that you hold as much information as possible about your A-clients and B-clients.  You can get away with holding a little less data on your C-clients, however.

Here's a rule of thumb.  Ask yourself, what information you need to hold to provide excellent service.  Then ask what additional information you need to be able to delight your A-clients.

How many "No Reason" telephone calls have you made this week?

Call a client about a review or an event and they will appreciate your service.  That's why you are in business and why they deal with you.  But do you ever call a client and say, "I don't have a specific reason to call you, but I was sitting here thinking about you.  How are you and how's your family?"

That's what good relationships are all about.  Caring and calling - for no reason other than because you care.

If it's not in writing it didn't happen. It's not that you don't trust your customers - or the other way round. But people forget things, or misinterpret things, or didn?t hear everything. The problem is that all too often the common phrase, "But I told you," results in a stunned silence or angry response.

Now that almost everyone has access to e-mail, it's the quickest way to communicate in writing. If you have a meeting with someone or an important telephone call, pop them an e-mail by way of confirmation and avoid the risk of miscommunication.

Be specific and cover the salient terms and conditions in your mail. Keep it simple and friendly and ask your customer to contact you if anything is unclear. Send the mail as soon as possible after the meeting or call so that you don't forget anything either.

If you can read me like a book, you're doing well but you should have done your reading before our meeting. The more you know about your client, the easier it is to establish rapport, obtain facts and get to grip with the real issues of providing advice.

Many of us are able to read body language and listen effectively. But there is more that you can do to learn about your client and it should happen before the meeting - especially in the case of new clients.

If you have friends/acquaintances in common, make a call and find out what others can tell you about your prospect.

Check the internet - Google, Facebook and LinkedIn are good places to start. If the prospect is on LinkedIn, check their contacts and if you have someone in common, make a call.

If you have contacts who have high standing in your community, check whether they know your prospect.

It's not a new generation, it's a different generation. There's much said about the X generation and the Y generation, but many of us deal with elderly clients. If you really want to look after and keep them happy then start thinking of them as the "Say that Again" generation.

To make sure that your elderly clients get the message:

Try using a bigger typeface - it's easier to read.

Speak slowly and repeat things, especially instructions.

Where possible, demonstrate.

Check for understanding.

Remember that your clients may not like asking questions, especially when it comes to issues of understanding. It's up to you to see that they have clarity.

It is now officially winter, having rained in the Western Cape and gotten very cold everywhere else.

One of the best lunchtime pastimes these days is to visit your local coffee shop and order a bowl of the Soup of the Day with a fresh roll or slice of toast. It?s warm, nutritious and needs little more than half an hour to enjoy.

Come to think of it, why not call up one of your A-category clients and have them join you? It's a quick and healthy way of making sure a good relationship stays on track.

Would your clients vote for you? Just as SA citizens were able to vote this week to elect the candidates of their choice, your clients have a choice of financial advisors. And you need to be able to positively answer two very important questions.

Do your clients choose you because of your value proposition or do they stay with you because to change is too much of a hassle?

Do you stick to your promises or are they merely part of the initial canvassing process?

Clients who choose you will be your strongest campaigners - and they will grow your base with all the right clients.

Earlier this week I came across a comment on the Internet.  It read, "Just because you have a product and a place where people can buy it doesn't mean that customers will automatically come to you. Sometimes people don't realize that they need or want what you have until it hits them over the head."

At times like this, financial needs are often put on the back burner.  Problem is that before you realise it, the smouldering ember becomes a serious fire that you are forced to deal with whether you like it or not.

Don't wait for your clients to come to you.  Make sure that you regularly visit and update your existing clients.

Client reviews present an ideal opportunity to cement rewarding, long-term client relationships and the best time to address outstanding financial needs and ask for referrals.

So, how do you go about making the most of the client review meeting?

One way you can achieve this is to "Make it about the client".

• Frequency.  Find out how often your client wants to have a review session.
• Format.  Find out what the client expects from a review.
• Content.  Find out what is important to your client and focus on your client's goals and concerns.

Design your client review meetings around your client's preferences and you will find that your objectives are also catered for.

50 000 clients cannot be wrong.  That's the number of clients surveyed by Business Health, Australia over the past few years.

They say that the service that advisors perform worst is the Client Review!

What would your clients say if asked by means of an anonymous survey?  Would your client reviews come out tops or is there room for improvement.

Last week we discussed focusing on a specific target market (and not necessarily very wealthy clients) to improve profitability. This week we would like to go a step further:

Quoting the same research in an article called "Adjust your focus" by Rebecca Pommering, the US Financial Planning magazine says, "In many practices the top 20 clients (not top 20%), account for 25 - 50% of a practice's profits. Interestingly, the wealthiest clients are not always among the top 20. The most profitable clients tend to be in the midrange - they might pay you less, but they're also less demanding of your time."

The thought is that we should be segmenting our client bases on the basis of profitability rather than income or assets under management. The question is, "Do you measure client profitability or just income generated?"

Are you charging economy fares for first class tickets? We have just completed the pleasant and stimulating task of visiting several finalists in the SA Best Practice of the Year competition.

A key focus area this year has been on profitability and one of the issues we have encountered relates to the cost of client service.  Do you know what it costs to service your clients?  More to the point, how much does it cost you to service your A-category clients compared to servicing your C- and D-categories? 
The cost of delivering services can easily exceed the revenue generated in return and this means that your C- and D-categories clients could be costing you money. Unless you differentiate services, your A-category clients could end up subsidising if not paying for your delivery to C- and D-category clients.  How would your A-category clients feel if they knew this?

As an advisor you have pretty shrewd idea of what's expected of you.  Or do you?  Are you sure you know what your clients expect of you?  And do you know what your employees want from you?  And while we're on the topic, what do you expect of your clients and staff?

Take some time out this week and make two lists. First list what you expect of your staff and then write down what you think your staff expect from you. Now discuss these lists with your staff and see how close your thinking is to theirs.

Now for the ultimate test. Why not carry out the same exercise with one or two of your best clients. You may find that you need to revise your expectations!

Do you know what your "ideal client" looks like?

Pick your top 20 clients. Compare them and identify what they have in common.

Chances are you now have a few factors that contribute to making up an ideal client profile.

