A long-time veteran of the financial services industry, Dr. David L. Lawrence has provided a comprehensive overview of practice management in his recently published book, “The Efficient Practice.” In the book, Dave, as he prefers to be called, addresses the concept of practice management and the efficiencies that can be obtained from a holistic approach to the development of a financial services business. Rather like the approach used when creating a financial or investment plan, this holistic approach considers four key areas and the influence and integration of each in the successful operation of a financial services practice.
What is found in so many firms is growth outstripping the resources of the company over time. It is a gradual and unintentional slide into inefficiency. A solo practitioner becomes a two, three or more person firm. Technology tools improve and are added to existing software and hardware. Attempts at process and workflows are initiated and physical space to work becomes scarcer.
This demonstrates how inefficiencies develop within a practice and highlight the four key areas on which the book is structured:
- Management
- Technology
- Process
- Design
Management: Human resources are one of the most valuable assets of a firm and require management skills that are sometimes beyond what the owner(s) of a firm came equipped with. An objective third-party, such as a coach or consultant, can help an owner understand how they are hindering growth in spite of their best intentions! The creation of policies and procedures and the standardization of hiring and managing people can create incredible efficiencies and reduce turnover – one of the most draining of inefficiencies.
Technology: Can be quite the seductress in any business. The lure of a new software that eliminates double entry of data and cooperates with all your other tools can have you signing on the bottom line too quickly. Do you know if you are paying for something you need? Or perhaps you already have this capacity in-house in an under-utilized application? Can your current hardware handle the memory-hogging system?
Process: Takes a hard look at how and even why, certain things are done in a business. Procedures help to ensure a consistent client experience and that the team is all rowing in the same direction. Workflows take this a step further, providing feedback that processes are in motion and allowing the owner to focus on higher value activities, rather than micro-managing, a topic addressed several times.
Design: Looks at the utilization of physical space. Is there expensive dead space occupied by old files, better housed elsewhere? Is the layout of office conducive to productive work? What does the entry say to prospective and current clients? A few tweaks here and there can create a professional environment welcoming to your clients, as well as your team.
The book can be used as a primer for what to expect along the growth curve of the business. It can also be used to begin to unravel the contributing factors to a revenue ceiling – a level of net revenue that becomes impossible to surpass despite added staff, technology and clients.
Owning and successfully managing a financial services business can be daunting, particularly when your preference is serving the clients you created the firm for. Pick up a copy of Dave’s book at any major book retailer. Better yet, get a discounted copy with free shipping, personally autographed by the author, by clicking here!
For more insight into the book and Dave’s approach to practice management, download a recording of the recent Expert Series Interview with Dan here.