Account consolidation and legislative changes are placing pressure on funds’ fee models, putting their business models at risk.
At a system level, funds are experiencing an increasing gap between total expenses and total fees due to a decline in total member accounts. In the past five years, total expenses grew by 6% CAGR, while the total number of member accounts declined by 2% CAGR, total revenues declined by 1% CAGR. This issue is likely to be exacerbated by a fundamentally more expensive business model required to meet members, regulators and other stakeholders’ expectations and to compete with more aggressive rivals.
Inside Super 2 (UPDATE) – Direct-to-consumer: remaining relevant in the future of super distribution
In November we shared with you insights on remaining relevant in the new super distribution landscape. Our analysis showed that an increase in switching activity was largely benefiting two industry funds, who have seen record cash inflows mostly at the expense of the retail funds that came under intense scrutiny during the Royal Commission. Since then new APRA data shows that these two funds continue to win the vast majority of ‘switching FUM’ as demonstrated by net roll-ins excluding successor funds transfers (SFTs).Read More
In this edition of the Right Lane Review we are asking you to commit to taking action. Sometimes it feels like we expend all our energy in the thinking and planning, and that the doing falls flat. It takes real commitment to see things through and it is often what is lacking in organisations. This edition focuses on action – frameworks and tools to help you commit to your course of action and see it through to success.Read More
In our experience helping hundreds of organisations with strategy development and execution, we have found that those that adhere to six critical steps (Frame, Align, Cascade, Task, Oversee and Review) avoid the common strategy execution pitfalls. To truly excel at strategy execution however, organisations must go beyond this basic recipe and discover their own ‘Ex-FACTOR’.Read More
The evidence shows that change management efforts frequently go awry. We’ve found that using a mnemonic, the HANDS of change – Hardwiring, Ability, Narrative, Desire and Support – can help our project teams to address what’s required for success. This article explores a case study to show how the helping HANDS of change function in practice.Read More
In response to a persistent challenge experienced by many of our clients – how to allocate resources more flexibly – we propose three practices of agile resource allocators. By re-anchoring the budget each year, reprioritising frequently and managing capacity with agility, organisations can allocate resources where they are needed, when they are needed there.Read More
Hard though it is, choreographing a great strategy workshop, with meaningful, compelling outcomes is only half the battle. The other half is doing something with them – committing to a series of interrelated next steps and getting them done. While it’s not hard to justify the dollar investment in your strategy workshop, it is important to get full value from the workshop outcomes.Read More
In recent years, we’ve witnessed an elevation of expectations when it comes to developing business cases for government or not for profits. Business cases require evidence and a coalition of support. At Right Lane, we believe robust stakeholder engagement is the key to getting your project off the ground and for more fruitful collaboration once it is underway.Read More
At Right Lane, we exist to help our clients develop and implement better strategies. And we know a thing or two about it! We spend a lot of time reading up on the work of leading academics and practitioners in these fields. We take what we learn from the world leaders in strategy and planning theory and combine it with our experience and learnings from hundreds of recent engagements to present this guide: Five ideas to improve your next strategic planning process.Read More
Helping organisations that do good do better is central to our management consulting practice. The work we do with for-profit and not-for-profit organisations that play a constructive role in creating a better world is above all else why we come to work and what gives us meaning and fulfilment in our professional lives. Since 2018 we have been fortunate enough to serve close to 100 clients that do good – for-profit and not-for-profit clients that are having a positive social impact. Here is a summary of the challenges we recently helped some of our clients solve.Read More