Eight ways to get the most from your suppliers

(July 2004) As most business people will tell you, there is no such thing as a free lunch — the person doing the paying is looking for business from the person doing the eating. This old adage, however true, is a bit trickier to apply to the financial services industry. Free lunches are sponsored so often by fund company reps and in-house product promoters that most of the advisors we work with are quite full.

But instead of looking at your product suppliers as caterers, consider the real value that some can now bring to the table. “Analysis on demand” tools such as correlation reports and historic index comparisons, for example, are provided by some mutual fund companies, while consulting-like services are provided by others. Often more responsive than your own head office, all you need to do is ask.

At AdvisorOnTrack, when we work with advisors who are looking to grow their business effectively, we encourage them to request support from the fund companies they have chosen to use.

If you would like to adopt a similar approach in your own business, here are some best practices to keep in mind:

1. Think first. Before you ask for help from a supplier, ensure you have thought the issue, problem or opportunity through and identify how the information will be used. For example, is it for a “one-off” piece or part of a series? Will the end-user be an advisor, support staff or client? What medium is most appropriate?

2. Put it in writing. Verbal instructions can be easily misunderstood and/or forgotten, whereas a documented version will reduce misinterpretations and likely be taken more seriously. Written requests are also easier to track and to follow up.

3. Provide background. Placing a request in context empowers the recipient to offer ideas and/or suggestions that you may not have considered. Provide just enough information to inspire creativity without giving away all of your ideas.

4. Be specific. Unless you are interested in beginning a dialog, ensure your request is complete. Anticipate the variety of answers you might receive and try to narrow it down with clear instructions.

5. Use deadlines. We have yet to meet anyone in the financial services industry who does not have a pile of paperwork and e-mails to get through. Establish a deadline to help your supplier prioritize — and put your project near the top of the list.

6. Follow up. Enter a bring-forward note into your contact management system to ensure you have received the information as requested.

7. Be appreciative. While choosing to use the supplier’s products many seem like enough appreciation, a simple “thank you” can go a long way to ensure future co-operation — not to mention really making someone’s day.

8. Do it efficiently. Using suppliers for research or assistance helps you leverage their systems, their knowledge and their time, but it only makes sense if the exercise is non-disruptive to your day-to-day operations. By using a standard form to request information and establishing a process for you and your team to follow consistently, you will be well on your way to accomplishing steps one through seven. To view a sample form that you could use to make requests, go to www.advisorontrack.com and click on “FundCo Request Form.”

Today’s hyper-competitive fund industry is delivering some great product providers who will earn your business. Let them. The returns will be more than enough to pay for that ham and swiss!

• • •

Deirdre Moore, CFA, is co-founder of AdvisorOnTrack Inc. (AOT), a company that provides coaching, consulting, training and support to the wealth management industry. Deirdre can be reached at (613) 241-0290 or by e-mail at dmoore@advisorontrack.com.

(07/07/04)