BONUS! Special address from Tim Goodwin from Client Appreciation Event April 23, 2023

This transcript is from the Money Pig Podcast hosted by Reid Trego, sponsored by Goodwin Investment Advisory. The podcast focuses on financial peace, independence and generosity. In this episode, Tim Goodwin joins as a guest to discuss PPIs (Purpose Performance Indicators) and KPIs (Key Performance Indicators). They break down their BHAGs (Big Hairy Audacious Goals) which center around clients, team members, community and industry as a whole. For clients specifically, they aim to empower families with confidence that their legacy will last for generations and track generational clients along with Net Promoter Score which was 83 in the latest survey. They also strive to create careers people love within their team of 13 employees using Office Vibe system for regular feedback surveys resulting in scores higher than industry benchmark. Finally, they focus on serving the community through various initiatives such as charity work.

Tim from Goodwin Investment Advisory talks about the importance of making an impact in their community beyond just managing money. They measure their impact through generosity, such as helping clients establish donor advised funds, and giving away birthday books to clients. They also give back to various nonprofits, including supporting schools and educational funds. Tim emphasizes the need for more diversity in the financial advising industry and encourages companies to track purpose performance indicators alongside key performance indicators. Goodwin offers benefits like paid volunteer days and birthday books to employees as part of their intentional strategy for making a positive impact on their community. 

Transcript

Welcome to the Money Pig Podcast, brought to you by Goodwin Investment Advisory, where our mission is to lead people to financial peace, independence, and generosity. I'm your host, Reed Tree. Go. And remember, if you're enjoying the show, please rate and review us wherever you get your podcasts. And if you have a question you want us to address in the future, you can email us at moneypig@goodwininvestment.com. Today on the show, we are joined by our founder, Tim Goodwin, who is a certified financial planner as well for a discussion about PPIs, no, KPIs and PPIs. 



You got it. 



Which sounds interesting. We're going to figure out what those things are. So, yeah, recently we had our client appreciation event, and a lot of times in the past, tim has taken a few minutes and spoken to the crowd. The venue was beautiful, but it was spread out all over the place, so there wasn't really a great way to do that. And we thought, well, we have this new medium exactly, the Money Pig podcast, where we can convey this message. So that's what we wanted to do with this episode. We also want to remind you that yes, our mission is to lead people to financial peace, independence, and generosity, which is where the pig comes from. 



Exactly. 



Right. Is there a hog? Is there like, a non pig? 



No, I think the pig is the way to go. 



Pig is the way to go. Did you hear what were talking about with the hog? 



No. 



Hoarding, obsessive, and greedy. 



Oh, yeah, those don't sound like good. 



We want to be a pig, not a hog. 



Okay, nice. 



All right, so, Tim, hey, it's always great to have you here. Good to see you on your own podcast. Okay, here we go. Okay, so let's start with the end in mind. 



Yes. 



Right. Because I'll kind of lead you into this, and then I'll let you kind of run. But there are a few things as a firm, the Goodwin Investment Advisory aspires to, we would call them big, hairy, audacious goals BHAGs. Right. And they center around our clients, the team members, the community, and the industry as a whole. 



Right. 



So I thought what we would do is break this down one by one. 



Yes. 



We can start with the clients. 



Let's do that. And I think you explained in the intro that folks might be familiar with KPIs, which stands for Key Performance Indicators. So a lot of companies will call them KPIs, or maybe something close to that, and they're tracking different financial metrics. Maybe it's revenue, maybe it's profit, maybe it's more customers, maybe it's profit margin, that kind of thing. And so my coach actually challenged me years ago to not just have KPIs, but PPIs, which is performance sorry, I said it wrong. Purpose performance indicators. Perfect. We've got these things that we're tracking, but ultimately, like you said, tracking us where like, where are we trying to get we're trying to get to with the end in mind, which is what these b hags these big herodacious goals are. 



All right, awesome. So having said that, now let's jump into the client. Thank you. 



Yeah, you got it. So when it comes to our clients, we want our clients to have the confidence that they can retire sooner than they think. And we also want them to have the confidence that their money will outlive them, not the other way around, and that their money will be there for them when they need it. So that's an aspect of our clients. We occasionally will survey our clients, some things around confidence. But what I wanted to kind of focus on today was two things our generational clients and our Net Promoter Score with our clients. And so our vision is to empower families with the confidence that their legacy will last for generations. 



And we really love working with families and older generations and younger generations to help them learn how to just to pass that stewardship and those good management and money growing and money management habits down to the future generations. And so one of the things that we do is we actually track how many two generation clients we have. We have 52 two generation clients here, families that have all signed the client advisory agreement but are connected. And we actually have three generation families. So in that case, we've got grandparents, parents, and the kids that are all clients on their own. And so that's something that we really celebrate as a firm, is having generational clients. And then the second thing that I'll share about where we're gauging how well we're doing with our clients is called the Net Promoter Score. 



And I don't know if our listeners have heard about this before, but basically it's a survey question. And the question is, how likely are you to recommend this to family or friends? And it's a scale of zero to ten. Now, the result of the Net Promoter Score can actually be negative 100 to positive 100. Okay? So that's something to keep in mind with a Net Promoter Score, because if you answer lower, it actually will subtract a point from you. If you answer nine or ten, it'll add a .7, or eight is neutral. And so six R below is actually a negative one. So if everybody answers six R below, you would have a negative 100 Net Promoter Score. 



