Higher Wealth Team Credit Production Performance

Strategic Credit Solutions  

 

How many times have you seen a chart like the one below?

Probably, your answer is something like, "more than I can count."  It seems as though every consulting firm brings some variation of it to the table when suggesting the best approach to the Private Wealth market.  Oh, the terminology is always somewhat different (advisor vs. manager or wealth vs. banking) and the chart may contain bubbles for additional professional disciplines but the concept holds true in most every presentation.  I completely agree with the concept and approach . . . as far as it goes.  Over the past 20 years, as most banks have adopted some variation of this, both the client families and the banks have clearly benefited from the greatly enhanced and better coordinated financial advice the approach creates.

Image by Mark S. Johnson 

 Teams that perform at high levels must meet regularly to discuss  their clients' financial activities and the multitude of ways their collective professional advice could provide Economic Benefit.   And, while the consultants' charts always seems to indicate the professional interaction always runs through the Client/Wealth/Family Advisor, the highest performing teams go beyond that basic approach.  While communication and coordination is one the concept's key attribute, each of the team's professionals is an expert in his/her field and with their deep expertise comes the ability to recognize those Client Behaviors that indicate an alternative approach to the client's planned activity that should be explored.  The trick is how to help each professional recognize an opportunity in another professional's area of expertise.   As you might have already surmised from the red bubble in my chart the focus here is on Credit Opportunity recognition. 

It is the Credit Advisor's responsibility to make sure the other team members are aware of the client financial activities in each professional's sphere of influence where the use  of a Strategic Credit Facility might provide the client family with significant and measurable Economic Benefit.  (I've added my red back and forth arrows to the chart to reflect how information flow between the various professionals should augment the consultants' traditional flows between the Client/Family/Wealth Advisor and the team). Each professional, over time, will observe Client Behaviors that indicate an alternative solution involving a Strategic Credit Facility could provide the client and their family with Economic Benefit.  Recognition of those behaviors by the professional that is in the position to observe them is the key.  For example, the Credit Advisor should make sure that:

1.  the team's Investment Advisor knows that a client request for asset liquidation and/or cash distribution to fund a private equity investment indicates economic benefit potential enhanaced yields from the use of a Strategic Credit facility

2.  the team's Insurance Advisor knows that a client considering the purchase of a "wealth replacement" high dollar insurance policy, to be owned in a ILIT, indicates economic benefit potential in gift tax avoidance/deferral and enhanced investment yields from the use of a Strategic Credit facility

3. the team's Trust Advisor knows that clients who use or are considering the use of GRATs to accomplish the generational transfer of wealth (appreciated publicly traded stock with volatility) could "insure" GRAT success through the use of a Strategic Credit facility

4. the team's Estate/Tax/Financial Planner knows that clients can accomplish significant economic benefit from estate tax saving through the use of a Strategic Credit facility

These are but a few of the possibilities. I refer you to my previous post called "Observable Client Behaviors (OCBs) on July 13, 2015 or my blog at: strategiccreditsolutions@blogspot.com for more detail.

Obviously, this interactive approach must work in multiple directions among all the team's professionals to reach the highest level of success.  My experience indicates that consistent reinforcement is required to reach and maintain optimal levels. Team meetings dedicated to professional education led by the appropriate teammate seem to work best once all team members buy into the concept.   The result is simple; more opportunities in every team member's area of professional expertise are recognized.  Certainly, all opportunities don't result in an "at bat," but their recognition definitely leads to higher levels of production and increased client economic benefit fulfillment.

If you would like to discuss this concept further or how Strategic Credit solutions could help your Wealth Team achieve its highest potential Credit Sales please don't hesitate contacting me.

Your "likes, "shares" and "comments" are welcomed and appreciated.

Mark S. Johnson
Strategic Credit Solutions

404.909.5167

@creditstrategic

mark.johnson@strategiccredit.com

 

 

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