Given that time is our scarcest currency, we all need to be cautious about taking on significant new commitments.  The only exception is cases where there’s absolutely clear cut evidence of a substantial return.

Late last year, I spoke to an advisor about a 30 minute investment in formulating action plans for top clients that has seen an overwhelmingly positive response from clients; and has led to significant progress in his business as a result.  

The concept of these plans is simple:  If you’re an account manager working for Procter & Gamble with responsibility for managing the Walmart or Costco account, every year you’ll spend 30 days developing a comprehensive 200 page business plan for that account.

It clearly doesn’t make sense to spend a month developing a 200 page business plan for even your largest client; but how about 30 minutes to develop a four page plan?  This advisor had attended a workshop in 2009 in which he’d seen the template for a short plan for use with key clients; summarizing the client background, identifying opportunities and setting out specific actions.

In early 2010, this advisor and his team developed these plans for their top 20 clients.  They took about half an hour each initially with a further 15 to 20 minutes to update them a year later.  

At the start of each quarter, this advisor sits down with his team and reviews the plan for each client, identifying things that have to happen in the next 90 days.  As a result, his activity with top clients is more proactive and focused; and both he and his clients are better off as a result.  One outcome is that clients generally see more concrete results from meetings and as a consequence are more enthusiastic about future meetings.  In this advisor’s view, the time he and team spend compiling, reviewing and acting on these plans is his highest return activity.

Key background

The first step is to concisely summarize key background on each key client.  Here’s what the background portion of the plan template might look like documenting client information in thirteen areas.  Consider using this as a starting point for your own key client plans modifying it to your own situation.

1.       Current situation:  A short summary of key trends on assets and revenues:

For 2009, 2010 and 2011 show revenue for each year as well as assets at the end of the year.

In addition, document how long you’ve been working with this client  and how you came to work together.

2.       Financial priorities:

 Summarize this client’s top three financial issues and priorities.

3.       Assessment of client satisfaction: How satisfied is your client on the key dimensions of your relationship:

On a scale from one to five (where one is low, five is high), write down your assessment of how satisfied your client is on key dimensions of key dimensions:

·         Performance of investments

·         Confidence that is on track to achieve goals

·         Frequency of communication

·         Quality of communication:  Feels listened to, key questions and issues are addressed

·         Overall relationship

4.       Plans in place: An overview of the written plans this client has in place:

List the kinds of written plans this client has in place, whether they have been completed in whole or in part, when they were prepared, when they were last updated and who prepared them.

                Among the plans to include are:

·         financial plan                                                                                                    

·         investment plan                                                                                                             

·         retirement plan                                                                                                                              

·         estate /insurance plan                                                                                                                                 

·         tax plan                                                                                                                                              

·         cash flow plan

5.       Key gaps:

 Identify important gaps in this client’s plans and financial affairs.

6.       Preferred contact: How does this client want to hear from you, and how often:

Document the client’s preference in terms of contact via:

·         Face to face

·         Telephone

·         Email

·         Mail

·         Lunch Presentations      

·         Evening Presentations

·         Other                                                                                                                                                   

As well, identify the frequency with which you used each of these methods to communicate with this client in 2011; and your goal for each of these in 2012.

7.       Your knowledge of the client:

This section identifies gaps in your knowledge of the client.  Rate your knowledge from high to low in terms of their financial situation (hopefully high), work situation, family situation, hobbies and interests, retirement plans and any health and personal issues.

Then identify knowledge gaps that you need to fill in the next twelve months.

8.       Professional advisors: 

List the names and contact information for this client’s accountant, lawyer and other professional advisors.  On a scale from one to five note whether you’ve met those professional advisors and the strength of your relationship with them.

9.       % of Assets held:

 Approximately what percentage of this client’s assets do you hold?  Where are outside assets held, what do they consist of and what is their approximate value?

 What’s your history in terms of bringing on additional assets from this client?  When was the last time that you talked to this client about this?  Where clients hold assets with outside firms, have you offered to prepare a consolidated quarterly snapshot of all of their assets?

10.   Relationship with heirs: Where you stand in terms of your connection with your client’s spouse and family members:

 List the name of each person who will receive a substantial inheritance from this client starting with the spouse and including adult children.  In each case identify whether you have their account currently and rank your relationship with them from one to five; where one is low and five is high.  Include any comments on your relationship with each of your key client’s heirs.

11.   Past referrals provided:

 Record the cases where this client introduced you to friends and family including the date, the assets involved by the potential client referred and, the outcome.

12.   Close associates:

 List this client’s closest family members, friends and work colleagues.  For each case, indicate whether at some point you’ve met them.

13.   Past social activity:

 Here’s where you summarize cases in the past where you got together with this client socially. List the event or activity, the date and any response or feedback from the client.  Based on that feedback, should you repeat this in future?

 Capitalizing on opportunities:

Once you have the background documented, next is a five step process to identify opportunities and formulate a plan to capitalize on those opportunities.  This drives the agenda for client meetings and shapes the conversations that take place.  

1.       Hot buttons:

 What are the one, two or three issues that this client worries about the most;  and that will motivate him or her to act?  Opportunity Checklist:  A quick summary of gaps in this client’s financial affairs.

2.       Opportunity checklist:

Here’s where you identify any things that need to be done to ensure the client’s basic affairs are in good order.  Here’s a list that you could use as a starting point.  For each of these indicate if there is work to be done on them in 2012, whether for the client or for family members.

Cash Management Account:

·         GICs

·         RESP

·         RDSP

·         RRSP

·         Tax Free Savings Account

·         Critical care insurance

·         Life insurance

·         Long term care insurance

·         Power of attorney

·         Will

3.       Key client opportunities for 2012:

 Write down the one, two or three key ways  you can help improve the client’s situation in the next twelve months.

4.       Key business opportunity for 2012:

 Identify the one goal with this client that would advance your own business in the next twelve months.

5.       Key steps for  2012:

What specific steps are you going to take in 2012 to achieve these goals?

 The last four years have tested many client relationships; a process that is ongoing.  Looking forward, it will be critically important to be proactive and disciplined in managing relationships with your most important clients.  A Client Opportunity Template such as the one this advisor uses can play a key role in making that happen.