Have you ever held a client seminar?

Why not arrange one?  Possibly you would want to get together with a few colleagues and undertake a joint venture. A 30-minute, after work talk on a topical financial subject followed by drinks and light snacks is something most A-clients would probably really appreciate.
Of course, the secret is to make sure that each client brings a friend or colleague just like them.

It's time for a challenge. What could you be doing better?  How can you enhance your service to your clients even further?

You need to ask your clients - but must do it in a way that you are going to get answers that you can put to good use. (It won't help to ask, "Are you happy with my service.")

Try this.  As you are about to end every client meeting during the next two weeks, ask your clients, "What can I do differently that would improve my service to you?  Is there anything I could do that I'm not already doing?"

Did you surprise a client this week?  Did you make a call, send an e-mail of even an SMS to let the client know you're thinking of him?  That's how you build permanent client relationships.

Did you delight a client this week?  Did you deliver service that exceeded expectations?  That's how you retain you're A-category clients.

How do you make your clients happy?  Here are a few ideas:

Speak with a smile - especially on the telephone.

Speak clearly and slowly and don't become impatient.  What's obvious to you may be difficult for the layman to understand.

Make sure that you and your staff understand your products so they can answer questions quickly and correctly.

Make sure that you fully understand what your client is asking before given them what they want.

Encourage healthy relationships between your staff and your clients.  You won't always be there to answer the questions.

Tom Feher, Director of Execuserv says, "Winning the SA Best Practice of the Year award is like receiving a trophy before you run onto the field.  From that point on you are under scrutiny and must prove that you are worthy of the award."

In a sense, that is what giving excellent service is like.  You set the standard and then you must maintain it.

How often do you review your standards and look for ways in which to raise the bar?  Have you ever considered asking your clients what you could do that would make your delivery even better?

We are finding that many practices that have considered or implemented client base segmentation are not following through with appropriate service differentiation.

When we ask support staff how they differentiate services between A, B, C or D category clients we invariably get the same answer, "All our clients get the same high standard of service."

In fact, they are correct - but there's more to it.  You need to have a (high) service level standard that all clients can expect.  Service differentiation refers to what you will do in addition for your top clients.  What do you do in your practice?

In sport, they say that it's the score on the board that counts.

In financial planning, achieving a goal is important but the process in determining goals may be even more significant.  Thinking about and discussing one's goals could uncover a host of issues and open up a number of opportunities.

Why not identify 6 of your A-clients and invite each of them for a goal review discussion over a cup of hot coffee.  At the very least, you end up with satisfied clients, confident that they're on track, financially.  At best, opportunities will become evident.

A "No Brainer" is an idea with such obvious positive results that you must be lacking in grey matter if you don't implement it.

A financial advisor in Gauteng more than doubled his previous year's Individual Life Recurring Premium new business (+139%) by the end of October 2007.

He increased his already significant base of Assets under Management by 25% by November 2007.

And he increased the number of policyholders with 2 or more Old Mutual products from 347 in March to 469 in November.

What's his secret?  He segmented his client base and focused on his A-clients.

Is segmenting your client base a No Brainer?  You bet it is.  Ask Ernie Lottering.

We've often spoken about client base segmentation.  We've also said that once you've segmented your client base, you need to determine what services you will provide each segment. That's service differentiation.

But there is another step.

You need to make very sure that each service you offer each segment is cost effective.  If it costs more to service clients than you can earn from those clients it will mean you have to recover those costs from other clients. That boils down to cross subsidisation - where one client pays for the servicing of another - and what usually happens is that A-category clients end up subsidising C- and D-category clients.  In the end, the A-category clients get less than they deserve.

We were recently exposed to some of the top independent financial advisory practices as a result of the SA Best Practice of the Year competition that has been running.

One area that surprised us was that despite their excellence, many advisors have inappropriately segmented their client bases.  If value (income) to the practice is not a segmentation criterion, you may run the risk of spending more on servicing a client than that client is worth to you.

Why not revisit your segmentation model and ensure that your clients receive value for money while you deliver fair effort for your returns.

Take a careful look at all the clients you've categorised in your B-client segment.

Now ask yourself, "What can I do to promote these clients to the A-client segment?"  Fact is, if these clients are not ultimately worth promoting, maybe you should consider moving them down to your C-client segment. That might give you more time to spend on extras for you're A-clients.

Pretend you're the client.  Assume you have a query.

Now test the entire client experience from the initial phone call through to completion of the transaction.

How many times did the phone ring before being answered?  What was the response like?  Friendly?  Helpful?  Was the problem resolved immediately or did it take time - a few days?  What was the follow up like?

Conduct a client experience audit in your office to make sure that you're delivering on your service standards.

What determines whether a service is good, poor or indifferent?  Actually, it is not what, but who.

Only your client can determine whether your service is good or excellent.  If you deliver what your client expects, then the best you can expect is a good service label.  If you have delivered more than was expected, you will receive the badge of excellence.

How will you know?  Only by asking your client, and if you simply say, "Is my service good" then expect to hear what your client thinks you want to hear.

Next time you end a client meeting, ask "What can I do to enhance my service to you?" You may find out whether you can improve, but you are likely to establish what your client thinks of your service.

Service differentiation does not mean that you give one client a lower standard of service than another.  It means that you give special clients, i.e. your Category A clients, something extra special.

From that, one must conclude that you don't have the time to have more than 20% of your clients in the A category.

Service differentiation does not mean that you give one client a lower standard of service than another.  It means that you give special clients, i.e. your Category A clients, something extra special.

From that, one must conclude that you don't have the time to have more than 20% of your clients in the A category.

While cross-selling often occurs during the client review, it should start during the initial meeting with a new client.
Let your client know, at the outset, that you will be attending to his full spectrum of financial requirements - now and in the future. Often, a comprehensive plan uncovers several requirements, all of which cannot be addressed immediately. We also know that needs change and new requirements arise over time.

Tell your client that you will be arranging future meetings with the express purpose of reviewing his changing financial requirements and addressing those previously not dealt with. Because these are future meetings, they do not exert pressure on your client at the time and you have a valid reason to contact him on the proposed date.

Your cross-selling now becomes effortless with appointments lined up for the future.  Make cross-selling an integrated element of your financial planning process.

