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Practice Made Perfect
Book

Practice Made Perfect

The Discipline of Business Management for Financial Advisers

Mark C. Tibergien and Rebecca Pomering
Bloomberg Press, 2005
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Editorial Rating

7

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Recommendation

A well-engineered and reliable kitchen appliance, say a toaster oven or a blender, has a certain functional beauty, and so does this book. Authors Mark C. Tibergien and Rebecca Pomering specifically target and serve financial advisers who own consulting firms. Based on their decades of consulting experience, the authors offer sound advice designed to protect - or deliver - any small financial service firm from a fiscal crisis. In the course of doing so, they debunk several myths, such as the notion that you can simply sell your way out of poor financial performance, or that most small firms don’t need to borrow to pay for their operations. With an appendix chock full of helpful tools, such as a cash-flow calculator, a sample financial statement and a practice-management assessment questionnaire, this is a useful book for any small consultancy. getAbstract.com strongly recommends this book to financial advisers who know the value of good advice.

Summary

It’s a Wonder You Don’t Blunder

If you don’t understand how "wonder, blunder, thunder and plunder" relate to managing your business as a financial adviser, chances are you’re missing the big picture. That’s because these terms describe the typical life cycle of the average financial advising firm. Determining where your firm is in this cycle will help you establish your priorities:

  • Wonder - You begin wide-eyed with excitement. You’ll consider anyone with a pulse as a potential client. You have few assets, little cash and a disproportionate although healthy degree of enthusiasm.
  • Blunder - You’re attracting clients, but your firm’s rapid growth is a big challenge. You and any other advisers you’ve hired are working long hours, frequently in crisis mode, being reactive rather than taking the initiative. The firm’s income is increasing, but cash flow may actually drop due to the need to reinvest in equipment and technology. Your advisers seem too busy to give individual attention to clients.
  • Thunder - Your advisers have matured and grown more disciplined. They produce income for themselves at higher levels and the client base is more productive.

About the Authors

Mark C. Tibergien is partner in charge of the business consulting group and principal of the accounting group at Moss Adams LLP in Seattle, where Rebecca Pomering is also a principal. Tibergien, who delivers 50 to 60 addresses annually, was president of Management Advisory Services prior to its merger with Moss Adams in 1994. Pomering specializes in management consulting, including compensation, strategic planning and financial advisory practice management.

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