Deena Katz's Complete Guide to Practice Management E-Book

Deena B. Katz

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Bloomberg Professional
• Sprache: Englisch

Seitenzahl: 570

Veröffentlichungsjahr: 2010

Beschreibung

Deena B. Katz, CFP, a preeminent authority on practice management and an internationally recognized financial adviser, presents a comprehensive guide to running a professional financial planning practice. To create this book, Katz updated, revised, and combined her two acclaimed books Deena Katz on Practice Management (1999) and Deena Katz's Tools and Templates for Your Practice (2001). In this newly expanded volume, she presents the essentials on how to help a practice thrive side by side with the tools and templates needed for the everyday operation of your firm. This new volume offers guidance on practice-management issues: * setting up an office * systems and technology * administration and staffing * marketing * growing as the market changes * hanging on to clients for the long term * succession planning when the time comes This comprehensive resource provides sample forms, worksheets, templates, letters, brochures, and collateral materials developed and refined by top wealth managers and planners. From keeping the business running well by designing dynamic collateral material, to considering plans for retirement, Deena B. Katz guides advisers through every challenge a financial planning business will face.

Leseprobe

Table of Contents

Praise

Also available from Bloomberg Press

ATTENTION CORPORATIONS

Title Page

Copyright Page

Dedication

Acknowledgements

Introduction

PART ONE - THE BUSINESS

Chapter 1 - Determining Your Core Values, Mission, and Vision

We Need to Express Our Value to Clients in Benefits, Not Features

Most Advisers Spend Little Time Defining Themselves and Building Their Practices

One Thing

Core Values

Mission Statements

The Vision Statement

Philosophy Statement

Get Busy

Chapter 2 - Designing the Business

Compensation Structures

Business Plans

Business Structure—Not-So-Usual Suspects

Your Style Is You

Chapter 3 - Marketing Your Business

The Marketing Plan

Put Your Plan to the SWOT Test

Become Growth Obsessed

Spheres of Influence

Chapter 4 - Positioning and Public Relations

Believe It!

The Art of Marketing

Use Public Relations Wisely

So, What’s the Story?

Chapter 5 - Designing Collateral Material

The Big Brochure

Brochure Supplements and Alternatives

Video and Audio Brochures

Going Brochureless

The Second Impression

Chapter 6 - Profitability and Optimizing

Chapter 7 - Transitioning Your Practice

Compensation Models, Licensing, and Registration

Fees and Minimums

Investment Selection

Investment Planning

Select a Custodial Partner

Manage Client Conversion

Straddling the Fence

Invest in You

Related Professional Practice Changes

PART TWO - THE STAFF

Chapter 8 - Contingency and Succession

Crisis Planning for Death

Disability Crisis

Action Plan for Now

What To Do During a Crisis

What To Do After the Crisis

Disaster Plan

Management Succession

Personal Definition of Success

Business Succession

Outright Sale

Consolidation

Valuation

Don’t Wait—Plan Now

Chapter 9 - Adding a Partner for Fun and Profit

Why a Partnership?

Successful Teams in Practice

Collective Vision

Threatening the Marriage

Find Common Ground

Who’s in Charge?

Periodic Evaluation and Review

Partner Compensation

Granting Ownership to Associates

Plan Your Future Before You Plan Your Clients’

Chapter 10 - People Make It Happen

Hiring, Mentoring, and Internships

Selecting and Retaining Good Staff

Taking Care of Your Most Valuable Asset: Your Staff

Employee Reviews

Little Things

If It Ain’t Fixable, Break It Off ASAP

People Management Is the Key

PART THREE - THE CLIENT

Chapter 11 - Killing the Sacred Cows

The Sacred Cows

Finally, One Sacred Cow to Keep . . .

Chapter 12 - New Client Issues

Then Qualify ’Em and Interview ’Em

Pre-Data Gathering

The Client Fit Ratio System

The First Interview

Data Gathering

Chapter 13 - Client Education

Risk-Coaching Questionnaire

Card Tricks

Investment Policies and Financial Plans

Deliver the Goods

Chapter 14 - Client Communication Issues

Ongoing Client Communication

Remain in Control

In the Beginning

During the Relationship

Client Reviews

Rebalancing

Transfer and Termination

Managing the Relationship

Chapter 15 - Retaining Desirable Clients

Behavioral Finance

The Importance of Client Retention

Taking Responsibility—The Elements of Concierge Service

Levels of Client Service

Retention Budget

Add Services Sparingly

Customized Gifts

Peppering the Client

Managing Client Expectations with Communications

Client Advisory Boards

Client Surveys

Just What Are You Saying?

