For advisors use only. Not for use with investors. 

Where do you turn for help in managing your practice? One resource that might be near the top of your list: regularly meeting with a small group of other advisors who are in situations like yours to discuss topics meaningful to your clients and your business.

Advisor study groups are among the top five most effective practice management resources, according to a 2023 report from Cerulli Associates. In Cerulli’s survey, 90% of advisors said they found study groups to be effective.¹ 

John Stadtmueller can explain why, what makes a good study group and how advisors can go about forming one of their own. He has spent over 20 years in the industry as an advisor, consultant and wholesaler at firms including LPL Financial and Charles Schwab. Over the years, he says, “I found that some of the most successful advisors are those who are vulnerable, open-minded, willing to share and willing to collaborate with their peers.”

But he observed there weren’t many good options available to advisors who wanted to do that. “I felt like there was this vacuum, this opportunity for advisors to collaborate directly,” he recalls. That led him to create Good Advisors Finish First, a network of financial advisors with the slogan, “Pursuing Better Client Outcomes as a Community.” Since founding it in 2022, Stadtmueller has seen what works and what doesn’t in peer-to-peer networking and learning for advisors. Here are his four steps to forming study groups.

1. View transparency as mutually beneficial

The first step to forming a study group is being willing to be transparent and finding others who are, too. Stadtmueller recognizes that one thing that commonly prevents advisors from embracing study groups is that people have their guard up and assume that others also have theirs up. After all, if nobody will share their best ideas, there’s not much value in meeting with them.

But study groups are built on the reality that transparency is mutually beneficial. Even Stadtmueller has been pleasantly surprised. “The thing that really has stood out to me throughout this entire process is how over the top and willing advisors have been to share,” he says.

He points out a recent example from the Good Advisors Finish First network. “One advisor shared a spreadsheet that he had created to analyze long-term care and build it into a plan. It was a very powerful tool. It’s something that I believe could be licenced and sold. Advisors would purchase it.” Not only did that advisor willingly offer the tool, “someone else in the group took it and enhanced what was originally built and then reposted that within the same thread.”

Stadtmueller has observed this openness and transparency even among direct competitors. “There’s a small town in Minnesota, Forest Lake, 8,000 people. There are two very, very successful advisors. They’re right down the street from one another. They’ll get together, have coffee, share ideas. It’s a situation where you’d think they’re going to compete, they’re not going to share things. But I believe they are both more successful by operating the way they are, and they have created this opportunity to truly serve the best interest of the clients.”

2. Gather six advisors who are in similar situations

Having observed many study groups over the years, Stadtmueller is prescriptive when it comes to how many and what kinds of advisors they should comprise.

He recommends having around six members — “this very small, tight group where you can have these truly vulnerable conversations, where you can really start getting into much more detailed conversations than you’d ever be comfortable doing in a broader group setting.”

He also recommends having the members be in similar circumstances. “Those individuals are probably going to be very, very similar, practice, style, situation, what have you.” If you’re part of a large firm, for instance, you’re learning from people with the “same tech stack as you, who are talking to the same back office, that can speak your language.” If you have a niche, you can learn from others who understand your clients’ unique needs.

Wanting members of the group to be in similar circumstances also means you want them to be local. “Face to face, in person, in my opinion, is where you want to start,” he says. That has the added benefit of helping you vet people you’re considering including in the group. “It certainly isn’t everyone who is willing to share. And they may have these ulterior motives,” he acknowledges. “Looking someone in the eyes, shaking their hand, getting to know them in person” can help.

3. Be radically clear about expectations

Advisors need to know exactly what’s expected of them and what they’ll receive by participating in study groups. “These things can die very, very quickly if somebody has the wrong expectations,” Stadtmueller warns.

Be clear about when meetings are taking place. He recommends meeting at least monthly. Fix the day and time. “What you don’t do is say the free for all thing, ‘What day of the week should we meet?’ And then you get one guy says Monday, one person says Thursday, somebody says Sunday. You have to pick a lane. ‘We are going to be meeting on Wednesday at three o’clock.’ In fact, send it in a meeting invite.”

Be clear about what the meeting will cover. He emphasizes the importance of having an agenda. “I do believe there is value in just simply finding a place to decompress, go to a happy hour, talk to my peers. But to be successful, that is probably not going to be the lion’s share of these meetings.” It helps people when you can plan ahead. “Try to plot out your content at least quarterly, maybe even annually,” he advises.

Stadtmueller also recommends being or finding a quarterback for the group — “that one person who can organize and keep things going.” The individual is responsible for scheduling meetings and setting agendas.

4. Venture outside of your core group and bring things back

Do most of your learning from other advisors who are going through the same things, Stadtmueller says, but don’t forget to venture out. He recommends an 80-20 split. Spend 80% of your time with advisors who are in situations and niches like yours and leave 20% to learn from others. That 20% can apply to:
 

• Older advisors who are further along in their careers
• Younger advisors who are more in touch with shifts in the industry
• Peers who work in other firms or channels
• Professionals who are adjacent to advisors, especially in their niches (e.g., marriage counselors, contractors who know how to remodel homes for aging in place)

The key is to bring what you learn to home base. “Working from a back-office perspective in the industry,” Stadtmueller recalls, “I always encouraged advisors to pick up the phone when a recruiter called. Talk to them, see what else is out there and then come back to us and let us know. It’s how we can improve and get better.” He applies that same approach to study groups.

He gives the example of a Good Advisors Finish First member who attended Future Proof Festival. The advisor “had a number of valuable meetings at that conference, did a couple of specific fintech demos, came into the group and shared those with other advisors,” Stadtmueller says. “And actually, in that particular case, we’re going to be inviting the fintech companies to come in and talk to us as well.” The key? “Outside parties didn’t start the conversation. The advisors did. They came into the conversation at the request of the advisors.”

By following these four steps, you can start to form long-lasting and effective study groups. And a rising tide lifts all ships. All the members of the group will be more well-equipped to manage their practices, grow their business and serve their clients.