This is the first in a seven-part series presenting best practices to advisors on how to use practice management techniques to improve their businesses. In part one, we define what is meant by the term and present five steps to executing practice management techniques.
To say that the markets have been on a wild ride lately would be quite an understatement. The tumultuous downward pitches and upward grappling we've seen in August 2011 could make even the most level-headed person feel uncertain about where things are going. In times like these, when it's easy to feel insecure, the focus of any financial advisory practice increasingly needs to be on making the right decisions. And to do that, strong practice management is not just important—it's absolutely necessary.
But what does practice management even mean?
If you were to ask 100 people for the meaning of practice management, you'd likely get 100 different definitions. That in itself doesn't inspire confidence, so clearly defining what practice management means is essential. Armed with a standard definition, you can establish a unified thought process within your company, which makes it easier to set a baseline of quality service for your clients.
The most concise, reliable definition of practice management is this:
"A set of optimized services and solutions that enable advisors to achieve their most important business objectives."
If you establish this definition as the guiding principle of every action you and your employees take, you'll be able to find solutions to any challenge presented by the markets and adapt to clients' goals, even under changing conditions.
