Ken Buzek listened to his son, Kevin, and his practice is much better for it.
Much has been said about how young advisors and
industry entrants are used, or misused, in their first jobs with
financial advisory firms.
Typically what happens is a veteran advisor/firm
owner hires a summer intern or maybe a provisional CFP from one of the
universities offering CFP-preparatory coursework, and immediately slots
that person for administrative work. The owner perhaps believes that
learning the job "from the ground up" is the best way to train the
fledgling advisor. Or maybe he just wants to get as much work from his
intern as he can at the lowest possible cost and sees the unskilled
labor route-requiring less training-as the way to do that.
Of course, both the intern and the owner fail to
realize the potential rewards of their relationship. The intern wants
meaningful growth opportunities and the owner could certainly benefit
from his youthful employee's wisdom, which he discounts due to the
employee's relative lack of experience. What the owner fails to realize
is that today's job entrants tend to have more technical training and
greater comfort with modern technology than do many owners with 20-plus
years in the industry. Pairing youthful knowledge and veteran
experience can be powerful, if allowed to happen.
That's what Ken Buzek, 58, owner of Buzek Kiplinger
in Strongsville, Ohio, realized when he took on his son, Kevin, 31, six
years ago. Admittedly, Kevin probably had a greater opportunity to
influence his father's thinking than a nonrelated young employee would
have had, but it is to the senior Buzek's credit nonetheless that he
listened to his son.
Ken Buzek brought on his son to be his office
manager and main office administrator, not an advisor. But there was
good reason for that. Kevin's background includes several years of
recruiting for a staffing company, preceded by his earning a bachelors
of science in business administration from Ohio State University.
Administration is his forte.
However, says Kevin, "I had no training in office
administration for a financial advisory firm. I learned on my own with
the help of my father and Securities America." How well did he learn
the job? If you ask Ken Buzek to describe what his son does now, he'll
say, "Kevin serves as my office manager, marketing manager, compliance
manager, tech manager and new business development manager." The list
goes on and on, says Buzek Sr., and may at times include Kevin's
answering phones, handling client questions, processing account
applications, doing daily downloads and so on.
When he started at the firm six years ago, Kevin
didn't hesitate to give his father his assessment of how he was running
his practice. Says the younger Buzek, "I told him, 'You have no clear
business plan, marketing plan or client relationship management plan.'"
Buzek Sr. doesn't deny it: "Prior to Kevin's arrival, I was running the
business by the seat of my pants, without written policies or
procedures."
If that wasn't enough, Kevin Buzek also found that his dad's 200-client
firm was still conducting an all-commission business, not a surefire
way to develop client relationships and grow the firm. This led to his
recommendation that the firm be converted to a fee-based business model.
"Kevin has great vision for a young man," says Buzek
Sr. "We started having meetings to develop a long-term business model,
meetings Kevin held us to." Ken Buzek admits he resisted the fee
structure changes his son recommended. "Change is difficult, and it
usually means going backwards before going forwards. More to the point,
though, I was afraid I'd lose clients, that they wouldn't want to make
the change to fee-based. I didn't feel I could afford to take that
risk."
Did they lose clients? "No, not even one," says
Buzek Sr. "We did go backward for a year, but moved forward the next."
Adds Kevin, "My dad had to ask himself some tough questions, such as,
'What's my value?' It turns out, it was more than he was giving himself
credit for. So we developed a script to explain to the clients why
fee-based would be better for them and for us. Once dad convinced
himself of the superiority of the new business model, he got really
comfortable talking to clients and convincing them it was a win-win."
What Ken and Kevin Buzek achieved together was no
small feat, and it didn't go unnoticed by their peers. "Securities
America gives out about ten major awards each year," says Ken Buzek,
"but never before had they seen a father-son team win two of those
awards." At Securities America's National Conference in May 2006, Kevin
was given the "Assistant of the Year" award by a selection committee
composed of Securities America's home office executives and staff. And,
at the same conference, Ken was given Securities America's "Shooting
Star" award, which goes to the advisor with the largest percentage
year-to-year increase in assets under management. "We moved more than
$20 million in assets to fee-based in just a five-month period," says
Buzek Sr.
