SOURCE: FiComm Partners

FiComm Partners

August 26, 2015 12:00 ET

Kaleido Identifies Rapidly Declining Profitability, Failure to Prepare for Downturn as #1 Independent Financial Advisory Firm Threat in New Whitepaper

SAN DIEGO, CA--(Marketwired - August 26, 2015) -

  • Kaleido Scope™ tool aggregates and analyzes ongoing stream of data from RIA firms, identifying growth inhibitors and trends impacting the industry at large, in real-time
  • Market downturn identified as tremendous opportunity for advisory firms vs. robo-advisors, and other threats to profit margins
  • Kaleido developed the X-Cell program™, a step-by-step process for independent advisory firm owners to identify the DNA of their business and to use it to build a unique advisory firm

Kaleido Inc., a practice growth agency serving independent financial advisory firms, has released a white paper entitled "X-Cell: The New Frontier of Advisory Client Service," identifying growth inhibitors and other trends affecting the independent advisory community, as well as focused, tangible solutions. The paper focuses on how advisors can fend off recent threats to their profit margins and expands upon the principals' views that advisors need to be well positioned for the inevitable market downturn -- which may have kicked off in earnest over the last week.

Through their innovative Kaleido Scope™ tool, Kaleido assesses how a financial advisory firm's business compares to "well run" firms based on six key practice management areas. The tool assesses a series of 163 statements, graded on a points system, which results in a Kaleido Score™ between 0 and 100. The Kaleido team cross checks for accuracy, then reviews results in depth, keeping in mind what they know of the firm, in order to achieve the most accurate Kaleido Score™.

With an average of 3-10 assessments completed weekly, Kaleido is able to aggregate data from well-established RIAs on an ongoing basis, resulting in a snapshot of industry trends in real-time.

"Kaleido's goal is to help advisory firms achieve transformational growth," says Angie Herbers, Co-Founder, Kaleido. "The Kaleido Scope™ tool has allowed us to spot trends in the financial advisory space as they happen and develop solutions so our clients may respond to them quickly."

The latest industry trends as measured by the Kaleido Scope™ tool, as of August 24, 2015 show a positive increase in client retention rates, along with a decrease in client referrals, lower prospect close ratios and, most prevalent, a rapid decline in firm profit margins.

Kaleido attributes these disturbing trends to a misguided industry emphasis on client segmentation. In fact the paper calls traditional client segmentation a roadblock to the modern era of client service and a hindrance to growth for the advisor of the future. Instead of segmenting clients by asset size, account size, or other identifying characteristics, firms will better combat the competition and address growing threats by creating a unique service offering for its client base and a consistent client experience.

The newly released white paper walks independent advisors through Kaleido's signature X-Cell™ Process, by which they identify the unique value proposition of a financial advisory firm and zero in on it, allowing the firm to differentiate itself in the small yet populous independent financial advisory space.

"Traditional client segmentation is hurting advisory businesses, and our data and professional experience proves that. The X-Cell™ Process detailed in this white paper is a four-step process that instead guides independent advisory owners toward the creation of a unique service offering for their client base," says Kristen Luke, Co-Founder, Kaleido. "It is only when advisory firms are able articulate their unique DNA, internally and externally, that thy are able to stand out within an increasingly competitive business environment."

To read the whitepaper in its entirety, which outlines exactly what independent RIAs can do to separate themselves in an increasingly crowded field, please visit:

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About Kaleido, Inc.
Kaleido is a practice growth agency that helps independent financial advisory firms break through growth barriers. Through our proprietary Kaleido Scope™, we gain a keen understanding of your business in the areas of management, client service, human capital, sales and marketing, operations and finance to develop solutions that drive transformational growth. Formed out of a merger between Angie Herbers Inc., founded by Angie Herbers, and Wealth Management Marketing, founded by Kristen Luke, Kaleido brings expertise in both maximizing profit and generating revenue to help strengthen and grow brilliant businesses. For more information, please visit

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