Doing Your Homework

Retirement plan advisers continuously balance their existing book of business with an inherent desire for the controlled-growth of new clients, assets, and fees. Managing an existing client base is a large responsibility, and requires both an executable and repeatable process. The more standardized the deliverable for the client-base, the smoother the organization will normally function. The requirements associated with managing organic growth of a business are completely different from the efficient delivery of services for an existing client base.

Part of what makes new-client acquisition so different from working with existing clients is the fact that new-client acquisition is a dynamic and demanding exercise versus the execution of an established process when an adviser services existing clients.

Challenges of Communicating Your Processes to a Plan Sponsor Decisionmaker

When operating in a “business acquisition mode,” retirement plan advisers normally will be working with an organization’s financial officer, a Human Resources executive, a chief executive officer—or a combination of the three. Such a diverse lineup of titles and corresponding corporate interests is the genesis of why the “sales or client-growth process” for new business is both dynamic and demanding. Each of those company representatives has a different interest in what a retirement plan should be accomplishing for their employee base.

A CFO is most interested in how the company’s qualified plan can operate most efficiently—with low fees and expenses, the Human Resources executive is more interested in how your product can assist the employee base in achieving its long-term retirement plan objectives. The CEO might be most concerned with risk management. However, each also has an interest in knowing that you and your firm possess a proven process when delivering services and satisfying plan sponsor needs.

At What Point Does Your Process Intersect with Your Prospect’s Interest?

When you earn the chance to put your product and capabilities in front of a prospect, don’t miss taking full advantage of the opportunity by not only appealing to the prospect, but also to their job function, as well. It may not be sufficient to describe blithely “how you normally deliver services” (describing your process).

No matter how efficient or time-tested your business-process model may be, a plan sponsor—human resources executive—may feel as though your retirement plan services lack substance if you fail to address with them how your services will best prepare plan participants to understanding markets. A plan’s chief financial officer might feel less than comfortable with a retirement plan adviser’s service offering if the adviser’s product provides no measurement of pricing or expenses against a relevant peer group. A CEO may prefer to view qualitative and quantitative summary sheets describing recent investment­ performance instead of your detailed administrative reports on the overall plan.

Where Might You Search for the Best Information for Making Your Case with Prospects?

It is no secret that you have a limited amount of time to make your case when sitting face-to-face across the desk from most plan sponsor decisionmakers. Advisers can ill afford to squander opportunities when they arise, just as you never get another chance to make that first impression. You rarely have an opportunity to enjoy a “re-do” on a final sales pitch.

I strongly urge advisers to approach their clients (CEOs, CFOs, and Human Resource executives specifically) to obtain (from individuals within each of those job functions) what areas, reports, services or practices plan sponsors use the most, or what could the plan sponsor “not afford to miss” from your services.

Knowing that “second shots and do-overs” are unusual occurrences for the retirement plan adviser, you should take full advantage of the information and resources that are available through your existing client base.

Steff C. Chalk is CEO of the Fiduciary Consulting Group, a fee-only fiduciary consulting practice ­serving corporations and nonprofits. A judge for the PLANSPONSOR Retirement ­Plan Adviser of the Year award, and a faculty member of the PLANSPONSOR Institute, he is also the ­co-author of How to Build a Successful 401(k) and Retirement Plan Advisory Business.