Clear KPIs a key adviser motivator: report

A new report released by business coaching firm Elixir Consulting highlights the need for clarity and context around adviser KPIs.

The inaugural Adviser Remuneration Report, which examined effective remuneration packages used by 12 practices, found that 90 per cent of those practices share business figures with their advisory team and use a range of statistics as part of their adviser KPIs.

“Lead indicators such as number of appointments, conversion percentages, new clients, new activity from existing clients, client reviews and SOA pipeline were tracked,” the report found.

“Many had built reports in their financial planning software to get data, or used a combination of Outlook calendars, revenue data and purpose built Excel spreadsheets to capture and track the information required. Some practices had purchased specific programs to assist with tracking the data.”


According to the report, those using this “in-depth level of communication” found it contributed greatly towards their advisers’ understanding of how their work contributes to the business as a whole and motivates them to achieve more for both their clients and the business.

However, the report cautioned that the way these numbers are presented to advisers will impact their use as an effective practice management tool.

“The downside to this model can be that some staff can take the figures out of context and just see large numbers,” the report said.

“They are either not motivated by them or they just become so overwhelmed by what might be a seemingly mammoth and impossible task.”

The report said practices should share targets, both financial and otherwise, and track performance against these to provide context.

“Sharing your business metrics with the team can have a really positive effect, but before doing so for the first time it is important that you think about how these are going to be received,” the report said.

“Also consider which team members see which information – will your advisers see each others’ results or only their own and the company as a whole?”

Clear KPIs a key adviser motivator: report
Sue Viskovic, Elixir Consulting, KPI, SOA, adviser KPI, practice management, financial advice practice, business coaching, Adviser Remuneration Report
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