Technology Tools for Today's High-Margin Practice E-Book

David J. Drucker

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

Seitenzahl: 439

Veröffentlichungsjahr: 2012

Beschreibung

Revolutionize your financial advisory practice with the latest cutting-edge tools Tired of spending more time with filing cabinets than with clients? Is overhead eating up your margins? In a new revised edition of the "bible" of practice management and technology for financial professionals, two leading financial planners, with some help from their friends*, deliver the knowledge advisors have been begging for. This book serves up a nontechnical trove of technology, clever workarounds, and procedural efficiencies tailored to help financial advisors in private practice move toward today's virtual office. The authors show you how to drastically reduce the paperwork in your office, slash overhead, and find anything you need in seconds using the latest software. This revised edition includes new information on SaaS and cloud computing, software integrations, mobile devices/apps, social media tools, portfolio accounting and outsourcing, collaborative tools, digital signatures, workflow management, marketing technology and much more. * Perfect for successful practices seeking greater efficiencies and healthier profit margins * The authors are well-known financial advisors, each with more than 30 years of experience in financial services * Addresses the evolution of the virtual office and its impact on advisory firms If you're looking for new systems and efficiencies to transform and streamline your private practice, look no further than Technology Tools for Today's High-Margin Practice. *Chapter 1 Selecting the Right CRM System, Davis D. Janowski Chapter 2 The Future of Financial Planning Software, Bob Curtis Chapter 3 The Future of Financial Planning Software and the New Client-Advisor Relationship, Linda Strachan Chapter 4 Portfolio Management Software, Mike Kelly Chapter 5 Achieving Growth and Profitability with Technology Integration, Jon Patullo Chapter 6 How the World Wide Web Impacts the Financial Advisor, Bart Wisniowski Chapter 7 Managing Your Online Presence, Marie Swift Chapter 8 Client Portals and Collaboration, Bill Winterberg Chapter 9 The Cloud, J. D. Bruce Chapter 10 Digital Signature Technology, Dan Skiles Chapter 11 Innovative Software and Technologies Implemented at One of the United States' Leading Advisory Firms, Louis P. Stanasolovich Chapter 12 Virtual Staff Sparks Growth, Profitability, and Scalability, Jennifer Goldman Chapter 13 ROI--The Holy Grail of the Technology Purchase Decision, Timothy D. Welsh Chapter 14 Building an Efficient Workflow Management System, David L. Lawrence

Leseprobe

Contents

Introduction

Chapter 1: Selecting the Right CRM System

Junxure and Redtail

So Who Are You?

Salesforce, Salesforce, Salesforce

Intelligent Integration Can Be Confusing

Factor in Your Favorite Apps, if You Have Them

Other Considerations

Innovation Continues

Resources

Chapter 2: The Future of Financial Planning Software

The Distant Past

The Past Five Years

The Now

The Near Future

Conclusion

Chapter 3: The Future of Financial Planning Software and the New Client-Advisor Relationship

Advisor and Client Demographics

Social Media

Technological Advances

An Advisor’s Planning Tool versus Consumer Planning Tools—Working Together or Apart?

Conclusion

References

Chapter 4: Portfolio Management Software

My Place or Yours?

All for One or One for All?

Keeping Up with the Joneses

Putting It All Together

New Advisors

Breakaway Brokers

Changing Your Portfolio Management Software

Summary

Chapter 5: Achieving Growth and Profitability with Technology Integration

Wading through a Wealth of Choices

Preserving Quality, Increasing Profits

Much More than Data Access

The Key Early Efforts

The Custodians Get on Board

An Open Invitation

The Next Generation

Chapter 6: How the World Wide Web Impacts the Financial Advisor

Your Website as a Hub

Mobile Considerations

Social Media and Websites

Blogging

Content and Website Maintenance

Marketing

Monitoring and Measuring for Results

Compliance

Conclusion

Notes

Chapter 7: Managing Your Online Presence

Being Seen (and Heard) Online

Creating a Great First Impression Online

Other Digital Outposts

How do You Stack Up?

