Editorial
commonwealth.com
For Advisor Use Only
5
Keeping Our Finger on the Pulse of What Advisors Need
JONI YOUNGWIRTH
My second day was a little better. I got to attend my first
Commonwealth conference (the Practice Management
Institute, which was an annual event back then). At lunch,
I mingled and networked with all the new people I met,
before ending up at a table with a longtime advisor by
the name of Arnie, who was kind enough to share his views
on the lay of the land. By the end of the meal, I knew I was
going to be okay. Fifteen years later, when I have questions,
need information, or find myself struggling with an issue
or decision, my MO is still to pick up the phone and call
an advisor in the field. And there’s a reason for that.
Then and Now: A Snapshot in Time
Things have changed a lot since 1998. Back then, there
were 781 advisors at Commonwealth and our minimum
was $25,000. Today, there are nearly 1,500 advisors and
our minimum is $200,000. Approximately 95 percent of
advisors in 1998 were sole practitioners; we had only a
few multi-advisor offices or ensembles. Today, there are
approximately 700 branches that have at least one advisor
at Commonwealth’s minimum.
In 1998, an advisor might have a receptionist or an assistant.
Today, nearly all branches have at least one support staff.
The larger the organization, the more likely you’ll find
junior or associate advisors, staff CFP
®
certificants, licensed
paraplanners, marketing specialists, customer support
representatives, operations staff, or a director of first
impressions. A few firms are now hiring a CEO or COO
so the original founder can spend time doing what he or
she most enjoys—working directly with clients.
Fifteen years ago, advisors didn’t think a great deal about
specializing in a niche, business planning, or the value of
their book, much less the value of their business. Internal
succession was not on anyone’s radar screen. Today, as we
watch our industry and our clients age around us, learning
how to target the next generation of investors and grooming
a successor to ensure the continuity of the business are hot
topics—and the subject of this issue.
With such tremendous growth and evolution often come
risks. Cybercrime, rogue advisors, and market and economic
turmoil are just a few that we have increasingly faced over
the past decade and more. But of all the threats a firm can
face, one of the most damaging is losing touch with its
customers. The good news is, maintaining contact is
something completely within our control.
How We Stay in Touch
If losing touch with customers is the kiss of death for a
business, then success is making sure that there are multiple
ways in which customers can tell you what they think.
Best practices in customer service—from a simple phone
call to a feedback loop to more formal advisory boards
and focus groups—are essential here. And at Commonwealth,
you can rest assured that we have left no stone unturned.
1.
Phone calls and e-mail.
Service is in our DNA, and
responsiveness is continually measured. Throughout
the firm, we pick up the phone when you call and
read and respond to e-mails from you. None of us is
too busy to hear from advisors—especially when you
have a problem. The opposite is also true. We enjoy
hearing from you when you’re doing well, too!
2.
The Ideas/Questions link.
Located at the top of
every COMMunity Link
®
page, this one-click
feedback mechanism is actively used by advisors
I remember my first day at Commonwealth on June 11, 1998. No one seemed to
like me, or at least that’s how it felt. I quickly discovered that wearing a suit on a
Friday—in the summer, no less—was not the way to fit in at this firm. And so I
learned to dress for success.
The Advisor Focus Team
In case you’re wondering what happens with all the
information we gather through all of these feedback
methods, a group of 10 Commonwealth leaders
(including 7 partners) gathers weekly for the purpose
of talking about advisor issues and prioritizing issues
we need to act on.
