Gordon Ross, director of Enterprise Group at Dynasty Financial Partners, proposes an exercise for RIAs: measure your net new assets, after removing the effect of overall market growth.
Gordon Ross, director of Enterprise Group at Dynasty Financial Partners, proposes an exercise for RIAs: measure your net new assets, after removing the effect of overall market growth. The industry average is 15% – if you aren’t achieving that amount or better, something is wrong. The good news is that there’s no reason you can’t achieve the average. Here are the steps he proposes to help lagging firm improve.
The problems will be different at each individual firm, Ross says, but all can benefit by conducting a TTPP evaluation. This involves a review of your talent, technology, process and positioning. Marketing is important, but needs to be addressed all on its own, he says.
When considering your staff, you need to determine everyone’s talents and proper role. Ross speaks about ‘rainmakers’ – we assume he means professionals who are particularly skilled at finding lucrative new clients. These staff members, he counsels, should be relieved of as many tasks as possible so they’re free to do their thing – they contribute disproportionately to the company’s growth, so they deserve a little leeway. In the order of things, they also deserve superior compensation, says Ross.
Your other employees might not be outstanding performers in the same way. That’s fine, says Ross. Not everyone is superstar, but thankfully, neither your firm nor the world requires it. Management needs to assure that everyone is sitting at the desk that suits their talents. While the rainmakers are good at signing up new clients, others in the firm might be better at maintaining customer relationships. Employees should be rated based on what they do best – not their shortcomings.
For more information, please read:
Why is Your Firm Not Growing? | Wealth Management