Key Performance Indicators

Key Performance Indicators

Recruit 2 Advice - Key Performance Indicators - Financial Planner
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Are KPI’s useful and how should you use them in your practice?

Key Performance Indicators are a useful tool to monitor performance levels and also drive behaviours as part of a broader HR Strategy. We take a quick look at the role of KPI’s in your HR strategy.

Maintaining high performance standards in your Financial Planning practice is important. When integrated into the business’ balanced scorecard they add another tool for effectively achieving practice objectives.

We are regularly asked questions from clients about performance and behaviours when recruiting Financial Planners into a business. This often leads to a broader discussion about current practices in the business.

Research indicates most successful practices have a formal HR strategy that includes job descriptions, performance indicators, and a regular structured employee review process. Effective tools to monitor and manage performance and overall success in achieving the practice objectives, year in year out.

How to Use Key Performance Indicators

Used appropriately Key Performance Indicators should provide a valuable tool for both employees and management – not as a big stick. We recommend:

  • Employees should have visibility of the KPI’s prior to commencing in their role
  • Quarterly reviews to discuss progress and tweak activity
  • Annual reviews to assess overall achievement of the KPI’s and objectives of the role
  • Objective discussion and AGREED KPI’s for the next year or period

(Good management will assess results to identify strengths/weaknesses and thus areas of development / learning opportunities)

  • KPI’s integrated into overall business Balanced Scorecard

The last point reflects the fact KPI’s tend to focus on financial performance, whereas the balanced scorecard will also include customer focus, learning focus, behaviours focus.

An effective HR Strategy will use all of these areas to weight performance and modify and drive behaviours across the entire practice.

Download the PDF template to review some suggested KPI’s for Financial Planners.

Key Performance Indicators - Financial Planner - PDF

Using Key Performance Indicators to grow the practice can be a very successful path, if the ducks are lined up correctly, everyone’s on the same page and the numbers make sense. You may also be interested in reading a related article on - 5 Tips for recruiting Financial Planners

Are you considering growing the practice but haven’t the best path to take yet. In another related article we examine a few employment options to help you decide the best direction, and grow your financial planning practice. Grow your Financial Planning practice

Good luck to everyone on the journey to building your business.

Please contact us if you have any questions or would like to discuss any aspect of your business. We have been supporting the Financial Planning industry for over 20 years, providing growth tips and assistance, recruiting and providing HR support services.

If you need a Position Description for Financial Planning follow the link to this page – IFA Recruitment

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