Have you ever wandered the aisles of a big-box hardware store and stopped to admire an incredible shelving system that you are certain is the first step toward a more organized life?
That is a lot of hope for a closet shelf. More importantly, it isn't realistic because it presumes that the shelf will do the work.
To make any real progress, time has to be spent throwing away, repairing, stowing, preserving, folding and hanging.
The process is a metaphor for adviser technology.
Discussing technology is one of our favorite pastimes. Starting with adviser websites and moving to customer relationship management systems, consolidated reporting and client account portals, we debate the components of the “best” technology platform.
The discussion is the basis for many meetings, webcasts, articles and even books.
I find that few financial advisers take the time to identify what their practice lacks, and what, if any, pieces of technology can fill the void.
To be sure, advisers share one goal — more business. In the quest to reach that goal, they hope to find a product that will bring in clients and keep them happy.
Technology is to a practice what a treadmill is to a diet. It can help you achieve your business goal and it is a valuable way to get there, but you have to start it up every morning and put in the mileage to reap the benefits.
Technology hinges on inputting accurate information and updating it on a regular basis.
CRM systems remind advisers of birthdays, segment clients, generate follow-up letters, and organize a database every way possible. However, an initial investment, financial and otherwise, is necessary if the system is to be used efficiently.
Every known piece of information about each client needs to be inputted into the system.
In many cases, information that is critical for the system is missing. Details about your clients' lives, such as anniversaries and names of pets, might not be available and require research.
As a result, data are partially entered in the system but perhaps never finished and become outdated. Before you know it, you have a monthly bill for a system that you never use.
The same is true of providing clients access to data.
Who will supply their log-in and password information? If the client forgets the password, are there rules in place for security? Will the staff answer questions when clients call, frantic, because they are sure the data they are seeing are inaccurate?
These hiccups can lead to frustrated clients, not necessarily clients equipped with more information.
We have a new adviser who said when he joined his previous firm that he was dazzled by the technology he was shown. Months later, he had purchased the platform, left his practice for two days to attend hands-on-training workshops, and spent hours training his assistant on how to use the new applications.
For one month, he felt as if he had a new lease on the life of the practice.
But several months later, he discovered that business hadn't in-creased. Clients didn't seem more satisfied, and his assistant was spending more time than ever maintaining the system or troubleshooting.
Another adviser purchased a system that would organize his schedule and allow him to record notes for client meetings, automatically notifying him when another meeting should be scheduled.
He didn't realize that to get the process rolling you have to schedule initial meetings, designate the appropriate time interval between meetings for each client, and type notes into the system in a specific formatted template. He was glad he didn't let his assistant go when he purchased the software.
Eventually, he hired another assistant on a part-time basis to manage the software.
To avoid these headaches, advisers should:
• Identify the issue that you want to address with technology.
• Use the Internet and talk to other advisers about the platforms you are considering to get information on everything from pricing to customer reviews.
• Find out if the technical support is automated and whether getting one-on-one support is easy.
• Ask how often the technology is upgraded and the availability of the upgraded version.
• Find out if the vendor offers a free trial period.
• Determine whether data are stored on your computer or on a server at a remote location.
Marypat Ganley is a vice president and director of business development at Cadaret Grant & Co. Inc., an independent broker-dealer based in Syracuse, N.Y.
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