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Create Added Value In Your Investment Model

Designing a methodology for managing your client investments is essential for a clear representation of financial performance and aides in effective decision-making.  It is a generally accepted principle that a portfolio is designed according to the investor’s risk tolerance, time frame, and investment objectives.

Create Value Within Your Investment Model

“All good to great companies begin on the path to greatness

 by confronting the brutal facts of their current reality.”

Jim Collins, Good to Great

 Your goal is to create a weighted investment model (one or many) and implement a consistent investment strategy.  Focus on actions that will provide unique added value for your clients.  Position your firm to support the highest value-to-value exchange.

Evaluate your current investment model(s) with a focus on determining if they are creating added value.  Employing a one-to-many investment strategy creates the leverage necessary to optimize your resources and elevate your delivery of services to clients.

Consider the following services (not all inclusive) while evaluating your model(s) and how you will deliver added value for your clients with each service.

  • Risk Tolerance
  • Asset Allocation
  • Manager Research
  • Portfolio Monitoring
  • Rebalancing
  • Performance Reporting

While you are ultimately responsible for due diligence and oversight of your clients’ assets, you may want to consider outsourcing services that are invisible to your clients such as manager research, monitoring, portfolio construction, performance reporting and re-balancing to a third party who specializes in these services.  Other obvious outsourcing options or strategic alliances, such as CPAS, attorneys, and insurance agents will provide you the weight to focus on your firm’s unique added value and help clients with the steps they need to take.

Communication With Clients

Look at your value proposition through the eyes of your clients and prospects.  You must be able to answer the question, “Why should a client invest their money with you, versus allocating their funds in some other way?”

When implemented effectively, your investment model should be viewed by your clients as a proactive model with enhanced services and communication.  Implementation will require that you have direct systems and procedures in place to provide each service.

Advisors are required to make full and fair disclosures about fees.  Consider the appropriate fee level for your services and investment model.  You may want to implement a tiered fee structure that differentiates the service levels within your client segmentation process.

Your investment model(s) will allow you to sharpen your focus on the unique needs of each of your clients. Understanding that each of your clients has unique needs will ensure efficient client service delivery.

Ironstone can assist you in developing appropriate investment models and collaborate with you to develop solutions that are parallel to achieving the strategic goals of your firm.

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Business Development-Client Appreciation


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Strategic Alliances Build A Foundation For Long-Term Success

During difficult market times, building strategic alliances is one of the best investments you can make for your firm. Taking your firm to the next level will require that you incorporate key tactics in your marketing plan to gain market share and improve your client acquisition strategy. To be more competitive and differentiate your firm, having strategic alliances will extend your team and present your firm a way to offer clients a full spectrum of services.

Strategic Alliances Should Be About Your Client, Not Your Firm
One of the biggest mistakes advisors are making today is attempting to build strategic alliances for the benefit of the firm. These types of alliances will fall short of your desired result, providing you with nothing more than a network rather than a true solid alliance producing results.

Center your strategic alliance plan around solutions to meet client needs.

The value of your firm is measured by your client problems, needs, and wants, as well as the quality of solutions you can provide to them. While cost & skill sharing are some reasons why companies form alliances, creating the ability to offer clients more services is the most desirable shared benefit for each partner, including your client.

Begin to structure your extended team with other professionals whose efforts are symmetrical with the needs of your clients. Identify professionals that share your niche and are able to provide solutions for your clients beyond your existing realm of services.

Choose counterparts that you can easily collaborate with, develop good connections, and those that will actively introduce you to new clients rather than waiting for an opportunity to present itself. Perform searches of noncompeting professionals in your community, (such as attorney’s and CPA firms) and then find a mutual connection to help initiate contact. Explore the common motives and objectives between your firm and those of your alliances.

Steps To Creating Successful Alliances:
1. Approach local CPA & Attorney Firms
2. Interview key people to determine their suitability for an alliance with you
3. Implement a systematic process to create strong relationships

  • Create The Vision-describe what your firm and alliances can achieve together
  • • Document and Collaborate-review how each alliance will benefit your firm• Lay the Foundation-mutually commit to specific actions
  • • Staging-include a clear description of opportunities, obstacles, & challenges that each alliance may encounter
  • • Progress-review specific tactics and their results, building on any early successes

An important factor to any successful long-term alliance includes a plan and documentation of future success for each firm. Ironstone can help you structure your alliances by picking the right people to partner with and develop a comprehensive strategic alliance plan.

