Practice Management
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Management > Human Resources > Step 1: Articulate
Your Plan and click on item H in the list. The outline, which
you can customize to meet your needs, covers the following:
Months 1–6.
In the first six months, training focuses on
getting the junior associate familiar with the firm and
Commonwealth’s systems, policies, and processes. Junior
associates can leverage online training available through
COMMunity Link to become competent in areas detailed
in the training plan, such as technology offerings, operations,
forms, compliance, and reporting. Junior associates are
also encouraged to attend Commonwealth 101, a two-day
training program for new staff that is offered at one of
Commonwealth’s home offices. Senior advisors will work
with junior associates during this stage to assist with goal
setting and benchmarking.
Months 7–12.
After 6 months, the senior advisor will
review performance with the junior associate, and they
will work together to set new goals. The junior associate
will obtain proper licenses and build competency in the
investment and advanced planning areas, while beginning
to understand the firm’s processes for handling client issues
related to these topics. At this point, the junior associate is
encouraged to begin CFP
®
coursework to complement his
or her training. Book recommendations are also provided
for further learning.
Months 13–18.
After the first year, the junior associate
will be well on his or her way to becoming proficient in
industry and product knowledge. The junior associate will
now be able to put those skills to use as he or she begins
sitting in on client meetings, developing investment strategies
for the senior advisor to review, reviewing client suitability,
and conducting a portion of client meetings. This is also
when the junior associate obtains insurance and state
licensing, as appropriate. Throughout this stage of the
training, the junior associate will continue to provide
ongoing service to clients and process trades as instructed
by the senior advisor.
Months 19–24.
In the final 6 months of the training
program, the senior advisor will continue to review the
junior associate’s recommendations to ensure that they are
in line with the firm’s investment philosophy. The senior
advisor may also designate a portion of the client base for
Unfortunately, a significant percentage of Commonwealth advisors haven’t done enough to ensure the continuity of
their businesses in the event of death or disability. Practices run by a solo advisor without a continuity agreement on
file are particularly vulnerable to dissolution as a result of an unplanned event.
The Data
As of September 23, 2013, there are 968 active advisors at Commonwealth producing $200,000 or more per year.
Of these advisors, 598 (or 62 percent) belong to a
multiple-advisor office
or larger branch. Although about half of
these advisors
do not have
a continuity plan on file, because they are part of a larger branch with at least one other
advisor who could potentially take over their clients on short notice, this group is considered at decreased risk of
client attrition in the event of death or disability. Although this structure may provide clients with options if an
unexpected event befalls their primary advisor, be aware that it is a weak alternative to a formal continuity plan.
Of the 968 Commonwealth advisors producing $200,000 or more, 370 advisors (or 38 percent) are
solos
, and nearly
two-thirds of these advisors
do not have
a continuity plan on file, placing their books at high risk of attrition in the
event of their death or disability.
“My expectation going into the program
was ‘here is an opportunity we have to
take a junior advisor and get help from
other advisors.’ I signed up for this program
for Smita’s training. I—and many other
senior [advisors]—learned as much if not
more from participating in the program.”
— Ashok Shendure, BDS Financial Network
(senior advisor to Smita Samant)
Continued >
