Operations & Technology
BLOG POSTS PUBLISHED SINCE INCEPTION
Get Your Organic Growth Process In Order Before Pursuing M&A
The registered investment advisor industry continues to report declining organic growth numbers, with many firms struggling to see gains above that of the stock market. With the allure of an...
Unlocking Growth: The Power of Process
Having left large bureaucratic institutions that “manage to the lowest common denominator,” many RIA owners are reluctant to institute systems and processes because they feel by doing so, they will...
A Strategic Approach to Asset Splitting Among RIA Custodians
Various industry surveys over the years have indicated that the larger an RIA gets, the more likely they are to leverage the services of more than one custodian. Over my 27 years in wealth...
How to Conduct a Technology
Assessment at Your RIA
Advisors tout the need to regularly review a client’s financial plan to ensure the portfolio is tracking in the right direction, to confirm the client’s goals have not changed, and to see if...
Importance of Documented Processes
in an Operations Manual
The goal of every RIA operations professional is to add efficiency and scalability to their organization. Said differently, we want to find a way to serve more and more clients without our level of...
Use The Summer Slowdown
To Conduct a Fee Audit
Many RIAs look to tackle operational projects during the summer months, when inbound client requests inevitably slow down due to travel plans and family vacations. With one more month left in the...
Is More Diligence Needed, Or Are
You Simply Stalling a Decision?
Members of The COO Society often hear me say, “Choosing technology tools for your RIA is relatively easy (there aren’t that many technology tools to choose from!) but building processes around those...
Key Questions to Ask Your
Tech Vendor re: Integration
“Integration” has become the key factor for RIAs as they build out their tech stack. Some firms will choose an all-in-one platform that provides all components of the technology back office under...
Advisors: Focus on Clients,
Not Data Entry (Trading)
As an RIA grows and more and more specialized roles begin to take shape across the organizational chart, advisors will gladly hand over the burdens associated with tasks such as employee onboarding,...
The Myth
of Outsourcing
Regardless of the nature of the task you are looking to outsource, there will always be components that will remain the responsibility of your internal team. As the RIA industry continues to grow...
Growing RIAs Must Focus on
‘Process,’ Not Technology
It is much less disruptive to take the time and train everyone on existing software tools than it is to convert to an entirely new system that requires you to transfer data along the way. RIA owners...
Checklist for Evaluating
Outsourced RIA Vendors
The SEC recently proposed a new rule offering further guidance on the due diligence process expected of RIAs when they are evaluating third party vendors used in their regular course of business....
Evaluating Employees the EOS Way:
Get it, Want It, Capacity to Do It?
Many of the guests on our COO Roundtable podcast, as well as several of our RIA clients, run their businesses on the Entrepreneurial Operating System (“EOS”), made famous in Gino Wickman’s book,...
Client Onboarding: You Can Never
Make A Second First Impression
We are often contacted by RIAs that ask us to perform an assessment of their technology, their processes, and their people. Typically, we’ll start that analysis by asking the firm’s owners to...
Cover Letters Are Crucial
To the Hiring Process
At RIAs, they’re an indispensable way to find out more about potential hires than what’s just on a resume. While scrolling through LinkedIn recently, I came across a headline, “Recruiter shreds...
Understanding the Power
of a COO
It goes well beyond being able to reboot the router. Regular listeners to our COO Roundtable podcast have heard me make the claim many times that the average RIA owner drastically...
7-Point Checklist: Initial Setup
of Performance Reporting Tool
If you are a newly-launched RIA setting up your performance reporting tool for the very first time, or if you have acquired another firm and need to transfer and configure their data from their...
It’s Official! Client
Niche Drives Growth
Knowing exactly who are you trying to serve has benefits beyond just marketing. Speaking at an industry conference earlier this month, Mark Tibergien stated, “Firms that have a niche or technical...
Calendly is Technology That
Humans Aren’t Ready For…
I am fully prepared to take some heat for this article, as there are many financial advisors who tout Calendly as the most innovative tool they’ve added to their tech stack in several years, but as...
The Definition of “Productive” is
Different In-Office vs. At-Home
Over the last few weeks, more and more RIAs have been heading back to the office workspace. For some this has meant returning to the office fulltime, for many others, the return has marked the...
Operations Has a
Branding Problem
Don't be gaslit into believing that operations should take a subordinate role to sales and relationship management. As many of our loyal listeners know, one of my favorite topics to discuss on...
What Will Be the RIA Industry’s
“Nirvana Moment?”
I think we all will remember March 17, 2020, and the fear it brought for all of our businesses. Would the market hold up? Would our employees be able to service clients while working from home? ...
