Right in Front of You

Step No. 4: Gain Staff Buy-In

The technology at many advisory practices is underutilized–and often times even ignored–by the staff. That prevents firms from realizing technology's promised benefits such as scalability and company-wide cost savings. If your employees are indifferent or even hostile toward your technology, you need to gain buy in. Talk to your team about their specific workflow needs and the "pain points" that crop up when they do their jobs, and identify how your existing technology can address those needs.

You also need to make sure everyone who could benefit from the technology that's in place knows how to use it effectively. When we meet with advisors who are frustrated by certain employees or teams who don't use the firm's CRM system, for example, we often find that those employees weren't aware of (or involved in) the initial implementation and training process.

Step No. 5: Assign a Point Person

You need someone who will be responsible for tracking your firm's overall efficiency and effectiveness. An owner or partner can be a good choice for this role, of course, but so can a well-respected senior team member who understands the various roles and responsibilities within the firm and can identify areas that will benefit from process and technology improvements. Look for someone who has come up through the organization and held a variety of positions within the firm. At LarsonAllen, Johnson compares each quarter's reporting to a production timeline to see if the process is on track, as well as regularly reviewing compliance procedures on an ongoing basis and making necessary changes.

Step No. 6: Increase Client Touches

You know that your clients need additional hand-holding and reassurance in this environment. But don't limit yourself to phone calls and face-to-face meetings, which can take up considerable amounts of time. Consider ways to reach out en masse. Foster Group recently added a blog to its Web site, for example, after clients requested more frequent communication. Regular e-mail updates also could be increasingly important parts of your effort to reach out to nervous clients and reinforce the value you bring to them. Although using e-mail to communicate with clients might seem obvious, it can save you significant amounts of time and money, while keeping you in front of clients. At Capital Advisors, Inc. in Tulsa, Oklahoma, COO Richard Lofgren says the firm is sending out more outbound e-mail communications than ever before, covering everything from stock-specific issues to broader market commentaries.

Step No. 7: Leverage Partner Resources

Firms that provide products and services to advisors are increasingly providing a broad range of offerings–many free–aimed at reducing costs, boosting efficiencies and implementing best practices. For example, some firms offer daily pricing data, rebalancing automation tools and Web-based training on various types of software. They may also supply benchmarking data on technology usage and white papers on technology best practices. Capital Advisors, Inc., for example, uses a technology "scorecard" provided by Charles Schwab that helps the firm evaluate its use of technology and automated processes. Using the scorecard, Lofgren and his staff were quickly able to identify opportunities to take additional time- and cost-saving steps–such as opening more new accounts online, increasing the number of online transaction requests, and making greater use of e-statements. "We saw where our tech usage was lower than we wanted, and everyone started looking for ways to bring the numbers up."

Step No. 8: Network With Peers

Chances are there are plenty of firms that have experienced and solved similar challenges. That's why many advisors share best practices with each other through formal or informal groups that meet regularly. Simply asking your peers for their perspectives and solutions can be enough to find newer, better ways to serve clients and manage your practice. LarsonAllen's Johnson says that the firm made important efficiency-based improvements to its portfolio accounting system and new account set-up process based on information from an industry conference and by calling some of the advisors who spoke at it. "Sharing information and hearing what other firms are doing have helped some of our daily processes be more automated and efficient," he adds.

There's no question that technology can be one of your most important allies as you look to build efficiency, maintain high levels of client service, address increasing demands from clients, and look to take opportunities to grow, even in the current market.

The good news is that you can accomplish much of this right now by making sure you're using your current technology as effectively as possible. As shown above, that can mean using all the features and functionality that a particular piece of hardware or software offers. But it also can entail rethinking how you do certain tasks, managing and motivating your human capital, and leveraging the knowledge of others to find optimal solutions. The key is to think creatively about all the ways you can get the maximum benefits from your current systems to accomplish your most pressing business goals.