In my last blog, I outlined my vision for a new collaborative, multi-disciplinary approach to professional services.
In this follow up article, I will describe how this approach can effectively be implemented through running co-ordinated advice sessions for clients.
How does it work?
A co-ordinated advice session involves getting your client and all of their professional advisers in the same room, with a big important agenda. Everyone then works through the issues collaboratively, as a multi-disciplinary team, over an extended time period.
Here’s how it works in a nutshell:
- One of the advisers (let’s call him or her the “co-ordinator”) identifies the need to address a big issue or problem for the client. For example, that issue might be:
- the need to prepare the client’s business for a sale in the next 3 to 5 years;
- the need to transition family wealth in a way that is tax effective and minimises the risk of family law and estate claims;
- the need to re-assess the client’s business strategy and capital requirements in light of a changing macroeconomic environment; or
- the imperative to build wealth outside the client’s business, sustainably over the long term.
- The co-ordinator organises the team, which comprises the client(s) together with (at least) their accountant, lawyer, and financial planner.
- Other advisers may also be included as appropriate, and depending on the subject matter of the discussion. For example, the team might include the client’s banker or other finance professional, general insurance broker, tax specialist, or business coach.
- Two or three hours are put aside for the meeting and an agenda circulated beforehand.
- The clients, or the co-ordinator, must ensure that all relevant materials are circulated before the meeting (for example, financials, structure diagrams, shareholders agreements, wills, insurance schedules and the like).
- The co-ordinator chairs the meeting. His or her job is to help the clients articulate their goals, objectives, or concerns, and then to solicit insights from each of the advisers around the table. So, for example, if the co-ordinated advice session relates to intergenerational succession, the financial planner might take the lead by discussing how much the patriarch needs to retire. The discussion may then move on to whether the family business might be gifted or sold to the children, or offered for sale to a third party, with input on valuation from the accountant. The tax adviser and the lawyer will then provide insights on how any transaction might best be structured.
- Following the meeting, minutes are circulated which contain detailed action points and a clear “go forward” plan.
The benefits
Business coach Alan Rodway was a pioneer of the co-ordinated advice session.
“Working together in this way, nothing drops through the cracks” says Alan. “When it comes to solving a client’s business problems, I recognise that I don’t know everything. Nobody does. My job is to assemble the right team in the room, and ask the right questions.”
In my experience as a participant in many of these sessions, this “no more gaps” approach is extremely powerful. When we leave our egos at the door, respectfully challenge each other’s thinking and get creative as an advice team around the table, this is where the magic happens every time. And indeed, I have received amazing client feedback from every single co-ordinated advice session in which I have been involved.
And, for those who are seeking to build a true relationship-based practice (aren’t we all?), what better way to get to know your clients on a deep and personal level?
Even for those of us who think we know our clients well, it is amazing what can be learned through these “deep dives” into their business, finances, goals, and emotions. As an extreme example, I once heard that an adviser discovered that his client had a secret second family through one of these sessions. And he had been acting for that client for many years! Imagine the estate planning opportunities which followed…..
Martin Checketts leads the Private Advisory team at Mills Oakley Lawyers. He also sits on Mills Oakley’s management board.
Martin is an expert in private and family business, co-ownership, corporate structures, corporate law, business succession planning, and business exits.
Martin is the author of The Strategic Exit, a user-friendly guide on how to maximise value on the sale or transition of private businesses.
