The pursuit of operational efficiency in financial advice has traditionally focused on technology adoption or outsourcing. However, data from the 2024 Australian Financial Advice Landscape Report reveals a more nuanced story - the most successful practices have not just adopted technology but have fundamentally reimagined their operations around efficiency from the ground up, setting a new standard for the industry.
"For thirty years, financial planners received excellent education about superannuation legislation and client engagement - but nobody taught us how to run a small business," notes Mark Lewin, Founder of Back Office Hero. This gap in business operations knowledge has led to a significant disparity in practice performance, with data showing tech-savvy practices operating with 55% fewer staff while maintaining high service standards.
Back Office Hero, led by Founder Mark Lewin, helps financial advice practices shift from operating as simple practices to systematic businesses. With 25 years of experience, Lewin recently launched the online course "Mastering Systems in a Financial Planning Business," teaching practices to implement efficient systems using documented procedures, templates, and checklists.
This approach blends practice management consulting with practical tools like data analysis frameworks and value calculators. "We guide people from merely owning a practice to establishing a business that can function independently of their CEO," says Lewin.
The numbers from the Landscape Report are compelling - practices using digital solutions for efficiency show average profit margins between 24-40%, while those without digital solutions average just 14-20%. These digitally-enabled practices aren't just more profitable - they're more resilient, being 2.1 times more likely to achieve profit margins above 30% and reporting 36% higher revenue per client. However, technology alone isn't the answer. The highest-performing practices are those that design their entire operation around efficiency, implementing technology within a carefully designed system rather than simply digitising existing processes.
"Most financial planners work 50 hours a week," Lewin reflects. "And if they tell you they don't, they're probably fibbing to you." Yet some practices are breaking this cycle by reimagining how they deliver advice.
Consider client qualification, which is traditionally a time-consuming process often handled by senior advisers. "The phone rings, and it's a prospect," Lewin explains. "Efficiency says stop having the $300-per-hour adviser doing initial qualification. Have your receptionist send a Calendly link with a built-in mini fact find. She then works it into the practice ideal client calculator and says, 'This prospect is not ideal for our business; it’s not in their best interest to engage us' or 'This is the ideal client for our practice. You've got to call this client back.'"
This systematic approach to operational efficiency extends throughout the practice. Leading firms implement quality control at every step. "We build quality control questions into the practice procedures," notes Lewin. Their outsource partners can't send anything back unless they checked it, and their office manager has signed off that they checked it." This systematic approach ensures that every aspect of the business is designed for maximum efficiency.
Data Management Excellence
At the heart of efficient practices lies robust data management. "A common example," Lewin explains, "your client's name is Christopher. But only his mother calls him Christopher. He wants to be called Chris. If you don't put Chris in the preferred name field, the annual review produced by the offshored team in the Philippines says Christopher. Well, he doesn't want to see that, he's told you he prefers to be called Chris." This attention to data quality extends throughout the practice. Leading firms implement regular data audits, gap analysis, and cleaning protocols.
The technology stack supporting these redesigned processes is substantial. The data shows that 74% of practices now use integrated tech stacks, up from 71% last year. The most common components include:
Adoption rates of integrated tech stack components
However, only some practices are like this. "We go into financial planning practices and virtually write the system for them," Lewin notes. "But it's frustrating because we can give them two or three written procedures and then say, 'now, you've got a month to write the next procedure.' And, of course, they're too busy, and it doesn't get done." Without written procedures, the best technology stack doesn't help a practice be more efficient; in fact, it will likely be the opposite.
Process Integration
The most successful practices don't just digitalise existing processes but reimagine them entirely. For instance, Lewin describes how meeting preparation has evolved: "Using [Microsoft] Teams for meetings, Teams already gives you a written transcript. You can prompt Copilot, and prompting is another art form, but it will take that transcript and populate the template of your perfect file note."
This systematic approach extends to every client touchpoint. Lewin reflected on his own advice practice experience. "A client once said to me, 'Mark, whenever I go to my accountant, I've got to sit in the waiting room and wait. I have to wait whenever I go to my doctor, dentist or lawyer. When I come here, you guys are sitting in the boardroom waiting for me.'" This was because they had implemented a protocol requiring advisers to be in the boardroom fifteen minutes before every client meeting.
The Benefits of a Documented Process
There is a reason successful franchise businesses focus on repeatable processes. This focus on designed efficiency delivers measurable results. One practice Lewin worked with increased their sales valuation from 2.0 times recurring revenue to 2.96 times in just thirteen months by implementing systematic improvements after investing a tenth of this increase. His own practice sold at 3.35 times recurring revenue versus the industry standard of 2.5 times.
Achieving Higher Practice Sale
For practices looking to redesign their operations for efficiency, Lewin suggests starting with documentation. "You've got to lock the front doors for three days, turn off the mobile phones and say to everyone, 'get out the procedures, get out the templates. We're going to improve them.'"
While this might seem extreme, the investment pays off. Practices with comprehensive documented systems report:
- 36% higher revenue per client
- 24% faster advice delivery
- 42% reduction in compliance-related tasks
All of this leaves more time and ability for the professional to be a professional, knowing that the documented process ensures everything else is systematically looked after in the business.
The Path Forward
The message is clear for practices serious about improvement: start with intentional design, build robust systems, and then leverage technology to enhance and scale those systems. The result isn't just a more profitable practice - it's a more sustainable and enjoyable one. This forward-thinking approach to change should enlighten financial planners about the potential for growth in the industry.
More importantly, it creates the capacity to serve more clients effectively. With only 10.4% of Australians currently receiving financial advice, practices that can deliver efficient, high-quality service are well-positioned for growth. As Lewin notes, "There has never been a better time to be a financial planner or own a financial planning practice." This sentiment is backed up in the first article in this series by AZ-NGA CEO Paul Barrett.
The revolution in practice efficiency isn't just about working smarter - it's about fundamentally reimagining how financial advice practices can deliver advice. Those practices that embrace this challenge by investing in systems and processes that scale will be best positioned to capitalise on the growing demand for financial advice while maintaining sustainable, profitable operations.
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