Failing To Develop Formal Action Plans For Each Center Of Influence Relationship
In a variety of situations, winging it is not uncommon in the financial advisory industry. This is commonly the case when it comes to cultivating centers of influence. While about a third of the financial advisors surveyed have a formal plan for approaching this endeavor, very few are creating customized action plans for each of the centers of influence they’re cultivating (Figure 4).

Figure 4: Have Formal Plans
For cultivating centers of influence     35.3%
For each center of influence     4.2%
N = 549 financial advisors

Formal plans are especially effective in helping financial advisors stay focused and motivated. One component of these plans should probably be a specification of the anticipated number of new clients from centers of influence. When we asked the financial advisors who did have a plan for cultivating centers of influence, fewer than 5% had a goal number of new clients (Figure 5). More informative was that about half didn’t know, 30% said “a lot” of new clients and slightly more than a sixth said “some” new clients. These latter objectives don’t translate into effective plans and actions.

Figure 5: Target Number Of New Clients Expected
A lot    30.4%
Some     14.4%
Don’t know    52.1%
Goal number    3.1%
N = 194 financial advisors

What is generally required to succeed in sourcing high-caliber new clients from centers of influence is individuated formal plans per center of influence. These plans should, most likely, include detailed goals and objectives coupled with the activities that will produce those results. A lack of action plans is another misstep that can easily derail an effort to cultivate centers of influence.