Scotia McLeod reinvents the branch

The future is low tech, or so says Scotia McLeod, which has been experimenting with a new way to streamline routine administrative and compliance tasks within its branches.

Adding staff, not technology, is the simplest and surest way to improve branches’ efficiency, say those involved in the program, which involves downloading and centralizing all of the compliance and day-to-day administrative tasks onto a single person, freeing up advisors and their assistants to focus on client service and attracting new money.

Solutia, a Toronto-based consultancy, developed the process for Scotia McLeod in recognition that the administrative workload in its units was so cumbersome that it was detracting from their advisors’ ability to actually sell the product. After experimenting with a few arrangements, Solutia determined the ideal ratio was one service officer for every 10 advisors.

“The number of people to support the administrative workload within the branch was much less overall than each individual team doing it on their own,” says Jackie Clarke, program manager and principal at Solutia. Better still, the work is said to be more accurate, which will no doubt be a boon to meeting the complex web of compliance issues.

Generally, these new staff took over about eight processes from advisors, including things like paperwork for opening an account, maintaining account information, re-org management and mutual fund ordering and entering.

The simple concept has its skeptics and met some resistance — at least initially. Many of those first exposed to the concept questioned how such a simple program staffed with unlicensed, entry-level personnel could be so effective while assistants worried their jobs would become redundant.

The process works well for several reasons, explains Clarke, mainly because it focuses one person on completing the tasks, away from ringing phones and other responsibilities like talking to clients. That person’s sole job is managing paper flow using the existing technology in the branch, in this case Lotus Notes.

Vanessa Stenner-Campbell, a senior advisor with Scotia McLeod in Whiterock, B.C., was one of the early supporters of the program, although convincing her team was another matter. Many of her team members felt threatened by the program. “There was one girl who felt threatened because that was her duty,” she says. “I just said, let it go — there’s so much more to do.”

The additional of the service officer streamlines the paper flow in the office and frees up time for advisor assistants, which in turn allows them to use their talent on other revenue-generating activities.

Stenner-Campbell, whose team typically handles high-net-worth clients with $50 million or more in assets, says since the “branch of the future” has been implemented, she’s had her best three months ever, boasting revenue growth over the past three months of 10% to 15%.

One of the clearest benefits Stenner-Campbell can point to is how her team is able to complete “revenue-generating” projects that never seemed to get finished, like developing an insurance plan or creating a database to make sure flow-through shares were offered to the right people at the right time.

Next to the efficiency of the new process, the best feature is the price. Scotia McLeod is picking up the tab. Of course, that tab isn’t terribly high either since the “branch of the future” doesn’t require updating any new technology within Scotia McLeod’s branches.

“[Scotia McLeod] realized how much more success we can have if they are taking on more of the administrative growth because ultimately we are able to build stronger relationships. Better servicing ultimately results in better growth,” says Stenner-Campbell.

Even if Scotia McLeod didn’t pay for the extra body, Stenner-Campbell says she would.

Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

(01/04/07)