Create a Behaviorally Smart Succession Plan

What is most frequently left out of an advisors succession plan is the client?? Not the assets, but the behavioral side of the client. After all, 93.7% of the financial planning process is the behavioral management of the client, so why wouldnt this information be a valuable part of your business and your plan?

When the advisor is close to retirement, the client really has three questions:
1.Will my portfolio be similarly managed and allow me to reach my goals?
2.Will the relationship with my new advisor be an enjoyable one?
3.Will I receive the same service?

You will notice that the majority of the clients concerns deal with personality and behavior.

Now lets move to the new advisor. They want to be sure to retain as many clients as possible. According to a Price Metrix Study, advisors retaining 95% of clients 2010-2013 grew AUM 25%; those retaining 80% of clients, grew AUM just 12%.

What was a good fit for the retiring advisor may not be a good fit for the new advisor.? While you dont have to prospect to acquire this transitioned client, it can feel like you are starting over since you are just beginning the relationship.

There is a certain amount of trust that is transferred over from the retiring advisor but the new advisor will have to build it based on their unique personality.

Imagine being able to turn over your clients with the behavioral big data on how to sell, service and create a unique experience. The first appointment with the new advisor would be so much easier and the client would feel understood. Trust would be built at a much faster rate.? And trust is the key to retention.

Start building a behaviorally smart succession plan to ensure your clients will stay with a firm that you worked so hard to build!

To learn more, listen to Hugh Massies video on Behaviorally Smart Succession Planning.

• About the Author

Peggy Mengel

Peggy Mengel - Business Coach - The Biz Sherpa

As CEO and founder of The Biz Sherpa, I coach and consult with executives on developing deep and strong relationships with clients, staff and most importantly, themselves. When you align your talents, passions and strengths with a strategy that fits your uniqueness, you will transform yourself, your client experience and your business.

Throughout my career, one my driving principles is to understand people before numbers. It is this philosophy that ignites my desire to help financial services firms meet the challenge of driving results through a behaviorally based strategy.

How can your firm balance the demands of effectively managing people and maximizing profits? Start building business from the "inside-out" with a coach who understands your industry and your challenges.