It was TFS's fourth attempt at the title and during the past year principal Danny Maher immersed himself in bettering his practice using tips from previous winners and finalists.
There were four repeat finalists in the top six, one new entrant and one that had broken into the top six list for the first time. The 2008 competition was by far the biggest held in terms of nominated practices, with more than 300 throwing their hats into the ring.
The assessment process began with all practices undertaking the HealthCheck diagnostic online self-assessment and receiving a 'health' rating. Visits and interviews with the top practices are then undertaken.
Final judgments are made by the panel comprising FPA chief executive Jo-Anne Bloch, Association of Financial Advisers chief executive Richard Klipin, Paragem compliance manager Michael Rowles, 2006 IFA Best Practice Genesis practice manager Michelle Flanagan and me.
The businesses varied from city-based to rural-based, self-licensed to institutionally-licensed, and businesses employing more than 10 staff to those employing fewer than 10. Half of the finalists also had dedicated practice managers.
The repeat entrants had improved their businesses since they last entered.
For example, Australian Private Capital principal Michael Tratt has worked on his succession plan since he last entered in 2006, hiring a senior adviser who would be taking equity. Tratt has also worked on finessing his paperless office's technology.
The 20-year-old business has also increased its communication with clients after it received feedback from the Business Health Catscan report that it was below average. It is now at the top of the tree for communication. Tratt's business is investment focused and the managed portfolios offered go back 20 years, with data available to clients to see how the portfolios had outperformed the index through all market cycles, including downturns.
Paul Carroll's WB Financial St Leonards practice was the first ever winner to renominate for the award. Since last year he has spoken to many other practices on how his practice won - which included his innovative 'pod' structure. This year he has made more enhancements to the business, including introducing a 'client concierge' to reception. He has also spilled the blood of succession with the divestment of equity in the business to staff. And there are plans for further enhancements next year.
As much as competing for the top award, Carroll says it is the process that appeals to him. However, internally it is the feedback winning the award provides for the staff that is most rewarding, he says.
Maher says key to him was that he could learn from other finalists how they run their business and since last year he has adopted a similar 'pod' structure to WB Financial.
This year, he says he has really striven to become the pre-eminent provider of advice in north Queensland. He has expanded the business and it continues to grow despite the market gyrations.
He says he still sees more that needs to be done in the business, including focusing on soft skills for advisers. "We see a lot of people that have the right qualifications but not the soft skills," he says.
RMG has struggled through a tough time with the ill health of one of its principals. However, principal Patrick Canion says this has made them focus on 'sprezzatura' - the art of making something look very easy when it is actually very difficult. "We have been through more in the past 12 months than most businesses go through in a generation and we have come through better and closer without ever compromising on the quality of advice for clients," Canion says.
Menico Tuck, the second of two Cairns-based practices in the top six, entered the competition last year but just missed out on a place in the final group. Jo Tuck says entering has helped with the progression of their business. "We were healthy; now we're super fit," Tuck says.
"You underestimate yourself and what we've learned is we're doing pretty well."
Eureka Financial Group was a new entrant in the competition and has been focused on rebranding with the hire of a business coach and the institution of more formal business processes.
IFA hopes Eureka and the other finalists will keep striving to become better practices and looks forward to seeing it and other excellent practices in the competition next year.
Fourth-time lucky
Cairns-based TFS has won the 2008 Best Practice Awards after being a finalist in the previous three years.
TFS principal Danny Maher believes this year the practice was closer to achieving its vision.
"We've always said that our vision is to be the pre-eminent provider of financial advice in far north Queensland," Maher says.
"To a large extent, I think we're almost there."
Becoming a top regional financial advisory firm is about being recognised in the broader professional community and by clients, he says.
"We are continually developing relationships with like-minded professionals, not just in the accounting or legal professions, but also in non-traditional areas as well," he says.
"For example, we are currently doing some work with a psychologist around preparing people for retirement.
"It is these relationships that helps make us top of mind and keep us top of mind when our business partners are asked for a referral to a financial planner."
Since the 2007 awards, TFS has grown in a number of ways, including by acquisition.
It acquired a single practitioner firm with about $25 million in funds under advice earlier in the year and the integration is complete.
Also, not being part of a dealer group has seen the firm employ the services of a professional marketing group to develop marketing collateral and to assist with the further development of the business profile, Maher says.
"They have got a very deep understanding of our business," he says.
"It's not just brochures and things; we do a weekly radio segment and we get fairly good press coverage. There is properly coordinated advertising and client communications; it's not just a shotgun approach."
TFS has also retained its corporate structure and businesses plans are still tracked against results every month, he says.
