Author: Tracy Weiss, Advisor Experience and Relationship Manager

Are you achieving your business growth goals? Are you attracting the right clients to sustain your practice? How do you measure success?

While many advisors have a strategic plan in place for their business, the plan may not have been updated for a while or it may not have appropriate measures in place to ensure both short-term and long-term goals are met. The most successful advisors have a regular process in place to review and update their strategic plan so that they can grow their practice in a way that moves them toward their vision. They also have a system to measure success for key metrics on a regular basis so adjustments can be made in a timely manner to keep things on track.

Consider these steps to ensure greater success with strategic planning.

Get the Team Involved

While creating a strategic plan, it’s important to gather input from other team members who may have ideas on new growth strategies or ways to run the business more efficiently. Involving the whole team in the process also helps to ensure they understand the business goals and are vested in the long-term success of the practice. Advisors who are solo practitioners may want to consider periodically bringing in an external consultant or meeting with another successful advisor to get an outside perspective on the plan and success measures.

Define the Business Model and Vision

It’s important to have a clear vision for the business and a framework for how to operate it profitably. This part of the planning process should include identifying the ideal client and the pricing and service models for clients based on asset levels. It may involve articulating a client value proposition and determining target or niche markets for the business. Researching industry trends that could have an impact on the business and conducting an analysis of the main competitors in the market are also critical pieces of the plan.

Create Long-Term and Short-Term Goals

Once a vision is defined for the business, the next step is to determine a few long-term goals – usually three to four – to ensure growth and profitability for the business. These goals may be ones that can be achieved over a period of three to five years. Then they can be broken down into short-term goals which represent a set of annual strategic goals and align closely to the longer-term goals. It’s important to focus on a few critical, achievable goals, rather than creating a long wish list that cannot be reasonably achieved in the determined timeframe. Examples of goals for advisors include increasing revenue growth, increasing referrals, changing the mix of clients to ensure future growth, and upgrading technology systems to better serve clients.

Track Progress

An effective system to measure both short-term and long-term goals is essential to ensure the success of the practice. First, determine the key performance indicators (KPIs) that can be used to track the goals set. For example, a goal to retain the business of an older client base could be measured by looking at the number of meetings or interactions with these clients’ children or beneficiaries over a defined period. Each KPI then should have a target so it can be measured. These goals can be measured weekly, monthly, or quarterly, depending on the type of goal and what data is available and meaningful in a given time period. Measuring goals allows the advisor and his or her team to regularly review progress, and adjust strategies and tactics as needed to ensure goals are met. It’s also an important tool for reviewing progress each year and updating the strategic plan.

Communicate the Strategic Plan Frequently

To execute your strategic plan effectively, everyone on the team needs to understand their role in achieving the plan and how goals will be measured. Regularly talking about the strategic plan and how the work each person on the team contributes helps create purpose for the team and ensures everyone is moving forward to reach the same goals. Reviewing the measures regularly at team meetings allows the team to celebrate successes, while also looking at areas that are lacking so the team can discuss potential strategies to improve performance. The goals of the strategic plan can be included in everything from day-to-day conversations and team meetings to one-on-one meetings and performance reviews.

Don’t Be Afraid to Adapt and Change the Plan

Strategic planning for an advisory practice is not a one and done exercise. Advisors need to be able to adapt the plan to changes happening both internally and externally. A variety of changes could have an impact on the plan like the departure of a key team member, regulatory changes, market conditions, and new technology. At a minimum, advisors should review their strategic plan annually to ensure the business is growing at the pace expected and to consider recent trends, the market outlook, or other factors that may impact the plan. Sudden changes like market disruptions, new competitors, or an abrupt shift in trends may necessitate an update to the plan outside of its normal cycle. Keeping the strategic plan updated is important to ensure that long-term goals are met.

The strategic planning process is an investment in an advisor’s business. Adhering to a regular process and ensuring clear, measurable goals are in place will help drive growth and the overall success of the business.

To learn more about resources available for the strategic planning process, contact Tracy Weiss at tracy.weiss@hilltopsecurities.com.

To learn more about Momentum Independent Network, contact Wealth Management at WealthManagementInfo@hilltopsecurities.com or 833-4HILLTOP.

The paper/commentary was prepared by Momentum Independent Network (MIN). Momentum Independent Network, Inc. is a registered broker-dealer and registered investment advisor that does not provide tax or legal advice. MIN and Hilltop Securities are wholly owned subsidiaries of Hilltop Holdings, Inc. (NYSE: HTH) located at 717 N. Harwood St., Suite 3400, Dallas, TX 75201, (214) 859-1800, 833-4HILLTOP. Member FINRA/SIPC