What’s the number one thing an advisor should be focusing on? Finding the next best product? Shepherding a case through underwriting
? Spending hours researching the marketplace for new ideas? I believe the answer to all of the above is no, no and no.
So, where should advisors be spending their time? How about on providing their clients with direction? Clients are afraid of making the wrong choices and need someone to guide them through the process. They need education on what life might bring and what challenges one should prepare for.
In other words, advisors should be spending their time with their clients and looking for new ones to help. In fact, most advisors agree that client meetings and prospecting should comprise of at least 50 percent of their time; many actually believe this to be how their time is spent
However, according to research conducted in 2011 by Empire Research Group, the majority of advisors spend less the 19 percent of their time with clients or prospects and more than 50 percent of their time on non-revenue producing activities such as paperwork, processing and other administrative tasks. The reality is, as the study pointed out, that a total of 81 percent of an advisor’s time is spent on low-value, non-revenue producing activities. As you can see, there is a major disconnect between perception and reality.
What can be done? How can an advisor make better use of their time and what would the result look like? The first challenge is identifying that time mismanagement exists. A good business coach or marketing organization will have the tools to help the advisor work through this issue to identify where and how time is being spent. Once the time gap is uncovered, an advisor could then use specific techniques to delegate non-revenue generating responsibilities to third parties or technology platforms. Luckily, this can typically be done without adding any expense such as salaries or fees. In the end, the advisor will have more time to meet with existing clients, prospect for new clients and work on his or her own personal growth and development.
What are you waiting for? Spend some time reflecting on your practice
and ask yourself if you are truly spending your time on high-value activities. If the answer is no, begin taking the steps to help maximize your time. You will be amazed at what a difference prioritization and time management can make.