"This is the cornerstone of our success," he says.
"Our corporate structure allows us to recognise what each stakeholder in the business requires and we build our processes around this.
"Clients want personalised advice and reliable outcomes, staff want to work in an environment where they are valued and recognised for their contribution and shareholders want a return on their investment.
"Some businesses are too reliant upon one or two people and this can hinder the growth of the business, its service quality and delivery and the general workplace environment."
The group also has an operational plan for the next 12 months and a strategic plan that looks five years out, he says.
TFS is different from its peers because of the quality and stability of its team, he says.
"We seek to be an employer of choice and to consistently recognise the people in the business who contribute to our success," he says.
TFS offers staff monetary bonuses and non-monetary recognition. These include remuneration that rivals capital city planning businesses, extra leave and flexible working hours.
Despite 2008's woeful market conditions, TFS has managed to grow due to a disciplined approach, Maher says.
"It is business as usual for us," he says.
"Our forward planning allows us to adapt pretty quickly to market conditions, particularly with respect to client communication. As a result we have seen referrals continue to come from clients and business partners."
TFS has also introduced an in-house training program that helps boost advisers' soft skills.
"Across the profession there are a lot of people that are academically and technically very good, but they lack the soft skills or bedside manner. To address this we have developed an in-house program that runs over a 12-month period for new advisers," Maher says.
The course teaches listening skills, identifying client needs that may not be verbalised by the client and conversation techniques.
"Developing a financial plan for someone is more about a relationship; it's not just about filling out a fact finder and developing strategies," Maher says.
Being based in Cairns is an advantage, he says.
"Firstly, expenses are not as high as you would expect in a metropolitan area, which is always good for the bottom line, but the real value comes from being able to engage more actively with the local community and contribute to the broader success of the region," he says.
"Being a regional business also has its challenges though, particularly with respect to recruitment."
TFS has also been actively involved with the FPA both locally and nationally over the year. Two of the TFS team are on the Cairns chapter committee, while Maher sits on the FPA's board committee for membership and marketing.
"The FPA is doing a great job in the face of some very trying conditions," Maher says.
"There are some very committed people at all levels of the FPA and I think the broader advice community should applaud the work that is being done."
Maher has always been a strong supporter of the body, as he said last year: "I think it's the responsibility of any leading practice to actually get in there, contribute and support be it the FPA or AFA [Association of Financial Advisers], because without grassroots membership support and input, things aren't going to get changed."
Back for a second helping
It is clear WB Financial has not rested on its laurels since winning last year's IFA Best Practice Awards.
The St Leonards, Sydney-based practice has had quite a busy year executing various initiatives, such as the first step of its business succession plan, according to WB Financial principal Paul Carroll.
"We now have four key staff members as shareholders in the business," Carroll says.
"Since doing this I've noticed a big difference in their approach to the business in that they now think as business owners, not as employees and this has raised a number of positive situations.
"There's a lot more proactivity by key staff with regards to things we could be doing and should be doing, and the implementation of a number of things within the business is as a result of that."
WB Financial has also set a precedent by being the first past winner to be nominated as a finalist again, an achievement he says is a result of various attributes that set the practice apart from others.
"First and foremost is our business model; it's very sustainable," he says.
"This is predominantly a fee-based business and at times like this when investment values are down, a fee-based business is obviously protected from the revenue fall.
"In a market where financial planning businesses revenue is falling, ours is actually increasing, which is a reflection of our business model."
Another area the practice excels at is the whole the client experience, he says.
"This is a very client-centric business and the client is at the centre of everything we do," he says.
For example, he says this year the firm conducted an extensive survey of its client base.
"The client responses have led to changes being made in the business, especially to our process of viewing client performance," he says.
"We also told our clients what their feedback was in the client survey and what we were doing about it, which certainly raised our credibility further in the eyes of our clients in the sense that it just wasn't lip service."
Along with being a client-centric business, he points out the practice is also very staff-focused.
"We have for our staff very clearly defined career paths and we engage in a lot of development of staff," he says.
"Our culture is very much one of training and developing young people and providing a very clear career path for them to grow and develop as professional financial planners.
"We're great believers of having the right people on the bus and bringing them onto the bus at the very start of their career journey as a financial planner."
For Carroll, the best part of being a financial adviser is the initial client meeting.
"I love that whole opportunity to meet and build from scratch a rapport, and through that rapport eventual trust with a prospective client," he says.
"If I was to let go of everything as a financial planner, that's the one thing that I wouldn't want to let go of because it is about relationship building.
