Broker/dealers (B/D) that have a formal practice management program to support their advisers help boost those advisers’ productivity and reward the B/Ds with the resources to recruit and retain talent, according to Cerulli Associates.
Heads of practice management programs at B/Ds told Cerulli that their three
biggest challenges are motivating advisers to fully follow their on their clients’
requests and needs, managing the volume of advisers’ questions and demands, and
scaling consulting services in a cost-effective manner.
Practice management leaders say the most effective way for them to work
with their advisers is with one-on-one consultations, but that the time allocated
to these is costly, says Kenton Shirk, head of Cerulli’s intermediary practice.
B/Ds that have practice management programs have an average staff size of 19,
with slightly more than half of these people being senior-level professionals.
Cerulli says that practice management programs can cover a wide variety of
topics for advisers, including planning for expansion, managing their staff, operations,
finance and succession. In addition, Cerulli says, advisers need help dividing
roles and responsibilities, structuring equity and compensation, forming an
organizational structure, and managing technology.