PROFESSIONALISM, PRACTICE MANAGEMENT AND BUSINESS SUCCESS

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PROFESSIONALISM, PRACTICE MANAGEMENT AND BUSINESS
SUCCESS
Jon Mackintosh Managing Director ENCORE SA
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Current Practice Life Cycle
Window of opportunity
DOORS OPEN PHASE Squatting
ALL HANDS ON DECK PHASE Getting by
TRANSITION PHASE Making money
STAGNANT
PENSION
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PRACTICE TO BUSINESS
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Today?
Me
Who is the glue?
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Today?
My clients do business with..
Me
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What do you answer if

• your client asks what happens to me if you ?
• your staff ask what happens to us if you ?
• your family asks what happens to your practice
  if you ... ?
• you ask what happens when I ?

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MOVE THE GLUE
Tomorrow?
Today?
The clients do business with..
My clients do business with..
Practice to Business
Me
The Business
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To be a practice owner today.
objectives
vision
knowledge
market
soft skills
acumen marketing back office hr
leadership sales time mgmnt presenting communicati
on negotiation
segmentation panel size pipeline
positioning
psycho metric abilities
technical
culture
product market competition
SALES FUNCTION
decision making relationship interpretive adaptive
initiative reading others
offer
operations
core value add reward
process systems tools
internal comms
cms
admin
best practice
systems
standards rules KPIs
IT s/ware manual
staffing
integration
tools
structure reward training performance mgmt salary
claims underwriting product / marketing commission
compliance
mgmnt reporting
processes
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Business Dream

TRANSITION
PRACTICE
BUSINESS
SUSTAINABLE PROFITABILITY
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PROFESSIONAL MIND

• The very word professionis a problem. It does
  not simply mean being paid for services, as
  opposed to the amateur who does something out of
  love. Nor does it merely convey an attitude, as
  in Act like a professionalI will now begin to
  use it to mean a pledge or assurance. That
  pledge from a postulant entity to a society
  promises that dangerous methods will be used only
  for the benefit of the served society in return
  for the right to use them. It is, in other
  words, the license. Professions, then, are
  occupations whose members receive their licenses
  in return for their pledge, their profession, to
  put the interests of the served society above
  their own self interests while acting in the
  licensed role.

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• The learned professions are occupations whose
  core product and service is their pledge to put
  the interests of others ahead of their own while
  providing their specific services

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THE CAVEAT

• To be a Professional to your clients
• You have a PROFESSIONAL OBLIGATION to be
  PROFITABLE BUSINESS

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EVERY CLIENT SHOULD BE PROFITABLE, EVERY YEAR!
In our experience, many financial services
businesses lose money on as many as 50 of their
clients each year
THIS IS NOT SUSTAINABLE!
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FACT MAKING MONEY
Advice
Technical Knowledge
Product Knowledge
Understanding the Environment
Basic Analysis skills
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AMAZING FACT
The more time you spend with clients
The more money you make!
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ANOTHER FACT
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WHERE ADVISERS SPEND THEIR TIME?
Source Moss Adams
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PRACTICE DEVELOPMENT
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4 BUSINESS CORNERSTONES
commercial
marketing
PRACTICE DEVELOPMENT
people
operations
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CLIENT VALUE
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PROFESSIONAL MARKETING

• Marketing is not selling.
• In service industries, marketing is a means by
  which the unique competitive advantage of a
  business is explained in a way that is valued by
  clients, leading to a decision to use a service
  perceptually that no one else can supply at the
  same level.
• This is the first and most vital principle that
  almost all successful Financial Planning
  businesses have realized. They stopped selling
  products early and started marketing skills,
  professional service, expertise, trust, honesty,
  and experience.

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WHAT IS YOUR VALUE?
VALUE

• ADVISER
• Advice Framework
• Guidance
• Technical
• Implementation

CLIENT Involvement ownership of Strategy
OUTCOME
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WHAT IS COMPETITIVE ADVANTAGE?

• Competitive Advantage is doing something better
  than a competitor, but in a way valued by
  clients
• Turns the reason why a client comes to you into
  benefit statements focused on the client

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DISTINGUISH VALUE AND PRICE
WHY
VALUE
WHAT HOW
PRICING
strategy
structure
method
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THREE KEY PRICING ISSUES
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MAKE A PROMISE

• SERVICE GUARANTEE
• The planning process that we apply when dealing
  with clients can be broken down into six basic
  steps
• Initial Meeting and Fact Finding session
• Meet with client to introduce each other.
• Conduct a fact find interview and collect all
  client data.
• Ensure that the data collected is accurate and
  comprehensive and includes the clients specific
  personal and professional goals and objectives
• Data Analysis and Develop Recommendations
• Based on the data collected, identify all the
  issues relevant to the clients situation.
• Assess and analyse each issue.
• Formulate strategies to achieve the clients
  present needs.
• Arrange a time for an interview with the client.
• Review all available options in order to attain
  the clients future goals.

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MAKE A PROMISE

• Client presentation and Implementation
• Describe the clients current financial position.
• Provide an analysis of the client's needs and
  goals.
• Provide product recommendations to achieve the
  clients stated needs and goals.
• Cover off compliance related matters.
• Provide the client with details on future reviews
  and ongoing monitoring.
• Prepare a written Recommendation
• Prepare to present our written recommendations.
• Confirm the presentation interview with the
  client.
• Formally present our written recommendations.
• Discuss issues and queries to ensure that the
  client is comfortable with the recommendations.
• Gain client consent.
• Complete all the necessary paperwork, with client
  signatures and approvals.
• Lodge the paperwork.
• Provide feedback to the lead source via a written
  lead feedback sheet.

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your value proposition in 2008
Agendas
Capability to develop, analyse implement track
long term plans
Follow Up actions
Call Matrix
Best Practice
Strategic
KPIs
Segmentation
The development of a plan to execute a given
strategy
Reporting Systems
Tactical
Systemised Approach
Marketing Plan
Environmental
COMPETENCIES, BEHAVIOURS ATTRIBUTES
Sales Abilities Leadership
Sales
Knowledge of the markets
Presenting
Leadership
Know your Client
Economic
Negotiation
Commercial
Personal
Business
Phases of Business Development
Legislative
Technical Skills
Client Value Proposition
Client Segmentation
Best Practice Back Office
FAIS
Succession Planning
Competitor Product
Product
Broker Benchmarks
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If you want something youve never had before,
you have to do something youve never done before
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THANK YOU
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THANK YOU

• JON MACKINTOSH
• Phone [phone]
• Cell 082 809 8083
• Email jonm_at_encoresa.co.za
• www.encoresa.co.za