Ineffective Habits of Financial Advisors (and the Disciplines to Break Them) A Framework for Avoiding the Mistakes Everyone Else Makes

by Moore, Steve; Brooks, Gary

• ISBN13: 9780470910320
• ISBN10: 0470910321
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-11-09
• Publisher: Wiley

Summary

The 7 Not-So-Best Practices of Ineffective Advisors is based on a 15-year consulting program that Steve Moore has led for financial advisors. It details techniques for business analysis, elements of a strategic vision, characteristics of exceptional client service and strategies for acquiring high net worth clients. These are the factors which allow advisors to transform their business into an elite practice.Told through the story of "Jack," an advisor who represents your average financial advisor, each chapter begins with an ineffective practice: a focus on quantity over quality or using the "rainmaker approach" instead of a "team approach." Each bad habit is countered with a new disciple to improve business results and add value. For example, in chapter seven, Moore details a strategy of cold calling new prospects as a bad strategy and describes a system of working through current clients to form new relationships and partners as the best practice to follow. He then offers step-by-step advice as to how to begin this networking effect. Throughout each chapter, Moore includes anecdotes collected through both personal experience and stories he's heard from clients and colleagues, as well as question and answer segments, examples, and homework assignments.

Author Biography

Steve Moore is a leading management consultant, mentor, and coach. Moore developed High Speed Strategic Planning, a year-long coaching program for advisors, which has helped more than 750 wealth management teams achieve their business goals. Moore's strategic planning expertise began as a football coach. He spent more than a decade in the NFL (Buffalo Bills, Seattle Seahawks, and Los Angeles Rams). He also has significant strategic consulting experience with Microsoft, Toyota, and many other prominent companies. Steve is the former managing director and chief operating officer of the Pacific Institute, an international corporation specializing in performance improvement, professional growth, change management, and leadership development. He holds a masters in education from Seattle University.

Gary Brooks, CFP, is the President of Brooks, Hughes & Jones, a Registered Investment Adviser, and a financial columnist for The News Tribune in Tacoma, Washington.

Table of Contents

Foreword	p. x
Introduction: Setting the Stage	p. xiii
Business Disciplines	p. xvii
Ineffective Habits of Financial Advisors and the Disciplines to Break Them	p. xviii
The Framework of the Book	p. xxi
Insights	p. xxi
Decisions	p. xxiii
Actions	p. xxiv
Acknowledgments	p. xxv
Stop Living Their Dream and Start Living Your Dream	p. 1
The First Ineffective Habit: Living Their Dream	p. 1
The First Discipline: Start Living Your Dream	p. 3
Insights	p. 4
Purpose: The Primary Reason for the Work You Do	p. 4
Business Goals: Specific Objectives that Support Your Purpose	p. 6
Guiding Principles: The Rules that Guide Daily Decision Making	p. 23
Vivid Description: A Narrative of the Business Success You Intend to Create	p. 29
Decisions	p. 32
Determining Your Purpose	p. 32
Determining Your Business Goals	p. 33
Determining Your Guiding Prinicples	p. 33
Determining Your Vivid Description	p. 33
Determining How You Plan to Keep the Dream Alive	p. 34
Actions	p. 35
Chapter Summary	p. 37
Stop Focusing on Quantity of Clients and Start Focusing on Quality of Clients	p. 41
The Second Ineffective Habit: Focusing on Quantity of Clients	p. 41
The Second Discipline: Start Focusing on Quality of Clients	p. 43
Insights	p. 43
Target Market	p. 44
Service Focus	p. 51
Competitive Differentiation	p. 51
Decisions	p. 60
The Common Sense Principle	p. 60
Actions	p. 61
Chapter Summary	p. 62
Stop Hoarding Unprofitable Clients and Start Disengaging Unprofitable Clients	p. 65
The Third Ineffective Habit: Hoarding Unprofitable Clients	p. 65
The Third Discipline: Start Disengaging Unprofitable Clients	p. 67
Insights	p. 68
Segment 1: The 20 to 40 Percent That Represents 1 Percent of Revenue	p. 73
Segments 2 and 3: Others You are Considering for Disengagement	p. 77
Decisions	p. 81
Actions	p. 81
Chapter Summary	p. 83
Stop Providing Only Investment Advice and Start Providing Wealth Management Advice	p. 85
The Fourth Ineffective Habit: Providing Only Investment Advice	p. 85
The Fourth Discipline: Start Providing Wealth Management Advice	p. 87
Insights	p. 87
Start Providing Your Top 20 Percent with Wealth Management Advice	p. 89
Step 1: Determine the Clients to Reengage with Wealth Management	p. 90
Step 2: Have a Deep Re-fact Meeting with Your Clients	p. 91
Step 3: Financial Planning	p. 97
Step 4: The Wealth Management Solution	p. 98
Step 5: Present the Wealth Management Solution-The Financial Vision Document and Client Engagement Roadmap	p. 106
Decisions	p. 107
Actions	p. 108
Chapter Summary	p. 110
Stop Delivering Only Investment Reviews and Start Delivering WOW Wealth Management Reviews	p. 113
The Fifth Ineffective Habit: Delivering Only Investment Reviews	p. 113
The Fifth Discipline: Start Delivering WOW Wealth Management Reviews	p. 116
Insights	p. 117
Client Needs Analysis	p. 118
Client Satisfaction Window	p. 119
Building the WOW Review System	p. 132
Decisions	p. 136
WOW Wealth Management Review Package	p. 136
Actions	p. 137
Chapter Summary	p. 139
Stop the Rainmaker Approach and Start the Team Approach	p. 141
The Sixth Ineffective Habit: The Rainmaker Approach	p. 141
The Sixth Discipline: Start the Team Approach	p. 143
Insights	p. 143
Team Core Competency Audit	p. 143
Team Development Evaluation	p. 146
Team Alignment and Empowerment Evaluation	p. 147
Internal Challenges	p. 150
The Organizational Structure of the Team Approach	p. 151
Role Clarity	p. 156
Managing the Team Approach	p. 159
Coaching the Team	p. 168
The Acquisition of Talent	p. 175
Team Incentive Compensation	p. 177
Create a Best-of-Kind Team of Experts and Suppliers	p. 179
Decisions	p. 180
Actions	p. 181
Chapter Summary	p. 183
Stop Selling to Prospects and Start Selling through Clients	p. 187
The Seventh Ineffective Habit: Selling to Prospects	p. 187
The Seventh Discipline: Start Selling through Clients	p. 189
Insights	p. 189
Client Introductory Event	p. 195
Center-of-Influence Marketing	p. 197
Managing the Sales Pipeline	p. 201
Qualify a Call-In Lead	p. 201
Fact Finding, Planning, Solutions	p. 202
Decisions	p. 203
Actions	p. 203
Chapter Summary	p. 205
Jack's Awakening: An Elite Wealth Management Company	p. 209
Bibliography	p. 215
About the Authors	p. 219
Index	p. 221
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