Practice Development with threesixty
"The prime objective of the assistance we are able to provide through strategy days is to give someone the ability to go back to their own company, ask the right questions of themselves, populate a plan with a format appropriate to them, and have an outline strategy of how they are going to achieve their goals." says threesixty Strategic Consultant, Phil Billingham.
In this discussion, Phil explains threesixty's approach to Practice Development.
Why specifically do IFAs need this type of assistance at present?
Over the last twelve months many of our client firms have decided that now is the time for change. This has been due to changes in the external environment such as the broad market conditions and the likely impact of the Retail Distribution Review. A number of existing clients are well down the track, having read articles, attended seminars and become enthused about building a business of real value that relies on the service it delivers to clients for its income, rather than the number of transactions it performs. All of this sounds remarkably attractive and simple in theory. Back in the office the reality of how to change takes on a more ominous nature.
What can IFAs expect to get out of a strategy day?
The prime objective of a strategy day would be to give someone the ability to go back to their own company, ask the right questions of themselves, populate a plan with a format appropriate to them, and have an outline strategy of how they are going to achieve their goals. Along the way they will have looked at some of the formats that have worked in other industries and hopefully come to appreciate that good Business Planning can accelerate the growth of their company, and give them an edge over competitors.
It is also vitally important that any resultant plan is concise, easily understood, and a road map to success. In turn, it is vital that the implementation of any plan as part of the firm’s strategy is closely monitored and regularly reviewed.
What are the typical pitfalls of Business Planning?
Without doubt the most common error is that nobody spends enough time doing it! Not spending enough time in the research and planning stage before taking action is a close second. Far too often this results in new products or services being given away too cheaply, or administration running inefficiently because no thought was given to the implications of certain actions. At its worst this can result in a huge expansion of resource without any increase in profit or value.
Abraham Lincoln said ‘ If I had eight hours to chop down a tree I would spend six hours thinking and sharpening my axe.’ This illustrates well our view on the value of good Business Planning.
A further common fault is a plan that is either a well guarded secret or so long and dull that no-one either understands it or reads it. If no one uses the plan all your efforts are wasted.
Years of experience gained by threesixty in assisting with formulating and implementing strategy has identified a common approach that if followed brings success.
What are the obstacles to Business Planning?
A lack of time is often quoted as the biggest obstacle to proper planning, but in truth this is a reason which masks other concerns. In some firms there may be a genuine scepticism that Business Planning is of no value, others do not wish to confront cultural or personal issues that lie beneath the surface. The real obstacle could be attitudinal. In making the time to consult on strategy you will have taken a significant step in building a better business.