Use Social Media as an Extension

Communication Essentials

Finding Your Social Media Groove

Where to Spend Your Time

LinkedIn

Blogging

Twitter

Facebook

Begin with a Strategy

Compliance

Training

Guarding Your Webutation

Social Media Dashboards

Locking Out the Imposters

Marketing Automation Software

Notes

Chapter 8: Client Portals and Collaboration

Delivering Documents and Reports

What to Look For

Compliance

Edit Documents Simultaneously

Collaboration Platforms

Screen Sharing

Social Enterprise

Wrap-Up

Chapter 9: The Cloud

Understanding Cloud Computing

Implementing and Maintaining a Cloud Infrastructure

Conclusion

Chapter 10: Digital Signature Technology

E-Signature Technology Core Offering

Evaluating E-Signature Technology Solutions

Before You Start—Other Considerations

Getting Started

E-Signature Workflows

Introducing E-Signature Technology to Your Clients

E-Signature Technology Adoption

Chapter 11: Innovative Software and Technologies Implemented at One of the United States’ Leading Advisory Firms

Background

Video Training

Audio Media Solutions

Dictation Service

Webcasts

Organizing Online Data

Hardware

Security Technologies

Phone Messaging Technology

Recording Pen Technology

Video Conferencing

Scanning

Customer Relationship Management

Website Hosting

E-mail Marketing

Design Software

TV and Web Video Production

Accounting Software

Investment Research

Investment Portfolio Reporting

Investment Portfolio Rebalancing

Financial Planning Software

Chapter 12: Virtual Staff Sparks Growth, Profitability, and Scalability

Benefits of Virtual Staffing

Virtual Financial Planner

Virtual Chief Operations Officer or Operations Manager

Virtual Assistant

Virtual Compliance

Virtual Portfolio Back Office

Virtual Portfolio Manager

Outsourced Chief Marketing Officer

In Closing

Note

Chapter 13: ROI—The Holy Grail of the Technology Purchase Decision

The Technology Plan

Customer Relationship Management

Client Portals

Portfolio Management and Performance Reporting

Document Management

Conclusion

Chapter 14: Building an Efficient Workflow Management System

What Is Workflow?

Mind Maps and Flowcharts

Managing the Workflow Process

Epilogue: Advisor Technology: Yesterday, Today, and Tomorrow

One Example from the Archives

Some Lessons Learned

Looking Forward

In Closing

About the Authors

About the Contributors

Index

Additional Praise for Tools for Today’s High Margin Practice

“As a devout non-techie, I recognize that were it not for experts in the industry like Joel Bruckenstein and Dave Drucker, The Wealth Conservancy couldn’t have evolved from being an emerging firm to being well-established and on its way to becoming an enterprise. Joel and Dave have a crème-de-la-crème reputation, and their cogent, clear writing, in layman’s terms, shows they are more committed to getting the message across than impressing the reader with their technical expertise. This book is a breath of fresh air—ahhh!”

—Myra Salzer, Founder, The Wealth Conservancy, Inc., Author, Living Richly: Seizing the Potential of Inherited Wealth

“David Drucker and Joel Bruckenstein are true visionaries in the field of advisor-related technology. Many of the systems and technologies they forecast over ten years ago have come to fruition and are now mainstream needs for successful investment companies. I have used their insight and vision in my own business to great success and will continue to do so. This book provides helpful, new information.”

—J. Michael Scarborough, President/CEO, Retirement Management Systems, Inc., Author, The Scarborough Plan: Maximizing the Power of Your 401(k)

“Technology touches everything we do in our business. This book covers all-things-tech from A to Z. It is a must-read for the RIA business owner and for those responsible for tech decisions at financial advisory firms. Dave and Joel’s advice will improve your bottom line.”

—Tom Orecchio, CFA, CFP®, CLU®, ChFC®, AIF®, Principal and Wealth Manager, Modera Wealth Management, LLC, Former Chairman, National Association of Personal Financial Planners (NAPFA)

“It’s a daunting task for any advisor to stay focused on the client experience and stay up on smoothly running an office. But, Drucker, Bruckenstein, and ‘friends’ have written THE go-to book for advisors navigating the maze of technology and advisor solutions. This is a terrific reference for every advisor’s shelf, laptop, iPad, Kindle, or Nook!”

—Alex Potts, President and CEO, Loring Ward Group, Inc., Co-author, The Wealth Solution: Bringing Structure to Your Financial Life

“This book is contains a wealth of knowledge and wisdom that is mandatory for any client-centered financial advisor wanting to be relevant, efficient, and profitable.”

—Rick Kahler, CFP®, President, Kahler Financial Group

“Just when you think these guys could not possibly offer even more guidance and direction in the field of technology—they write a book. Brilliant! Dave and Joel are truly the icons when we look back on how financial advisory firms tackled the tough technology decisions through each decade. They are honest and straight shooters. Why are they so valuable? So many times—money, time, and energy are saved because of the sage advice from these two experts. This is a book you want in your office.”

