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Our research focuses on financial planning firms in a post-pandemic world. Firms are trying to adapt to the changing financial landscape by incorporating innovative processes to improve their services. They often use data-driven metrics to optimize certain aspects of their operations and increase their profit margins.

The study draws on previous research that emphasizes the importance of proactive innovation and effective communication tools to gain a competitive advantage. The researchers apply these findings specifically to the field of Australian financial planning.

Financial planning firms already have existing processes in place, but these processes often fall short of meeting their complete needs. This can hinder their ability to respond to commercial threats and adapt to evolving requirements. As a result, processes become segmented and sub-processes are unintentionally designed, making it difficult to understand and identify them. These sub-processes can slow down progress and increase costs for consumers.

Financial advice is crucial because it enhances financial literacy, reduces psychological impacts, and helps prevent fraudulent activities. However, the Australian financial planning sector lacks comprehensive process guidance, unlike conventional professional authorities. This research aims to fill this gap by reviewing the underlying processes and addressing the barriers to accessing financial advice for Australian consumers.

The standard process in the financial planning sector follows a six-step approach, but it lacks clear definition and stage clarity. The researchers use Kotters change framework to design a complete process for providing financial advice in the Australian context. This framework helps solidify process innovations by introducing change at each level.

The study also explores the relationship between process and profit and investigates how increasing profit levels may affect the influence of agency theory. Agency theory refers to the financial relationships between financial firms and Australian Financial Services License (AFSL) holders, which some consider to be conflicted due to increasing financial benefits. The research aims to define these relationships and determine if higher profit margins without additional income decrease the influence of agency theory on firms.

Data for the study was collected from 134 financial planning firms in Southeast Queensland over a five-year period. The firms provided information on their fixed fee ongoing clients and anonymously shared cost profit margin data. The research used a control group of 67 firms and introduced a new complete process framework to the remaining firms to assess the causal impact of process introduction. Data analysis was conducted using statistical methods to minimize bias and account for the sample size.

The study addresses two research questions: the role of firm process in the relationship with profit and how increasing profit levels may correlate with decreasing influence of agency theory. The findings indicate that process directly affects firm profit levels. Regional group analysis shows a positive correlation between process and profit, and these two variables also reduce the influence of agency theory on professional practice.

The findings of the study indicate that the process directly affects the profit levels of financial planning firms. Through regional group analysis, we observed a positive correlation between the process and profit. The implementation of effective processes helps to increase the firm’s profit levels, and these improvements also reduce the influence of agency theory in professional practice.

The research makes several contributions to the literature on financial process planning. It examines existing profit levels of financial planning firms in Southeast Queensland, introduces a complete process design to measure its impact on profit levels, demonstrates how process and profit increases can reduce the influence of agency theory, and highlights the potential for reviewing standard processes to improve perception and professionalism in the Australian financial planning field.

If you’re looking to adapt and thrive in the post-pandemic world, it’s time to reimagine your firm’s processes. Take inspiration from the study’s comprehensive process design, specifically tailored for the Australian financial planning landscape. By incorporating data-driven metrics and proactive innovation, you can gain a competitive advantage and address the increasing barriers to accessing financial advice for Australian consumers. Be at the forefront of the financial planning industry. Your firm’s success and the satisfaction of your clients are within reach.