Ineffective Habits of Financial Advisors (and the Disciplines to Break Them)

STEVE MOORE is a leading management consultant, mentor, and coach. Moore developed High Speed Strategic Planning, a year-long coaching program for advisors, which has helped more than 750 wealth management teams achieve their business goals. Moore's strategic planning expertise began as a football coach. He spent more than a decade in the NFL (Buffalo Bills, Seattle Seahawks, and Los Angeles Rams). He also has significant strategic consulting experience with Microsoft, Toyota, and many other prominent companies. Steve is the former managing director and chief operating officer of the Pacific Institute, an international corporation specializing in performance improvement, professional growth, change management, and leadership development. He holds a masters in education from Seattle University. GARY BROOKS, CFP®, is the President of Brooks, Hughes & Jones, a Registered Investment Adviser, and a financial columnist for The News Tribune in Tacoma, Washington.

Foreword x

Introduction: Setting the Stage xiii

Business Disciplines xvii

Ineffective Habits of Financial Advisors and the Disciplines to Break Them xviii

The Framework of the Book xxi

Insights xxi

Decisions xxiii

Actions xxiv

Acknowledgments xxv

Chapter 1 Stop Living Their Dream and Start Living Your Dream 1

The First Ineffective Habit: Living Their Dream 1

The First Discipline: Start Living Your Dream 3

Insights 4

Purpose: The Primary Reason for the Work You Do 4

Business Goals: Specific Objectives That Support Your Purpose 6

Guiding Principles: The Rules That Guide Daily Decision Making 23

Vivid Description: A Narrative of the Business Success You Intend to Create 29

Decisions 32

Determining Your Purpose 32

Determining Your Business Goals 33

Determining Your Guiding Prinicples 33

Determining Your Vivid Description 33

Determining How You Plan to Keep the Dream Alive 34

Actions 35

Chapter Summary 37

Chapter 2 Stop Focusing on Quantity of Clients and Start Focusing on Quality of Clients 41

The Second Ineffective Habit: Focusing on Quantity of Clients 41

The Second Discipline: Start Focusing on Quality of Clients 43

Insights 43

Target Market 44

Service Focus 51

Competitive Differentiation 51

Decisions 60

The Common Sense Principle 60

Actions 61

Chapter Summary 62

Chapter 3 Stop Hoarding Unprofitable Clients and Start Disengaging Unprofitable Clients 65

The Third Ineffective Habit: Hoarding Unprofitable Clients 65

The Third Discipline: Start Disengaging Unprofitable Clients 67

Insights 68

Segment 1: The 20 to 40 Percent That Represents 1 Percent of Revenue 73

Segments 2 and 3: Others You Are Considering for Disengagement 77

Decisions 81

Actions 81

Chapter Summary 83

Chapter 4 Stop Providing Only Investment Advice and Start Providing Wealth Management Advice 85

The Fourth Ineffective Habit: Providing Only Investment Advice 85

The Fourth Discipline: Start Providing Wealth Management Advice 87

Insights 87

Start Providing Your Top 20 Percent with Wealth Management Advice 89

Step 1: Determine the Clients to Reengage with Wealth Management 90

Step 2: Have a Deep Re-fact Meeting with Your Clients 91

Step 3: Financial Planning 97

Step 4: The Wealth Management Solution 98

Step 5: Present the Wealth Management Solution—The Financial Vision Document and Client Engagement Roadmap 106

Decisions 107

Actions 108

Chapter Summary 110

Chapter 5 Stop Delivering Only Investment Reviews and Start Delivering WOW Wealth Management Reviews 113

The Fifth Ineffective Habit: Delivering Only Investment Reviews 113

The Fifth Discipline: Start Delivering WOW Wealth Management Reviews 116

Insights 117

Client Needs Analysis 118

Client Satisfaction Window 119

Building the WOW Review System 132

Decisions 136

WOW Wealth Management Review Package 136

Actions 137

Chapter Summary 139

Chapter 6 Stop the Rainmaker Approach and Start the Team Approach 141

The Sixth Ineffective Habit: The Rainmaker Approach 141

The Sixth Discipline: Start the Team Approach 143

Insights 143

Team Core Competency Audit 143

Team Development Evaluation 146

Team Alignment and Empowerment Evaluation 147

Internal Challenges 150

The Organizational Structure of the Team Approach 151

Role Clarity 156

Managing the Team Approach 159

Coaching the Team 168

The Acquisition of Talent 175

Team Incentive Compensation 177

Create a Best-of-Kind Team of Experts and Suppliers 179

Decisions 180

Actions 181

Chapter Summary 183

Chapter 7 Stop Selling to Prospects and Start Selling through Clients 187

The Seventh Ineffective Habit: Selling to Prospects 187

The Seventh Discipline: Start Selling through Clients 189

Insights 189

Client Introductory Event 195

Center-of-Influence Marketing 197

Managing the Sales Pipeline 201

Qualify a Call-In Lead 201

Fact Finding, Planning, Solutions 202

Decisions 203

Actions 203

Chapter Summary 205

Chapter 8 Jack’s Awakening: An Elite Wealth Management Company 209

Bibliography 215

About the Authors 219

Index 221