Measuring success is matter of monitoring the three P’s

Having protocols for everything from taking on a new client to fulfilling a customer’s service request, and constantly…

Having protocols for everything from taking on a new client to fulfilling a customer’s service request, and constantly measuring the success of these systems, keeps HFS Wealth Advisors at the top of its game.

“We’ve driven our metrics to make sure we provide the kind of service to retain clients … and the kind of service that makes us referable,” said Dennis Kelley, HFS’s chief operating officer.

The firm measures the time it takes for different tasks and creates workflows so employees know what their roles are and how quick their response time needs to be, he said.

Crafting repeatable processes and workflows are important to the operations and administrative functions at HFS, but these employees aren’t the only ones with metrics to report. The three producing advisers also have measures to track their success.

Every Monday morning, Mr. Kelley said the advisers and others at the firm get together to evaluate HFS’ pipeline — its opportunity for bringing in new clients.

It tracks “three P’s:” prospects, potential new clients (individuals who are expected to join the firm) and projects for existing clients.

The meetings are aimed at gauging new business coming in and to provide support to anyone having trouble with particular clients, situations or tasks, he said.

‘STAY FOCUSED’

“Together, these metrics help us stay focused on whether we are growing the book,” he said.

Carefully monitoring the firm’s diagnostics has helped HFS grow to about $200 million in client assets since starting in 1999. The Akron, Ohio-based firm generates about $2 million in annual revenue.

HFS received a 2014 InvestmentNews Best Practices Award last month after being identified as one of the top performers among participants in the Financial Performance Study of Advisory Firms. Of the firms studied, HFS ranked high in three-year operating-profit-margin growth, revenue per staff and number of strategic solutions implemented.

NO MINIMUM ASSETS

Unlike many successful firms, HFS does not set an asset minimum. Nor does the firm target a particular niche client, though it generally looks for clients with $300,000 to $2.5 million in assets. All accounts over $25,000 are fee-based and under that amount are commission-based, Mr. Kelley said.

The firm likes to think of HFS as “everyman’s advisory firm,” providing services to those who may not have loads of money but have a real need for financial advice, he said.

Mr. Kelley joined HFS in 2010 as a professional manager, essentially freeing up founder Patrick Hammer “to focus on what he does best, rain-making,” according to Mr. Kelley.

The firm’s chief investment officer, Dan Hammer, is Patrick’s brother, and he does all the investment management for the firm. The Hammers and Mr. Kelley are partners in the firm.