The Characteristics of Top-Performing Advice Practices

Research from Elixir Consulting, supported by Vital Business Partners (VBP), has identified six key traits shared by high-performing advice businesses based on EBIT margins:

1. Healthy Culture – Valued, motivated employees create a positive environment, driving engagement and long-term performance.
2. Dedicated Practice Manager – Separating leadership and operational management allows principals to focus on strategy and advice delivery.
3. Documented Processes – Clearly defined, tested, and repeatable workflows improve efficiency and reduce risk.
4. Outsourced Tasks – Delegating administrative and paraplanning duties, often offshore, frees advisers to focus on clients.
5. Use of Managed Discretionary Accounts – These investment vehicles save time, improving operational efficiency.
6. External Business Coaching – Firms leveraging coaching report higher EBIT, benefiting from guidance on growth and strategy.

Lana Clark, author of the report, emphasizes that operational excellence not just recruitment or scale is a key driver of growth:

“Advisers can enhance client service, build a strong culture and mitigate risk by driving operational improvements.”

Sue Viskovic, head of consulting at VBP, highlights the importance of documenting processes:

“Fully tested and thoroughly documented processes are a critical step, if not an absolute must, to successfully streamlining and automating business operations.”

The research underscores that strategic use of outsourcing, strong leadership structures, and coaching support can materially improve profitability and position advice firms for sustainable growth.

This article first appeared on the Money Management website.