Tracking Your Good Work

The world of financial planning software has seen some major changes since I started my career back in the early 2000s. Even though we've come a long way in terms of digital planning, there's one important concept we often overlook: keeping track of the planning process. Having a way for both advisors and clients to easily access the history of this process is a game-changer in the world of financial planning. In this short post, we'll chat about why tracking is so important in financial planning, how it benefits advisors and clients, and what the future might have in store for this essential feature.

Think of history as the roadmap to achieving the clients overarching financial goals. When we track the planning process, we're essentially creating a detailed history of how we got from point A to point B. Additionally, professional advice includes the need for the clients to understand points C & D, and why B is the better option.? This history isn't just for record-keeping; it's a valuable tool that offers insights, accountability, and empowerment.? Of course, many tools play a role, but planning software plays a very special one.

For advisors, tracking provides a way to see the evolution of a financial plan. It's not just about the end result; it's about understanding how we got there. Tracking allows advisors to review and refine their strategies based on what has worked in the past, ultimately leading to better recommendations for their clients.

Tracking is an Action-Planning Attitude

To effectively track the financial planning process, we need specificity. The more detailed and specific the planning elements and recommendations, the more comprehensive the tracking can be. Tracking extends beyond just the end result; it delves into the advisor's recommendations, the expert-level work invested in the process, and every step taken along the way.

By tracking all these intricate details, financial advisors can showcase their expertise to clients in an engaging and transparent manner. It's not merely about providing a financial plan; it's about making the process accessible and accountable to clients, fostering trust, and empowering them to actively participate in their financial journey.

Tracking is also a catalyst for client engagement and instilling a profound sense of ownership in their financial journey. When clients have easy access to the history of their financial plan, they become active participants in the process. They can witness the evolution of their goals and financial strategies, making them feel more connected to their financial future. This engagement translates into a heightened sense of ownership, where clients are not merely recipients of advice but co-creators of their financial destiny. As tracking technology continues to advance, it will play an increasingly pivotal role in strengthening the bond between advisors and clients

Tracking is missing in today's digital experience?

Traditionally, the planning experience lacked tracking, which came with its own set of downsides. Advisors had no easy way to track how a plan was built and engaged. They couldn't monitor their own progress, nor that of their colleagues. Clients were often left in the dark regarding how their plans were formulated and engaged, missing out on the transparency they deserve in their fiduciary relationships.? Most importantly, lack of tracking encourages advisors to not empower their clients with access and play, which is a must for the next generation.??

In 2023, the absence of comprehensive tracking in financial planning highlights the industry's lag in adapting to changing expectations and technology. Compliance departments often struggle to keep up with the intricacies of plan building due to the limitations of available software as an example.? The same could be said for the regulatory bodies.? They are limited in expectations because the technology isn’t completely there yet.? All the ways a software needs to be? easy to engage are not present to make history something easy to follow.? Not putting an emphasis on history delays regulatory confidence, which makes language vague, which leads to the darkside of the force. One might wonder why there isn't more trackability built into planning technology. The answer, unfortunately, may be a lack of enthusiasm for accountability.?

What Should be Tracked

Tracking will emerge as a cornerstone for ensuring transparency, accountability, and ultimately, success. However, the challenge lies in striking the right balance between tracking enough to glean valuable insights and not inundating the process with unnecessary noise. To navigate this delicate equilibrium, we'll explore the key elements that should be tracked at a minimum in the modern digital experience:

1.Current Plan Inputs

The current financial plan represents the touchstone for advice and strategic decision-making. Tracking every addition, alteration, or deletion within this plan becomes essential in the digital age. Not only does it provide a historical record of how the plan has evolved, but it also offers a clear audit trail, allowing advisors and clients to understand who made what changes and precisely when these adjustments occurred.

2.Recommendations

Transparency in financial planning hinges on the ability to track recommendations. It's akin to having a permanent record of the financial wisdom dispensed, fostering trust between advisors and clients.

3.Access Given & Used

In today's collaborative financial planning landscape, understanding who has access to clients' sensitive information is imperative. Traditional planning software often falls short in facilitating robust collaboration.? However, advisors will want to grant third-party team members access for various reasons. This makes it even more critical to keep a watchful eye on who has access and how it's being utilized, ensuring that the integrity of the planning process remains intact.

4.Other Scenarios

Beyond the current financial plan and recommendations, tracking additional scenarios is equally imperative. Clients benefit from gaining insights into the diverse possibilities considered during the planning process. Neglecting to track these alternative scenarios not only limits accountability but also deprives clients of a holistic understanding of their financial journey, potentially hindering informed decision-making. Advisors shouldn’t need to track every scenario they create, but only the ones clients engage.? Therefore, tracking is a crucial facet of the modern financial planning experience, promoting transparency and empowering clients to make well-informed choices.

What Is Good Tracking Design?

Tracking in today's financial planning applications often feels like a deserted outpost hidden deep within the software's labyrinth. It's a feature that's not easily accessible, requiring users to navigate through a maze of menus and options. Moreover, even when you manage to reach it, the user experience is akin to biting into a bland saltine cracker—lacking the engagement and appeal that would make it genuinely useful for the average client.

To rectify this issue, an effective tracking system should possess two key qualities. First, it should be easily accessible, seamlessly integrated into the planning software, eliminating the need for users to engage in convoluted and time-consuming reporting processes. The goal is to make tracking as effortless as possible, ensuring that both advisors and clients can readily access the information they need. Second, client engagement is paramount. The tracking system should be designed with clients in mind, offering an interface that is intuitive, visually appealing, and easy to navigate. A timeline format, supplemented by filtering options for events and time, can transform tracking into an engaging and interactive experience, allowing clients to explore the history of their financial plan effortlessly.

The Future of Tracking

Looking ahead to the future of financial planning, we can anticipate significant advancements in tracking across several pivotal domains. Firstly, the results of decisions will take center stage. Transparency remains important, not only for clients but also for compliance departments and regulators. Stakeholders should have the ability to pinpoint a precise moment in history and gain insights into how the client perceived the plan's results at that time, promoting transparency and accountability.

Secondly, the integration of execution tracking into planning software is on the horizon. While financial planning primarily involves creating recommendations, the future promises software that can also execute these recommendations. As we move forward, planning software is expected to incorporate features that enable users to track the execution of recommendations seamlessly. This evolution will revolutionize communication between advisors and clients, providing an efficient means to monitor the progress of implementation comprehensively, ensuring that everyone involved stays informed.

In a third future dimension of tracking, historical data is harnessed as a dynamic source of metrics that not only enhances visibility and transparency for all stakeholders but also seamlessly integrates into Business Intelligence systems favored by large institutions. This transformational approach ensures that the wealth of information generated within the financial planning process becomes a valuable asset. Clients benefit from a clearer and more interactive understanding of their financial journey, while advisors gain improved tools for decision-making. Meanwhile, large institutions leverage this trove of data to distill insights and best practices from the collective experiences of their advisors, ultimately fostering continuous learning and refinement in the financial advisory landscape.

Conclusion

The role of tracking in planning software cannot be overstated. It represents a fundamental shift in how clients interact with their financial plans and how advisors ensure accountability and transparency. By embracing robust tracking systems and making them accessible to all everybody involved, we can empower clients, enhance trust, and move the industry forward into a brighter, more accountable future.? It's only common sense to foster accountability and ensure that financial planning isn't a one-time event but an ongoing journey. So, let's embrace tracking as a powerful tool that brings clarity and transparency to the world of financial planning, benefiting both advisors and clients on their path to financial success.

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