When last did you do a client/product gap analysis? That's where you list your clients down the side of the page (starting with your A clients) and then put a tick in a column for each product they hold. This way you build a grid of your clients and their product holdings.

You will quickly be able to see where the gaps are and, just as quickly, identify whether these gaps are serious or not. 

Why do this? Firstly, you can embark on a "Close the Gap" campaign and many who have done so know that it is an excellent new business generator. Secondly, by closing the gap you close the door to competitors. Remember, if your client has a need that you do not fulfil, someone else will.

Are you a potential mentor? Chances are - you are!

Tim Knox, CEO of Digital Graphiti says that being a mentor requires "time, patience, and a genuine desire to help another person succeed without expecting anything in return."

You needn't be "old" to be a mentor and many of us would love to give something back to an industry that has given us so much. Consider taking on the role of being a mentor to someone starting out in the business. The satisfaction you derive will be reward enough.

Are you cutting costs or investing in your practice right now? At times like this, most advisors are looking to prune expenses to the limit. While it is prudent to manage expenses more carefully at the moment, now is also the time to carefully consider investing in the long term future of your business.

Think about educating yourself and your staff. What could you be doing to enhance your knowledge or development - and what would it cost?

Now think about educating your clients. Why not get together with a few colleagues and organise a client seminar? Arrange a guest speaker and follow up the session with cocktails. Have carefully selected clients bring a colleague or friend. 

Now think about educating your clients. Why not get together with a few colleagues and organise a client seminar? Arrange a guest speaker and follow up the session with cocktails. Have carefully selected clients bring a colleague or friend.

Have you any idea what it costs you to hold an appointment with a client?  Are there travel costs involved? How long did it take to prepare for the appointment and who was involved? How long did the appointment itself last and what was the cost of your time?

What is the point of these questions? The issue is that we often provide service to our clients without measuring the return - and you cannot do that unless you know what the service cost in the first place.

Once you have a handle on your costs, you can start comparing these to your revenue and then go a step further and cost the delivery of service to your A, B, C and D clients. There are no prizes for guessing which category will be the most profitable. The real eye opener will be how much more profitable A clients are than any other category.

As a financial advisor you earn three different Rands in respect of the services you deliver.

To start with, you have "Home Base Rands" that one you earn from doing further business with an existing client. Usually this is as a result of the plan that you have drawn up and it is now time to increase the cover/investment or consider additional financial requirements. "Home Base Rands" are the most cost effective Rands you can earn.

Then there are "Referred Rands" that you earn as a result of doing business with new clients referred to you by your existing clients. Your credibility and reputation has already been established and because you have been recommended to the client, the process has been shortened and simplified. This reduces the cost of earning "Referred Rands".

Finally, there are "New Rands" that you earn by finding completely new clients and doing business with them. To earn "New Rands" you have lots of spade work to perform and success ratios are lower than from existing clients or referrals.

Which Rands do you target in your practice?

Are you sticking to your 2008 marketing plan? How about taking some time to consider the 3 Ms of marketing:

Market - Who are you targeting? Do you have a particular focus?

Message - What are you saying to people? Do you focus on the benefits to your clients rather than on the features of your products or services?

Materials - What image are you projecting? Take another look at the business cards, letterheads, brochures, website, newsletters, etc that you use.

Remember that you should be marketing yourself - always. It's what attracts clients in the first place and makes sure they stay with you in the long term.

Do you have a Board of Advisors? According to Susan Ward on About.com no business is too small to have a BoA and no small business should be without one. But is it something you've considered?

By handpicking a small group (2 or 3) from your peers, clients and people whose opinions you value, you can assemble an invaluable business unit. If they have a genuine interest in you and your business, they will want to see you do well.

Use your BoA as advisors, a sounding board and mentors. Bounce new ideas off them, test your plans with them and get them to criticise your marketing material. Their feedback is far safer than potential client rejection.

Many of us get stale from time to time, running out of ideas and, at the same time, motivation. Why not try a brainstorming session with a few colleagues?

The thing about brainstorming is that it needs to be an open minded session but there must be certain controls in place. Mallary Tytel, President and Founder of Healthy Workplaces suggests several rules including:

Record all the ideas and discussions in writing.

There is no room for judgmental attitudes and everyone must participate. There are no dumb questions or ideas.

Allow (and encourage) people to be as creative as possible and get as many ideas as possible.

Let discussions flow, judiciously steering participants back to the path when necessary.

And finally, our rule. Have fun - it makes business a pleasure.

As you step up the pace for the last quarter of the year, maybe you can reconsider the 4 P's of marketing:

Purpose. What must you do more of in order to achieve your goals?

Product. What can you do to ensure that you?re able to promote your services (products) to the appropriate clients?

Prospects. What can you do to obtain more qualified prospects and referrals?

Proposition. What can you do to promote your value proposition to clients within each segment of the market that you operate in?

Taking care of the 4 P's will see to it that you take care of your marketing targets. Give it a try.

In a recent article in the US Financial Planning magazine titled: "Adjust your focus", Rebecca Pommering (the Practice Management Consultant at Moss Adams) wrote about the correlation between targeting ultra-affluent clients and practice profitability.

Her findings ... there is no correlation.

What she did find was that practices that consistently focus on a specific target market showed a higher than average profitability. Wealth, they believe, has little to do with it.

In other words, you achieve higher profit margins from the efficiency and credibility that comes when you are totally familiar with the unique issues of your target market and not necessarily by targeting high net worth clients. Obviously it?s a bonus if your target market is in the affluent sector.

Interesting. And it all boils down to focusing on your strengths.

On behalf of the Celestis and PFA Practice Management teams, we would like to wish you all a healthy and prosperous year for 2009.

As our first tip of the week for this year, we have a very simple suggestion.

What was the best business idea you had last year?  Now, how can you make it work for you during 2009?

Do you suffer from information overload? Does the constant stream of incoming e-mails bug you? Dealing with the vast amount of e-mails that financial advisors receive daily simply requires structure and discipline. Here are some pointers:

Set aside a specific time to view e-mails once (maximum twice) each day. Make sure that your e-mail software (eg Outlook) is not open during the rest of the day.

