Financial advice firms are being urged to review how their businesses are structured, with new research highlighting operational design as a critical driver of sustainable growth.
A white paper by Lana Clark and Sue Viskovic, consultants at Vital Business Partners, produced in partnership with Zurich Financial Services Australia, argues that firms combining clear structures, disciplined processes, and strong leadership are pulling ahead.
The report – Optimum Operating Models for Advice Firms – warns that efficiency alone is no longer enough in an environment where capacity constraints are intensifying.
“Firms are being asked to do more with less,” the authors note, pointing to a shrinking adviser workforce – half what it was 10 years ago – and growing regulatory complexity. In response, leading firms are focusing on scalable, sustainable operating models that deliver consistent client outcomes.
The paper outlines key benchmarks associated with high-performing firms, including:
- EBIT margins of 35% to 40%
- Staff and client satisfaction scores above 90%
- Annual revenue of more than $1m for each adviser
The paper states successful firms are targeting employee cost ratios below 45% and reducing turnaround times for new client work to under 35 days.
Operational efficiency extends into advice delivery, with leading firms completing simple review preparation in under 30 minutes and tightly managing meeting times.
Drawing on research from VBP and Dimensional Fund Advisors, the report finds high-performing firms typically employ around three support staff per adviser, although the report’s authors write this ratio is expected to fall as automation tools become more widely used.
The future of advice belongs to firms that build strong operational foundations…
The paper states most firms are moving toward hybrid operating models that blend centralised functions with adviser-aligned client relationships. However, the report warns that poor execution risks creating bottlenecks rather than solving them.
At the same time, capacity has emerged as the sector’s defining constraint. With demand for advice exceeding supply, firms are under pressure to lift adviser productivity without compromising compliance or client experience.
This, states the report, has made capacity planning a priority, with leading firms redesigning workflows, redistributing tasks, and integrating technology.
Practice Manager
The research also highlights the growing importance of dedicated operational leadership, adding that the appointment of a practice manager is a key inflection point, signalling a shift toward structured, scalable business models.
These roles typically oversee:
- Workflow
- Staff performance
- Capacity planning
- Technology implementation
- Reporting
The report concludes that high-performing firms achieve results through carefully planned design rather than incremental change. Core building blocks include clear role definitions, documented workflows, measurable service standards, and a strong operating rhythm.
“The future of advice belongs to firms that build strong operational foundations and lead with structure, not effort,” the authors say.
Essential building blocks for advice firms:
- Clear role design & delegation
- Documented, fit-for-purpose process and workflows
- Service standards & consistency
- Structured & transparent work allocation
- Capacity & business visibility
- Deliberate operating rhythm
- Technology & smart automation
- Embedded & empowered teams
- Client service as DNA
- Leadership that leans in