Train Your Clients: Don’t Let Them Train You

Our Biggest Challenge

Chapter 16 - Hiring, Firing, and Refusing Clients

But, What Do You Say?

What If They Fire You?

Refusing a Client

Just Say No

PART FOUR - THE PROCESS

Chapter 17 - The Killer Process

Beginning the Process

Outsourcing

Sequencing

Process and Communication

Time Management and Processes

Systems Make the Difference

Chapter 18 - Lagniappe—Ideas to Use and Expand

Concepts to Own

On Planning

On the Value of Advice on the Internet

How Long Will Your Money Last?

Opportunity Costs

Been There, Done That, Got the T-Shirt—A New Era

Food for Thought

Branding

Coaching

Shift Inventory

Business Analyses

Compliance and Back-Office Forms

A Stranger at the Door

Value Added

More on Client Surveys

Doing Better Business

On the Future

A Final Word

NOTES

Trademarks

INDEX

ABOUT BLOOMBERG

ABOUT THE AUTHOR

Praise for

Deena Katz’s Complete Guide to Practice Management

Tips, Tools, and Templates for the Financial Adviser

by Deena B. Katz

“The power behind these very practical tools and tips is that they are rooted in Deena Katz’s solid track record of accomplishment. She matches the theory with the reality of the business.”

—DALE E. BROWN, CAE President & CEO, Financial Services Institute, Inc.

“Deena is a true leader in the financial advice industry who has helped build a hugely successful practice (Evensky & Katz), and who now helps educate future planners at Texas Tech University. Her experience-driven insights and perspectives, along with various tools and solutions, are now available to you in her new book. Any advisory firm can benefit from it.”

—TOM BRADLEY President, TD AMERITRADE Institutional

“Deena Katz is one of the genuine icons in the independent advisory world. After making Evensky & Katz into one of the preeminent advisory firms in the country, she’s turned her knowledge and experience toward helping other independent advisers run more efficient practices to better serve their clients. She is a valuable, and valued, resource for the industry.”

—BOB CLARK Former Editor in Chief, Dow Jones Investment Advisor and Financial Planning magazines

“Never has so much useful, practical information been compiled in one place for the financial advisory practice.”

—BOB VERES Publisher, Inside Information newsletter www.bobveres.com

“The chapter ‘The Killer Process’ alone is worth the price of the book. Systemizing your practice is one of the major keys to success in this business, and Deena gives you a step-by-step guide for doing exactly that.”

—DAVID J. DRUCKER, MBA, CFP President, Drucker Knowledge Systems Principal, Virtual Office News LLC

“Deena Katz continues to make important contributions to the business of financial advice. She brings years of practical experience in forming, merging, and growing a successful advisory firm, combined with insight she has gained as a teacher of financial-planning principals to college students. The result is a reference that advisers at every level will find helpful to have handy when trying to sort through critical practice-management decisions.”

—MARK TIBERGIEN Chief Executive Officer, Pershing Advisor Solutions LLC

Also available fromBloomberg Press

Familyby James E. Hughes Jr.

Family Wealthby James E. Hughes Jr.

Getting Started as a Financial Plannerby Jeffrey H. Rattiner

How to Value, Buy, or Sell a Financial-Advisory Practiceby Mark C. Tibergien and Owen Dahl

The Investment Think Tankedited by Harold Evensky and Deena B. Katz

Managing Concentrated Stock Wealthby Tim Kochis

Money Well Spentby Paul Brest and Hal Harvey

Practice Made Perfectby Mark C. Tibergien and Rebecca Pomering

Retirement Income Redesignededited by Harold Evensky and Deena B. Katz

A complete list of our titles is available at www.bloomberg.com/books

ATTENTION CORPORATIONS

This book is available for bulk purchase at special discount. Special editions or chapter reprints can also be customized to specifications. For information, please e-mail Bloomberg Press, [email protected], Attention: Director of Special Markets, or phone [phone].

