The main components of practice management
Practice management is a systematic process which focuses on continually re-inventing a business in order to remain relevant in an ever-changing environment.
Let's take a look at the Seven Centres of Management Attention (as can be seen below) based on the world class E-Myth Mastery programme adapted by Masthead for the financial services. It is one-of-a kind systematic process for developing profitable and sustainable business models.
On the diagram, you can see the three essential customer-based business processes. These are: lead-generation, lead conversion and client fulfilment.
These are supported by three business-based systems - marketing, managing finances, as well as management of people, systems and resources.
Finally, leadership in the middle of the diagram. It is the vision and strategy that provide direction and purpose to everything. Leadership is about planning, measurement and inspiring team members to achieve the business vision and is an essential Business Management Discipline.
Practice management is about change - and this takes time, patience and the willingness to commit to working ON the business as opposed to working IN the business. Leadership strength is essential to drive change.
An example of how practice management has improved a business
The main challenge was delivering various services to an unsegmented client base whilst still remaining profitable. The goal was to free up time, increase efficiency and skill, and identify increased advice opportunities.
The immediate need was to streamline and systemise the office, segment the client base, and offer differentiated services based on client life-time value in a consistent, fair and efficient manner.
At implementation stage, a process of systemising the business was put in place which freed up time and enabled accurate management information. This led to the identification of increased advice giving opportunities.
The increased focus on efficiencies opened up the opportunity for everyone to become creative and contribute to re-inventing the business. Financial advisers started focusing on more client-facing time, support staff used efficiently, and the management team ensured that the business remained on track towards the strategic objectives.
Clients who required certain 'free' services were referred to strategic partners, thereby saving time and money.
So how has the business changed?
It is now an integrated system run by well-trained staff members. Customers are being treated fairly, and the business is running profitably.
Up-skilling staff has increased motivation and efficiency.
Finding ways in which to increase efficiencies has led to increased productivity and therefore increased income.
Diarised annual reviews, combined with increased client information resulted in compliance with regulatory requirements which supported business goals.
The outcome of the practice management intervention was more effective use of time, increased systemisation, decreased costs, processes which ensure the client is placed at the heart of the business, and increased skill for team members.
I like to think of practice management as the 'how to' where compliance is the 'must do'. A combination of both is imperative to build sustainability.
Thank you for watching and you can refer to further Practice Management videos on our website: www.oldmutualinternational.com/futurefit