The Practice Doctor is IN

Al Depman, CLU, ChFC, CMFC, BH

Practice Management Consultant

Assembling Your A-Team

Last month we discussed the importance of integrating accountability into your practice. Accountability ensures that everyone on your team takes responsibility for growing client relationships. Without accountability, relationships will suffer and so will your practice. This month, we’ll talk about putting together your own A-Team. 

In studying the strongest accountability systems, there are three levels of producer accountability:

1. External to the Practice: those looking in on the practice who want to see you succeed and are willing to help you do so. They will provide an outsider’s point of view on your key business relationships.
2. Internal to the Practice: those directly involved in the practice’s development and performance. This is generally the management team, support staff or selected peers. They have a financial stake in your success.
3. Third Party, Mentor and Coach: third parties can offer advice based on their own experiences. They are willing to assume the role as mentor because they like you and want to see you grow.  You can also purchase time with a professional coach or consultant in the absence of a mentor.

You must provide clear consequences for outcomes with each accountability level:

External Accountability Partners: These are people you respect and often confide in. If you give your best effort and are held accountable, you will continue to earn their respect or better yet, even increase it. If you slack off and are held accountable, you will lose that person’s respect (you will lose face). The primary consequence here is emotional.

Internal Accountability Partners: These are the people who know the details of your professional performance. These managers, fellow advisors, or assistants may or may not develop a deeper relationship with you. The consequences are primarily economic: exceeding expectations generally makes everyone wealthier. Falling short creates financial liabilities all around and may even lead to individuals losing their jobs.  There may be emotional consequences as well, depending on the depth of the relationships.

Third Party Mentor, Coach, or Consultant Accountability Partners:  These people are a mix of consequences. If you hire a coach or consultant and things work out for the better, the payoff could be emotional and financial. If the coaching or consulting arrangement falters, the consequence is primarily financial (you’ve wasted your money). Mentors are usually unpaid and sought out by the advisor. With mentors, consequences are generally emotional, the result of either successfully collaborating with that person and growing, or finding it to be a disappointing experience (for one or both of you).

All three levels of accountability should be explored. In my practice management philosophy, having two of the three in place would be optimal. As the Four Tops sang in 1966: “Reach out, I’ll be there!” 

Open up to the accountability continuum and watch your practice flourish.

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