Use a "Reading Pane" that provides details of the message without you having to open the mail item. This allows you to scan the mail without opening it and delete it if necessary. (Chat to your IT support team about this if necessary.) 

Unsubscribe from news feeds unless they are particularly important or useful. Usually they clutter up your In Box with junk.

Ruthlessly delete mail that is not important. Do not respond where you don't have to or you encourage the sender to send more.

Open a folder in your In Box for important information that needs to be read later and then set aside time each week to do so.

How much would you lose if someone stole your laptop today? Of course your laptop is probably insured and you could walk in and buy another one on the way to the office.

But what about the data on your laptop? What is that worth and how would you replace it?

The real question is, "When did you last back up your laptop?" And the answer should be, "Within the past week."  Talk to your IT consultant about the best way to create back-ups in your situation and then implement a non-negotiable process.

Can you remember the last time you had to sit in a waiting room before an appointment?  What did you do?  More importantly, what did you look at and what did you read?  How often have you come across tired, old magazines that should have been thrown out years ago?

Now put yourself in your client's shoes and go sit in your own waiting room. What is there to see?  What is there to read?

Make sure the material is up to date and relevant. You might even use a book mark strategically placed to draw attention to a magazine article, for example. Remember that if your client gets bored waiting for you, then you can expect your meeting to start on the same low note.

There was one common factor amongst all the finalists in last year's SA Best Practice of the Year competition. Each of them makes excellent use of technology.

The question is, "What is technology doing for you?"  Are you using technology simply to record client details and prepare financial analyses?

Or are you using technology as a management tool that facilitates client communication, relationship management, and efficiency enhancement?

Buy a computer and it is an expense. Use it properly and it becomes an asset that adds value to your practice.

Who answers in your absence?

We have learnt to appreciate the benefits and convenience of the modern telephone, but many of us still balk at the cold, impersonal voice mail that greets you when the person you want to talk to is out of office. The same will apply to your clients.

There may be times when there is nobody to answer your telephone. Remember that you could receive calls outside of office hours and on your cell phone when it has been switched off. Make sure that you have a warm friendly greeting that will encourage callers to leave a message.

Do you regard playing a round of golf with clients to be a marketing event? Think again, you should be doing so with prospects.

But golf is usually played in a group of four. So, why not ask a client to join you and bring two friends or colleagues - your treat?  Just remember that you're there to play golf and enjoy yourselves.

Business often comes later, but you will be dealing with new-found friends.

Does your high client retention rate tell you that your clients are happy?

Don't feel offended, but many clients think that changing advisors is a hassle and it's easier to stick with what they've got.

Client satisfaction, according to the experts is not measured in terms of client retention, but by the number of referrals one gets.
How satisfied are your clients? Or should I ask, "How many referrals are you really getting?"

Have you said thank you to those of your clients and business partners who gave you a referral during the course of this year?

Why not also include a small "thank you" gift when you send them season's greetings this December? Let them know that they are special and that you really appreciate their support.

By the way, if you can't remember who gave you referrals, they're not likely to repeat the favour next year. Commit to documenting your referrers, or better yet, add them to your client database, linked to the client they referred.

One of the aspects that successful advisory practices have in common is the fact that they do not have to prospect for new clients - all their new clients come from referrals from their existing clients.

If you're not getting the number of quality referrals that you think you should be getting, consider the following:

Clients generally want to refer their advisors (According to Business Health's client satisfaction survey, 87% of clients say that they would refer their advisors).

Clients often do not refer because they think you are already too busy.

Clients do not know how to refer their advisors.

Clients do not know who to refer (they don't know who your target market is and may be worried that they will waste your time).

Educate your clients with regards to referrals. Inform them that you are able to take on new clients (like themselves) and would appreciate introductions to their colleagues and friends.

And remember to thank them.

Suppose you receive excellent service from a supplier and he asks you to recommend him to others.

Would you be offended? Probably not, yet many financial advisors deliver excellent service but fail to ask for a similar referral.

The next time a client expresses satisfaction for your service ask for a referral? You will probably find your client only too happy to oblige.

Do you find that you're almost always in a rush? That every day has too few hours in which to do what you need to do?

This could be a sign that you're very busy - always a good thing in our business. It could also be a sign that you're disorganised - something that costs a financial advisor money.

What you need to do is stop and re-organise. Take a little time out to analyse what it is that keeps you so busy. Identify what you could be delegating and start doing so. Start using your diary more effectively and allocate specific time for all your activities, including admin and social time. Eliminate those things that are non-productive but include rest and recreation. Chances are that by organising yourself better you will have more time to do what you want to do.

To be a great leader, according to Score, an on-line management consultancy we came across, you need to:

Be there when your people need you

Lead by example

Get involved but don't micro-manage

Know your business inside and out

Keep in touch with all your stakeholders including clients, employees and suppliers. How do you shape up?

We need to understand the difference between activity and productivity.

Being very busy may not lead to profitability. And many advisors incorrectly believe that because they do something themselves, it costs them nothing. So, if what you're doing is not going to pay you, should you be doing it?

Being productive is a matter of performing effectively and efficiently - doing the right things right. Productivity inevitability leads to profitability.

Are you as smart as you think you are? Last week I asked if you had a coach or mentor. This week, I'm in the same frame of mind.

Yes, I know you're an entrepreneur - or you wouldn't be where you are. And you've done well, largely through your own efforts. But no matter how intelligent we are, how hard we work or how driven we are, there is always someone who can offer us something more.

Make a list of the people you admire, the people you respect and the people who really impress you. Take a closer look at your peer network and your best clients. Identify the leaders amongst them and make an effort to spend time with them - regularly. Just a 30 minute discussion could have immense benefits for you and your business.

Are you geared for success? Here's a quick checklist that can give you an indication of whether you are on the right track or not. See how many times you answer "Yes".

Do you have a passion for what you do?

Do you have purpose - knowing what you want to achieve and how to do so?

Did you complete everything on your "To Do List" last week, even the things you don't like doing?

Do you focus on them, not me when it comes to your clients?

Did you make time for yourself and your family last week?

If you scored a full house then chances are you are already successful.

We have all but run out of year and many of us are probably wondering what's happened to 2008!

Talk to many busy advisors and they will tell you that they're rushing to get things done before they go on leave.