And what about the lack of internal office systems
Kevin noted upon his arrival? "When Kevin joined the firm, he found
tools available from Securities America and, with their help, Kevin
convinced me to do a written business plan and a marketing plan," says
Ken Buzek. Working with his father and Marla Cross, a Securities
America Advisor Services Consultant, Kevin created (among other things)
a brochure and a welcome process that includes a welcome kit for new
clients. "I'm big on procedures manuals," says Kevin, "so I got
everything out of Ken's head and put it in writing. Now we'll have some
continuity [of procedures]."
With Cross came Securities America's Transition
Roadmap Program, a system of weekly coaching calls and direction to
help a firm move to a fee-based business model.
For improved client relationship management, Kevin
found his father had on hand a copy of ProTracker (www.protracker.com)
but wasn't using it to its full potential. He had another staff member
enter everything possible into the software-client contact info,
meeting notes, calendar items, etc.-and it has since been a key
component of the firm's growth.
What does the future hold? Buzek Jr. and Sr. will
continue the conversion of client assets to the fee-based model and
will participate in the Heartland Financial Network. "We were
introduced to the Heartland Institute of Financial Education
(http://www.hife-usa.org/) last fall by Securities America," explains
Kevin. Heartland is the creation of Alan Gappinger, an industry
veteran, who in 1997 decided that he could create and install in
private companies financial literacy courses that would help a larger
segment of the public achieve retirement security than would one-on-one
financial planning. Gappinger has established a consortium of colleges
and universities to add credibility to his venture, and has also spun
off a designation, the CFEd, which stands for "Certified Financial
Educator."
Buzek Sr. is already a CFEd and Kevin is currently
studying to earn the CFEd designation. Says Kevin, "Heartland has
teamed up with Securities America to train and work with advisors like
me and my father so we can bring financial literacy courses to
companies, organizations, and associations with which we currently have
relationships." The Buzeks see an opportunity with Heartland to educate
adults in the workplace about financial planning and also to attract
new business by building trust and earning credibility within their
community.
Now that Kevin is firmly ensconced at Buzek
Kiplinger, father Ken would seem to have a built-in succession plan.
"That will happen as a function of the new business I'm developing,"
says Buzek Sr. Buzek Kiplinger is a partnership between Ken Buzek and
Brad Kiplinger, the son of the managing partner of Strongsville CPA
firm Kiplinger and Company, CPAs. The partnership is primarily an
expense-sharing arrangement at this time, but Buzek is forming a new
advisory firm, along with the CPA firm, that will be more of a
collaborative venture into which a succession plan involving Kevin will
fit.
The Buzek's relationship would seem to confirm the
wisdom of the old guard listening to the new generation. What's perhaps
most amazing about their success is the fact that Kevin had little
training in financial planning prior to working at Buzek Kiplinger.
What he did have was the energy that comes with youth and the
willingness to seek out all of the resources at his disposal, many of
which came from Securities America. Because Ken Buzek was able to keep
an open mind and take calculated risks, he benefited immeasurably from
his son's vision and advice.
"I credit much of my success over the past five
years to the superior job Kevin has done for me. He has a strong work
ethic and his new, fresh ideas have contributed immensely to our
success," says Buzek senior. Those veteran advisors who relegate
interns and newbie advisors to menial, back-office tasks may never
speak those words.
David J. Drucker, M.B.A., CFP, an
independent financial advisor since 1981, now writes, speaks, and
consults with other advisors as president of Drucker Knowledge Systems.
Check out his new practice management portal, Practice Lifecycle, at
www.practicelifecycle.com, and Virtual Office News, a monthly practice
management/technology newsletter for financial advisors, at
www.virtualofficenews.com.