Coach’s Forum is a place in which you can ask your questions, tell your stories or give your opinions on any aspect of practice management. Every month, George will select the most interesting and relevant comments from readers and publish them here, along with his advice. Our objective is to build a community of people with a common interest in making their financial advisory practices as effective as possible.



> Choosing A CRM System.

Advisor: I have always been process-oriented and I have systems for everything — client information, financial planning, investment reporting, client service and so on.

The problem is none of these systems talk to one another. So, if a client calls us or we are getting prepared for a meeting, my staff and I often end up looking in three or four places before we get all the needed information together.

It is terribly inefficient, to say the least. I think we should be looking into a good client relationship management system to centralize all the data. Do you have any recommendations?

Coach says: Believe it or not, every advisor has a CRM system in place. It may not be a great one or one created by design, but it’s there. And it dictates how you service your business.

I’ve seen everything used to store, retrieve and cross-reference client information — from yellow sticky notes, three-inch by five-inch recipe cards and colour-coded file folders to exhaustive Excel spreadsheets and multi-dimensional databases with specialized templates.

It sounds as if you are actually farther along than many advi-sors in this area. You already have a number of the key activities in your business rendered in systematic, repeatable processes. So, I am guessing that what you are thinking about is a technology-based, commercial CRM system.

There are certainly a number of these on the market, and each vendor has its strengths. I defer the choice to you as to which one fits your practice best. However, here are a few things to bear in mind:

> Consider hiring a consultant who can help you define what you need and compare alternatives.

This will cost money, but the production you will almost certainly lose if you do it yourself will be far greater. This is one of those activities that can suck up time and energy in a big way, before you even notice that you are trapped in it.

> Decide what you want the system to do. At the very least, you’ll probably want a database, shared calendars, activity records, note-pad and user-defined fields for your specific record-keeping needs. Ideally, you should be able to plan client service activities and marketing campaigns, and keep track of the prospects in your pipeline.

You should also be able to assign responsibility for tasks and measure progress toward completion of the tasks.

> What capabilities must your new system have for integrating with existing databases? At a minimum, your CRM system should be able to integrate with the main database provided by your back office, for consistency of compliance-required information. Look to see if the CRM system you are considering can be set up for “single entry” and “two-way” data exchange, subject to your firm’s approval. In an ideal world, it would also integrate with your planning data, your research providers and your BlackBerry or smartphone.

Be sure to include data migration to the new system from whatever system you are on today as part of the package and the price.

> What “bells and whistles” would you like to have? Sophisticated systems can capture incoming and outgoing emails and attach them to client records automatically. Some can be connected to your telephone system, so that your client’s record automatically pops up on a computer when the client calls. These are known as “screen pops” and can be very effective, enabling you and your staff to deal with a client request on the spot — provided all the required data are in the system.

> Do you want a desktop-based system or a web-based system? Desktop programs are usually faster to access and you typically own the system. Web-based systems are often licensed rather than owned; they provide mobility and someone else to look after maintenance and updates.

> Be careful about going too far too fast. It may be better to start with a few features, get used to them, then add more functions. Also, accept the fact that your CRM system will never actually be “finished.” It will evolve constantly to meet the changing needs of your business and to take advantage of new technologies that may come along.

@page_break@> Implementing a CRM system takes patience and realistic expectations. It also takes a strong commitment on the part of the practice leader and buy-in from the main users: your team. Get everyone involved in specifying what capabilities they’d ultimately like to have. Create a well thought-out migration plan and, above all, do not skimp on training.

Remember, while an effective CRM system will improve productivity and, perhaps, allow you to expand your business without hiring additional staff, its real purpose is to improve client service by enabling people to work efficiently and effectively.



> Disagreement On Off-Site Planning Sessions.

Advisor: I have been trying to get my two partners to agree to an off-site planning session for the past two years. While they admit there might be some value in it, I can’t get them to commit to giving up even a day away from the office. I was thinking of a minimum of two days. How can I make this happen?

Coach says: You might guess where I stand on this. I believe it is absolutely imperative to step back periodically from working in the business to spend time working on the business.

I don’t believe you can be as effective when you are in the office, surrounded by the same things you see and do every day, and feeling pressured by the constant demands that come with the job. There is little room or energy for creative thinking and fresh ideas to emerge. Away from the office you see things from a fresh perspective.

Some of your partners’ reluctance might be overcome if they have a clearer idea of specifically what you hope to accomplish. A phrase as broad as “a planning session” may not give them enough information to convince them that their time will be well directed.

Prepare an agenda listing three or four items you would like to address — and indicate what you hope the outcome of the discussions will be.

For example, rather than simply listing “marketing” as an agenda item, say: “Develop five new ideas for building our profile in the community in the next 90 days.” Under “service,” your agenda item might be: “Creating that ‘Wow’ feeling among our clients.”

Avoid the trap of being too ambitious. My experience is that most often you will run out of time before you get through all the items. So, keep the agenda to a few important items. Also, once the meeting takes place, be sure to conclude each agenda item with a date-driven action plan and assign responsibility.

Given your partners’ hesitation, don’t go overboard in suggesting venues; and don’t make it too costly. Walk before you run.

Start by recommending a one-day session and have all the details laid out so your partners don’t have much to do in organizing the event. If they still balk at a full day, take one of your topics and suggest a morning or an afternoon on that subject — but still out of the office. My guess is that your partners will see the value and agree to a longer session later to deal with the other items on your agenda. Good luck!



> Cutting Costs.

Advisor: As a result of the market declines over the past few months, our revenue has dropped significantly. I have to cut costs. Where should I start?

Coach says: Look first for variable costs that can be reduced or eliminated without affecting your value proposition or client service levels. Evaluate your fixed costs to see which, if any, can be cut. Rent, for example, is an unlikely candidate because of leases. But you might be able to get away with having your office cleaned once a week rather than daily.

Remember, reducing costs has a minimum level, below which you cannot go without effectively shutting down your business.

The other side of the equation — increasing revenue — however, has unlimited potential to change your profitability. So, spend more effort looking for ways to increase revenue than ways to cut costs. IE



George Hartman is president and CEO of Market Logics Inc. and a senior coach and facilitator with the Covenant Group. Send questions, comments and opinions on any aspect of practice management to george@marketlogics.ca.