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Author Deena Katz knows the business of financial practice inside and out, yet still presents highly detailed information in a clear, concise manner. Even industry specifics are made coherent for readers who may be looking for a financial planner but are not one themselves. For a book that covers such in-depth subjects, On Practice Management is compact, flows logically from topic to topic, and is well organized into five distinct sections.
The Business
Section one, "The Business," concentrates on a practice's core values, mission, vision, business design, contingency and succession. Here Katz states in no uncertain terms that core values are the heart and soul of any practice. Her descriptions are full of both passion and humor. She uses movie scenes and in-law stories to relate topics such as the historical development of financial planning as a career. Entertaining as it is, this section is the book's most important because it forces the reader to evaluate his or her own reasons for entering the profession. The People
Section two, "The People," tackles the problems and benefits of adding a partner, discusses the key to staff structure and emphasizes the importance of recruiting. Here, we get down to the brass tacks -- the importance of people to a successful practice. Only people can execute a mission, live by values and generate a vision. However, people also make mistakes, which is why Katz devised the legendary Turkey Award in her own office. This section also includes a segment on how to build successful teams and leaders. The Environment
Section three, "The Environment," seamlessly describes how hardware, software and systems can help make a business responsive, profitable and efficient. People make it happen but they need tools. In this section, Katz also advises that the individuals who will use the technology be included in the technology selection process. She also tackles a common question, "What type of hardware and software do I need?" Detailed commentary is provided for practically every application that the financial adviser might use, including both hardware and software. Everything from portfolio analysis and typical scheduling/contact programs to PalmPilot backup and anti-virus software -- even Internet connection, scanners and jukebox CDs -- is addressed in this section. Katz does a good job of matching product names to the actual needs of a practice. The information here gives professionals who haven't yet taken full advantage of technological tools the confidence and intelligence to know where to start when making these types of purchase decisions.
The Growing
Section four, "The Growing," entails the necessity of killing the sacred cow, establishing and maintaining public relations and nurturing a practice through its transition period. Katz clearly advises that if your actions are not profitable and do not provide a positive experience, change or stop doing them. Concurrently, she stresses the importance of managing the client relationship, not just their portfolio. As for the media, she advises, navigate carefully and the business can enjoy dynamic growth. It's also in this section that Katz addresses the dreaded issue of charging fees -- what type to charge, how to change a fee structure and, most importantly, how to approach clients with these changes. The Client
The book's last section, "The Client," states the importance of acquiring and retaining as well as hiring, firing and refusing clients. Katz suggests that planners be brutally honest with themselves about current or potential clients. Is a client difficult? Does he or she just not want to listen? Or do you just not enjoy working with this client? Then get rid of them. To drive this point home Katz even quotes children's literature by Laura Joffe Numeroff, "If you give a mouse a cookie, he's going to ask for a glass of milk." She makes a valid point that much grief can be avoided -- and desirable clients retained -- if the client's expectations can be managed. "Serve a customer at any cost? No!" Katz states, in a firm tone that motivates the reader to learn more. Her book gives clear, no-bones-about-it replies to sensitive questions that every adviser finds him or herself asking at some time or another: "How do I fire a client?" and "What is an appropriate manner to refuse a client?" But this section's focus is not entirely on weeding out bad clients. It addresses typical client acquisition and retention issues in detail, as well.
On Practice Management's only weakness is its abrupt ending. The last chapter "Gotta-Have-It Resources" lists complete contact information for software companies as well as relevant courses and Web sites. The chapter is all-inclusive but is still a rather jolting, mid-sentence way of ending such a narrative book. A concise summary of resources, possibly incorporating a checklist as the final chapter, may have provided a more complementary ending.
Summary
With this book, Katz provides the reader with not only an informative and enjoyable reading experience but also a reference that any financial adviser can use throughout an entire career. Not only financial advisers but also anyone using a financial adviser can gain the necessary knowledge to make informed decisions by reading On Practice Management.  292 pages
Copyright 1999 by Deena Katz Published by Bloomberg Press $35.00 Please send your comments, questions and article proposals to information@smartpros.com.
2000, Smartpros Ltd. All Rights Reserved.
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