Building & Leading High Performance Teams

Building & Leading
High Performance Teams
A Step-By-Step Guide for
Financial Service Professionals

Stephen A. Saenz

HPT
SteveSaenz.com
Most people are asking the wrong question!

To form a team or not
is the wrong question.
The right question is…
What TYPE of team
should I build?
Building & Managing High Performance Teams by Steve Saenz 2

HPT Basic Team Models
VERTICAL HORIZONTAL ALLIANCE
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WA WA WA WA WA

CFP

CSA CSA CSA CSA

Commonly referred to Separate Business
as “Partnerships” with Shared Resources

BASIC CHARACTERISTICS BASIC CHARACTERISTICS BASIC CHARACTERISTICS

 One FA number  Two or more, FA numbers. This gives  Two, or more, FA numbers. FAs do
rise to the concept of a “partnership.” NOT pool assets, which makes these
 Other team members are paid a different from Horizontal Teams.
salary or salary + bonus  All or part of revenues flow through a
common (pooled) FA number. Revenues  FAs do create separate FA numbers
 WA might bring on a TFA or are then shared among the various to share certain accounts or types of
AWA to handle smaller clients, “partners” according to some business on a one off basis.
which would free him/her up to predetermined split.
pursue HNW clients  Each FA continues to run their
 Partners may move preexisting assets separate business and collaborates
 WA might form Alliance into the pooled FA number OR keep mainly for marketing and/or product
Team(s) with other WAs or FAs preexisting assets separate and put all specialization purposes.
on certain accounts (see NEW assets into the pooled number.
Alliance Team)  Alliance Teams may form as a result
 FAs may or may not introduce their of two, or more, FAs sharing certain
respective (preexisting) clients to their resources such as a CSA or a CFP.
partners.


HPT
SteveSaenz.com
Don’t make this mistake…

Please do not assume
that you should be in a
Horizontal Team
(aka, Partnership)
That is NOT necessarily
the best option for you.

HPT Vertical Teams

VT–1 VT–2 VT–3
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WA WA WA

CSA TFA CSA AWA CSA

BASIC CHARACTERISTICS
 One FA number
 Other team members are paid a salary or salary + bonus
 WA might bring on a TFA or AWA to handle smaller clients, which would free him/her up to pursue HNW clients
 WA might form Alliance Team(s) with other WAs or FAs on certain accounts (see Alliance Teams slide)

WA = Wealth Advisor | FA = Financial Advisor | SFA = Salaried Financial Advisor
AWA = Associate Wealth Advisor | AFA = Associate Financial Advisor | CSA = Client Service Assistant


HPT Horizontal Teams (“Partnerships”)

HT–1 HT–2 HT–3
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WA WA FA FA FA FA WA FA

CSA CSA AWA

AFA

BASIC CHARACTERISTICS
 Two, or more, FA numbers. This gives rise to the concept of a “partnership.”
 All or part of revenues flow through a common (pooled) FA number. Revenues are then shared among the
various “partners” according to some predetermined split.
 Partners may move preexisting assets into the pooled FA number OR keep preexisting assets separate and put
all NEW assets into the pooled number.
 FAs may or may not introduce their respective (preexisting) clients to their partners.


HPT Alliance Teams

AT–1 AT–2 AT–3
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WA WA WA FA FA WA WA

TFA
CSA CSA AWA AFA

CSA CSA

WAs share the investment
in this resource. This could
be a CSA, AWA, TFA, etc.

BASIC CHARACTERISTICS (red dotted line indicates the alliance relationship)
 Two, or more, FA numbers. FAs do NOT pool assets, which makes these different from Horizontal Teams.
 FAs do create separate FA numbers to share certain accounts or types of business on a one off basis.
 Each FA continues to run their separate business and collaborates mainly for marketing and/or product
specialization purposes.
 Alliance Teams may form as a result of two, or more, FAs sharing certain resources such as a CSA or a TFA
(see AT–3).