© 2009 by Deena B. Katz. All rights reserved. Protected under the Berne Convention. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher except in the case of brief quotations embodied in critical articles and reviews. For information, please write: Permissions Department, Bloomberg Press, 731 Lexington Avenue, New York, NY 10022 or send an e-mail to [email protected].

BLOOMBERG, BLOOMBERG ANYWHERE, BLOOMBERG.COM, BLOOMBERG MARKET ESSENTIALS, Bloomberg Markets, BLOOMBERG NEWS, BLOOMBERG PRESS, BLOOMBERG PROFESSIONAL, BLOOMBERG RADIO, BLOOMBERG TELEVISION, and BLOOMBERG TRADEBOOK are trademarks and service marks of Bloomberg Finance L.P. (“BFLP”), a Delaware limited partnership, or its subsidiaries. The BLOOMBERG PROFESSIONAL service (the “BPS”) is owned and distributed locally by BFLP and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan, and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for these products and distributes the BPS either directly or through a non-BFLP subsidiary in the BLP Countries. All rights reserved.

This publication contains the author’s opinions and is designed to provide accurate and authoritative information. It is sold with the understanding that the author, publisher, and Bloomberg L.P. are not engaged in rendering legal, accounting, investment-planning, or other professional advice. The reader should seek the services of a qualified professional for such advice; the author, publisher, and Bloomberg L.P. cannot be held responsible for any loss incurred as a result of specific investments or planning decisions made by the reader.

eISBN : 978-1-576-60308-6

Library of Congress Cataloging-in-Publication Data

Katz, Deena B.

Deena Katz’s complete guide to practice management : tips, tools, and templates for the financial adviser / Deena B. Katz. p. cm.

Includes bibliographical references and index.

Summary: “This edition is a revised and updated consolidation of two previously published books, Deena Katz on Practice Management and Deena Katz’s Tools and Templates for Your Practice. This new expanded volume includes Katz’s most recently tested approaches to managing a financial practice and the latest most effective ways of communicating with clients”--Provided by publisher.

ISBN 978-1-57660-308-6 (alk. paper)

1. Financial planners--Handbooks, manuals, etc. 2. Investment advisors--Handbooks, manuals, etc. 3. Finance, Personal--Handbooks, manuals, etc. 4. Business enterprises--Finance--Handbooks, manuals, etc. I. Katz, Deena B., Deena Katz on practice management for financial advisers, planners, and wealth managers. II. Katz, Deena B., Deena Katz’s tools and templates for your practice. III. Title.

HG179.5.K38 2009

332.6’2068--dc22

2008041700

Acquired by Mary Ann McGuigan

Edited by Dru-Ann Chuchran

To Sarah, Daniel, Amanda, and Josh,who always sit in my corner

For downloadable versions of the figures included in Deena Katz’s Complete Guide to Practice Management, go to www.bloombergbooks.com/katz_complete_guide.

In the pop-up box, enter: Username: Bloomberg Password: Forms

ACKNOWLEDGMENTS

Each time I start writing a book, I call upon my many friends in this industry for ideas and counsel. Each time they give time and talent. They do it because they sincerely want this profession to remain strong and grow. They do it because this is a sharing profession and somewhere along the line, someone made a big difference in their professional lives that helped them reach their own personal success. So, to all of you, I sincerely thank you, not only for your contribution to this book but for your continued dedication to this industry.

I want to thank my Evensky & Katz family who have let me experiment on them all these years and who have become the next generation of really superb planners. I’m really proud of you.

Additionally, I want to acknowledge my new Texas Tech Personal Financial Planning family who welcomed me into the academic world and shared their invaluable insight into the development of the professional planner.

This book is a culmination of many hours of work from Amanda Newton, Sarah Tiprigan, Daniel Tiprigan, and Josh Mungavin, my student support team. However, this book would not read this well without the amazing magic touch of my editor, Dru-Ann Chuchran, who has a talent for making me sound really smart.

Finally, thanks to Harold, my bershert, who encourages, indulges and challenges me to be a better planner, educator, and person.