If you're nodding your head in agreement with these statements, stop and reflect. Are you being as efficient as you could be?  Have you eliminated procrastination from your daily activities? Are you happy that you're not spending time on things that others could be doing for you?

If you can honestly answer "Yes" to these questions, you may need to appoint an assistant. If not, chances are you could free up some time for yourself next year by taking a critical look at what you do and how you do it.

How do you go about building value in your practice? The place to start is by looking at your own efficiency ratios.

How many appointments in your diary next week are with existing clients? You've got a 50% better chance of doing business with existing clients than new clients.

How many client review meetings have you got scheduled for next week?  These are the best appointments for obtaining quality referrals and uncovering new financial requirements.

How many meetings next week are in your clients' offices rather than your own? Petrol just went up by more than 20c per litre and if you must travel, is there not another client you can visit en route?

These are just some of the ways that you can enhance efficiency, improve profitability and grow the value of your practice.

"Hectic. I'm so busy I run out of hours every day. My PA brings me coffee and when I look again, it's cold and she's left for the day."

Every heard a colleague say something like that? Ever said it yourself?

Either way, you or your colleague is in trouble. You're in a state of what is better known as chaos and you need to rectify matters before it's too late. The other symptoms of chaos include forgetting to do things, procrastinating until you have to fight the fires, not meeting certain expectations and letting down your family. In the terminal phase, you're too tired to think straight, your kids stay out of your way and your spouse stopped talking to you - some time ago.

The cure for this particular strain of chaos is self discipline and careful planning. Prescribe a set number of work hours for each day and then schedule what you will do in your diary. Plan at least a week in advance and do not work beyond the hours specified. Rearrange your plan, if necessary, until it works for you. Include family/free time in your plan and whatever you do, do not compromise these times.

Warning. Don't try this if you're feint-hearted.

Who looks after your personal financial planning? Have you ever considered hiring a financial advisor?

Why not get a trusted and respected colleague to "take you on as a client" and go through the entire financial planning process with you. Of course, you should reciprocate and perform the same service for your colleague. Chances are you will learn something from each other regarding style and technique and possibly even uncover an unsatisfied requirement in your portfolio.

If not, you will at least satisfy yourself that your financial plans are in order.

Are you feeling good about last week? If so, the week that was provided a great start to the week we're in. If not, the good news is that last week is over and done with. This is a new week.

Too many of us get bogged down by our perceptions of failure. If last week's plans didn't pan out the way you expected, it doesn't necessarily mean that you failed. It might mean that you need to do some things differently or more frequently.

Christopher Morley, journalist and author, says of success: "Big shots are only little shots who keep shooting." So keep on shooting!

Are you prepared to be different? John Bowen junior of CEG Worldwide suggests that the changing environment means that you, too, need to change. What you did yesterday may not work in today's climate.   

With all the changes that have taken place in our markets, ask yourself the question, "What could or should you be doing different for your top clients?"

Oh no. It's nearly April and then we have one of those months where every second day is a holiday. What's more, it's 2010 and there's a soccer world cup - so we can write off June and July.

If that's what you're thinking, think again. You owe yourself and your family time off. You also know well in advance when the holidays fall and, therefore, when your clients are likely to be taking time off.

So start planning now. Rev up the engines so that you are able to put in an extra effort in the weeks ahead. And then make the most of your short holidays - holidays that you have fully planned for.

Are you in your own schedule? Many of us have very full diaries and find it hard to find time for ourselves. If fact, speak to our spouses and they will have you believe that we find very little time for our families and, often, they are quite right.

When you next prepare your diary for the following week, begin by slotting in an hour for yourself. Yes, a whole hour. Now, what exactly are you going to do during that hour? I suggest you do something different. You might spend the time reading - not the economic report but something about people or self development. If you do not do a lot of exercise, go for a walk and make a note of everything that you have not noticed before.

You probably have a good idea of what you would do if you had a free hour. Well now you have one, so do it.

Does your voicemail do it for you? Many of us hate voicemail. Talking to a machine and leaving  a message is sooo unpleasant. But there will be times that you are not available when a client phones and you need to make sure that you are able to return the call later.

So, here's the 1, 2, and 3 of setting up your voicemail:

Write your message down. Make it short and sweet but ensure that it says  what is necessary. Then practice it over and over until it flows smoothly off your tongue.

Record your message. Smile while you do it - it carries through to your voice. Be animated, use your hands and walk around if it makes you feel good.

Phone yourself and listen to your voicemail. Do it all again if it doesn't make you want to leave a message.

Miracle communication tool or the curse of the busy?

Do you find that e-mail really helps you get the job done, or is it something that consumes hours and hours of your day? Here are some tips to make this versatile even more effective:

Set aside a specific time each day to read and reply to your e-mails. If you drop what you're doing and attend to each e-mail as it comes in you lose concentration on what you were busy doing at the time. Avoid your e-mails during your most productive times of the day.

If an e-mail is unimportant, scan it and delete it.

Keep your inbox to a minimum. These are items you need to attend to. If you've read an e-mail store it in your personal files or archive it. Ruthlessly delete what you needn't keep.
If are able to, delegate e-mails to your assistant for a response. Better still, give your assistant access to your inbox and have her/him attend to your mail, keeping you informed of the important matters and personal mails.

Those starting out as financial advisors are frequently told how important time management is and how to fill their weeks with productive appointments.

How good is your time management? Take a look at your diary for next week and carry out this little exercise:

Being as honest as possible, write an "E" next to each item in your diary that you believe is essential.

Write an "I" next to those appointments/tasks you consider important.

Write a "U" next to those appointments/tasks you view as unimportant.

If you have more "E's" than any other letter, you're probably in crisis mode.

If most of your appointments/tasks are Unimportant, you might be wasting time.

If most of the items are Important, you're in for a very productive week. Good luck.

We've talked about it before and it's time to talk about it again. Who is your business advisor?

At this time of the year, your 2010 business plan is in the making, if not already complete. The question is, "who have you discussed it with?" Remember that Tiger Woods and Ernie Els deem it appropriate to spend time with a coach - despite the fact that they're of the best in the world.

Run your goals and objectives past a coach, mentor or someone whose judgement you respect. You will find yourself more committed as a result and you could get some very valuable input.