HPT
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Complex Team: Alliance Model

WA See next slide
WA Teams
for details
AWA

WA TF WA

AWA CSA AFA CSA AWA

WA
WA = Wealth Advisor
Support Team
FA = Financial Advisor
TFA = Salaried Team FA
AWA
AWA = Associate Wealth Advisor
AFA = Associate Financial Advisor
CSA = Client Service Assistant


HPT Complex Team Detail
WA TEAMS SUPPORT TEAM
 Consist of one WA and one AWA  Consists of one TFA, one AFA and two CSAs
 Minimum team revenue = $1MM  This Support Team can probably support four WA Teams
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 100 client relationships maximum (Platinum and effectively (keep in mind that WA Teams are only
upgradeable Gold only) accepting Platinum and upgradeable Gold clients, which
 Gold and upgradeable Blue are reassigned to a sharply reduces admin / ops overhead for them)
Support Team that is shared by four WA Teams.  Minimum = $100,000
 Clients under $100K are reassigned to a Customer  300 client relationships maximum (Gold and upgradeable
Care Team shared by entire branch. Blue only)
 WA retains a percentage of revenue for all clients  Can add additional TFAs and CSAs to increase capacity
reassigned to Support and Customer Care Teams  TFA oversees all aspects of financial planning, investment
(RECC: 75% Year 1 / 50% Year 2 / 25% thereafter) management and portfolio reviews.
 WA makes all sales presentation and oversees all  Primary responsibilities of TFA are investment advisory
aspects of wealth management, investment and relationship management (instead of sales).
management and portfolio reviews.  TFA also implements client advocacy system to grow
 AWA is highly proficient in use of all technology and existing client relationships and get more referrals.
possesses investment knowledge necessary to handle  Compensation for TFA would be aprox. $60K salary
asset allocation, financial planning, manager searches incentive bonus (up to $40) which is based on client
and high level relationship management issues. The satisfaction and new assets through referrals.
AWA does NOT handle any aspects of administration  AFA is highly proficient in use of all technology and
and operations. possesses investment knowledge necessary to handle
 Goal is to make the WAs significantly more productive asset allocation, financial planning, manager searches and
by enabling them to focus on high impact activities high level relationship management issues. AFA reports to
(asset gathering and relationship management). TFA but also serves as a back-up to AWAs (who work on
 We are also making the WA Team more attractive to WA Teams).
the HNW client (and COIs) by significantly reducing  CSAs are highly proficient at all aspects of administration
and limiting the number of clients the WA handles. and operations and perform these functions for the four
 WA Teams answer their own phones for their WA Teams as well as the Support Team on which they
respective clients only. work. They would report directly to the AFA but also work
 AWAs can cover for each other when appropriate. closely with the AWAs.


HPT
SteveSaenz.com
High Performance Team Defined

The right PEOPLE
doing the right THINGS
the right WAYS
for the right CLIENTS
at the right TIMES
for the right REASONS

HPT The right PEOPLE…

 We have the skills required to perform our jobs at
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peak potential.

 We have positive attitudes and are motivated to
perform our jobs at peak potential.

 We have the knowledge required to perform our
jobs at peak potential.

 We are able to achieve synergy through
complimentary skills sets and capabilities.

 Our working environment is free from internal
conflict and inappropriate behavior.


HPT Doing the right THINGS…

 We spend most of our time on activities we are
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naturally good at (core competencies).

 We spend most of our time on activities that help
our team achieve its goals.

 We are effective and spend most of our time on
important activities.

 We deliver on the drivers of satisfaction* for
HNW clients on a consistent basis (see next
slide).


HPT The right WAYS…

 We have clearly defined standards for all
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important tasks and activities.

 We have systems in place that enable us to be
highly efficient in all important areas.

 We have the tools in place to perform our work at
peak potential.

 We receive adequate training in all areas
required to perform our jobs at peak potential.

 We have access to and know how to get the
support we need when we need it.

 We communicate with each other effectively.

HPT For the right CLIENTS…

 We work primarily with clients who are or have
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high profitability potential.

 Our clients trust us implicitly.

