Preparing for a New Year: The Importance of Goal Setting

Bev FlaxingtonBev Flaxington, The Collaborative

Whether you run an advisory firm with two people – or 200 people – setting goals and determining your desired outcomes for 2013 is critical. Most people think about goal setting in terms of the numbers – how many new clients do we want? How much in AUM? What should our profitability per client be? These are all very important and should be included, but don’t forget to put an emphasis on qualitative goals, too.

goals

What are qualitative goals? You want to think about things such as:

(1)    What do you want your advisory firm to stand for? It seems to be a given that you would want to be trustworthy and responsive to clients, but what else matters to you? Do you want to be leading edge in investment offerings? Do you want to be known as proactive and anticipatory of client needs, instead of just responsive? Do you want to be a value provider – low cost with high service? Think in terms of reputation and define what you would like your firms to be.

(2)    What kind of culture do you want to have in your firm? Many people think culture evolves naturally and cannot be defined. Culture evolves in a directed way, when the firm puts emphasis on it. Aspects of firm culture could include team orientation, or fast decision-making, or a willingness to take risks (with compliance support of course!) or innovation. Take a moment to examine your culture now – see if you can identify the traits associated with it. Now take a moment to define what you would like it to be. What is the “gap”? Where do you need to make shifts? Note these and incorporate them into your planning process.

(3)    What is the client experience at your firm? When writing marketing materials we often ask about the client experience. What is it like for a new client to join your firm? What happens to them step-by-step? Again, this can evolve as your firm goes about its daily business of serving clients, but it can be a powerful aspect if you define it at the outset, instead of just letting it evolve. How often do you want to touch clients? What do you want to be doing at each touchpoint? How do you want clients to describe their experience in working with you? What three words would best capture what it is like to be a client of yours? Be illustrative in defining this so that someone else can actually picture or imagine what it feels like, or looks like to be a client of your firm.

(4)    What is the firm’s mission for this year? What do you want to accomplish in addition to serving clients well and finding new revenue? Do you want to be a market leader? Do you want to be known among the competition in a certain way? Do you want to raise the firm’s profile and be more engaged in PR (public relations) and media relations? Think outside of just the business development goals to broader, market-oriented goals

Thinking about these qualitative aspects takes time. It can be a great exercise to have other members of your firm join you in identifying these aspects and defining them. Even if you have only one other person in the firm, bring that person into the planning process. Most importantly if you take the time to think about any of these qualitative pieces, take the time to write them down. Use them as your guideposts for next year to help you navigate where you want to go.

Good luck for much success in 2013.

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