A well designed infrastructure defines and operationalizes the Advisor environment, institutionalizes the Member experience, and provides effective management systems, oversight and controls.
The effectiveness of the wealth management channel rests in large part on the supporting infrastructure established by the Credit Union, which provides structure, definition, and clarity to the operating environment. The primary components are as follows:
Organizational Design refers to the overall operating model and defines licensing needs, product offering, reporting relationships, leadership, channel staffing, resource coverage, and key member referral and fulfillment processes.
Compensation Design has a material effect on Advisor behavior and as such the compensation drivers should promote the conduct and activities that are important to the overall business strategy. Variable pay measures typically include some combination of growth, member acquisition, retention, professionalism, education, revenue, and profitability.
Performance Management provides definition and structure to business planning, (including key performance indicators, goal setting, and activity management), accountabilities and objectives, performance reviews, and ongoing coaching and mentoring. Reporting supports the process by measuring and reporting on these various performance metrics, as well as overall business results. Effective reporting should also provide leadership with a clear picture of absolute and relative performance, as well identify areas of opportunity and/or concern, in a timely fashion.
Technology can be a material contributor to Advisor effectiveness, leading to enhanced Member interactions, efficient sales fulfillment, and simplified practice management oversight. Technology considerations include imbedded discovery and fulfillment software, mobile capability, social media presence, CRM functionality, and referral tracking solutions.
For further information on any of this material, or support in validating your wealth management infrastructure, please contact us.