The most successful RIAs are confidently starting their new year with a strategic plan that honors their values and purpose. The latest research validates that this best practice correlates with success. Specifically, the 2024 RIA Benchmarking Study from Charles Schwab revealed that 82% of top-performing firms–those ranking in the upper 20% of the Firm Performance Index, a holistic assessment of RIA performance across key areas—have a written strategic plan.
While strategic planning’s shared benefits are largely universal, the process can vary by firm. RIAs seeking inspiration for customizing their planning efforts might find value in reviewing 10 McKinsey Frameworks for Effective Strategic Planning.
Strategic Planning Basics
The fundamentals of a solid strategy are long-term vision, core values and purpose (or reason for existence). Many firms also have a mission statement that sets the stage for how they will fulfill their strategy.
As a best practice, firms should strive to incorporate all voices, enterprise-wide, to gain buy-in and maintain alignment toward strategic plan execution.
Establishing Goals
S.M.A.R.T. goals—characterized by being specific, measurable, achievable, relevant and time-bound—provide a structured framework to define, prioritize and achieve key objectives within a set timeframe. They can help keep team members focused on what’s most important.
One way to approach goal planning is to identify desired five-year outcomes and break them down into one-year and quarterly goals, supported by key performance indicators to measure progress. Assigning specific leaders accountability for these KPIs further enhances the likelihood of success.
The practical application of S.M.A.R.T. goals allows firms to break down their strategic vision into achievable, measurable steps. Below are examples of well-defined goals:
- Increase new client acquisition. Aim to add 10% more clients over the next 12 months by establishing clear monthly targets for lead generation and onboarding processes.
- Deepen client relationships. Create comprehensive financial plans for 75% of clients within six months, ensuring alignment with lifestyle milestones to address emerging opportunities.
- Expand outreach organically. Require each advisor to meet with at least five beneficiaries, trustees or family members annually, seeking to identify potential wealth transfer opportunities.
- Measure satisfaction. Implement semiannual client surveys aimed at achieving a minimum 85% satisfaction score—and develop a plan to address any areas of concern within three months.
- Optimize technology. Conduct a comprehensive system audit by year-end, evaluating existing tools’ effectiveness in capturing behavioral insights. Use findings to prioritize improvements or investments within six months.
Identifying Gaps
Uncovering and addressing hidden challenges is important for paving a smooth path to success. By proactively identifying potential obstacles, firms can implement strategies to strengthen their operations and drive better outcomes.
Here are some considerations that might warrant attention:
- Review partner offerings. Evaluate each partner’s track record for consistently delivering on their promises, especially those intended to support the RIA’s specific goals.
- Explore innovations. Assess the tech platform’s ability to deliver the latest functionalities, such as artificial intelligence-propelled solutions. Also consider the system’s data capture abilities required for segmenting clients by key attributes like age demo and behavioral tendencies.
- Analyze staffing opportunities. Identify any needed training, certifications or human resource adjustments.
Deploying Tactics
Strategically deploying targeted tactics is how a well-crafted plan moves from concept to execution. These actionable steps ensure that progress is measurable and aligned with the firm’s broader strategic objectives.
The following are a few relevant tactical examples:
- Engage in networking. Attend industry conferences and leverage LinkedIn to build brand recognition to support new client acquisition efforts.
- Schedule check-ins. Meet with clients regularly to track personal or family life events such as marriage, divorce, illness, death, birth, graduation, early retirement, job change, etc.
- Involve family members. Plan events such as annual gatherings with beneficiaries, trustees or next-generation to foster client retention and build long-term wealth transfer strategies that honor shared values/financial goals.
- Optimize tech platform. Run a tech audit to identify strengths and weaknesses of existing technology and invest in upgrades or new systems that will effectively support strategic and tactical efforts.
Measuring the Results
The final phase of the process aims to track progress towards meeting the established goals. Regular assessment of successes and shortfalls—ideally at the end of each quarter—provides an invaluable opportunity to measure how well the strategy is performing in real time. This consistent review process allows firms to identify trends, address challenges and make necessary adjustments to stay aligned with their objectives. Moreover, it fosters a culture of accountability by ensuring that every team member remains engaged and committed to delivering on their responsibilities.
Bringing it all Together
Strategic planning is not a one-time activity but an ongoing commitment to methodically aligning an RIA’s goals with its core values and purpose. Creating a single-page snapshot of five-year, one-year and quarterly goals, KPIs and firm values is an effective way to maintain focus on the strategic plan.
Regardless of the framework an RIA elects to follow, a well-defined plan can expose gaps and reveal the best path toward addressing its unique goals. RIAs that commit to regular strategic planning can stay ahead of the curve by identifying opportunities and implementing customized tactics that support their long-term vision. A thoughtful strategy today sets the stage for a RIA’s success tomorrow.
Terri Kallsen CFP, Managing Partner at Rise Growth Partners, a synergistic RIA partner committed to building the next generation of lighthouse brands in wealth management.
