Disciplined systems, leadership key to advice firm success

Binaya Dahal

Journalist, Financial Newswire

19 March 2026

Advice firms that combined disciplined systems with trusted leadership were found to have delivered profit margins of up to 40% along with higher client and staff satisfaction, according to new research.

A paper produced by Vital Business Partners (VBP), in partnership with Zurich Financial Services Australia, revealed that they also generated about $1 million in annual revenue per licensed adviser while keeping employee costs at or below 45% of revenue.

VBP’s Head of Consulting, Sue Viskovic, said the findings marked a shift away from traditional, adviser-led models towards systemised businesses.

“Efficiency alone is no longer enough to guarantee success. The firms that thrive are those that combine structure, systems and leadership to create businesses that are both scalable and sustainable,” Viskovic said.

“At their core, they’re also client obsessed. Client service is cultural not positional, and everyone in the firm, from the front line to back office, shares responsibility for delivering an excellent client experience.”

The report comes as advice businesses face mounting pressures due to declining adviser numbers, increasing compliance requirements, and rising client expectations.

It also found that firms were redesigning their operations and adopting automation and artificial intelligence (AI) to tackle key challenges.

Zurich’s Head of Retail, Tim Kane, said tools such as the white paper could help principals navigate a more complex operating environment while maintaining a focus on client outcomes.

“Advisers play an important role in helping people achieve their financial goals, and an essential part of this is establishing protection like insurance,” Mr Kane said. “Resources like this provide a framework for delivering high-quality, consistent, client-centred advice.”

Titled ‘Optimum Operating Models for Advice Firms’, the report further provided numerous quantitative metrics to help readers define a high-performance advice firm and benchmark their own performance.