This week we will review the role of the VP of Implementation. What are the qualities of a good implementor?
Here is an interesting example of a team that has done this well. One of the teams I coached specializes in retired 55 – 70 year old couples from Proctor and Gamble looking for income along with growth. The VP of Implementation was able to create an investment matrix that applied to that niche. The clients were ensured of a consistent outcome and the team avoided inconsistencies in performance that might have impacted their overall returns.
This VP is responsible to make sure all parts of the plan are implemented consistently for every client. This typically includes mortgages, insurance, tax planning, long term care and other products besides investments. I have found investment people who aren’t planners have a tendency to ‘cherry pick’ the low hanging fruit (investments) and not implement everything the client needs. By creating an investment matrix checklist all aspects of the client’s financial life will be covered.
The Supernova 12-4-2 process makes it easy for advisors to batch process various topics when talking to clients. By using our 24-month calendar (located in the Advanced Learning Library) you can set up bi-monthly topics for client meetings. For example, if you introduce the topic of mortgages one month, you will inevitably find a client who has a need to have their mortgage renewed. That would be the same for long term care, insurance planning and all risk management (insurance products and policies). Over a period of time, all of these topics are implemented for a client according to the matrix set up by the VP of Implementation.
To make the analogy to a surgeon, the VP of Implementation is the person doing the surgery by deciding on what investments should be made. He/she looks at a wide range of hedge funds, private equity or money managers and ensure they have the right ones. If a wholesaler wants an appointment with the team the VP would be the one to meet with them and decide if they were offering something special.
The VP of Implementation gets together with the other VPs of Implementation from different teams in their office to discuss investment strategies and share ideas. Another Supernova good idea is to create an in-house Mastermind group for each one of the Vice Presidents.
The VP sets standards, strategies and goals for the team and then follows up on the set guidelines. Here is an example:
Standard: 1. To have a consistent asset allocation model and investment matrix for all clients with no deviations from that matrix unless approved by the VP of Implementation.
2. To implement everything determined critical by the financial planner.
Strategy: Create a list of items from the financial plan that needed to be implemented and check them off as completed and review periodically.
Goal: To have a consistent allocation model and investment matrix that is fully implemented.
Follow Up: Monitor performance and implementation. Make adjustments to the asset allocation model and investment matrix as needed.
There are a lot of advantages of having your team members take responsibility for different areas of your business. If you are a sole practitioner you and your administrative staff will be responsible for the VP roles.