Score organisation has a regular "Five Tips" feature on its website (www.score.org) and one entry offers tips on self management. They suggest that you:

Recognise your limitations and hire others to do what you can't.

Make use of a coach or mentor to help you take your business to the next level.

Open yourself to change, especially by listening to staff and others.

Be self aware, particularly in terms of your leadership style. Offer service - to staff and clients.

Do you openly seek feedback - from your clients? From your staff?

Making sure that you're doing the right things right is easier if the people that you are doing it for give you feedback. Ask them what they think and what you could or should be doing that they still need from you.

Don't think of feedback as criticism. It is far more likely to be constructive input into what you are doing and is usually very encouraging.

Would you like to take an efficiency test?  If so, follow these steps:

1. How long does your average client appointment take?  Add up the time actually spent in front of clients last week and divide it by the number of appointments you had.

2. If you had seen all these clients in your office, not theirs, how much time would you have saved?  Add up the time spent travelling to and from clients last week.

3. How many more clients could you have seen if those appointments were held in your office?  Divide the answer from Step 2 by the answer from Step 1.

4. Can you improve your efficient and save time (and costs) by seeing more clients in your office?  You decide.

Two weeks ago, I asked if you make time for relaxation or exercise.

Today I'm going to get even more personal. When last did you make time for yourself?  We spend so much of our time planning for others that we often forget to take care of number one!

Chris Terblanche from the Joshua Trust organisation recently delivered an excellent talk at a practice management conference. One of the points that he made is that we should all start the day by setting aside 30 minutes strictly for ourselves. Take the time to think about yourself, what you want and what you would like to achieve for yourself. Be absolutely selfish and concentrate on yourself. Then spend the rest of your day delivering to others.

Of course money is pretty important but when it comes to measurement, then there are also other important criteria. For instance:

Referrals tell you that clients are happy.

Profit, rather than revenue, tells you that you're efficient.

An increase in annuity income tells you that the value of your practice is growing.

Three or four products per customer tell you that competitors won't get a look in.

If you don't measure it you cannot manage it. So what do you measure?

So you're managing your client's financial affairs, but what about your own? Sure you have an income and sales budget, but what about expenses? Many of your clients are focussed on profitability and there are two ways in which you can improve a profit: increase sales without increasing costs by the same margin or manage expenses so that it costs you less to generate your sales quota. The interesting point is that a 1% increase in profit often results in a substantial increase in sales. Focus on profitability and it's amazing how the sales look after themselves. Give it a try.

Even the best of us have the occasional mishap, even failures. The point is, what do you do when something like that happens in your life?

The first thing you need to do is put your ego to one side. It is natural to have things go wrong and it's how you deal with the issue that counts. So, as they say, get over it.

As soon as you become aware of a problem, assess your potential to fix it or work around it. If that will take too long or prove too costly, stop doing whatever it is that's not working. We often spend ages on a project or campaign that is doomed to failure. Shift your attention elsewhere and win.

The World Cup is behind us and we all had a fantastic month of Soccer, Soccer and more Soccer. Some of us may even have watched an entire soccer match for the first time ever and if you were at a match or visited one of the many fan parks you would have been part of an atmosphere that was almost unprecedented in South Africa.

But beware. Something as fantastic as the World Cup often leaves a vacuum in its wake. Are you finding it hard to get going, to hit your straps and to crack those targets. You're not alone and the only solution can be found in a single word: persistence.

Norman Vincent Peale (author of The Power of Positive Thinking) said, "If you want to get somewhere you have to know where you want to go and how to get there. Then never, never, never give up." That sums up what we need to do in order to get back on track. In a few months, much of the World Cup hype will have faded but we, as financial advisors, will be looking to the next challenge.

The damaging effects of office clutter?

You are probably thinking it is trivial to talk about office clutter with so many other pressing issues facing advisors at the moment. But it's times like these that little things pile up and become a big issue later.

Yet, according to a survey examined in US Financial Advisor Magazine, "clutter can overwhelm a practice, create severe compliance problems, interfere with profitability and even lead to employee disaffection".

How to begin the process of de-cluttering your office and your mind:

1. Handle paper as much as possible only once - deal with it when you receive it.

2. Screen out the unimportant stuff.

3. File efficiently.

4. Delegate effectively.

5. If you don't need it - throw it out.

6. Recycle.

7. Get organized - clean your desk at the end of every day.

8. Plan - learn to plan your time effectively.

Follow these tips and you will most likely increase your office efficiency, improve your employees' attitudes, the atmosphere in the office and your clients' perception of you and your staff.

Source: Financial Advisor Magazine (US), July 2008

What have you done about your personal development this week? Or has it been one of those weeks where you had too few hours in each day?

Personal growth is not a function of luck. You have to want to grow and then you need to set aside specific time to do so. Attending a course for a week may require a huge sacrifice, but taking an hour each day to read something informative or inspirational is not.

Expanding your mind makes you more capable. It could also make you more interesting and respected as an advisor.

What role do you play in an important conversation. As a financial advisor you need to assume two roles - that of participant and that of observer.

As a participant you need to listen and to speak. You have an important message to relate (speaking) but it must be based on a solid understanding of the issues at hand (listening). But there is more to it than that. Conversations tend to become subjective. Every now and then you need to take a figurative step out of the conversation and become an observer. Assess whether the participants are moving in the right direction, are they on the right track and are the appropriate issues being discussed. Then step back into the conversation and bring it back on track if necessary.

Do you have balance in your life? Do you make time for relaxation and for exercise? Or do you pride yourself on being called a "Workaholic"? 

In the demanding times that we are currently experiencing, we tend to put aside our personal needs and, especially, some of the pleasures we get out of life. There is enough stress just succeeding as a financial advisor without us adding to it by postponing the things that naturally de-stress us.

When last did you take a Friday afternoon off so that you could take your partner to a movie?

Who do you go to for advice? The overseas trend - one that is becoming increasingly applied in South Africa - is for financial advisors to engage a business coach. Some practices even go so far as to appoint a board of advisors.

The purpose of a coach or board is to have a person or a body to consult with about new ideas, to get advice from and sometimes to receive guidance from.

