Practice Made (More) Perfect Transforming a Financial Advisory Practice Into a Business

by Tibergien, Mark C.; Pomering, Rebecca

• ISBN13: 9781118019313
• ISBN10: 1118019318
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-08-09
• Publisher: Bloomberg Press

Summary

Practice Made Perfect, Second Edition is a guide to managing and growing a financial-advisory business. With the knowledge and understanding gained from years of experience in helping businesses achieve success, industry expert Mark Tibergien offers an eye-opening, no-nonsense handbook on the management skills critical to running an advisory business. The new edition includes information on: The 2008 downturn and the exodus of advisors from the industry Maintaining clients in a turbulent market Growth through acquisition and merger as well as new sales Emphasize organizational design in a growing business more Recent changes in compensation planning and implementation Information on leadership and management in today's financial landscape No matter how little time you have or how serious the challenges your firm faces, this book can help. Whether you operate as a solo practitioner or own an ensemble firm, whether your business is commission based or fee only, whether you're a total wealth manager or a money manager, this book is relevant to your practice. The principles of sound management apply to firms of all stripes, and the tools provided here can work under any circumstances.

Author Biography

Mark C. Tibergien is Chief Executive Officerfor Pershing Advisor Solutions LLC, a BNY Mellon company, and a Managing Director and memberof the Executive Committee for Pershing LLC. Foreight consecutive years, Accounting Today has recognized Mr. Tibergien as one of the "100 MostInfluential" people in the accounting professionand Financial Planning has identified him as a "Mover and Shaker" in their annual review of industry professionals. In 2011, for the ninthtime, Investment Advisor recognized him as one of the "25 Most Influential" people in the financialservices industry.

Rebecca Pomering is a partner with Moss Adams LLP and CEO of Moss Adams Wealth Advisors, the firm's wealth management division, where she is responsible for the growth of the firm, including strategic planning, sales and marketing, team development, human capital, CPA firm integration, financial management, and mergers and acquisitions.

Table of Contents

Preface	p. xiii
Acknowledgments	p. xvii
Introduction	p. xix
The Financial Advisory Business: What's Next?	p. 1
What Are Top-Performing Firms Doing?	p. 3
The Business as Client	p. 4
10 Things to Think About	p. 4
Strategic Business Planning: Defining the Direction	p. 11
Muddled Messages	p. 12
What Is Your Strategic Differentiator?	p. 14
What Is Strategic Planning?	p. 14
The Strategic Planning Process	p. 16
Managing Workflow: The Back Office Moves Forward	p. 35
Sources of Inefficiency	p. 36
Achieving Efficiencies	p. 37
Does Efficiency Come at a Cost?	p. 39
Managing Risk	p. 45
Building Leverage and Capacity	p. 55
Getting to the Next Stage	p. 56
Becoming a Market Dominator	p. 57
The Challenge of Growth	p. 58
The Entrepreneurial Crossroads	p. 59
Cornerstones of the Professional Practice	p. 66
Models That Work	p. 68
Leveraging Your Affiliations	p. 72
Big Is Beautiful	p. 76
The Human Capital Plan: People Who Need People	p. 81
The Problem You Can't Do Without	p. 82
Aligning Human Capital with Strategy	p. 83
The Nature of the Work	p. 86
The Nature of the Worker	p. 90
The Interviewing Process	p. 93
Creating a Positive Workplace: Professional Development	p. 99
The Career Path	p. 101
The Appraisal Process	p. 104
Coaching and Development	p. 107
The Workplace	p. 109
Building a Foundation	p. 114
The Four-Way Test	p. 115
Lessons on Inclusion	p. 125
Rewarding Behavior and Performance: Compensation Planning	p. 129
Developing a Plan	p. 135
The Components of Compensation	p. 139
Establishing Base Compensation	p. 149
Establishing an Incentive Compensation Plan	p. 150
Owner's Compensation	p. 153
Reading the Financials: Financial Management	p. 155
Fundamentals of Accounting	p. 155
Constructing a Financial Statement	p. 156
Tring the Financials Together	p. 165
Income, Profit, Cash Flow: What the Numbers Are Saying	p. 167
Formatting the Financials	p. 168
Analyzing the Income Statement	p. 169
Analyzing the Balance Sheet	p. 179
Analyzing the Statement of Cash Flow	p. 184
Financial Impact Analysis	p. 185
Managing Growth: The Search for Solutions	p. 189
Harnessing Resources	p. 190
Using Financial Leverage	p. 192
Managing Cash Flow	p. 194
How About Equity?	p. 195
Referral Agreements and Joint Ventures	p. 196
Practice Acquisitions	p. 199
Investments in New Initiatives	p. 203
Exit, Stage Left	p. 205
The Price of Indecision	p. 206
Sale Planning versus Succession Planning	p. 207
Wisdom or Obsolescence?	p. 209
What to Do?	p. 210
Keeping It in the Family	p. 211
How to Make a Partner	p. 217
What About the Successor?	p. 223
Merger as a Succession Plan	p. 226
So What Do You Do?	p. 228
Seeking Counsel	p. 230
Developing the Assumptions	p. 231
Take Control	p. 232
On Leadership and Management	p. 235
What Defines a Leader?	p. 236
Who Will Emerge?	p. 239
Is Anybody Leading?	p. 240
Rites of Passage	p. 242
Ready, Fire, Aim	p. 244
Awakening the Manager in You	p. 248
Practice What We Preach	p. 251
Hiring Your Boss: Do You Need a CEO?	p. 251
Afterword	p. 257
Appendix	p. 261
About the Authors	p. 297
Index	p. 299
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