"As we say here, first and foremost we're in the relationship-building business before the financial advising business; if we didn't have the ability and the soft skills required to win the prospective clients' confidence at the outset, our financial planning skills don't get a chance to be seen and tested anyway.
"So that relationship building in the first part of the discover meeting is so important and it's the bit that I just get a great buzz out of."
His passion for client communication and how it is conducted is perhaps a testament to his background as a teacher, which has consequently led the firm to have a strategic relationship with this group.
"I started this business with a view to reaching out to the teaching profession because I could relate to their financial circumstances and plight," he says.
"By doing that I was able to have a very natural connection with that part of the marketplace, so the greatest occupational incidence in our client base is school teachers.
"But these days through client referrals we work across a whole cross section of occupations as a result of our clients introducing us to people in other occupations over the years."
He admits targeting this niche group has in turn contributed to the success of his practice.
"I don't think we should underestimate the part that it has played in the development of the business," he says.
"Once a teacher becomes a client they're very loyal and they're great advocates because they appreciate the differences that we make to their lives.
"As we say, we make significant differences to people's lives through helping them make smart decisions about their money, and school teachers are a group that really appreciate the ability to think smarter about their circumstances."
Running a tight ship
Cairns seems to be a breeding ground for successful financial planning businesses. This year's list of six finalists for the IFA Best Practice Awards contains two firms from the north Queensland city, the same number as last year.
Menico Tuck Financial Services principal Jo Tuck attributes this to the communal spirit and the tendency of the city's financial planning firms to exchange information with each other.
"There is a benefit of being in a regional area; financial planners here are very supportive of each other," Tuck says.
Although Cairns has a population of less than 125,000, there is no ferocious competition over clients, Anthony Menico, the firm's other principal, says.
"We very rarely come across each other's clients. If we do, we probably just send them back where they came from," Menico says.
Technological development has also done much for regional practices. The improved access to information that stems from it has given planners more flexibility in where they set up shop.
"The standard of advice is as good here as at any major city," Menico says.
He is in no doubt he belongs among this year's finalists.
"We are small, but that does add back to the bottom line. We run a pretty lean business," he says.
The firm was built on the foundations laid down by John Menico, Anthony's father. He was an agent for Prudential and built a life insurance business that serviced the rural areas between Townsville and Cairns.
When Anthony returned to Cairns after stints in corporate super, funds management and the energy industry, he found his father was ready to exit the practice.
"He was basically semi-retired when I came back. I built that business back up," he says.
The business' heritage has resulted in many intergenerational clients, he says.
"Our relationships with some clients go probably back three generations," he says.
The practice took its current shape in 2000, when he bought a small practice that was part of the Financial Wisdom group. He found Tuck was instrumental in running this practice and offered her to become a business partner.
A photo of the All Blacks rugby union team on Tuck's office wall gives away the fact she is from New Zealand. She was planning to go to the United Kingdom, but her partner convinced her to come to Australia first. "I thought, 'okay, we'll just go for a short while', and, of course, that was in 1988," she says.
Tuck and Menico found they shared a philosophy of building relationships with clients through a personal approach, which they call 'reciprocal care'. "We are very upfront with our clients. We tell them that our first duty is to take care of our families and the way we do that is by caring for our clients," Tuck says.
To establish good communication with clients she sometimes shares personal experiences. "You have to have a very open line of communication to be able to do this job effectively," she says.
Menico adds: "We are a one-on-one type of practice. You treat your clients as a family member. Just about every schoolmate's mother is a client of ours and I treat them like they were my own mother. I think if you use that philosophy you can't go wrong."
The two principals are also passionate about financial education and are part of the FPA's DollarSmart campaign. They go to schools and give children advice on what they can do with extra money they may have, but also tell them about the dangers of credit card fraud and debt from mobile phone contracts.
Tuck has also gone out of her way to work as part of the FPA regulatory committee on simplifying statement of advice documentation.
All this has taken some time out of the business, but in the end they feel it has paid off and raised their profile within the industry. "We have basically built the business up ourselves and when you put your head down and work hard you can achieve a great job," Tuck says.
But their success hasn't tempted them to expand into the country's larger cities.
"I didn't like the hustle and bustle of Sydney; I prefer the lifestyle in Cairns so we can run a reasonable practice here, provide a professional service, and still have a little bit of lifestyle and family enjoyment. It's a bit of play as well as work," Menico says.
In his spare time he likes to work with his son on a 1967 Ford Mustang Fastback. He chuckles when asked whether the vintage car is a good investment. "With the way the dollar has moved, it has held its value," he says.