—Diane MacPhee, CFP®, Business Coach

“David and Joel lead the industry in their insights on how to use technology effectively. What is so unique to this book is the integration of other thought leaders who bring a range of expertise and perspective. This is like a crash course in improving your business from some of the brightest minds in the industry.”

—Julie Littlechild, CEO and Founder, Advisor Impact

“David and Joel have updated their definitive reference on leveraging technology for a profitable practice. Providing a consistent experience customized to your target clients’ preferences practically requires that you utilize technology, at least if it is to be done efficiently. Only in this work can you find many of the top writers, commentators, and practitioners offering you tips and insights on many of the most important aspects of technology in one handy reference. I bought the first edition in 2003, and it continues to be my go-to reference today.”

—Stephen Wershing, CFP, President, The Client Driven Practice, Author, Stop Asking for Referrals

“David and Joel have provided all you need to know to choose the best technology for your practice. And, let’s face it, in today’s world, you just can’t really practice without good technology to support you. Get this book, it will save you time and money, I guarantee it!”

—Deena Katz, CFP, Associate Professor, Texas Tech University, Author, Deena Katz’s Complete Guide to Practice Management: Tips, Tools, and Templates for the Financial Adviser

“Building on the recommendations and predictions from their original book — which all came true, and then some!—Drucker and Bruckenstein take a deep dive into not just the latest technology tools that are available in today’s marketplace to enhance the scalability and profitability of a practice, but also a look beyond into how technology trends may further shift in the coming years. Built collaboratively with an all-star lineup of contributors, Technology Tools for Today’s High-Margin Practice is sure to become essential reading for anyone considering technology decisions in the coming years, large firm or small!”

—Michael Kitces, Partner with Pinnacle Advisory Group, Inc., and publisher of the financial planning industry blog Nerd’s Eye View at www.kitces.com/blog

“For the last decade we’ve been turning to and recommending Drucker and Bruckenstein for great insights on technology applicable in our businesses. Their insights and experiences have saved us hundreds of hours of redundant research, wasted time and money. In their latest offering, the gurus have assembled an all-star lineup of industry experts, each contributing in their specific area of specialty. How do you enhance a great product? Read Technology Tools for Today’s High Margin Practice and you’ll understand why this book is the new technology resource I recommend to all financial professionals.

—Sheryl Garrett, CFP®, AIF® Founder, Garrett Planning Network

Since 1996, Bloomberg Press has published books for financial professionals on investing, economics, and policy affecting investors. Titles are written by leading practitioners and authorities, and have been translated into more than 20 languages.

The Bloomberg Financial Series provides both core reference knowledge and actionable information for financial professionals. The books are written by experts familiar with the work flows, challenges, and demands of investment professionals who trade the markets, manage money, and analyze investments in their capacity of growing and protecting wealth, hedging risk, and generating revenue.

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Cover design: C. Wallace

Cover images: Panorama Cloudscape © Tammy Bryngelson/istockphoto, Circuit Board © aleksandar velasevic/istockphoto

Copyright © 2013 by David J. Drucker and Joel P. Bruckenstein. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

The first edition titled: Virtual-Office Tools for a High-Margin Practice was published by Bloomberg Press in 2002.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Drucker, David J., 1948–

Technology tools for today’s high-margin practice : how client-centered financial advisors can cut paperwork, overhead, and wasted hours / David J. Drucker and Joel P. Bruckenstein.

p. cm. — (Bloomberg financial series)

Includes index.

ISBN 978-1-118-43476-5 (cloth); ISBN 978-1-118-48051-9 (ebk);

ISBN 978-1-118-48053-3 (ebk); ISBN 978-1-118-48055-7 (ebk)

1. Financial planners. 2. Finance, Personal-Computer network resources. 3. Investment advisors. 4. Investments—Data processing. 5. Finance-Technological innovations. I. Bruckenstein, Joel P., 1956– II. Title.

HG179.5.D777 2013

332.6–dc23

2012038305

Introduction

David Drucker

In 2001, I approached Joel Bruckenstein (who was known to me only as a seemingly like-minded writer for the financial trade press) and told him about a book for which I was developing a business plan. He agreed it would be an interesting project for collaboration. A year later, Bloomberg Press published Virtual Office Tools for a High-Margin Practice and it became an instant hit.