We're not saying that you need someone to tell you how to run your business. But it does help to have someone to talk to. Especially when that person knows you and understands what you are all about.

Who's reading your e-mail? No, it's not big brother we're worried about, but your clients. Yours is probably one of many messages that land up in your client's Inbox, so how do you ensure that it gets read. Here's how: Think. And then think again before you hit the send button. If your e-mails are
frequently irrelevant, wordy or uninteresting they will be deleted without being read.

Personalise. A "Dear Client" e-mail gets deleted while a "Dear Paul" mail is read.

Pick a subject. Your client sees the subject line before he reads the body copy. Make sure the subject is appealing or the mail will be deleted.

With the complexity of modern financial products and services and the sophistication of our markets, expertise is a sort after commodity.

No wonder your clients look to you and your knowledge when it comes to  getting the right advice and understanding their own financial affairs.

So, how knowledgeable are you? Do you have the answers to most of the questions? Are you able to explain things in a way that clients can understand them and make informed decisions? One of the requirements of being a qualified financial advisor is to continue expanding your own knowledge on a permanent basis. Make sure you do so.

First impressions do count. What's more, they are often the final impression.

Would you buy from you?

Take a close look at your appearance as soon as you read this. If a prospect walked into your office in the next 10 minutes, what would the first impression of you be like? Well dressed, neat, tidy, alert, friendly, enthusiastic and energetic?

You create that first impression - so spend some time considering your image today. It will show tomorrow.

You don't need to be the source of an idea to make it work for you. Some people are typical original thinkers and come up with amazing ideas. But that doesn't stop you from using them as well. In fact, if it works for others it means that it could work for you.

Listen to what others have to say and learn to identify a good idea when you hear one. Often, it's the implementer and not just the innovator who makes it big.

You're the boss of you So just how good a job are you doing of managing yourself? Ours is not an easy world right now and you really need to make the most of what you have. In particular, you need to ensure that you are in a position to do what you do best.

Delegate. Let others do things for you to save you time and free you up.

Outsource. Where others are better qualified or equiped to you to provide specialised services, refer your clients to them expect them to reciprocate.

Focus. Concentrate on the improtant issues and get them done first.

Decide. Make decisions and then implement them. Don't procrastinate.

Indulge yourself. Make time for yourself and your family in your diary. You deserve it and so do they.

It may be that the beggar at the traffic lights has parked his Bentley around the corner. Or that the lady who offered you a small discount on extra strength black bags and plastic coat hangers is considering buying a "Lock up and Go" at Plett with the profit she's made on short selling her gold stocks. But it's unlikely.

On a serious note, however, we've reached that time of the year again where our thoughts go out to others. It is a time for giving and a time for saying thanks. It's also a time to spare a thought for those less fortunate than ourselves. We've seen any number of companies getting involved in community projects and doing amazing things. At Celestis, we painted murals on the walls of a wooden make-shift crèche in one of the townships. It cost very little, other than a day out of our lives.

What are you doing to give back to the community on your doorstep? We've heard wonderful stories from around the country. Share your ideas by commenting below.  It needn't involve a lot of money, but include your staff and make your contribution count.

Are you part of the economic recovery or do you still find yourself trailing behind? Think again as you contemplate this issue. Sure, tough times don't simply melt away - they take time to reverse. But an important catalyst in the turnaround is you. Your attitude is going to make a huge difference, especially as far as your staff is concerned. According to a recent Bloomberg Businessweek blog, "employees work harder for managers who consistently provide small uplifts - like a word of praise, or an expression of confidence - for them." So, are you doing your bit to turn the economy around?

A recent survey shows that, on average, an advisor spends 55% of his time on income generating activities and conducts 10 client appointments each week. To increase client appointments to 12 per week would require the advisor to spend about 65% of his time on income generating activities.

Could you increase your time spent on income generating activities by 10%? Would you:

Work longer hours?

Work harder?

Work smarter? 

Share your workload with an assistant?

Only the last two points are likely to succeed and you need to establish how you can use them to enhance your efficiency.

While researching something on the Internet this week, I came across the following comment, "Managing employees isn't a popularity contest, but if your workers like and respect you as a person, your company's bottom line is likely to show it."  (Source: Entrepreneur.Com)

The environment in which you and your staff work is mainly about you!  As the leader, you set the tone and the mood. If you are positive, demonstrate the right attitude and lead by example - your team will quickly adopt the same approach.

So, while you have to maintain discipline and set standards, your leadership style, rather than the rule book, is what will determine the "atmosphere" in your office. And this is what your clients will experience.

When last did you tell someone that you really appreciated them? Or what they do for you?

In our busy environment, few of us take the time to acknowledge others for their contribution. It's not that we do not appreciate their efforts. It's just that we never seem to have the time to properly show our appreciation.

Make the time. Even a few words, spoken sincerely, can be a huge reward to someone who makes an effort to please or support you. Endeavour to demonstrate your appreciation - it is the least you can do.

I once met an advisor who proudly informed me that his business successor had just been born. Literally. Ten out of ten for forward thinking. But just how fit and able is your chosen successor? Has he or she:

Qualified in terms of the FAIS legislation?

Established a rapport with key clients in your practice?

Begun to accompany you on client review meetings?

Started taking over some of your management functions?

Succession planning is a process and the successor has a key role to play in that process - before during and after the transition.

I once met an advisor who proudly informed me that his business successor had just been born. Literally. Ten out of ten for forward thinking. But just how fit and able is your chosen successor? Has he or she:

• Qualified in terms of the FAIS legislation?
• Established a rapport with key clients in your practice?
• Begun to accompany you on client review meetings?
• Started taking over some of your management functions?

Succession planning is a process and the successor has a key role to play in that process - before during and after the transition.

"Management is like a three-legged stool. You have to lead, coach, and judge."

I came across this statement while reading an article on www.businessweek.com. How true, but do we appreciate what is expected of us when we employ people? We probably lead by example and most of us perform on-the-job coaching. But judging - now that?s a different story.

Think about two aspects. You set the standards. You're the judge and your decision is what will determine those standards. Make sure it's realistic, achievable and appropriate. Secondly, the performance of all who report to you must be judged. We call that performance measurement. It's how you determine that your standards (and objectives) are being met and you use the results to empower and enhance your subordinates.

