Every financial ad-visor has been told somewhere along the way that if they want to work in the affluent or high net-worth market, they need to form alliances with other professionals who also advise those markets — specifically, accountants and lawyers. In Allied for Success: Creating a synergy of specialists to fulfill our clients’ dreams, Jim Munchbach goes beyond that suggestion.

He describes how financial planners should align themselves with other professionals who can provide a wide variety of expertise to a full range of clients. These specialists may include the mandatory lawyers and accountants, as well as insurance agents, estate planners, stockbrokers, mortgage brokers, bankers, property and casualty insurance agents and even fee-for-service planners with specific industry focus and experience. Such alliances have two purposes. The first is to serve the best interests of a client by bringing all required capabilities together. The second is to become a source of referrals among professionals for each other’s products and services.

Munchbach, whose qualifications are somewhat unusual in that he is a property and casualty agent with a certified financial planner designation, takes the position that it is the financial planner who should be quarterbacking the alliance. The planner should choose the alliance’s members and do the initial training and ongoing coaching around a life-planning approach to identifying a client’s dreams and goals.

Each allied professional should use a common methodology — the financial planner’s fact-finding or discovery and recommendation process. This clearly places the planner at the centre of the relationship between a client and all his or her professional advisors.

Such alliances are usually informal, but in an ideal world would expand to include joint marketing efforts in which all members participate in events for both existing and potential clients. Munchbach suggests that alliance members meet every week or two, which may be problematic for some participants.

There will also be issues that require agreement, such as: who provides which product or service when more than one member can; what happens when a member doesn’t deliver on the service promise; and how are new members recruited to the alliance. The most difficult issue can be what to do with a member who is happy to receive referrals but offers few or none in return.

Additionally, some sort of feedback mechanism is required to ensure that the alliance is working from the client’s perspective — that the client is comfortable with all members and is receiving the service and advice expected.

In the real world, things don’t always work out as planned, and Munchbach cites several instances in which referrals have bombed, partners haven’t delivered as expected and attempts have been made to steal clients or to sell them products that are available through the referring partner. But clear expectations and responsibilities make any organization, no matter how informal, function better. For these reasons, Munchbach recommends that the group have a written agreement that spells out:

> how to determine who is the primary provider for each client;

> how every member of the alliance will honour clients’ goals;

> how members will refer clients to each other, and refer outside when alliance members don’t have the products or services a client needs;

> when members will meet for client problem-solving, training, feedback and other issues;

> how members will resolve any differences among alliance members.

A sample agreement is included in the book.

As well, Munchbach provides a sample letter that can be used to invite prospective members to join your alliance so you can align the range of products and services you want to offer clients with the professionals in your community who can best deliver them.

Alliances work best when the members realize that they are more effective in serving clients and building their businesses when they work together rather than being in competition or disrespectful of each other’s capabilities.

Allied for Success is a relatively easy read at only 133 pages, but many concepts were repeated. I wouldn’t let that dissuade you or any advisor who works with allied professionals — or is considering it — from picking up a copy. IE