Mentoring an associate advisor

You’ve found the perfect advisor to work with. What do you do now? In my experience, many senior financial advisors looking for a junior associate to assist them do not properly execute their 90 day plan. They mistakenly believe a new advisor should be able to parachute into their practice with minimal support, training or supervision. Unfortunately, a poor 90 day plan usually becomes a frustrating experience for all concerned.

In his book ‘E-Myth’, best-selling author Michael Gerber correctly states that the “entrepreneurial mom” and “pop style companies” fail to rise to the next level because their owners work in the business and not on the business. Financial advisors are no different. Many financial advisors would find it difficult to embrace the full potential of a junior advisor because they do not take the time or have the energy to properly train and mentor these individuals. Like educating a new administrator, it takes time to teach a new person about your business, your style, your clients, habits and other pertinent business matters.

Training & Development

Depending on the person’s qualifications and experience a training schedule based on your priorities, goals, objectives and expectations is important. Listed below are areas of training to consider:

• Working with your clients. What are your expectations?
• Client management system for tracking and follow-up.
• Mutual Funds & Segregated Funds.
• Financial planning software.
• Fact finding and needs analysis.
• Insurance quote systems, companies and contact workers.
• Life Insurance products (Term, Ulife, Whole Life).
• Living Benefits (CI, DI, LTC).
• Estate Planning.
• Target Marketing.
• Networking with Centers of Influence.
• Prospecting, handling objections, closing and referrals.

Remember to ask your MGA/Dealership for help. The Independent Planning Group, for example, requires all new advisors to attend their Institute for Professional Growth. It involves a one week boot camp followed by weekly and monthly training sessions covering all aspects of full financial planning during their first year.

Introduction to your clients

The biggest challenge for most new advisors is not having a network of clients to work with and their lack of confidence. The opportunity to work with an established advisor who is willing to mentor the right person and share their clients has huge benefit to both parties. As the associate advisor learns and gains confidence they will add value and revenue to the business by adding their own referrals, networking groups, centers of influence, new products and target markets.

Many established advisors benefit from having the associate start out working with their C & D clients so they have more time to focus on the A & B clients instead of expecting them to find their own clients right away. Consider sending a letter to your clients explaining your practice is growing and you have added a licensed advisor to your team and he/she will be calling them in the near future to introduce themselves. Make the first few calls yourself in front of the advisor to demonstrate the process. Then, have the new advisor make calls while you listen. This practice combined with constructive feedback will help build their confidence quickly and help them overcome both rejection and objections sooner.

Meeting clients face to face

Providing a fact finding sheet so they know what questions to ask clients is also key for your associate advisor to gain confidence quickly. Complete the fact finding sheet (basic needs analysis) with the advisor first so they understand its purpose and how it builds relationships and trust. Explain how it quickly determines other products and services the clients may need and also educates them about all the other services and products you provide. Conduct the first few appointments with the clients yourself while the associate advisor listens and learns. Discuss each appointment after and then have the associate advisor conduct future appointments while you observe. The feedback after the appointment is very beneficial to their training and development.

Tracking System – If you can’t measure it, you can’t manage it

Training a new advisor on your system for tracking existing business, new business, compensation, client notes, follow ups, reminders, marketing initiatives, centers of influence, networking events and referrals ensures the new advisor stays focused and tracks business growth. This information is also vital for the established advisor when completing performance reviews, planning future business and marketing strategies and future training.

Challenges

The biggest challenge for established advisors is finding the right person, taking the time to train them and effectively incorporating that person into their business plan. There is no shortage of people interested in bringing value, revenue, energy and fresh ideas to your business. You just have to know where to find them.

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Julia Chapman is the business development manager at Independent Planning Group. Julia joined IPG in May of 2008 after working in the financial service industry for nearly 20 years. Her experience includes administration, client service, advisor assistant, marketing, training, recruiting, financial seminars, business development and working as a financial advisor.

Julia is a member of the Ottawa Chapter of Advocis, the Women’s Business Network of Ottawa, and serves as an affiliate with the Algonquin College Finance Program. She is a frequent guest at the Ottawa U Telfer School of Business, the Carleton Sprott School of Business and Algonquin College where she educates students about the opportunities that exist in a career as a financial advisor.

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