Of course, it’s the type of book that requires frequent updating in order to remain useful to our readers and, for the past 10 years, we’ve opted instead to publish a monthly technology newsletter as a means of keeping the book current. Yet, after many requests from readers and from John Wiley & Sons (which partnered with Bloomberg Press), we finally agreed in 2012 to update the book for publication by the T3 Conference in February 2013.

This new book—Technology Tools for Today’s High-Margin Practice—poses a very different challenge than did the first book, namely, that technology has changed vastly over the last 10 years since we wrote the first book. Joel and I penned the first book based upon our own technology experiences trying to assemble our own virtual offices, offices based on the use of technology and outsourcing such that we could function in a world of much larger competitors with what, essentially, remained simple home offices. Although it isn’t every financial advisor’s goal to have a virtual office, the principles we followed in creating ours have proven essential to creating a technologically up-to-date firm of any size and shape by gaining advantages over competitors by employing technology and outsourcing wherever profitable to do so.

In other words, what makes the smaller virtual office profitable is the same thing that makes the larger firm profitable—paying attention to the efficiencies available through technology. Technology can be used to achieve scalability either up or down . . . up by expansion of the larger firm that wants to add employees and grow indefinitely and down by the contraction of the firm that wants no employees and chooses, instead, to outsource as much as possible. Today, readers of our book still come in both flavors though expansion seems to be the dominant trend.

So, whereas, Joel and I could and did write the first book based on our own experiences, readers were taking those ideas and applying them to all manner of advisory firms—not just those seeking to remain small virtual offices but expanding firms, as well. The lessons learned in the past 10 years have expanded the body of knowledge to where Joel and I decided we could produce a better product, in the way of a second book, if we engaged the help of the many experts who have emerged in the whole field of investment advisor office technology.

To illustrate how far we’ve come in the past 10 years, let’s look at four recommendations from the first book and assess their relevancy today:

1. Recommendation: A paperless office might be beneficial to your operation. Buy a Fujitsu (or other recommended) scanner and software like PaperPort Deluxe to begin converting paper to digital records.

Today, a paperless office isn’t just beneficial, it’s essential. A whole industry has grown up around the need to serve financial advisors and other small business offices looking for sophisticated hardware and software with which to escape the inefficiencies inherent in dealing with paper. Not only have better paperless office tools grown up, but they are integrated with other key systems like CRM software so that client records can be viewed in an integrated format.

2. Recommendation: Consider using flash storage devices for easy, portable backups.

Flash storage devices, or thumb drives, as we knew them back then, are ubiquitous now. Storage capacities have climbed to as much as 32 gigabytes while prices have plummeted, making flash storage devices handy gifts rather than the moderately expensive backup devices we saw them as 10 years ago.

3. Recommendation: In the earlier book, e-mail was touted as the best communication system for advisors and their clients.

Today, we’ve seen all manner of embellishments on this very basic (though still essential) communications system. In addition to e-mail, advisors and clients interact through client portals, online storage systems like Dropbox, social media networks (which barely existed 10 years ago), and other systems designed to enhance the e-mail experience, making it easier to share large documents and files.

4. Recommendation: A customer relationship management (CRM) system is important to managing clients. We discussed the benefits of Microsoft Outlook and add-ons for financial advisory firms from CRM providers like Sage ACT! and Goldmine. We also recommended several industry-specific CRM systems, one of which (Junxure) has expanded to become an industry leader, the other of which (ProTracker), while still in use, has faded substantially from its earlier prominence.

The modern financial advisory firm uses a CRM as the hub of its practice, giving it access not only to client database records but client documents and, more importantly, a system for managing workflow. Where earlier CRMs were simply repositories for basic client information (computerized rolodexes, in other words), CRMs today allow the firm owner and his or her employees to track with great specificity where the firm is in serving each client’s every need.

These are just a few of the recommendations made in the original book that have been completely superseded by 10 years of technological advances. At the same time, some of the chapters in this revised book represent technologies that weren’t available (or were just in their infancy) 10 years ago.

So, to make sure each subject area is covered in the proper depth and with the required expertise, we set about building our list of contributing authors and hope you agree we’ve got a who’s who in technology for financial advisors featured in this new book. Following is a listing of authors and topics.

Robert D. Curtis, founder, president, and CEO, PIEtech Inc., “The Future of Financial Planning Software”

Linda Strachan, vice president, product management, Zywave, Inc., “The Future of Financial Planning Software and the New Client-Advisor Relationship”

Curtis and Strachan bring us up to date with the changes that have taken place in financial planning software over the last 10 years and discuss the direction of software advancement today.

