It is always helpful to see what other advisors are doing to make themselves standout from their peers. This year’s LINC conference had several breakout sessions led by TD Ameritrade Institutional experts so the attendees could learn from the best practices of others.

Having A Growth Mindset
“Growth does matter. It matters for our people, for our clients and for us, the advisors,” said Jay Wampler, VP of institutional consulting at TD Ameritrade, as he was reiterating what an advisor in a study group once told me.

In his presentation, “A Growth Mindset,” he spoke about “how advisors need to consider the market we are in, our business capabilities and your personal definition of success. It is very unique to each of you. It is important that you define your personal success.”

He pointed out that growth matters to the advisor for several reasons, including return on investment, economies of scale and business valuation.  A growing firm also has the benefit of attracting and retaining talent, which then helps with succession planning.

It even helps clients, as a larger firm is better positioned to handle changing client preferences and it can defend against disruption, keeping client continuity.

Focusing On A Niche And The Client Experience
Wampler recommended niche marketing. He said, “Target your activities at the right people at the right time. It gives you time back.” He gave an example of an advisor who focused in on women in transition that are going through a divorce or are widows. To help with the tough emotional time in their lives, he added, “In her office, she now has tissues and chocolates.” 

He advised that advisors shouldn’t strive to be all things to all people, but instead should be all things to the right people.

For a few years, TD Ameritrade Institutional has been talking about how important the “client experience” is to be successful. Wampler also did, saying,” We win on client experience.” He encouraged the attendees to think about a great experience and how they might have shared it with others. Then he asked, “Do your clients share the same way?”

Build An Organization That Can Grow
Eliza DePardo, a consultant for TD Ameritrade Institutional, also presented in other sessions, providing helpful advice for the attendees. Related to the key principles in organizational design, she sees that those that design the right structure are in a better position to deliver an excellent client experience.

Leveraging the roles of top associates of the firm allows the organization to achieve the greatest value for the firm. She recommended facilitating flexibility to best create a structure that uses the resources from across the business.  With clearly defined roles, there can be clarity around decision making. 

DePardo said, “Your organizational structure should be creating a career path. As you grow, you can progress from role to role to role.” 

She added, “Whether you are a wealth manager, family planner, investment manager or family office, those decisions will influence your structure. The challenge is to get the balance right between the client experience and efficiency.”

The path for many firms as they increase in size is that they usually increase in specialization. To know a firm is headed in the right direction, she recommended focusing in on metrics like revenue-per-revenue generator and revenue-per-full-time equivalent.

If one does not focus on the metrics, it can be hard to generate growth, as firms get overwhelmed with work and cannot handle all the prospects. She believes firms should ask themselves, “How quickly are we growing and are we seeing any challenges?”

Additional (median) metrics were shown to guide hiring decisions:

• 1.3 = a little more than one non-revenue role supports each revenue role

• 1 in 4 = lead advisors account for one in four full-time employees

• 1 in 10 = one full-time employee out of 10 represents a management or technical position

• $228,000 = this is the point in revenue growth where one additional full-time employees is added (median)

Be A Standout At No Matter Your Size
In another session, DePardo gave more advice to be a standout firm at each stage. 

“Standout operators” with annual revenue between $100,000 and $500,000 focus on the quality and size of clients. They have discipline around pricing. These firms are more aggressive around client growth, because it is easier to do off a smaller base. Capacity needs to be filled and new clients need to be a fit.

“Standout cultivators” with annual revenue between $500,000 and $1.5 million often see a slower grow rate as capacity fills. They need to focus on hiring to keep up with capacity. They also need to keep a close eye on the metrics or they will experience the effects of sub-optimal capacity. Pushing things down the organization structure can help, so they need to feel comfortable with delegation.

“Standout accelerators” with annual revenue between $1.5 million and $4 million can have a dramatic difference in profit growth. They have to be careful when they are recruiting to make sure they are not blowing out the compensation for these roles. They are able to attract talent at less expensive rates. They are typically good at entertaining prospects and referral sources and often deliver seminars. A revenue percentage of 4.37% is being spent on marketing. They need to pay attention to key person risk.

Overall, the LINC attendees had plenty of chances to learn how they can be standouts too, if they are not already performing at that level.

Mike Byrnes is a national speaker and owner of Byrnes Consulting, LLC. His firm provides consulting services to help advisors become even more successful. Need help with business planning, marketing strategy, business development, client service and management effectiveness? Read more at ByrnesConsulting.com and follow @ByrnesConsultin.