WHAT YOU CAN EXPECT

• Determine your current client mix

• Identify your most valuable clients

• Spend more time with the clients in your AAA, AA client groups

• Attract more preferred clients by concentrating your attention on your AAAs and AAs

• Implement a strategy for reducing the number of less desirable clients

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HOW TO GET STARTED

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Rightsizing

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The maximum number of clients recommended for any one Financial Advisor to manage is 150.  If you have substantially more than this right now, you should seriously consider the realignment process below OR see if it makes sense based on the number and profitability of the clients being realigned to shift them to another advisor on your team or hire a new financial advisor.

1. First, you may want to read more about How Scarcity Enhances Your Branding.

2. Next, create a summary of all of your relationships on the Rightsizing Worksheet using the criteria you defined when we created your Client Classification. 

3. Analyze your Rightsizing Worksheet. 

   • If you have recently rightsized, then the following criteria may not apply to you: 

     • If the clients in your ‘A’ groups make up more than 30% of your total clientele, your Asset and Attitude Knock-Out Factors are too generous.

     • If there are more clients in your ‘B’ group than your ‘C’ and ‘D’ groups combined, then you have been too generous with your ‘B’ group threshold. 

   • Ensure that anyone in the AAA group is a proven referral source.

4. Based on the results of your analysis, make any necessary adjustments to your Rightsizing Worksheet. 

5. Revise your Client Classification Worksheet if you made any adjustments. 

6. Assign a classification code to each relationship on your CRM. 

7. Review the Realignment Process below for more information on how to progressively streamline your practice. 

8. If a realignment process is not possible at this time, create a process for how you and your team will manage over-demanding, low-value customers. 

9. Complete and review the worksheet once a year.

The Client Realignment Process

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We have provided a couple of basic templates for client realignment related to rightsizing below.  However, there is an entire best practice devoted to this with many more resources and templates (Agenda’s, letters, cards, etc.) found in the Build Your Dream Team program in Pillar 1 – Client Realignment.

1. Plan and implement a client realignment strategy for the relationships in your ‘D’ group. This may include the following options: and

2. If you are realigning with another Advisor who works within your firm, but who is not on your advisory team, you can use the following to assist you: 

   • Client Transfer Letter - New Advisor  

   • Client Transfer Script - New Advisor 

3. If you are realigning with an Advisor who is on your advisory team, you can use the Client Realignment Letter - Related Advisor .

4. If you are realigning with a call center or other resources within the firm (house accounts), make sure you follow the process as outlined by the firm. They should be able to provide you with a process of how to do so.

5. Progressively realign the remainder of your ‘C’ clients. 

6. Determine net new assets every quarter. 

7. Reassign an amount of assets equal to your net new assets from the ‘C’ client group. 

   • For example, if you have $1 million net new assets at the end of a quarter you can now reassign a number of your  'C' clients who in total represent $1 million in assets.