11 months to go

There are just 11 months to go until the new world of the RDR comes into effect.

Those IFAs who wish to continue to advise their clients will have secured their level 4 qualifications (and completed their Gap Fill and also obtained their Statement of Professional Standing) and will be planning their next steps (if they have not done so already).

How might they best apply their efforts between 1st February and 31st December 2012?

I suggest that you don’t just do something, but you sit there. Now if that doesn’t sound quite right let me explain.

Certainly when we speak to IFAs about getting ready for the RDR implementation we come across one common theme. There is just so much information about the subject and so many opinions (including ours) that it is absolutely understandable to suffer from information overload.

We may have so many thoughts about what to do swirling around in our heads that deciding what to do becomes difficult if not impossible.

So my advice is that you take some time out and just think about the way forward. Put yourself in an environment, probably away from the office, where you can be uninterrupted.

If you have a mentor or someone you trust to bounce ideas off maybe involve him or her in the session, but you may simply need some thinking space on your own.

Create for yourself an agenda for change (I have repeated ours below) and this can consist of just headlines to begin with. You can build in the detail once you have the framework in place.

Certainly make sure that you apply the SMART (Specific, Measurable, Achievable, Realistic and Time bound) approach to this plan otherwise you may be setting off on an unrealistic journey.

Certainly a couple of IFAs I have spoken to in the past few weeks have found this is exactly the problem they have faced. Where on earth do you start?! That is why having a plan is so important.

Once you have a plan in place you will start to feel more in control of what is happening and it is more likely you will take the actions that are needed.

So here is the agenda for change that we started using way back in 2004 and it has served us well so I hope it does the same for you.

Proposition – start with this because it is the foundation on which the rest of the plan can be built. If you can design and implement a proposition that your target clients see as valuable then they will pay you for it. You need also to think about all the ways that you can articulate your proposition. It also makes sense to practice it but not on clients, practice in the training room.

Pricing – how much are you going to charge for your services? Be prepared to make pricing mistakes, every one does, but many will not admit to it. Think about the relationship between proposition and pricing as they are inexorably linked. Think value to the client here don’t fall into the trap of knowing the price of everything and the value of nothing.

Marketing – how are you going to take your proposition to market? What marketing methods will you employ to ensure that everyone who will find your proposition of value will get to learn of it?
Systems and processes- and this step applies to every IFA regardless of the size of their practice/business.

How do you ensure everything that you do is consistent and yet enables you to produce bespoke outcomes for your client? Document the systems and processes and train everyone to use them.

People – is everyone in your firm doing the right job? Do they all understand how the work that they do leads to the delivery of your proposition? If they don’t then maybe they need training. If they wont join in and be part of the team then maybe you need different people.

Brand – do you have a brand? (represented by everything you do and do well and reduced in value by the things that you don’t do that clients expect you to, and by things you do less well). What are your brand values and allow yourself some free thinking here, don’t be afraid to say what it is that you stand for.

Financials – are you in business? If you are then you will have business goals and objectives around turnover and more important profitability. Ignoring these can be an expensive mistake. There is little doubt in my mind that embracing the RDR change agenda will result in a more profitable and sustainable business model.

So set aside a day now and put your business change agenda together and start looking forward to the start of 2013.

Book your ticket today for our Implementing the Retail Distribution Review workshop – dates available in Surrey and Cheshire