TCA Technology and Six Sigma Expertise Improves Advisor Efficiency

Posted by Mark Piquette on November 4, 2013

As an RIA, it’s easy to get slowed down by inefficient trading and back office details. What’s more difficult is to determine how to eliminate those inefficiencies in order to deliver greater value to clients and maximize returns to the bottom line.

That’s a problem Mike Lover loves to tackle. As Vice President of Process Improvement, Mike is TCA’s efficiency guru, a Lean Six Sigma Black Belt who is bringing process improvements to TCA and its RIA customers. Mike recently spoke with Diana Britton about Lean Six Sigma and what it means for advisors for an article on WealthManagement.com.

To the uninitiated, Lean Six Sigma is a powerful, proven method of improving business efficiency and effectiveness that focuses on several key principles, including:

  • Focus on the customer
  • Identify and understand how the work gets done today (process mapping)
  • Remove Non-Value-Added steps and waste
  • Utilize data and reduce variation
  • Involve the people in the development of the new process
  • Be systematic. Take steps to Define, Measure, Analyze, Improve, and Control the process

During the recent TCA webinar, "Advisor Efficiency Research Results," Mike presented his research on the potential for process and technological improvements to help advisors become more efficient. TCA had three goals in conducting the research:

  • Understand the ratio of back-office staffing levels to assets under custody (AUC) and the number of accounts managed
  • Categorize how the TCA technology is being used
  • Gather data on best practices as well as marketing and sales practices

The data were divided into four ranges of AUC, summarized in the table below:

As an RIA, it’s easy to get slowed down by inefficient trading and back office details. What’s more difficult is to determine how to eliminate those inefficiencies in order to deliver greater value to clients and maximize returns to the bottom line.

That’s a problem Mike Lover loves to tackle. As Vice President of Process Improvement, Mike is TCA’s efficiency guru, a Lean Six Sigma Black Belt who is bringing process improvements to TCA and its RIA customers.

To the uninitiated, Lean Six Sigma is a powerful, proven method of improving business efficiency and effectiveness that focuses on several key principles, including:

  • Focus on the customer
  • Identify and understand how the work gets done today (process mapping)
  • Remove Non-Value-Added steps and waste
  • Utilize data and reduce variation
  • Involve the people in the development of the new process
  • Be systematic. Take steps to Define, Measure, Analyze, Improve, and Control the process

During the recent TCA webinar, "Advisor Efficiency Research Results," Mike presented his research on the potential for process and technological improvements to help advisors become more efficient. TCA had three goals in conducting the research:

  • Understand the ratio of back-office staffing levels to assets under custody (AUC) and the number of accounts managed
  • Categorize how the TCA technology is being used
  • Gather data on best practices as well as marketing and sales practices

The data were divided into four ranges of AUC, summarized in the table below:

At the lowest AUC range ($20 million-$49 million), firms are transitioning from managing models in Excel to managing models on the TCA platform—with great results. They’re reducing the time required for model-processing from six hours to about 20 minutes. Advisers at these smaller firms also use the platform to process management fees, moving manual steps and 3rd party providers along the way.

As assets under custody increase, advisors benefit even more from the efficiency of the TCA platform thanks to stronger economies of scale and the ability to execute best practices, such as building a robust online presence and developing an integrated marketing plan.
One of the advantages of this added efficiency is that back-office staff can rededicate some of their time to better support the firm through other valuable activities, such as wowing current clients and helping the sales team generate new business leads.

To learn more about the benefits of TCA’s technology—and to understand the best practices for each AUC category—watch Mike’s webinar, Advisor Efficiency Research Results.

Featured article on WealthManagement.com - The Art of Process Improvement by Diana Britton

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