‘Mind maps’: The Swiss Army knife of cognition

Instead of handing out charts and graphs to clients to explain their financial plans, adviser Gary Klaben provides “mind maps.”

The diagrams — words or ideas arranged around central key words — are easier to comprehend and show clients exactly what kind of behind-the-scenes work he did for them throughout the year, Mr. Klaben said. The mind map looks like a physical map with a circle in it which might say “planning,” and words around it that are connected such as “taxes,” “estate plan” and “cash flow.”

This makes billing clients for the annual retainer fee less stressful because they see clearly the actions that Mr. Klaben has taken.

Mr. Klaben, an adviser with Coyle Asset Management Co., which has $600 million in assets under advisement, said that he began using mind maps four years ago because it was a constant battle to explain to clients their entire financial situation.

“Mind maps are like the Swiss Army knife of cognition,” he said.

Mr. Klaben charges clients retainers ranging from $250 to $25,000 a quarter, depending on their assets and the complexity of their financial plan.

Using mind maps cuts down on the time it takes to prepare for and complete client meetings, he said.

James Barnash, a consultant with Stride Consulting Inc., which works with about 35 advisory firms, said he thinks that advisers need to consider mind maps. “It’s not going to replace your assets under management, but it lets you get paid for the shadow work that you and your staff are doing and the client doesn’t normally see,” he said.

Shop Talk is a regular column detailing how financial advisers run their businesses. The column focuses on unusual or innovative ways to attract more clients. Suggestions or tips for Shop Talk? E-mail Lisa Shidler at [email protected] or visit the Shop Talk page at InvestmentNews.com/shoptalk.