 Our clients value our advice and are willing to pay
for it.

 Our key clients are in a position to refer us
business (significant circles of influence).

 Our key clients refer us new business.

 We enjoy working with our clients.


HPT At the right TIMES…

 We respond rapidly to client requests.
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 We respond rapidly to other team member
requests.

 We spend the majority of our time with high
potential clients.

 We get our work done right the first time.

 We get our work done with plenty of time to spare
(not at last minute).

 We are more proactive than reactive.

 We anticipate the needs of our clients.

HPT For the right REASONS…

 We are clear about and embrace our firm's vision
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and mission.

 We are clear about and embrace our team's
vision and mission.

 We are clear about and embrace our team’s
goals, strategies and tactics (biz plan).

 We are clear about our roles and responsibilities
(what we are supposed to be doing).

 We are clear about what is expected of us and
how our performance will be measured.


HPT
SteveSaenz.com
Building AND Leading

BUILDING LEADING

Building your team is Leading your team is
basically a science more of an art because
because you are dealing you are dealing with
with logical issues. people and emotional
issues.
Building a team is
primarily a management This is a leadership
function. function as well as a
management function.

These are separate but critical skill sets


HPT Team BUILDING Process

BUILDING
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6. Reassign / Hire As Needed

5. Evaluate Your Current Team

4. Determine Your Optimal Team Type

3. Design Your Optimal Team Structure

2. Identify Your Business Functions

1. Define Your Business Vision


HPT 1.1 / Define Your Business Vision
WHAT IT MEANS… WHY IT’S IMPORTANT…
SteveSaenz.com
To have a picture of what your A clear and compelling vision can
business is going to look like in the get a team excited and motivated.
future. Your vision should include It can also give them a sense of
financial goals, desired business direction. Without a clear vision, a
model and number of clients. team can get precariously off
course.

BUILDING
KEEP IN MIND…
 In order to be effective, your vision must be easily understood by all.
It should establish purpose so people will know why they are being
asked to support it.
 Most importantly, your vision should let your team know what they
will gain by helping you achieve your goals.


HPT Vision: Identifying Your BUSINESS MODEL
Your BUSINESS MODEL has been evolving over
the years. For a variety of reasons, including Advice
industry commoditization and increased
Driven
SteveSaenz.com
competition, you have been adopting higher
value business models.
Family
These high value business models place greater Office
demands on you and your team. You now have
PERCEIVED VALUE OF YOUR OFFERING

to solve complex wealth management problems
and build stronger relationships with clients, all
of which requires significantly greater resources. Wealth
Advisor Client
Centered
Financial
Planner

Investment
Consultant
Idea
Driven
Financial
Advisor

Stock The STRUCTURE of your business must change in order to
support your new business model. If not, you will witness
Broker Advisor declining revenue growth, deteriorating client satisfaction
and/or increasing levels of stress on your team.
Centered
COMPLEXITY OF YOUR BUSINESS


HPT 1.2 / Identify Your Business Functions
Practice Management
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F I N D I N G
AD M I N I STRATI O N
Marketing Sales
a n d O PE RAT I O N S

G R I N D I N G
Financial Portfolio Portfolio Financial Portfolio
Planning Design Mgmt Research Reviews

M I N D I N G
Client Relationship
Service Management Sales

Team Developmen t

HPT 1.3 / Design Your Optimal Team Structure
Implementer
Compliance Dominance
SteveSaenz.com
C
Practice Management
D
Rules Portfolio Analysis & Design Problems

Financial Research
Coordinator

Portfolio Management

Persuader
Financial Planning
Sales

Administration

Portfolio Reviews
Marketing
Team Development
Steadiness Influence
I
Relationship Management

S Client Service
Pace People
Relater

HPT 1.4 / Determine Your Optimal Team Type
VERTICAL HORIZONTAL ALLIANCE
SteveSaenz.com
WA WA WA WA WA