Jennifer Goldman, president, My Virtual COO, “Virtual Staff Sparks Growth, Profitability, and Scalability”

Goldman discusses the state of the art in outsourcing, a trend we identified and wrote about in the first book, that has since expanded greatly. Today, advisors can find virtual staff to fulfill almost any function within the firm as the low costs and other advantages of virtual staff become apparent.

Davis Janowski, technology reporter at Investment News, “Selecting the Right CRM System”

Janowski discusses the many decisions that go into selecting the right CRM for one’s advisory practice. Where the decision used to be easy—Microsoft Outlook—there are too many offerings today to default to Outlook, and those offerings differ greatly from one another, making the decision a critical one.

Mike Kelly, president, Back Office Support Service, “Portfolio Management Software”

Kelly discusses the many varieties of portfolio management software and the opportunity to run these in-house or seek out an outsourcing arrangement through a firm like his.

David L. Lawrence, founder and president, EfficientPractice.com, “Building an Efficient Workflow Management System”

Lawrence discusses building an efficient workflow management system. Workflow systems are usually embedded in one’s CRM but are important enough to constitute a subject of their own within the new book. Designing workflow so that everyone within a firm knows his/her duties and is able to carry them out in a uniform manner is a critical process whether married to a CRM or not.

Dan Skiles, executive vice president, Shareholders Service Group, “Electronic Signatures”

Skiles discusses the state of the art of digital signatures, something not really present on the technology scene 10 years ago, but now an important part of streamlining workflow within organizations both large and small.

Marie Swift, principal, Impact Communications, “Managing Your Online Presence”

Swift discusses the advisor’s online presence and what he or she must do, over and above just creating a website, to maintain an online presence in order to stay in front of clients and prospects alike.

Bart Wisniowski, co-founder and director, AdvisorWebsites.com, “How the World Wide Web Impacts the Financial Advisor”

Wisniowski discusses the more narrowly focused marketing topic of website deployment—the right way and wrong way of doing it.

Timothy Welsh, president and founder, Nexus Strategy, LLC, “ROI—The Holy Grail of the Technology Purchase Decision”

Welsh discusses Return on Technology Investment. How does the advisor know he or she is anticipating all of the costs and all of the benefits of a technology purchase decision? There’s more that goes into it than initially meets the eye.

Bill Winterberg, consultant, FPPad.com, “Client Portals and Collaboration”

Winterberg discusses portals and means of collaboration with clients and other professionals over and above simple e-mail.

John Patullo, managing director, technology product management, TD Ameritrade Institutional, “Achieving Growth and Profitability with Technology Integration”

Patullo discusses TD Ameritrade’s efforts to create an integrated platform of software and trading functionality online for advisor clients. As integration of disparate software programs becomes essential for efficient operation, custodians like TD are at the forefront of creating these integrations for advisors.

J. D. Bruce, president, Abacus Wealth Partners, “The Cloud”

Bruce discusses a growing trend toward operating in the cloud, that is, creating operating systems for online rather than desktop operation.

Louis Stanasolovich, founder and president; Christopher Kail, director of marketing; Sherri Slafka, communications coordinator; Daniel Kleck, marketing coordinator, Legend Financial Advisors—“Innovative Software and Technologies Implemented at One of the United States’ Leading Advisory Firms”

Stanasolovich, a marketing expert in the financial advisor community, discusses the technology behind his marketing systems and the opportunity every advisor has to market more intelligently using technology designed for that purpose.

All together, our expert authors provide a blueprint for the technological redesign of a financial advisory firm. Every chapter presents a topic that must be dealt with in the formation of a firm’s technology platform, and every chapter provides the answers you need (as well as the questions you need to ask) in researching and assembling your own technology platform.

We sincerely hope that as you read this book you will achieve a better understanding of the technology platform you’ve already created along with a clear vision of where you need to go to achieve a better integration and smoother functioning of all the pieces within that platform.

Chapter 1

Selecting the Right CRM System

Davis D. Janowski

Technology Reporter at InvestmentNews

When it comes to technology, few decisions are going to be as far reaching or consequential to an advisor’s work life than choosing a CRM system. Whether you define it as client-, contact-, or the most commonly used customer relationship management (CRM), the software encompasses much more than the acronym might suggest.

Most advisors, and perhaps even more tellingly, two major custodians that support between them almost 10,000 advisors, are of the opinion that CRM has moved to center stage. In other words this crowd has made CRM technology the central hub around which all the rest of their technology revolves.