The Practice Doctor is IN

Al Depman, CLU, ChFC, CMFC, BH

Practice Management Consultant

The Three Levels of Accountability

Assembling an accountability team is not an optional exercise in the growth and maturing of a financial services practice––it is a necessary component. The biggest revelation from my work assessing and consulting with thousands of producers is that true accountability is often missing in their practices. Here are some reasons why:

• You’re stuck in an independent mindset.  Recruiters hire to this independent model, talking about the entrepreneurial opportunity to be your own boss, make as much money as you want to, and work the hours you choose. That model will only get you so far in today’s environment. To achieve a Mature practice, you have to have an interdependent mindset. This entails reaching out to others for dialogue, feedback, and advice. This interdependence uncorks the bottle of true accountability. When an advisor tells me, “I hold myself accountable”, interpret this as being trapped in an independent phase of his (or her) practice growth…unable or unwilling to open up to interdependence.

• Using the wrong definition of a “relationship.”  A relationship can be made on many non-physical levels, confusing accountability. Through the Internet, networking sites, email, and other electronic means, relationships are started but never consummated. A true relationship should be defined primarily by a physical contact––a handshake, a touch. Relationship-building is the currency of your life as an advisor. A true accountability partner is a person with whom you have direct, physical contact. Not an electronic scoreboard, online conversation, or weekly conference call.                                                                                  

• You just don’t know how to hold someone accountable.  There are no relationship consequences for not achieving your goals, but there is a financial one: termination for lack of production. This happens so often that it’s hardly a consequence. It’s more of an expectation. It’s also impersonal and easy: “Here are the numbers. Hit them or you’re out.”

There is a continuum to implement in holding one accountable. This month, we’ll look at just what that continuum is: next month we’ll talk about how to put together a team to make that happen.

The Expectation–Accountability–Consequence Continuum

To be accountable, you must uncover and clarify expectations. In hiring and working with an assistant, clarity of expectations is paramount in making the relationship succeed. Without expectations, accountability simply can’t happen. An expectation without accountability behind it is merely a good idea. Accountability demands a consequence.

As an example, if you decide to send flowers to a top client on her birthday, that’s a good idea. My assistant agrees to make sure the flowers get sent and becomes accountable for getting it done. If she fails to execute the sending of flowers, the consequence is that my relationship with that client did not grow. Is there a consequence to my assistant for failing to do what was agreed? If so, what is it? A sharp reprimand (immediate consequence)? A note on her record for the next performance review (delayed accountability)? Letting it slide (no consequence)?

If the flowers were sent and received, the consequence is that your relationship with that client grew. Is there a positive consequence to the assistant? If so, what is it? A “thank you” for getting it done (immediate consequence)? Sharing the appreciative note sent by the top client at the next performance review (delayed consequence)? No mention at all (no consequence)?

There are literally hundreds of such activities that go on each day in the advisor’s world.  To set up an expectation-accountability-consequence continuum for each one is simply not realistic, nor is it a good use of your time. For key expectations, however, it’s critical.  Picking the core expectations of the agent and placing them into the expectation-accountability-consequence continuum is crucial.

Next month, we’ll talk about putting together your “accountability team.”

The Doctor is OUT.

Al Depman, CLU, ChFC, CMFC, BH, a.k.a. “The Practice Doctor”, is MitchAnthony.com’s Business Practice Consultant. He is the creator of “The Practice Management Assessment” tool and materials and has authored numerous articles in professional publications on practice management, and author of the book, How to Build Your Financial Advisory Business and Sell It at a Profit, now available from McGraw Hill. Al combined his Liberal Arts studies with 10 years of management experience with McDonald’s Corporation to enter the financial services world 25 years ago. Since then, Al has evolved from an MDRT-level sales rep into a full-time consultant specializing in helping others engineer their business practices to the next level. Contact him at al@mitchanthony.com.

© 2009 Al Depman