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Completing the Scorecard

Apr 27, 2018

Completing The Confident Advisor Scorecard.

 

Summary:

 

During this installment of The Confident Advisor Practice from the Horizon Advisor Network, Bill Bush, Pete Bush, and Chris Sullivan discuss the importance of building your team and continuity and succession—the last two categories on the Confident Advisor Scorecard.

 

Time Stamped Show Notes:

  • 00:54 – Bill Bush, Pete Bush, and Chris Sullivan prepare to wrap up their ongoing discussion of the Confident Advisor Scorecard.
  • 01:11 – Building Your Team: Scoring yourself 1-3 means this statement might be true:

                     - Prefer to work alone but know you can benefit from help.

                     - Don’t like managing people and see them as an expense.

  • 02:23 – Look at the people you are training as an investment that will earn a return.
  •  03:47 – Most advisors are coming out of a producer mentality with the focus on revenue-generating ideas.
  • 05:15 – Building Your Team: Scoring yourself  4-6 means:

                      - You believe in having employees, but just to divide the work.

                      - You become frustrated when they make mistakes because they have to where many hats.

                      - Workers don’t feel a part of the overall vision, and are only motivated by their paycheck.

  • 06:43 – Often advisors will end up with a ton of clients, and 6-7 administrative assistants doing the same role.
  • 07:36 – Building Your Team: Scoring yourself  7-9 means:

                      - You have reached success by surrounding yourself with talented team members that are engaged in your vision.

                      - Employees have become proficient in their roles and processing the business you attract.

  • 09:32 – Building Your Team: Scoring yourself 10-12 means:

                      - Your self-managing team helps to define the culture, goals, and vision of the ever-growing future of the company.

                      - Employees have a stake in the outcome.

                      - Team members are leaders and continue to grow their personal capabilities and grow the overall team.

  • 12:30 – Continuity and Succession: Scoring yourself 1-3 means:

                      - The practice would not be able to survive your death, disability, or retirement.

                      - You are uncertain of how your family and employees would be affected in such an event.

  • 15:19 – Continuity and Succession: Scoring yourself 4-6 means:

                      - You have a “gentleman’s handshake” with someone and you have communicated to someone on your team what to do if something goes wrong.

                      - You know you need a firm plan in place if things fall apart, but you continue to procrastinate.

                      - Retirement is a ways away, and you assume you still have time.

  • 16:37 – Continuity and Succession: Scoring yourself 7-9 means:

                      - You have legal agreements in place with an identified continuity partner.

                      - You have a buy/sell agreement in place funded by life insurance.

                      - You believe someone will buy your business when you retire.

  • 18:24 – Continuity and Succession: Scoring yourself 10-12 means:

                      - You’re confident that the updated written agreements that you have in place will protect your family, your team, and your clients, based on a three-phase plan for continuity, integration, and eventual sale of your business.

                      - You have annual evaluations of your business done.

                      - You keep striving to add value.

 

3 Key Points:

  1. Investing in quality employees is an important investment that you pay overtime instead of all up front.
  2. Provide your team with a stake and vested interest in the company beyond just their paycheck.
  3. Preparing for continuity and succession is important for you, your family, your employees, and the clients that you serve.

 

Tweetable Quotes:

-    “What would be the return on investment in a person, in the form of leverage you can get so you can go out and maybe bring in an extra client?” – Pete Bush.

-    “The investment in a person, you don’t even have to come up with all the money at one time…you’re doing it over a period of time, maybe 1/26th every couple of weeks as you are doing payroll.” – Chris Sullivan.

-    “Team has become so crucial to the operation of the business that your demise, or your absence from the business, you’re recognizing that it doesn’t just effect you.” – Pete Bush.  

 

Resources Mentioned: