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Business - Team BuildingHigh Performance Fiduciary Creates WealthWhere the One-Eyed Man Is King: Succession Plans for Financial Advisors A recent survey suggests that advisory principals may, in fact, be savvier about the importance of succession planning than other businesspeople. In the survey, 33% of advisors said they have a written succession plan; only 8% of other business leaders say they have such a plan. Read More:
Managing in a Multicultural Environment - Effectively managing a multicultural business requires at least a basic knowledge of your employee's culture and traditions. Familiarity with both is essential... Some advisory firms have a succession plan that was passed down to their leadership as part of the company culture. Based on the experiences of several advisory firms, the succession plan has the added value of reassuring the staff and clients about a stable future of the firm. But do not look for a succession cookie cutter. Advisors, principals, and partners have numerous options. Over half the advisors opt for the orderly transition to junior partners. Alternatively, firms with over $1 billion under advisement are more easily sold than smaller ones. Sometimes a merger or direct sale, sometimes called a consolidation, constitutes a viable solution. In a family business, ownership, control and distribution of the business assets tend to be the focus. Read More:
What A Difference A Week Makes - Sometimes a little tweak in how you manage your people can make all the difference. And sometimes, it's vital to look for something that will change... The advisory business tends to be more complex because the skills that make it work today are highly specialized, says Dan Smith, a Connecticut based attorney specializing in helping maximizing business value. "Defining who's going to run the firm and who is going to be the rainmaker help significantly in the creation and enforcement of a succession plan," he says. Smith questions whether the key manager can also be the firms rainmaker. While this arrangement may work on a day-to-day basis, the acquirer, Smith adds, wants to know if the firm has the ability to continue what used to happen. A single multi-talented individual may sharply affect the firms valuation. Transition to fee-based compensation is helpful, says Smith, because ongoing profits are more accurately projected than with asset-based compensation. Read More:
Star Gazing - Publicly recognizing employees on in-house digital signs can motivate workers to reach for the stars. Former Evaluation Associates (EAI) President Jeff Van Orden embraces the concept of transferring the firm from one generation to the next inside the firm, part of the company's culture since its founding in 1947. You need to find people willing to embrace the risks of ownership and entrepreneurship,he says. When a process is in place and understood, it tends to provide the principals, senior advisors, advisors and the associates, and management, the added level of stability and consistency they desire, says Van Orden. Read More:
Ho Ho Ho - The Office Christmas Party - When Santa comes to town, where are you going to throw your office party? Read our handy guide on how to choose the correct location for throwing the best... Still, it's advisable to consider carefully the impact of the top executive's decision. Wealth adviser Arthur Bavelas says the principal's considerations will have far-reaching impact. Running the business is one thing, handing it over and expecting to bring in the same money when you are no longer actively engaged is a different matter, says Bavelas. That is not to say it can't work. Among other assignments from his wealthy clientele, Bavelas works with the principals of firms wanting to make a successful transition out of a business. It usually comes after some serious soul-searching,says Bavelas. Read More:
Are Treasure Hunts An Effective Team Building Activity? - Treasure hunts can be a very useful and effective form of team building. There are many different forms and many different company's that offer this type... There are a number of questions for someone preparing for his departure from his source of livelihood, notes Bavelas. Does he care about the people? Is he communicating sufficiently with the junior members of the firm? How long will his alternative to working, say worldwide travel, hold his attention? If the principal has a unique ability, can he be replaced? How fungible is the client list -- especially if it's a relationship driven business? The success of the plan depends on his knowing the right answers to these types of questions. Read More:
The Most Effective Methods For Motivating Employees Are Low Cost - Employee motivation is an often overlooked way at increasing your bottom line. This short read looks at some methods that work and some that do not. Bottom line,Bavelas says, a succession plan is about core values. Such values are inherently anticipated where turnover involves a family member. You don't hear about successful family transitions -- only the failures, says family business advisor Jane Zalman. Considering the slim odds of success, the turning over of control of a family business is a critical moment. Says Zalman, 80 to 90% of all U.S. businesses are family businesses and of those, 70% do not make the transition to the second-generation. "The numbers are pretty bleak," she says. This most frequently occurs because family members have expectations that are almost always in conflict. Read More:
Harnessing the Extraordinary Potential of a MasterMind Group - MasterMind groups have been helping people achieve their dreams and reach their goals for centuries. In this article, you can learn how some of the most... Ideally, a family member works inside the business for a period of years and established relationships with clients over time. And, though it may seem a bit romantic, he or she can also maintain a sense of the heritage of the firm. The reigns of control are able to be passed better when they're passed more gradually, with each family member taking on more responsibility, and slowly increasing the operating responsibilities, and before long, resuming the firm's growth. About the author: Robert Bailey is the founder of TrustedAdvisory.com which shares strategies and information for protecting and managing wealth. For a free CD on how to build your wealth team to protect wealth assets and privacy go to http://www.trustedadvisory.com/freecd |