Ever supportive, Tuck adds the car provides a good return for the rest of the team. "He is very happy when he talks about his car," she says.
Two heads are better than one
Australian Private Capital (APC) stands out from its industry competitors practices because its clients are serviced by a whole team, not just a single adviser.
"Two team members will sit in on every client meeting and we will rotate these team members every time a client comes in," APC principal Michael Tratt says.
Having a team of just six, including Tratt's wife, Marie, gives clients a chance to know all staff, for staff to become familiar with different client situations and for clients to benefit from a broader range of expertise.
"Each team member brings something different to the table, so by getting a collective input we ensure the best result for the client," Tratt says.
Established in 1988, much of APC's success is based on every decision, idea and strategy being a team effort, with the two-heads-are-better-than-one theory apparent in all operations.
"We are a self-licensed, fee-for-service practice, so business decisions rest only with us, which is why we are so diligent in what we do," Tratt says.
"Team members are privy to all information, everyone is involved in decision-making processes and we revise all forms of outgoing communications as a team.
"This way we not only get six different perspectives, everyone gets a big picture view of the business and is able to improve their management, interpersonal and technical skills."
Client input is also highly valued by the APC team.
"We complete an annual survey each year to find out what areas we're performing well in and where clients feel we could be doing better," Tratt says.
"This gives clients an opportunity to tell us how they feel and us the chance to show them that we value their opinions."
After each survey is complete, APC writes to clients advising them what the survey figures revealed and what actions the team will put in place.
"Client feedback has always been positive, but since introducing a regular survey it is now even better, with 94 per cent saying they'd refer APC to family and friends," Tratt says.
Generating the majority of their referrals through word of mouth, the team has also begun to expand its client base of under 40s.
"The majority of our clients are over 40 and they are now referring their children," Tratt says.
"As nice as it is to be assessed positively by the industry, it's even greater to have this good assessment and referral rate by clients."
Schools and community groups also benefit from team activities, with ACP donating time and money to mentor students when they are not busy participating in their own industry-specific education courses, which are paid for by APC.
Communications is another aspect of the business APC views as crucial.
With the state of the current market, communications are more important than ever before, Tratt says.
"Over the past 12 months APC team members have stepped up the frequency of how often we get in touch, to ensure clients don't lose confidence," he says.
This includes newsletters, which are now being sent out monthly.
APC keeps its clients informed via phone, email, its website, biannual newsletters, client events, which comprise industry speakers, and e-newsletters, which can be sent to all clients or segmented groups.
"We try to take note which form of communication different clients respond best to and also if they like financial evidence to be included, such as graphs and spreadsheets," Tratt says.
"Our software enables us to do a lot and it's particularly useful in keeping us in touch with our overseas clients, who make up about 15 per cent of our client base."
It also keeps the team organised through automated reminders of when reviews are due as well as enabling staff to pull up files, notes and tasks attached to each client's profile.
"This lets anyone in the team view anything in a client interview that was discussed or actioned and the reasons why," Tratt says.
Overseas for much of last year, he says leading technology works wonders, although being ahead of the game doesn't revolve only around technological advancements.
"Before we prepare for a review, we ask clients to check the information that we're holding on them to ensure we have the most up-to-date information," he says.
Looking ahead, APC plans to form a joint venture with another chartered accounting practice and build on its already strong network of referrers.
"One of my colleagues will also become a co-owner in the business at the end of the year," Tratt says.
Succession planning is critical to give clients a reliable future and the business longevity, he says.
"ACP's ability to continually re-engineer itself to suit market conditions and client needs is something we've always done well, and a big part of why we've been such a successful small business for 20 years," he says.
Eagles flying high
Patrick Canion is a chipper fellow whose Texan drawl sneaks out now and then over his adopted Australian accent.
The American, now principal with Perth-based financial advisory firm rmg financial services (rmgfs), moved to Australia with his family when he was 11.
Canion is very candid when we speak.
Much has changed in the past 12 months since rmgfs was named as a finalist in the 2007 IFA Best Practice Awards. This year marks the firm's third appearance as a finalist.
The firm has undergone staff changes as well as a revamp of its business model.
The most notable change to the company is the decision to target small to medium enterprise (SME) owners, accountants and lawyers as well as its bread-and-butter market of pre-retirees and retirees.
"Historically our target market was pre-retirees and retires and we were very successful in that regard," Canion says.
"But about three or four years ago we could see with both the legislative environment being simplified and the number of investment options broadening for those people and most importantly probably our own professional interests was that we should restructure our business to focus on SME owners and professional partners - so accountants and lawyers."
