(Focus Partners) Financial advisors often guide clients toward long-term thinking, encouraging them to invest with purpose, plan with foresight, and embrace continuity. Yet, when it comes to their own practices, many fail to apply the same strategic lens. As advisory firms mature, the ability to execute seamless advisor transitions—whether due to retirement, role shifts, or sudden departures—can make the difference between client retention and business disruption. Advisors and their firms should have a documented plan in place. In fact, according to Schwab’s most recent benchmarking study, top performing firms are more likely to have both a written strategic and succession plan1.
At Focus Partners Advisor Solutions, we’ve developed a practical, client-centric framework to guide both transitioning advisors (TAs) and successor advisors (SAs) through this crucial process. Below, we explore the core pillars of effective transition planning and why it’s a non-negotiable in today’s advisory landscape.
The Case for Transition Planning
Transitions are inevitable. Poorly managed transitions, however, are not. A structured, proactive transition strategy creates value across four key dimensions:
- Client retention: Maintain trust and continuity in service regardless of who sits across the table.
- Business continuity: Minimize disruption to operations, revenue flow, and team morale.
- Talent development: Accelerate the readiness of future leaders and deepen bench strength.
- Reputation preservation: Signal to clients and prospects that your firm is built for the long term.
Building the Strategic Roadmap
A transition should be treated like any major strategic initiative with defined phases, accountability, and key performance indicators (KPIs). Our framework begins with three foundational steps:
- Define the scope: Clarify the catalyst and determine if the transition stems from a retirement, workload redistribution, or an unplanned event.
- Set the timeline:
- Three to five years for complex or early-stage SAs.
• Two to three years for experienced internal successors.
• Immediate execution for unplanned exits. - Select and prepare the successor: Look for individuals with client familiarity, cultural fit, and a desire for growth.
Prioritizing the Client Experience
Every decision in a transition plan should pass one test: Does this serve the client’s best interest? This client-first orientation is foundational to fiduciary practice and is most visible in communication strategy.
Key components of a client blueprint:
- Segmentation: Identify high-alignment clients for face-to-face introductions.
- Communication plan: Time announcements carefully, align on tone, and tailor delivery methods.
- Progress tracking: Monitor milestones and client satisfaction throughout.
One powerful technique you can implement is having the TA articulate their motivations in writing and share with the team, helping to ensure a unified narrative.
Empowering the Successor Advisor
While clients are the centerpiece, SAs are the linchpin. Their ability to step confidently into a leadership role hinges on structured development and meaningful exposure.
Proven strategies include:
- Coaching: Combine formal training with peer learning and ongoing mentorship.
- Proactive management and ongoing check-ins: Assign responsibilities in team leadership, reviews, and growth planning.
- Community engagement: Encourage visibility through events and associations.
Don’t Overlook Logistics and Incentives
Transition success is often determined by operational clarity and aligned incentives. Some critical (and often overlooked) items include:
- Licensing and access: Help ensure the SA has credentials and technology platform permissions and access to the appropriate portfolio, planning, and CRM systems.
- Workflow: Align systems and workflows to support the new structure.
- Compensation structures: Use revenue-sharing, co-advising, and performance bonuses where appropriate.
Planning Today to Protect Tomorrow
Advisory transitions aren’t just personnel changes—they’re moments of truth. Done well, they demonstrate professionalism, foresight, and commitment to the client experience. Done poorly, they risk reputational damage and long-term erosion of client trust. By embedding transition planning into the firm’s broader strategic roadmap, leaders can safeguard continuity, groom the next generation, and reinforce the long-term value proposition to clients. Whether you’re preparing for retirement, shifting responsibilities, or future-proofing your firm, the time to plan is now.
Sources:
1. Schwab 2025 Benchmarking Insights study. Top Performing Firms are those that rank in the top 20% of the Firm Performance Index. The index evaluates all firms in the study according to 15 metrics to arrive at a holistic assessment of each firm’s performance across key business areas. Past performance is not an indicator of future results. 2025 RIA Benchmarking Study from Charles Schwab, fielded January to March 2025. Study contains self-reported data from 1,288 firms. Participant firms represent various sizes and business models categorized into peer groups by AUM.
The information provided is educational and general in nature. The information contained herein does not present a complete picture, but Focus Partners believe the information is representative of issues and needs facing some advisors and why they may seek our services. The above information does not serve as the receipt of, or substitute for, personalized individual advice. Please be advised that Focus Partners only shares video and content through our website or other official sources. Services and investment advice are only provided pursuant to an advisory agreement with the client.
Services are offered through Focus Partners Advisor Solutions, LLC (“Focus Partners”), an SEC registered investment adviser. Registration with the SEC does not imply a certain level of skill or training and does not imply that the SEC has endorsed or approved the qualifications of Advisor Solutions or its representatives. Prior to January 2025, Advisor Solutions was named Buckingham Strategic Partners, LLC. Advisor Solutions has been part of the Focus Financial Partners partnership since 2007. RO-25- 4712216
Focus Partners Advisor Solutions
When advisors work with Focus Partners Advisor Solutions, they gain the strength of a nationwide community of wealth management professionals. With the support of a diverse team of financial planning leaders, tax professionals, investment researchers and portfolio managers, advisors are able to orchestrate a bespoke plan, tailored to each client’s unique situation. Clients benefit from Focus’s team of dedicated professionals who are constantly exploring and assessing the ever-changing landscape of investments, tax code, markets and planning strategies—with a singular focus on maintaining an evidence-driven, fiduciary approach that puts client’s interests first.
