In recent years, the landscape of the financial advice profession in Australia has undergone significant upheaval. Amidst increasing regulatory and legal obligations, many advice firms have found themselves struggling to adapt. With adviser numbers dipping below 16,000 and further declines predicted, the industry is facing what seems like an insurmountable challenge. However, amidst this turmoil, there are firms not just surviving but thriving, demonstrating resilience in the face of adversity.
At Elixir Consulting, powered by VBP, we believe in sharing practical insights to empower advice firms to navigate these challenges and build resilient businesses with a sustainable future. Our Resilient Advice Business Strategy Handbook 2023 delves into the core elements of resilient businesses, offering a roadmap for success. In this article, we’ll explore one key strategy outlined in the handbook: strategic planning.
Strategic Planning: Navigating the Path to Success
Success in the financial advice profession rarely happens by accident. It requires deliberate and effective strategic planning. Whether you’re a solo practitioner or part of a large firm, investing time in strategic planning is essential for achieving your full potential. Successful business owners understand the importance of stepping back from the day-to-day operations to focus on the bigger picture.
Resilient firms engage in both long-term strategic planning and short-term tactical planning. They continuously evolve and adapt to a changing environment, ensuring that every member of the team plays a role in driving the firm forward. By avoiding short-termism and making informed strategic decisions, these firms set themselves up for long-term success.
Defining Your Purpose, Vision, and Values
Central to effective strategic planning is defining your firm’s purpose, vision, and values. Your purpose serves as the emotional glue that binds your team together, guiding every decision and action. Your vision provides a clear picture of what you aspire to achieve, inspiring your team to work towards a common goal. And your values serve as guiding principles, shaping how your team interacts with clients and each other.
Successful firms not only define these elements but also integrate them into their culture and operations. They use them to attract like-minded team members and align everyone towards a shared vision of success.
Turning Vision into Action
To turn their vision into reality, resilient firms develop annual tactical business plans. These plans outline financial targets, client activity goals, qualitative improvements, and specific projects and activities. They also factor in potential risks and changes in the regulatory landscape, ensuring they are prepared for whatever the future holds.
But strategic planning is more than just creating a document—it’s about execution. Resilient firms allocate responsibilities, establish reporting mechanisms, and regularly track their progress against the plan. They remain agile, making adjustments as needed to stay on course towards their long-term goals.
Conclusion: Building a Resilient Future
In the ever-evolving world of financial advice, resilience is the key to survival and success. By investing in strategic planning and aligning their purpose, vision, and values, firms can navigate challenges with confidence and emerge stronger than ever before. As we continue to share insights and strategies for building resilient businesses, we invite you to join us on this journey towards a brighter future for the advice profession.
This article was first published in Professional Planner Magazine on November 29, 2022. This is an excerpt from the Resilient Advice Business Strategy Handbook 2023, authored by Elixir Consulting and sponsored by BT. Here, Sue Viskovic shares the key elements required to build the foundations of future successful advice firms.