Adding to Your Team? Consider a
Performance Reporting Analyst
It seems that every RIA reported record growth in both 2020 and 2021, and accordingly, every RIA is looking to add members to their team to help support the additional clients. Many firms are...
The Power Of
A Fee Audit
While no one likes having to conduct an internal audit, it is imperative that RIAs confirm (on a regular basis) that the fee rates written on their client contracts match those loaded in their...
Compliance Manual as
RIA Operations Manual
Collaboration between compliance and operations is key. When PFI Advisors is hired to perform an Operational Diagnostic of an RIA, one of the important components of our assessment is a review of...
The Added Importance of CRM
Tech in a Post-COVID-19 World
Advisors are learning that their CRM doesn’t only help them keep track of clients, but of their employees, too. In a pre-COVID-19 world, due to its ability to track client relationships and...
To Centralize or Not
To Centralize Trading?
Division of labor is wildly important if you are looking to grow and scale your business. Operationally speaking, it is the goal of every RIA to free up their advisors to focus solely on clients and...
RIAs That Excel at Technology
Do Not Look Like Tech Firms
Technology should be used to enhance the advisor-client relationship but should never stand between the advisor and the client. I had the privilege of participating in Dimensional Fund Advisor’s...
Vendors & Consultants Can’t
Do The Push-Ups For You
One of the most popular articles we’ve ever written was titled ‘Integratable’ Does Not Mean ‘Integrated,’ But There’s Hope. The reason it resonated with so many readers is because advisors are...
How Should an RIA
Rate Its COO?
A COO's role differs with each firm. That makes evaluating their performance all the more complex. During my recent interview with Lisa Cook of Pacific Portfolio Consulting and Erica Farber of...
Top 5 Mistakes Buyers Make
When Integrating Acquisitions
These are the ways buyers and sellers commonly fall short when combining firms. 2020 was another banner year for M&A activity in the RIA industry, and while deal makers continue to build on the...
How 2021 Will
Differ From 2020
Regardless of what the pandemic will bring, or not bring, in 2021, the wealth management industry has been changed forever. Everyone is excited to turn the page on 2020. With several recent...
With or Without a Pandemic,
Employee Onboarding Can be Tricky
Your revenue-generating employees are just as important, if not more important, than your revenue-paying clients. Make sure they know that starting on their first day. Much has been written and...
Identify Your Ideal Client Before
You Determine Your Tech Stack
Until an advisor can identify who they are serving and how they want to serve them, they cannot begin to build out a proper technology stack. We are often contacted by breakaway advisors...
Adapting Advisory Teams To A
Hybrid Office/Home Workplace
Matt was honored to partner with Stacey McKinnon, COO of Morton Capital, for this guest article on Kitces.com. Matt and Stacey reflect on the shift in workplace environment caused by the COVID-19...
Thinking of Selling? Focus on
Profits Before Hiring a Banker…
With RIA M&A activity at a frenzied pace, much has been written about how to best value an RIA business. Typically, a multiple is applied to either revenue or cash flow (profits). In...
Use the Summer Slowdown to Assess
Your Post-COVID Tech Policies
Every year, we recommend RIA leaders take time over the summer, when things inevitably slow down a bit, to take stock of not only their technology stack, but their policies, procedures, and various...
The Path to RIA Ownership
Through the Operations Channel
The RIA industry has always done a good job detailing the career path for those aspiring to become financial advisors and ultimately owners in their business. In fact, the Center of Financial...
Will COVID-19 Change
The Way We Work Forever?
While some RIAs were caught flat-footed when widespread stay-at-home orders were instituted across the country in March, most have reported a “better than expected” experience as clients have...
Reporting Technology
for RIAs
When wirehouse or IBD advisors look to launch their own firm, the main question on their minds is, “How will I recreate the products and services I’ve always offered my clients throughout my career,...
The Importance of Reporting
Provider Technology for RIAs
PFI Advisors (“Promoting Financial Independence”) announced today the release of a new industry report (the ninth in its continuing educational series) on reporting provider technology available to...
Silver Linings: Using Crisis to
Improve Your RIA’s Health
This article is being published a bit early, I realize that. When you go to the doctor with clogged sinuses, a splitting headache, and body aches like you’ve never had, you just want some...
Pivoting Quickly To A
“Work From Home” Model
With the coronavirus pandemic triggering widespread quarantines, many advisory firms are implementing measures to set up their operations as a Work-From-Home (WFH) environment. We partnered with...
Why Every RIA
Needs a Data Analyst
From social media giants to your local grocery store, these days everyone is looking to gather and use client data to run their businesses better— and your RIA should be no exception. Any RIA not...
