” The Fastest-Growing and Most Profitable Firms often take Un-conventional Approaches to their BusinessModels…”
Advisers spend a lot of time thinking about their #GrowthStrategies….Two years ago, when Investment-News fielded the Moss Adams Financial Performance Study of Advisory Firms, we identified a subset of firms that were deemed “ Top-Performers”..
These firms were defined as the Top-Quartile of participants across a range of metrics including revenue growth, cost control and profitability….The study found that the Fastest-Growing and most #ProfitableFirms, sometimes take an unconventional approach to their #BusinessModels….!!
(Source for all charts: Investment News/Moss Adams Studies)..
Fast forward to 2014. We’ve internalized the study’s findings and are now fielding an updated survey that we hope will help firms not only benchmark their practices and attain greater productivity and profitability, but will also help them rethink their strategic processes and confirm that their firm is on the right growth track..!!
Below, we’ve presented SEVEN of the Biggest Trends that separated the #BestPerforming organizations from their peers :
1. Take a Holistic Approach to Services –
When participants were asked to identify services they routinely provided to a majority of their clients, Top-performers offered an average of 10% more services than their counterparts…!!
2. Upgrade your CRM –
Top performers distinguished themselves from the field in two major revenue-expanding initiatives.. Implementing a New Customer Relationship Management System created the Second-Biggest gap between #TopFirms and the rest of the industry among the list of #RevenueGrowth initiatives…Easier access to “intelligence about your clients translates to higher productivity”…
3. Merger Talks :
The biggest gap among #RevenueGrowth initiatives between Top-performers and all others ?? M&A…Partnering with another firm can be a quick avenue to strategic growth…..!!
4. Leverage “Staff to Increase Profits” –
Hiring New Staff was the No. 1 Profit-Growth initiative among Top-performers, as well as the Biggest Differentiating Factor from their Non-Top Performing counterparts— and by a wide margin…..Staffing costs are by far the biggest expense at today’s advisory firms….Leveraged properly, they are the Surest Path to #SustainedGrowth…
5. Update your Website –
The only Marketing-Activity Top-performers engage in more Frequently than all other firms ?? Updating their own #Websites…#WebTechnology, moves fast — a modern design can set your firm apart…!!
6. Form Relationships with “Centers of Influence” –
Particularly accountants. 96% of performers use accountants as centers of influence, vs. 87% of all others….!!
7. Be Selective with your Clients –
The most #PopularStrategy Advisers use when dealing with clients that are Not Profitable is to Limit service…, but Top-performers take things a step further — 53% of Top-performers say they will Dis-continue an Unprofitable Relationship, versus just 38% of all others….!!