CFP

CSA CSA CSA CSA

Commonly referred to Separate Business
as “Partnerships” with Shared Resources

BASIC CHARACTERISTICS BASIC CHARACTERISTICS BASIC CHARACTERISTICS

 One FA number  Two or more, FA numbers. This gives  Two, or more, FA numbers. FAs do
rise to the concept of a “partnership.” NOT pool assets, which makes these
 Other team members are paid a different from Horizontal Teams.
salary or salary + bonus  All or part of revenues flow through a
common (pooled) FA number. Revenues  FAs do create separate FA numbers
 WA might bring on a TFA or are then shared among the various to share certain accounts or types of
AWA to handle smaller clients, “partners” according to some business on a one off basis.
which would free him/her up to predetermined split.
pursue HNW clients  Each FA continues to run their
 Partners may move preexisting assets separate business and collaborates
 WA might form Alliance into the pooled FA number OR keep mainly for marketing and/or product
Team(s) with other WAs or FAs preexisting assets separate and put all specialization purposes.
on certain accounts (see NEW assets into the pooled number.
Alliance Team)  Alliance Teams may form as a result
 FAs may or may not introduce their of two, or more, FAs sharing certain
respective (preexisting) clients to their resources such as a CSA or a CFP.
partners.


HPT 1.5 / Evaluate Your Current Team – DISC
Compliance 12 Dominance
11 1
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Practice Management
C D
10 2
Financial Research


Financial Planning
9 Sales
3
Administration

Portfolio Reviews
Marketing

Steadiness
8 Team Development 4 Influence

S 7 Client Service
5 I
Pace People
6

HPT 1.5 / Evaluate Your Current Team – WMA
Workplace Motivators Assessment
SteveSaenz.com
EXTREME INDIFFERENT MAINSTREAM PASSIONATE EXTREME

THEORETICAL

UTILITARIAN

AESTHETIC

SOCIAL

INDIVIDUALISTIC

TRADITIONAL

2% 13.5% 68% 13.5% 2%

HPT 1.6 / Reassign and/or Hire As Needed
Compliance 12 Dominance
11 1
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Practice Management
C D
10 2
Financial Research


Financial Planning
9 Sales
3
Portfolio Reviews

Administration
Marketing

Steadiness
8 Team Development 4 Influence

S 7 Client Service
5 I
Pace People
6

HPT Team LEADING Process

LEADING
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6. Implement Performance-Based Comp Plan

5. Implement Learning & Development Plans

4. Implement Team-Based Planning Process

3. Implement Employee Review Process

2. Establish & Communicate Expectations

1. Develop Job Profiles for Each Biz Function


HPT 2.1 / Develop Job Profiles for Each Business Function

SteveSaenz.com
A document that lists all of the Well-written Job Profiles are the
important tasks and activities for most important tool you have
each function of your business. It when it comes to managing job
should also include the knowledge performance. They also make it
and skill requirements as well as possible to establish and maintain
tools and resources needed. accountability within a team.

LEADING
KEEP IN MIND…
 Your Job Profiles must be detailed enough to give the person doing
the job a clear understanding of what the job entails. They should
also include the standards (accuracy, quality, quantity, response
time, etc.) that will be used to measure the job owner’s performance.
 You should create a separate Job Profile for each function of your
business. Each team member will likely own several functions.


HPT 2.2 / Establish & Communicate Expectations
SteveSaenz.com
Making sure that everyone on your Invariably, relationships of any
team (including you) knows type break down because
exactly what is expected of them. someone’s expectations were not
To be effective, expectations must met. It is very difficult to exceed
be communicated in writing. someone’s expectations if they
don’t know what they are!

LEADING
KEEP IN MIND…
 One of the best ways to become a more effective leader is to give
your team an opportunity to tell you what they expect of you as a
boss and integral member of their team.
 Expectations include the obvious things like completing work on a
timely basis. They also include the less obvious things like getting
to work on time and showing respect for other team members.


HPT 2.3 / Implement Employee Review Process
SteveSaenz.com
Having a system in place for If you want people to perform at
evaluating the performance of high levels, you must manage
each team member (including you) their performance. In order to
on a regular basis. To be manage performance, you must
effective, Employee Reviews be able to measure it.
should be conducted quarterly.

