Instead of handing out charts and graphs to clients to explain their financial plans, adviser Gary Klaben provides “mind maps.”
He says the diagrams — words or ideas arranged around central key words — are not only easier to comprehend, but they show clients exactly what kind of behind-the-scenes work he's done for them throughout the year. 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 he's taken.
Mr. Klaben, an adviser with Coyle Asset Management Co., which has $600 million in assets under advisement, said he began using mind maps four years ago when he realized it was a constant battle to explain to clients their entire financial situation.
“A mind map looks so simple,” he said. “There are fewer words and people understand this — but not a spreadsheet. It's all about how the brain works. We think horizontally. Mind maps are like the Swiss Army knife of cognition.”
He 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, Mr. Klaben said. “They understand it right away and you don't have to explain. They'll get it in 20 minutes,” he said.
This concept may be catching on with other advisers in the industry as well. Scott Slater, a managing director of business consulting at The
Charles Schwab Corp., said he's seen advisers use mind maps with clients.
“They're trying to help their clients connect and better understand how money and wealth fits into life. It keeps them on track,” Mr. Slater said.
James Barnash, a consultant with Stride Consulting Inc., which works with about 35 advisory firms, said he believes advisers need to consider mind maps because they let clients see the value that advisers are providing them, Mr. Barnash said.
“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,” Mr. Barnash 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.
