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More About This Title The Ensemble Practice: A Team-Based Approach to Building a Superior Wealth Management Firm
English
Why do ten percent of wealth management firms grow faster than the rest of the industry, often despite the turbulence of the markets? The answer, according to industry consultant and researcher, P. Palaveev, is that the most successful firms are those which, create and promote a team-based service model that serves as the foundation of their enterprise.
- Find out how and why a team-based service model can play a decisive role in the future growth and sustained success of your wealth management firm
- Discover the key factors for building a successful ensemble firm and profit from the best practices top team-based firms employ
- Profit from the author's years of experience working with the world's top wealth management firms and the data he has compiled as a pre-eminent industry researcher
- Learn about the various organizational structures, partnership models and career path options and how to put them to work building an ensemble practice
- Get the lowdown on how the savviest traditional broker-dealer firms have formed dynamic ensemble teams within their organizations and learn of the results they've achieved
English
Philip Palaveev is a financial industry expert and consultant focused on improving the profitability and value of financial services firms. The owner and CEO of The Ensemble Practice LLC, a management consulting firm helping financial advisors build better businesses, Palaveev also works with broker-dealers and custodians to create impactful practice management services for their advisors. He has written numerous research papers and articles and is a frequent speaker at industry conferences.
English
Introduction xiii
Acknowledgments xv
PART I: STRUCTURING AN ENSEMBLE
CHAPTER 1 The Ensemble Defined 3
The Ensemble Concept 5
Ensemble Demographics 7
Ensembles Are More Profitable and Valuable 10
Clients Prefer Ensembles 12
Should Everyone Be an Ensemble? 14
What’s Next and Who Should Read on 16
Notes 17
CHAPTER 2 The Ensemble Structure 19
The Service Advisor Model—Leverage 21
The Emerging Partnerships—Sharing 24
The “True” Ensembles—Leverage and Sharing Combined 28
The Super-Ensemble Firms 34
When Large Becomes Too Large 37
Notes 37
CHAPTER 3 Growing into an Ensemble 39
The Right Time to Hire 39
Whom Can You Hire? 41
Structuring Client Service 45
Service Advisors and Client Relationships 47
The Hiring Process 50
The Selling Question 53
The Equity Question 55
Making the Decision 57
Notes 58
CHAPTER 4 Merging Together 59
Your Shared Strategy 62
Your Shared Values 63
The Data 65
The Business Plan 67
Partner Roles and Compensation 68
The Deal 69
Mergers of Not So Equals 70
The Deals after the Deal 71
Owner Rights 72
Making Decisions as Partners 73
Buy-Sell Agreements, Retirements, and Breaking Up 75
Communicating the Deal to Clients and Employees 76
Notes 78
CHAPTER 5 From Silo to Ensemble 79
Creating a Shared Bottom Line 80
The “Mine, Yours, and Ours” Model 83
Assign Management Responsibilities 83
Share Client Meetings 84
The Prenup 85
Change Your Thinking 86
Note 88
CHAPTER 6 Partner Responsibilities and Partner Compensation 89
Labor versus Equity 89
Using Profit Centers or Silos 92
Setting Owner Base Compensation 94
The Role of Equity Ownership in Income 99
Discretionary Expenses and Perks 100
Partner Compensation Discussion Worksheet 100
PART II: MANAGING AN ENSEMBLE
CHAPTER 7 Creating Ensemble Culture 105
Establishing Priorities and Values 106
Customers—Service as Culture 108
How We Deal with Each Other 110
Who Owns the Client? 115
Mom and Dad 116
Tribes 117
Manage Yourself 118
Notes 119
CHAPTER 8 Making Partner 121
When Can You Add a Partner? 122
Whom Do You Want as a Partner? 124
How Do They Buy-In? 128
Alternatives to Full Partnership 131
Why Do You Promote Partners? 134
Notes 135
CHAPTER 9 The Big Idea 137
Four Stages of Growth 137
Steps to Institutionalizing 140
Notes 144
CHAPTER 10 Managing Professional Compensation 145
Compensation Philosophy 146
Setting Salaries 148
Payout-Based Compensation 150
Incentive Compensation 151
Benefits 155
Compensation Management Process 156
CHAPTER 11 The Bottom Line 159
The Owners’ Personal Income and Income Bogey 160
The Income Statement 163
Managing Engagement Economics 166
Unit Economics 167
Managing Staffing Cost and Productivity 174
Overhead Management 176
Key Ratios on Your Dashboard 177
Budgeting and Financial Management Discipline 178
Notes 180
CHAPTER 12 The Devil in the Details 181
Agreement on Service Process 181
Investment Committee 183
Leadership in Operations 184
Customization and Efficiency 185
Technology Selection 186
Quality Control and Risk Management 187
Vendor and Strategic Partner Choices 188
PART III: WHAT HAPPENS NEXT
CHAPTER 13 Recipes for Failure 193
How to Fight with Your Partner 194
Losing Control of Your Own Firm 196
Agree to Disagree—aka Avoiding Difficult Decisions 198
The Porch of Indecision 199
People Who Don’t Develop 199
Protecting Your Ensemble 200
Note 201
CHAPTER 14 Doing Deals 203
Equity Planning for Ensembles 204
Consolidation Deals 207
Other Acquirers 209
Finding Your Deal 211
Note 211
CHAPTER 15 The Future Belongs to Ensembles 213
About the Author 217
Index 219
