Practice Made (More) Perfect – Transforming a Financial Advisory Practice into a Business

Preface xiii
<p>Acknowledgments xvii</p>
<p>Introduction xix</p>
<p>CHAPTER 1. The Financial Advisory Business: What s Next? 1</p>
<p>What Are Top–Performing Firms Doing? 3</p>
<p>The Business as Client 4</p>
<p>10 Things to Think About 4</p>
<p>CHAPTER 2. Strategic Business Planning: Defining the Direction 11</p>
<p>Muddled Messages 12</p>
<p>What Is Your Strategic Differentiator? 14</p>
<p>What Is Strategic Planning? 14</p>
<p>The Strategic Planning Process 16</p>
<p>CHAPTER 3. ManagingWorkflow: The Back OfficeMoves Forward 35</p>
<p>Sources of Inefficiency 36</p>
<p>Achieving Efficiencies 37</p>
<p>Does Efficiency Come at a Cost? 39</p>
<p>Managing Risk 45</p>
<p>CHAPTER 4. Building Leverage and Capacity 55</p>
<p>Getting to the Next Stage 56</p>
<p>Becoming a Market Dominator 57</p>
<p>The Challenge of Growth 58</p>
<p>The Entrepreneurial Crossroads 59</p>
<p>Cornerstones of the Professional Practice 66</p>
<p>Models That Work 68</p>
<p>Leveraging Your Affiliations 72</p>
<p>Big Is Beautiful 76</p>
<p>CHAPTER 5. The Human Capital Plan: People Who Need People 81</p>
<p>The Problem You Can t Do Without 82</p>
<p>Aligning Human Capital with Strategy 83</p>
<p>The Nature of the Work 86</p>
<p>The Nature of the Worker 90</p>
<p>The Interviewing Process 93</p>
<p>CHAPTER 6. Creating a Positive Workplace: Professional Development 99</p>
<p>The Career Path 101</p>
<p>The Appraisal Process 104</p>
<p>Coaching and Development 107</p>
<p>The Workplace 109</p>
<p>Building a Foundation 114</p>
<p>The Four–Way Test 115</p>
<p>Lessons on Inclusion 125</p>
<p>CHAPTER 7. Rewarding Behavior and Performance: Compensation Planning 129</p>
<p>Developing a Plan 135</p>
<p>The Components of Compensation 139</p>
<p>Establishing Base Compensation 149</p>
<p>Establishing an Incentive Compensation Plan 150</p>
<p>Owner s Compensation 153</p>
<p>CHAPTER 8. Reading the Financials: Financial Management 155</p>
<p>Fundamentals of Accounting 155</p>
<p>Constructing a Financial Statement 156</p>
<p>Tying the Financials Together 165</p>
<p>CHAPTER 9. Income, Profit, Cash Flow: What the Numbers Are Saying 167</p>
<p>Formatting the Financials 168</p>
<p>Analyzing the Income Statement 169</p>
<p>Analyzing the Balance Sheet 179</p>
<p>Analyzing the Statement of Cash Flow 184</p>
<p>Financial Impact Analysis 185</p>
<p>CHAPTER 10. Managing Growth: The Search for Solutions 189</p>
<p>Harnessing Resources 190</p>
<p>Using Financial Leverage 192</p>
<p>Managing Cash Flow 194</p>
<p>How About Equity? 195</p>
<p>Referral Agreements and Joint Ventures 196</p>
<p>Practice Acquisitions 199</p>
<p>Investments in New Initiatives 203</p>
<p>CHAPTER 11. Exit, Stage Left 205</p>
<p>The Price of Indecision 206</p>
<p>Sale Planning versus Succession Planning 207</p>
<p>Wisdom or Obsolescence? 209</p>
<p>What to Do? 210</p>
<p>Keeping It in the Family 211</p>
<p>How to Make a Partner 217</p>
<p>What About the Successor? 223</p>
<p>Merger as a Succession Plan 226</p>
<p>So What Do You Do? 228</p>
<p>Seeking Counsel 230</p>
<p>Developing the Assumptions 231</p>
<p>Take Control 232</p>
<p>CHAPTER 12. On Leadership andManagement 235</p>
<p>What Defines a Leader? 236</p>
<p>Who Will Emerge? 239</p>
<p>Is Anybody Leading? 240</p>
<p>Rites of Passage 242</p>
<p>Ready, Fire, Aim 244</p>
<p>Awakening the Manager in You 248</p>
<p>Practice What We Preach 251</p>
<p>Hiring Your Boss: Do You Need a CEO? 251</p>
<p>Afterword 257</p>
<p>Appendix 261</p>
<p>About the Authors 297</p>
<p>Index 299</p>