Contact us for assistance in cultivating a web of alliances with your peers to identify and implement best practices to build a world-class business and achieve bottom line results.

We want to hear from you! Share your best ideas here! We always love hearing from you!

Follow us as we explore each of Ironstone’s Fundamental 4™!
• Strategic Planning
• Business Development
• Operational Effectiveness
• The Human Element

You won’t want to miss our next in the series: Business Development-Advisory Boards
• Email us at info@ironstonehq.com
• Call our office at 800-917-8020
• Follow us on twitter @ https://twitter.com/#!/AndreaSchlapia
• Join us on Facebook! https://www.facebook.com/IronstoneCommunications
• Connect with us on LinkedIn @ http://www.linkedin.com/profile/view?id=29647364&trk=tab_pro


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Knowledge Is Power

Knowledge Is Power, but Fruitless if Poorly Communicated

Good communicators are those who can listen just as well as talk. Fostering growth of your team members while attending to your individual growth is one of the best qualities of a good communicator. When you truly listen to team members, they feel validated and you will be providing a supportive, compassionate environment that employees can develop and thrive in.

Linking Communication To Your Business Strategy
Everyone wants to be heard. Most firms (over 95%) do not have a formal and comprehensive communication strategy in place. However, most organizational leaders will agree that linking communication to your business strategy is essential to effective and consistent business operations.

Effective communication in your firm will contribute to your organizational success in many ways, such as:
• Building employee morale, satisfaction, & engagement
• Helping employees understand the terms & conditions of their employment
• Developing employee commitment & loyalty
• Providing employees with a voice—an increasingly meaningful issue for employees
• Reducing chance for misunderstandings and potential grievances and lawsuits
• Creating greater efficiency and reducing costs

It is inevitable that companies with effective communication financially outperform those that do not.
Having a powerful and successful employee communication program takes more than just having the right tools in place. It requires building a strong foundation to ensure that employees understand their role in your firm.

The #1 key factor in developing effective communication:
You need to view communication as a critical factor to the overall success of your firm
and key to changing employee behavior.

Building a Communication Strategy
Developing a communication strategy begins with linking communication to the strategic plan of your firm, including your firm’s mission, vision, values, strategic goals and objectives; as well as your brand.

Your communication strategy should include:
• The roles of key leaders
• A budget that allows for the use of various types of communication channels
• A process by which leaders evaluate any particular situation driving the need to communicate
• A method for generating feedback

Avoid the misconception that communication is only about delivering messages to employees about business issues, policies and procedures. Two-way communication plays an essential role in your comprehensive strategy.   As a leader in your firm it is vital to train employees and provide tools needed to continually develop better communication skills.

Our experience and expertise in developing communication strategies will aide your firm in team efficiency and effectiveness. Ironstone has tools available such as the Myers-Briggs Personality assessments that will help you understand and convey meaningful information and express ideas effectively to attain a deeper level of understanding.

We specialize in identifying gaps in your existing plan and will collaborate with you to develop solutions that are parallel to achieving the results you desire.

Contact us for assistance in starting and improving your Communication Strategy. We want to hear from you! Share your best ideas here! What services do you provide that are unique from your competitors? We always love hearing from you!

Follow us as we explore each of Ironstone’s Fundamental 4™!
• Strategic Planning
• Business Development
• Operational Effectiveness
• The Human Element

You won’t want to miss our next in the series: Strategic Planning-Strategic Alliances
• Email us at info@ironstonehq.com
• Call our office at 800-917-8020
• Follow us on twitter @ https://twitter.com/#!/AndreaSchlapia
• Join us on Facebook! https://www.facebook.com/IronstoneCommunications
• Connect with us on LinkedIn @ http://www.linkedin.com/profile/view?id=29647364&trk=tab_pro