The 7 Key Operational Metrics Every Advisory Firm Must Track to Boost Efficiency

In an advisory firm, what gets measured gets improved. To elevate your operations, you need a dashboard of metrics that signal how your firm performs: not just in assets under management (AUM), but in operational health, service delivery and client outcomes. Here are the seven metrics every advisory firm should track.

1. Time to onboard new client
Measure days from signed agreement to full active client status. Shorter onboarding means faster revenue realization and better client experience.

2. Client service/review completion rate
Track the percentage of clients receiving the full service (reviews, deliverables) according to your promise.

3. Advisor time on non-client tasks
Monitor how many hours advisors spend on non-revenue tasks (admin, meetings). The goal: reduce and redeploy.

4. Staff utilization rate
For non-client-facing team members, track actual productive hours vs capacity.

5. Client attrition/retention rate
Measure the percentage of clients who leave or stay each year. Retention is a powerful operational lever.

6. Compliance/error incident rate
Track the number/frequency of errors, issues or compliance oversights. Fewer = smoother operations and lower risk.

7. Cost per client or service unit
Calculate your total operational cost divided by number of clients or service packages to gauge scalability.

Conclusion
By tracking these seven operational metrics, your advisory firm can move from reactive operations to proactive management, enhancing efficiency, service quality and scalability.

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