Getting Buy-In To Develop A Collaborative Team Advisors in Philanthropy April 25, 2013 For Professional Adviser Use Only. Not for Distribution to the Public. 2004-2013 Wealth Design Consultants, LLC Phone: (317) 571-3616
Overview Benefits of collaboration What is collaboration 5 essential communications of collaboration
Benefit to You More revenue Better advice Higher client satisfaction More support from other advisors More referrals
Why Do Advisors Fail to Collaborate? Never thought about it Don t know how No process to insure satisfactory outcomes Fear of losing control Fear of losing respect Fear of losing revenue
Advisors communicate and they may even cooperate, but they rarely collaborate.
When to Make a Big Deal about Collaboration? Your A clients Over $5 million net worth Planning v. Transaction No direct competitors involved
Three Kinds of Collaborative Teams Alpha dog Pre-formed association Trusted team
Alpha Dog Model One advisor assumes the lead role Lead advisor makes recommendations with limited or no input from other advisors
Pre-formed Association Model Association formed before client is engaged Members represent complementary disciplines Members often market the unique value proposition of the group Members work together when they can but have independent practices Members may share revenues on joint cases
Trusted Team Model Formed ad hoc for each client One member takes initiative to share vision with client and other advisors Members represent complementary disciplines Members usually do not share revenues
Trusted Team Characterized by: Trust Mutual respect Proactive communication among members Consensus before action Healthy conflict resolution
5 Critical Communications 1. The Initial Client Collaboration Conversation 2. The Client Request of Other Advisors 3. Engaging Existing Advisors 4. The Advisors Strategy Session 5. The Client Recommendation Meeting
1. The Initial Client Conversation A. Case the advisors What firm is he/she with? How do you know him/her? How long have you worked together? What kinds of things has he/she done for you? When was the last time you talked to him/her? How would you describe the primary focus of his/her practice? How satisfied are you with the work? Would you be open to working with someone better?
1. The Initial Client Conversation B. Pop the collaboration question. When was the last time all of your key advisors met together, without you present, just to talk about your affairs to give you their very best advice?
1. The Initial Client Conversation C. Discuss process and benefits of collaboration 1. How we do it 2. Why collaboration rarely happens 3. Benefits of team work Better advice Less expensive More confidence 4. Client authorization
1. The Initial Client Conversation D. Secure client commitment 1. Encourage client to follow your lead to take the lead 2. Address cost concerns
1. The Initial Client Conversation Review A. Case the advisors B. Pop the question C. Discuss process and benefits D. Secure commitment
Replacing an Existing Advisor Set client expectations early Get engaged first!
How to Recruit a New Advisor Talk about the referral as potential, not final Discuss the circumstances Describe your process and expectations Secure agreement with these conditions in advance Otherwise they will do what they always do.
2. The Client Request of Other Advisors Dear [Advisor first name], We recently engaged Dave Holaday to help us refine our strategies to meet our financial and wealth transfer goals. Dave encouraged me to authorize you to work together and I think that is a good idea. With this in mind Dave will call you soon to find a time to meet. Please freely share any of my information with Dave. I understand you will bill me for this. I look forward to seeing what your collaboration will produce. Sincerely,
3. Engaging Existing Advisors A. Set appointment by phone, not email
3. Engaging Existing Advisors B. Always meet face to face Build trust Make it safe Establish common purpose
3. Engaging Existing Advisors C. Discuss collaboration Benefits Process Protocols
3. Engaging Existing Advisors Review A. Set appointment by phone B. Meet face to face C. Discuss benefits, process and protocols
Our Typical Planning Process Clarify goals Analyze current situation Quantify and define gaps Strategy session with team Create and present Preliminary plan Refine and present Final plan Begin implementation
Collaboration Protocols Professionals meet privately to develop plan Contribute openly Communicate proactively Be reliable and responsive Work out differences in private Participate in presentations Be sensitive to interests of colleagues
4. The Advisors Strategy Session A. Hold the meeting at another advisor s office
4. The Advisors Strategy Session B. Send confirmation email Include discussion points Attach current analysis
4. The Advisors Strategy Session C. Everyone meets face to face Advisors only!
4. The Advisors Strategy Session Discussion points: Review current financials Review goals and gaps Brainstorm about possible strategies Agree on short list Agree on next actions
4. The Advisors Strategy Session Review A. Hold meeting at another advisor s office B. Send confirmation email C. Everyone meets face to face; Advisors only!
5. The Client Recommendation Meeting A. Prepare by clarifying roles and goals What are our objectives for the meeting? What do we want the clients to think, feel and do? Are we fully agreed on our recommendations? What is our agenda for the meeting? Who should moderate the meeting? What role will each of us play?
5. The Client Recommendation Meeting Explain to the client what has happened behind the scenes to this point Recognize contributions of other advisors Be unanimous, if possible Share the presentation duties Be sensitive to needs of other advisors Develop clear next actions
5. The Client Recommendation Meeting Review A. Prepare by clarifying roles and goals B. Present recommendations together C. Be unanimous
What Can Go Wrong? Other Advisors May: Be suspicious of you Feel threatened by you Withhold information from you Go behind your back
5 Critical Communications 1. The Initial Client Collaboration Conversation 2. The Client Request of Other Advisors 3. Engaging Existing Advisors 4. The Advisors Strategy Session 5. The Client Recommendation Meeting
Final Thoughts Lead but be flexible Make others look good Invite participation within comfort zones Be sensitive to needs of others
Questions Dave Holaday Wealth Design Consultants 317-571-3616 dholaday@wdcplan.com www.wdcplan.com