INTRODUCTION

When Bloomberg Press contacted me about updating the book Deena Katz’s Tools and Templates for Your Practice, I envisioned changing some data, adding a few things, and taking out some ideas that I don’t believe any more. As time went on, I found that I was raiding material from my first practice management book, Deena Katz on Practice Management, because I realized that unless you look at your practice holistically, you could leave gaping holes in your planning strategies. So, I went back to Bloomberg and offered to put these two books together, updating them and creating a comprehensive look at professional financial practices. The result is this effort: too big to carry around, but small enough to occupy desk space to serve as your personal consultant when you could use another adviser’s viewpoint.

I have divided this book into four major sections: The Business, The Staff, The Client, and The Process. Each section has several chapters to help dig a little deeper into areas I think are important to you as a practitioner. I offer ideas at many different levels so you can pick and choose according to the maturity of your practice. And, as in the Tools book, I include forms, worksheets, and templates to get you started. Although I have dropped a few of the initial forms from Tools, the ones I have kept have been updated where necessary. Also, I have added new forms and worksheets that I think you’ll find useful.

After writing my first two books, I continued to learn as a practitioner, sometimes changing my ideas. For example, my recommendation for providing minimal bonuses has been tossed out in favor of a more sophisticated and appropriate compensation structure. I found that I have evolved, as I am sure you will as experience and expertise deepen. It’s good to be constantly learning, jettisoning outdated ideas for new and improved ones. I hope you find that too.

I could not possibly thank all the people who have had a positive influence on me professionally and personally, but I do thank one person in particular: my wonderful husband, Harold. I will say that, as you read this book, if you find an idea or a thought that sounds familiar, it may be one we’ve talked about together over the years. One great aspect of this business is that we share generously—our thoughts, ideas, and dreams. Thanks to all of you who share.

PART ONE

THE BUSINESS

Successful entrepreneurs constantly reevaluate and refine current practices. Moving water never stagnates. This section is concerned with firming up the foundation of your practice by reexamining your core values, mission, and vision. It will discuss the importance of selecting your business model and will provide recommendations related to managing business crises and planning for succession.

1

Determining Your Core Values, Mission, and Vision

To be a good leader, you have to have a clear set of values you implant in the company.

—Herb Kelleher, chairman of Southwest Airlines

Psychological studies indicate that people develop their attitudes toward money at a relatively early age. This process is rarely scientific and almost never rational.

Isadore Katz, a business genius and financial success, who was also my mentor and father-in-law, inadvertently taught me an important lesson about determining value. Isadore loved the stock market. Well into his eighties he would sit by the pool with the Wall Street Journal in one hand and a small radio dispensing market reports in the other.

When he reached his midseventies, Isadore’s driving skills had begun to fade and his sons persuaded him to buy a limousine. Daily, his driver would take him downtown to his club to play cards with his pals, and then drive him home again in the evening. One day, his driver was sick. Isadore’s youngest son called to tell his dad to take a taxi to the club since his chauffeur would not be available. “I’ll take the bus,” Isadore told his son, “I’m not going to pay that kind of money for a cab just to go downtown.”

In a time-pressured world, people will pay for all sorts of services including personal chefs, exercise trainers, dog walkers, and house sitters. There is even a scooper service in my town, called Tech Poop. You can guess what they are picking up.

There is no practical way to determine, much less control, how people assign value to various services. What matters is that you value what you do, because if you don’t believe that your advice or service is desirable, prospects won’t either. How you feel about your work is transmitted immediately to people.

One of my first clients was a United Airlines captain. At the time, United pilots were entertaining the possibility of a strike, since negotiations for their new contract were not going well. At one of our appointments I remarked that considering the responsibility pilots have in the air, I’d give pilots any salary increase they wanted and not bat an eye. Surprisingly, my client didn’t agree. “The money I make is already obscene,” he remarked. “I’m just a glorified bus driver.”

In one statement, my view of him as a professional was altered by his own perception of himself. My client went on to explain that when he started flying commercially, he was working in a 727 cockpit with a copilot and an engineer, all three of them busy virtually every minute of a flight. He had recently been promoted to captain of a 737. This cockpit was more automated and required only two people. With fewer activities, he often felt like a glorified bus driver.