Client Portal:
Build or Buy?
RIA publications and the conference circuit are filled with articles and breakout sessions titled, “The Digitization of Advice” or “The Amazon and Netflix Effect on Our Industry” – all…
Operational Excellence
Drives Sales Growth
There is a friction that commonly exists within many organizations, and it occurs between the sales department and the back-office operations department. Both feel underappreciated by the...
Mark Tibergien Provides RIA COOs
6 Metrics to Define Their Value
I had the distinct pleasure of interviewing Mark Tibergien and Karen Novak of BNY Mellon Pershing, Advisor Solutions for Episode 12 of our podcast, The COO Roundtable. One of the main goals of the...
Post-Merger Integration:
“Yes” is Nothing Without “How”
In his book on negotiation, “Never Split the Difference,” former FBI hostage negotiator Chris Voss states that, “’Yes’ is nothing without ‘How.’” Voss, who made a living brokering some of the...
CCOs Help Drive Growth
at RIAs (Really!)
PFI Advisors continues to tout the benefits of professional management for RIAs. As Rich Gill of Wealth Partners Capital Group recently stated on the Mindy Diamond on Independence podcast, the...
High Tech vs. High Touch: What
Are Clients Really Asking For?
Technology isn't developed to replace human interaction, but rather to enhance it. At the Envestnet conference this past May, the late Jud Bergman was asked about his thoughts around technology’s...
The Fear of Change, Part 2:
The Emotions of New Technology
The Fear of Change: A 3-Part Series for RIAs As the RIA industry matures, consolidates, grows, and evolves, many of our clients contemplate M&A transactions, changing their technologies or...
RIAs Are Struggling with Too Much
Technology, Not Too Little
The objection we hear most often from prospective clients (delivered in a sarcastic tone) is, “I don’t want to hire an operations and technology consultant. Not only do I have to…
Integratable ≠ Integrated
But there is hope
In our work with new and established RIAs looking to build and/or improve their technology stack, we encounter many frustrated advisors who lament, “We were told that the benefit of being an RIA was...
Where to Start When
Developing Workflows
In our work with large RIAs looking to increase their scale and efficiency, we often begin with a review of their various systems, people, and processes. We walk through…
Don’t Charge for Reporting
On Outside Assets
Advisors looking to grow their business must constantly grapple with client acquisition costs. As advisors struggle to differentiate themselves and the services they offer, many have concluded that...
Book Review: The Financial Advisor M&A Guidebook
PFI Advisors has written a lot around the operational side of M&A, and how important it is for firms to think through not only deal structure and valuation, but the planning process around...
Why is an Ops & Tech Consultant Writing About Client Segmentation?
Anders Jones of Facet Wealth recently wrote that as RIAs approach the elusive $1 billion AUM milestone, they need to be increasingly cognizant of their profit margins and resources needed to service...
The 3 Most Common Technology Headaches RIAs Face
Technology reporter Ryan Neal’s recent article offered a refreshing (and interesting) perspective of problems RIAs often face with their technology suite of systems. He provided an...
A Different Kind of #GivingTuesday Campaign
PFI Advisors will be participating in this year’s #GivingTuesday in a very meaningful way. Any RIA that donates $10,000 or more to the Children’s Hospital Los Angeles donation page of...
Five Questions to Ask About Your Technology Infrastructure
RIAs regularly review their clients’ financial goals and portfolios. They should also service themselves with the same care and consistency with an internal review of their technology...
Dual-Contract SMAs vs. Single-Contract SMAs
The most common question we receive from breakaway advisors is, “If I start an RIA, how do I recreate the products and services I’ve always had available to me during my career in the wirehouse?”...
“M&A Through the
Operational Lens”
We have been long-time proponents of the notion that RIAs need top tier technology infrastructure to support growth through M&A. Many would-be Buyers mistakenly think…
3 Requirements for Successful Project Management
As an operations and technology consulting firm that works with both breakaway advisors and existing RIAs in growth mode, we have become adept at project management and the importance of maintaining...
Mark Tibergien’s Latest Book Could Put RIA Consultants Out of Business
As a consultant to both breakaway advisors and RIAs, some may question my title to this article, and others may question my timing, as “The Enduring Advisory Firm: How to Serve Your Clients More...
“Between Now and Success” Podcast, a Discuss on RIA Technology
With the accelerating pace of technological change, how can you be sure you are making the right technology choices? What should your tech stack look like? One of the biggest changes in the...
You already have all the tools to beat robos. Here’s how.
When meeting with advisers in their offices, I often hear, “The average age of our client base is 67 years old. We know the statistics — 90% of children fire their parent’s adviser. We are scared to...