book

Practice Made (More) Perfect: Transforming a Financial Advisory Practice into a Business

by Mark Tibergien, Rebecca Pomering

August 2011

Intermediate to advanced

336 pages

9h 14m

English

Bloomberg Press

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Cover
Endorsements
Series
Title Page
Copyright
Dedication
Preface
Acknowledgments
Introduction
Chapter 1: The Financial Advisory Business
What Are Top-Performing Firms Doing?The Business as Client10 Things to Think About

Chapter 2: Strategic Business Planning
Muddled MessagesWhat Is Your Strategic Differentiator?What Is Strategic Planning?The Strategic Planning Process
Chapter 3: Managing Workflow
Sources of InefficiencyAchieving EfficienciesDoes Efficiency Come at a Cost?Managing Risk
Chapter 4: Building Leverage and Capacity
Getting to the Next StageBecoming a Market DominatorThe Challenge of GrowthThe Entrepreneurial CrossroadsCornerstones of the Professional PracticeModels That WorkLeveraging Your AffiliationsBig Is Beautiful
Chapter 5: The Human Capital Plan
The Problem You Can't Do WithoutAligning Human Capital with StrategyThe Nature of the WorkThe Nature of the WorkerThe Interviewing Process
Chapter 6: Creating a Positive Workplace
The Career PathThe Appraisal ProcessCoaching and DevelopmentThe WorkplaceBuilding a FoundationThe Four-Way TestLessons on Inclusion
Chapter 7: Rewarding Behavior and Performance
Developing a PlanThe Components of CompensationEstablishing Base CompensationEstablishing an Incentive Compensation PlanOwner's Compensation
Chapter 8: Reading the Financials
Fundamentals of AccountingConstructing a Financial StatementTying the Financials Together
Chapter 9: Income, Profit, Cash Flow
Formatting the FinancialsAnalyzing the Income StatementAnalyzing the Balance SheetAnalyzing the Statement of Cash FlowFinancial Impact Analysis
Chapter 10: Managing Growth
Harnessing ResourcesUsing Financial LeverageManaging Cash FlowHow About Equity?Referral Agreements and Joint VenturesPractice AcquisitionsInvestments in New Initiatives
Chapter 11: Exit, Stage Left
The Price of IndecisionSale Planning versus Succession PlanningWisdom or Obsolescence?What to Do?Keeping It in the FamilyHow to Make a PartnerWhat About the Successor?Merger as a Succession PlanSo What Do You Do?Seeking CounselDeveloping the AssumptionsTake Control
Chapter 12: On Leadership and Management
What Defines a Leader?Who Will Emerge?Is Anybody Leading?Rites of PassageReady, Fire, AimAwakening the Manager in YouPractice What We PreachHiring Your Boss: Do You Need a CEO?
Afterword
Appendix
Worksheet 1: Practice-Management AssessmentWorksheet 2: Analysis of Top 20 ClientsWorksheet 3: Self-EvaluationWorksheet 4: Performance Evaluation for Professional StaffWorksheet 5: Upstream EvaluationWorksheet 6: Position DescriptionsWorksheet 7: Balance SheetWorksheet 8: Income StatementWorksheet 9: Calculations for RatiosWorksheet 10: Cash Flow CalculatorWorksheet 11: Cash Budget
About the Authors
Index

Content preview from Practice Made (More) Perfect: Transforming a Financial Advisory Practice into a Business

Chapter 7

Rewarding Behavior and Performance

Compensation Planning

Advisory firms spend more money on compensation than on any other expense. In fact, if advisors defined compensation appropriately, it would be clear that they invest more money in people than in any other area of their business. The challenges for advisors are to think of compensation as an investment, consider how they choose to allocate that investment, and determine what kind of return they expect on that investment.

Developed deliberately, a compensation plan can be a recruiting tool, a retention tool, and a communication device for expressing what's important to the organization. Further, a compensation plan defines the behavior the firm values and will pay for—and the ...

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The Efficient Practice: Transform and Optimize Your Financial Advisory Practice for Greater Profits

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Practice Made (More) Perfect: Transforming a Financial Advisory Practice into a Business

by Mark Tibergien, Rebecca Pomering

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.