Use your judging responsibilities wisely and you will become an even better leader and coach.

Last week we listed a few tips on how to manage employees based on outcomes or results. This week we want to help you phase out a "time-based" management style: If you want your employees to be focused on results then stop:

Judging how people spend their time

Rewarding employees based on time spent at the office, not on results

Using a fake crisis as a management tool.

Bottom line, start trusting your people as you trust yourself.

(Source: Entrepreneur Magazine, April 2009)

Are you thinking of hiring an assistant or advisor in the near future. If so, you might want to look out for the 5 C's:

Competence. Is the candidate properly qualified - skills and education?

Capable. Can the potential employee do the job - effectively and efficiently?

Compatible. Will the person fit in - with you, your team and your organisation?

Commitment. Is this someone who will stick to it when times get tough?

Character. Does the person have the values that align with your requirements?

Source: www.businessweek.com

It's almost time to celebrate. What have you got planned for your team this year?

Celebration helps motivated people stay that way

Celebration confirms that you recognise what the team has done

Celebration is a way of saying thank you 

Believe it or not, this is one of those years when a celebration, within reason, is absolutely necessary. Make sure you and your team have yours within the next month!

Have you had a good start to the year? Feel like you need a reward?

If so, there's a good chance that your support staff have made a hefty contribution to your early success as well.

It's Valentine's Day next week. Why not use it as a special occasion to say thank you to those who back you up. It needn't be an elaborate affair. Just chocolates or flowers, given with sincerity, will mean a lot to those whose efforts go towards making your life easier

What do you want from your employees: Time or results?

Many of today's employment models are based on those of the industrial age where people worked in factories, on an hourly or shift basis.

The business environment has, however, become more complex and most of the jobs in our industry today are "knowledge-intensive" as opposed to "labour-intensive". For many jobs, measuring performance based on time makes no sense whatsoever - people should be measured on results.
Here are some tips that, according to the experts, will help you manage, based on results:

Make sure you have adults in your team

Every employee should have realisable, measurable goals.

Focus on measuring employees on outcomes

Make your management structure as flat as possible

Encourage experimentation, failure and success.

Source: Entrepreneur Magazine, April 2009.

Leadership is a vital attribute that successful financial advisory practice owners display in difficult economic times.  Leadership is not something you can delegate.  It is yours to have and to execute.

A true leader:

• Has a clear vision of where s/he and the practice are going

• Has a documented plan of how s/he and the practice are going to get there.

Are your peers and employees benefiting from your leadership skills?

Still on the subject of the SA Best Practice of the Year competition, there was one common factor amongst all the finalists.

At each practice, all members of staff are familiar with the business plan and the practice's objectives. Their own objectives and, in many cases, performance measurement criteria are linked to the business objectives.

Are your key objectives reflected in your business plan? And are those of your assistants or support staff aligned with the business plan?

When is it training and when is it development? One could probably argue that training relates to learning how to do something - job related in our case - while development usually relates to up skilling someone. Is it that important, or are we dealing with semantics? Both training and development - when it comes to your staff - are likely to benefit the practice and, thereby, you. In either instance it is an investment and all the more relevant when the costs are tax deductible.

But even more important is the benefit thoryat training and development has for your staff. It is uplifting, empowering and a direct form of recognition. What is more, qualified staff are generally happier and more likely to stay with the practice.

Does it make you feel good to know that your clients don' want to deal with anyone else but you?  It' a great feeling, but you need to think again.

With limited time at your disposal, you need to be able to delegate responsibilities. There are things that your support staff can and should be doing on your behalf. By introducing your clients to your staff you ensure that you can delegate some of your responsibilities.

What' more, if you are implementing a succession plan, you should be introducing your successor to your clients. If they develop a relationship with your successor now, it will make the transition easier tomorrow -and you everybody wins.

I once met an advisor who proudly informed me that his business successor had just been born. Literally. Ten out of ten for forward thinking.

But just how fit and able is your chosen successor? Has he or she:

Qualified in terms of the FAIS legislation?

Established a rapport with key clients in your practice?

Begun to accompany you on client review meetings?

Started taking over some of your management functions? Succession planning is a process and the successor has a key role to play in that process - before during and after the transition.

Sometimes you need to be out when you're in

As a busy person, you need to structure your time to best achieve what needs to be done. One of the more difficult aspects of being an advisor and running your practice is finding the time to deal with the admin (and other) issues.

Get it right and you're often faced with the huge time thief we all know asinterruptions. If it's not your cell phone, it's an important e-mail that pops up. Or your assistant who has been looking for the opportunity to grab some of your time.

This is where you need to allocate in-office time that must be regarded by everyone as "do-not-disturb-unless-the-water-reaches-the-top-of-the-door" time. Make it clear that even though you're in-office, you're not available for a set period of time. And then make time for your assistant whose meeting with you is probably long overdue.

Do you know that the average radio or TV Advert is only 30 seconds long?  That's not really much time to relay your message.

How much time do you need to get your message across to your prospective client before he or she loses interest?

Maybe what you should do is write down a "quick" value proposition that takes no more than 30 seconds to deliver. It must be punchy, to the point and interesting. Then try it out on some of your friends or colleagues. Ask them if it would make them want to hear more.

In marketing they say that Price is set by the seller but Value is perceived by the buyer.

So what did you do this week to improve the value of the services that you offer? Your key to success is to be constantly aware of what your clients need and then to ensure that your services meet expectations. Or even exceed them.

You get people to want to deal with you by offering services that they perceive as valuable. So, take a few minutes and list the "value add" features that you offer your clients.

If you were required to reduce your budget, what would the underlying factor be that would influence your decisions?

Chances are you would consider value!  If something is very valuable - keep it at all costs. If something has little value - ditch it.

Now take another look at what you are offering your clients and answer the all important question. Are you offering your clients value?

Have you ever seriously considered what makes you different to your competitors?

Why should clients deal with you rather than someone else? Is it the products you distribute, the advice you give or the knowledge you have?  Is it the way you build and nurture business relationships? Could it be your qualifications or professionalism? Or the fact that you really understand your clients' requirements?

Why not write down what makes you different? Then tell it to your clients, because that's your value proposition to them.