LEADING
KEEP IN MIND…
 Most people want to know how they’re doing. If you implement an
Employee Review Process that is fair and objective, your team
members will appreciate and respect you for conducting their
reviews.
 Effective leaders give their teams equal opportunities to review their
performance. What’s good for the goose is good for the gander!


HPT 2.4 / Implement Team-Based Biz Planning Process

SteveSaenz.com
Having a system in place that If implemented properly, your
enables everyone on the team to TBPP will greatly enhance the
be involved in developing and performance of a team by
implementing the team’s business establishing accountability and
plan. This is an excellent team- keeping the team focused on the
building exercise. important activity (right things).

LEADING
KEEP IN MIND…
 Ultimately, you have to depend on your team to implement your
business plan for you. This basically means that you need them to
help you achieve your financial goals and business objectives.
 An effective business plan is one that includes goals for every
function of your business. It should also include strategies, tactics,
timeframes and ownership, all of which is updated continuously.


HPT 2.5 / Implement Learning & Development Plans

SteveSaenz.com
Having plans in place that provide At the end of the day, your people
all team members with the are your greatest asset. If you
knowledge and skills they need to want to attract and retain world-
perform at their peak potential. class clients you must have world-
Plans should include when and class people in place to serve
how members will receive training. them. L&D makes that happen.

LEADING
KEEP IN MIND…
 Your L&D needs change over time. New tools and technology may
require additional skills training. If people change positions, they
also need to learn new things in order to perform at peak potential.
 You should not count on your firm to provide all of the training for
your team. You will be hard pressed to make a better investment
than investing in the development of your people.


HPT 2.6 / Implement Performance-Based Compensation Plan

SteveSaenz.com
A plan that compensates team Unless a team member can have
members based on individual as a direct impact on the revenues of
well as team performance. The your business, it may not be
criteria for this type of plan should effective to tie their bonus to that
include financial and non-financial measure. Non-financial goals may
performance goals. be a better option for you.

LEADING
KEEP IN MIND…
 If you have done an effective job of completing Steps 1 – 5 of this
Team Leadership Process, developing an effective Performance-
Based Compensation Plan should be fairly straightforward.
 The keys are to clearly define what you expect of each team
member and conduct your performance reviews on a regular basis.


HPT 21ST Century Branch Office
WA WA WA WA
SteveSaenz.com
FA FA FA FA FA FA FA FA

AA AA AA AA

WA WA
Portfolio Analysis
FA FA FA FA
This is the command center
of 21B. Housed in a single

Client Care
location, members of this
AA

Marketing
AA “swat team” would perform
virtually all functions for WA
teams that are not directly
WA related to new business WA
development or relationship
management. This will create
extraordinary leverage.
FA FA FA FA
Wealth Planning
AA AA

WA WA WA WA

FA FA FA FA FA FA FA FA

AA AA AA AA


HPT The Extended Team
Client Mgmt Primary
Process ACCOUNTANT INSURANCE Team
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AGENT/BROKER

ESTATE WEALTH
PLANNING ADVISOR
ATTORNEY BUSINESS
BROKER
CORPORATE DATA
ATTORNEY GATHERING FINANCIAL
ASSOCIATE PLANNER BUSINESS
RELATIONSHIP
WEALTH MANAGEMENT
ANALYSIS & VALUATION
CLIENT PLANNING SPECIALIST
ADVISOR
FAMILY LAW
ATTORNEY INVESTMENT
IMPLMENTATION
SOLUTIONS SPECIALIST BRANDING
MARKETING
AGENCY
ARCHITECT CLIENT
SERVICE
ASSISTANT MARKETING FOOD & WINE
CUSTOM ASSISTANT CONSULTANTS
HOME
BUILDER TEACHING
REAL ESTATE TRAVEL GOLF PRO
AGENT/BROKER CONSULTANT
Extended
Team


Building & Leading High Performance Teams

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