Legendary Communication
Most people would find filling out daily time logs in three-minute increments a cumbersome nuisance, but not the employees at Legend Financial Advisors, Inc., a Pittsburgh, Pa.-based financial planning firm. They know that every dollar they save for the company helps their own personal bottom line. And equally important, they know that it's these kinds of reports that help them get the recognition they deserve when they go above and beyond the call of duty in their work.
Legend's CEO and founder Louis P. Stanasolovich practices his own form of open-book management (OBM) and it's one that employees respect and follow in an effort to help the company succeed. A big part of this is meticulous record keeping that's specifically designed to improve the company across the board. "It has been continually documented of OBM that the more items measured and tracked, the more successful a practice will be," says Stanasolovich. "Along these lines, we have worked to incorporate those beliefs into our regular business practices as much as possible."
Each employee at Legend completes a daily time log listed in increments as little as three minutes, says Stanasolovich. These logs are compiled and analyzed for tasks that require substantial time commitments but yield little reward. Those tasks are then restructured or eliminated. "We have realized increases in productivity of 15 percent per year," he says. "I personally speak with my staff on how to assign more highly satisfying tasks for employees."
The logs consists of a series of questions that ask for specific examples of employee task-mastering, such as new responsibilities taken on that week, process improvements, how the employee reduced time spent on specific duties, and lastly, how the employee saved the company money.
Says Director of Marketing Chris Kail about the productivity logs, "It's not just an idea. It's an idea that has been implemented. Many ideas have come from what we tried differently and what we have tried to do better, and a lot of the suggestions [from the reports] already have been put into place. Lou values even the smallest ideas that help make the company more efficient."
Such meticulous record keeping would not be embraced were it not for the company's practice of open book management. Rather than seeing the logs as a form of micromanagement, the employees have felt empowered because they know how their contributions, regardless of job level, affect the company's bottom line. In fact, not only are employees made aware of the firm's financials each month, but virtually all financial and personnel decisions are made collectively as a group.
"Open-book management allows us to see the company's financial statements so you really do know what's going on," says financial advisor Jim Holtzman. "Elsewhere, you might get a performance review and a raise, but you don't know if it's a fair number."
Training is another area in which the company places a significant amount of time and effort. Each employee receives a minimum of 150 hours of training each year and other than employees' salaries, training accounts for the firm's the greatest expense, exceeding 1 percent of revenues in 2003. The company even has an education committee to help monitor all training efforts, including the training budget.
"We believe that having employees who are well-trained and educated is critical to the long-term success of not only the organization but the individual as well," says Stanasolovich. "It makes the organization more profitable by enabling each employee to develop a broader and deeper skill set and it helps them increase their self esteem." In fact, one of the things that sets Legend apart is employees' ability to move up within the company, regardless of where they start.
For example, one of the greatest company success stories comes from the director of financial planning, who began her career at the firm as a clerical assistant, says Stanasolovich. Since that time, she has attained her Certified Financial Planner (CFP) designation and even has become a company shareholder. For two years, she also was listed in Worth magazine as one of the 250 best financial advisors in America. "She has set the standard for not only employees at Legend, but for many other professionals in the industry," says Stanasolovich.
The company also has an extensive student internship program. During its 10-year history, Legend has employed nearly 50 interns, 10 of whom became full-time employees after graduating. Full-time employees are encouraged to come in on weekends to train interns on various tasks that were not fully completed during the week. "The firm pays all costs in regard to professional and personal development as well as computer training and professional designation attainment," says Stanasolovich. "All employees are also paid for their training time."
Perhaps most importantly, employees appreciate that Stanasolovich treats them with fairness and respect. "I feel valued because of the opportunity that he has given me," Kail says. "Lou is my friend, and he has earned that right though how he treats me."
Company: Legend Financial Advisors, Inc.
Web site: www.legend-financial.com
Industry: Financial advising for high-net-worth clients
Location: Pittsburgh, Pa.
Employees: 37
Sales: $5 million