The business restructure is what Canion and his practice partner, John Donald, call an evolution rather than a revolution.
"We have made it [the restructure] for our new business, but you know I think it's a never-ending process because it's a different market to our retiree market and we can't compromise with those people. We still get referrals from people in that area but it is really an evolution rather than a revolution," Canion says.
"Our business is structured to add value to people who are looking for a deep relationship with their adviser, but that sometimes takes time to develop so often we'll engage people who may just want to use us for our expertise and a particular transaction, but we'll still engage with them if we can see the potential to move towards that sort of relationship over time."
As well as a restructure of its business model, rmgfs is undergoing a number of staff changes.
"We're revaluating that even right now. We have had a bit of change in the last year of our business," Canion says.
"We have four advisers and previously we'd use the 'finder minder' sort of model but I think increasingly we're going to move to a more hybrid advice model."
The re-evalution of the business model comes after the departure of principal adviser Dave Stone, who left the group earlier this year for personal reasons. Rmgfs' founding principal, Robert Stone, also departed the firm in 2007 due to illness.
Yet despite the departures acting as detrimental blows for rmgfs, the firm has steadied itself and pushed ahead.
A positive outcome from the situation has been rmgfs' structure of its advisers.
"So what we look to have is that every client has a primary adviser in their relationship but that adviser isn't necessarily the person who first won them as a client to the business," Canion says.
Another change the firm has made to its adviser structure is to pair a client with two advisers. The reasoning behind this move is so that every client has two advisers familiar with their circumstances.
"What that means is in these relationships it is not just a case of a cookie-cutter thing where we win the client, close the business and hand them onto a service adviser," Canion says.
The firm's new adviser structure could not have come at a better time for its clients, with many of them left very unsettled by this year's market downturn.
"What was hardest from a business point of view was seeing how upset some of our clients were and their emotional reaction to it and how despite great planning and moderation it nevertheless affects their life plans," Canion says.
"It's in financial difficult times when advisers prove their value. Yes, we're working a lot harder, yes we're making a lot less money - for our retiree clients our fees are still tied to the value of their accounts - but we're helping change people's lives. What an honour."
The market downturn has also prompted rmgfs to increase the internal communication between advisers and the firm's dealer group, Charter Financial Planning.
"We've increased our adviser meetings. We get together every week and talk through the week's events and what our attitude is to that and what is our house view on clients so we're all on the same page," Canion says.
"We probably started it about four months ago. What we're doing though is that we've been building and developing the services that we offer to our clients, so we're doing some training on the structure of the advice, so we have a connection with some lawyers so we're able to do online wills, because so often we would be referring people to go and get their will done and you'll see them a year later and they still haven't got it done."
Rmgfs has been tied to Charter Financial Planning as part of ipac's equity partner program since 2002.
"What it has allowed us to do is access the resources of a tremendous advice firm and all the intellectual property and share thoughts and ideas with their broader equity partner community, but at the same time retain our boutique approach," Canion says.
"Clients love it that we have our succession plan taken care of and that we have a big firm like ipac on our balance sheet because it gives them some certainty and it's quite a good endorsement actually."
This is the third year in a row rmgfs has been named a finalist in the IFA Best Practice Awards.
Eureka, there's gold in them hills
When asked to name its ideal celebrity client, the staff at Eureka Financial Group selected Russell Crowe.
The question was formulated by the practice's business coach, who has been working with the financial planning business over the past three years to help them improve the structure and operation of the firm.
"We're primarily financial planning practitioners, not business management experts," Eureka Financial Group principal Greg Cook says when asked why the services of a business coach were sought.
And while Crowe may have been an unattainable target, the process enabled the firm to identify who should make up its client base in reality.
"We got through to two types of ideal client - pre-retirees, as in baby boomers, and retirees . but I guess the most common characteristic is the small business owner," Cook says.
Apart from recognising the type of client Eureka should service, the coaching process also allowed the identification of the practice's best clients. This in turn allowed Cook and fellow principal Andrew Jones to single out this group for a range of higher-quality advisory services.
The elite clients are known as Archimedes clients and Eureka uses funds under advice and fees generated as criteria for qualification into the group.
"Archimedes clients get quarterly reporting and at least six monthly meetings and we've done a lot more ad hoc reviews in the last few months," Cook says.
"With things like estate planning a specialist legal adviser will sit in on that meeting . and we even arrange client functions, so we had Craig James from CommSec a few weeks ago, amidst all of the turmoil, to present to about 30 clients."
Jones says: "They also get things like extension of services to family members . so you might have a brother or a sister or a sibling where on their own they wouldn't qualify f
