|
|
|
Should
NAIFA and SFSP Merge?
by Edwin P. Morrow, CLU, ChFC, CFP, RFC
|
In a recent article published
by Probe magazine, a newsletter for insurance industry decision makers, I
proposed that the National Association of Insurance and Financial Advisors (NAIFA)
and the Society of Financial Service Professionals (SFSP) should merge. The board
of directors of each organization owes it to their members to consider such a merger.
Here, with permission of Probe editor Fred Kissling, is the text of that article
ó and a survey form you may use to record your opinion.
Toward the end of the last millennium the Institute of Certified Financial Planners
and the International Association for Financial Planning renewed their prior romance
and got engaged. The courtship was very careful (a bit like two porcupines) and there
were moments of optimistic enthusiasm and times of cautious reflection and self-doubt.
The marriage took place on January 1, 2000 and the honeymoon was a joyous event.
After the couple was united, there were still a few issues to be resolved ó meeting
formats, board succession, organizational leadership, publications and personnel.
During the first year there was mostly wedded bliss ó and for a very good reason.
All parties approached each decision from the perspective of, ìWhat's best for the
members?î
There were those (and I admit to being one, having served on the board of the ICFP)
who were concerned that one organization would dominate the other, and some of the
spirit or benefits of each would be lost. That hasn't happened. The resultant organization,
the Financial Planning Association, has delivered on its commitments to members and
has been remarkably successful at keeping talented staff persons, while retaining
the loyalty of directors and local leaderships. Naturally there were points of conflict
between IAFP and ICFP. However, through the diligent effort of staff and volunteer
leaders each conflicting issue has been resolved successfully. After thirteen months,
I believe we can safely say, this couple has been well married and is on its way.
Organizational Marriage works!
Now it is time for the National Association of Insurance and Financial Advisors and
the Society of Financial Service Professionals to start courting. The time has arrived
for these two old friends to get engaged and then get married. Itís right for the
times. Itís right for the public. And itís right for the members.
The parallels between NAIFA/SFSP and IAFP/ICFP are significant. Both IAFP
and NAIFA are general membership organizations with broad interests and a strong
desire to help new entrants into the financial services arena. The SFSP and the former
ICFP are professional organizations requiring advanced education and a designation.
Both the IAFP and ICFP were trying to spread professional education. The ICFP
was dipping ìdownî into practice management and the IAFP was nudging ìupwardî with
increasingly advanced sessions. The same can be said for NAIFA and the SFSP. NAIFA's
vice president of education, Jerry Mason, is ramping up the educational components
at its National Conference and has helped launched the Financial Advisors Forum.
Meanwhile the Society, under the direction of its vice president of professional
development, Marshall Lipson, has introduced entry-level financial planning workshops
taught by Don Haas. When the detractors of this proposition tell you that NAIFA and
SFSP have meeting conflicts, we can turn to the FPA for proof that these issues,
while they do exist, can nevertheless be successfully resolved. Attendance at FPA
events has not diminished, it has increased.
Publications were another point of potential conflict with the IAFP/ICFP union.
Financial Planning magazine was distributed to IAFP members and the Journal of Financial
Planning to CFPs. NAIFA distributes its newly re-modeled Advisor Today to all members
while the Society distributes its venerable Journal. An insolvable dilemma? No! A
quick examination of the current Financial Planning magazine and the Journal of Financial
Planning demonstrate a healthy increase in advertising pages and even better content
than before. It can be done!
What about all the local associations? NAIFA is actually an association of
900 local and 50 state associations ó a sort of bottom/up structure. The SFSP has
a more central structure, with a strong national administration and 200 local chapters.
In many communities the leaders of one tend to be the leaders of the other, sooner
or later. There's always a shortage of hard working leaders. Is it impossible for
this structure to merge? Again, we can see that the local IAFP Chapters were able
to merge with the ICFP Society into 105 new local groups and meetings are better
attended. Certainly there was a little swift footwork, and careful adjustment, but
the result for FPA is improved local structure and more effective programming.
What about the boards? All boards have strong-willed members. These leaders
wouldn't have been elevated by their peers if they weren't bright and forthright.
The FPA has proven that a board merger can be done without anyone getting mad and
ìgoing home with their ball.î
But, how about staff? Both organizations have some very experienced staff
and talented leaders. This will be the secret to the engagement and the marriage.
The current CEO of NAIFA, Art Kraus is a master at getting people to work hard together
harmoniously. Art possesses both the CLU and ChFC designation and was an extremely
successful insurance and financial planning practitioner. He'll have the respect
and cooperation of Society members, since, of course, he is one. Joe Frack, CPA has
been a hard working, steady executive at the Society, only recently thrust into the
CEO position. Anyone who has known Joe will tell you that he is a non-abrasive, easy-going
and results-oriented fellow. Neither Art nor Joe are the kind of guys who try to
hog the limelight or who must prevail on every issue. The personalities are right,
just as they were with the CEO of the IAFP, Janet McCallen and the CEO of the ICFP,
David Brand.
What about office site? Bryn Mawr and Virginia are not an easy commute, but
they are closer than Denver and Atlanta. The FPA is maintaining two campuses and
will probable merge someday. Even after a full year, the new couple has successfully
managed a bi-coastal marriage. The key is to retain the very talented and experienced
staff ó and the FPA has proven that you can realign duties and keep moving forward
with good people.
Legislative and regulatory interests donít always coincide. That's true with
NAIFA and SFSP - but so it was with the FPA. The ICFP had focused more on the planning
function, whereas the IAFP had been concerned with the open market for vending products
and services to the public. Both were dually public and practitioner focused. As
a larger organization the FPA has even more clout in representing its members. If
the ICFP and IAFP could resolve their political differences, so can NAIFA and SFSP
and the legislative impact for the members would increase.
Remember the mission ... benefiting the members. There are many benefits to
be gained from an organizational merger: financial strength, enhanced local structure,
improved financial conferences, common legislative and regulatory efforts, improved
member benefits, reduced member dues, plus a stronger public image.
Now, let's hear from you. Do you agree with this proposal? Do you think it
is nuts? Do you believe these two organizations cant do what the FPA did?
Please
click and complete the survey.
Edwin P. Morrow, CLU, ChFC, CFP, RFC, is president of Financial Planning Consultants,
a firm based in Middletown, Ohio. He is a consultant to financial advisors in the
areas of practice management and computerization and the author of seven software
programs including the Text Library System, and a recent book, Personal Coaching
for Financial Advisors. A frequent speaker on practice management and technology,
he has addressed such organizations as the FPA, IARFC, MDRT, NAIFA and the
SFSP. He is president of the IARFC and Chair of the Division of Financial
Advisors for NAIFA. Readers may contact him at Box 42430, Middletown, OH 45042,
phone 513 424-1656, or e-mail edm@financialsoftware.com.
|