Great. And companies of all sorts in all industries use this. This is just something you came up with. 



No, not at all. No, this is a very standard thing. Like, if you ever were creating a survey, a lot of the survey companies will be like, oh, do you want to put the Net Promoter Score question in there? Because that's kind of a built in one. So I'll give you guys some examples of companies. Some companies have the highest Net Promoter scores. Okay. So, Chickfila, we're coming to you from Georgia, which is where Chickfila was started. And Chickfila's are everywhere, and most people love Chickfila. And so when people answer this question, they're usually answering nine and tens. And so Chickfila's net promoter score is 63. Now, 63 is still considered excellent. Anything above 50 is considered excellent. Anything 75 are above world class. So the next company that would give, as an example with a good net promoter score is Costco. 



Are you a Costco shopper? 



Yeah, definitely. 



Yeah. Hopefully not on Sundays, because I've been there quite a few times on Sundays, and there's a lot of other folks. 



There also, it's a zoo. 



It's quite a zoo. 



A lot of people there. 



Yeah. But I am now saving $10 on filling up there with my truck versus a gas station I pass on my house on the way there. But anyway, a lot of people love Costco for the costco effect, they actually have a little bit higher. No, actually lower. Theirs is 57. Okay. And then I'll give USAA as another example. There's this 43. So these three are kind of rock stars in the industry USAA, Costco, and Chickfila. But those what? Those scores are 43, 57, and 63. So the last time we surveyed our clients net promoter score, we actually got an 83, which anything above 75 is considered world class. So we feel really great about that. We're not kind of tied up in that. We had to be perfect on all those things and, like, score 100, because that would be very difficult. 



There's always room for improvement, but we're pretty proud of that score. 



Wow. Yeah. And is it an actual worded specific question in that promoter score? 



Right. It's that one that I mentioned. The question is how likely are you to recommend us to family or friends? So whether that's how likely are you to recommend a product or that service? 



Amazing. 83 strong, I think. 



So I'm pretty proud. I'm almost, like, afraid to survey the clients now, but you never know. But we've been somewhere around that number for a while, so we're pretty excited about that. 



Good. Yeah. Trust is there. Trust is there. I've promoted you a few times. 



We appreciate that you've been around for a while. 



I have. As a client. All right, so back to our Behags. 



Yes. 



Second category really is among team members. 



Yes. 



Which I am now. You are a year and a half in. 



Very excited about that. 



Yeah. 



That's awesome. And both you and your wife are here yeah. On the payrolls, the first couple that we have. So that's pretty cool. So I think just growing up, realizing that so few people really love their jobs, and it just seemed to be rare for me, at least, growing up and in school, that people love their jobs. And I was like, That's I don't know. I don't like that. I think you should really love that work. I think you should find out what you're uniquely gifted at and find somebody's mission or purpose and go help them pursue that further, faster. And so one of my personal missions, my personal motto is to create careers people love. That's. My Bhag is to create careers people love. 



So if I am able to offer a job here and fill that job, I really care that individual loves that job, likes that job. I know love is a strong word, and that's a challenging one. So we're now at a team of 1313 employees here goodwin Investment Advisory. Five are certified financial planner advisors. So that's very exciting. And then we actually use the system. If there's any kind of managers, business owners, HR, people listening. We use this website called Office Vibe. It's really cool. It's a little different than doing a 360 survey just once a year, getting feedback. This Office Vibe is sending emails on a regular basis to our employees, getting their feedback on all kinds of different areas. So some examples might be ambassadorship or relationship with their peers or managers. Happiness Wellness. 



So there's all kinds of these categories that it's measuring, and we are able to compare that to our own baseline and compare that to the industry. So I'm happy to say that right now, the Office five score of our team, on a scale of, like, one to ten, we're scoring somewhere between what's the lowest one here? 8.8 to 9.4 on all those basis. And when you compare that to the industry, let's see that range that I'm looking right here, it looks like 7.6 to about 8.4. So I feel like compared to the benchmark of the financial service industry, our employees are seemingly happier and more satisfied in this work than the average. So that's some way we can measure that. 



Yeah, it's interesting, and I think about in the real world, but the real world usually, how would somebody rate their relationship with their manager? Now, some are very good, but yeah, I see overall in the industry, it's 8.4. Here, it's 9.1. 



Right, right. So that's great that people feel like they've got a good relationship with their manager, which hopefully means, like, hey, I can talk to you about good things as well as things I'm frustrated with that manager is looking out for their best interest. Those is open to feedback, that kind of thing. 



Yeah. These are great things to be tracking. 



Yeah, it's something we look at on a regular basis. 



Beautiful. Okay. The third category is surrounding our community. 



Yeah. I just kind of feel like if we just disappeared tomorrow and go to an investment advisory was just nonexistent, I would want our community to miss us if were gone. So that's kind of my Bhag, right? That we're making a big enough impact with our time, our talent, our treasure in our community, not just our own company. Inside the doors or not just our own clients and customers, but inside of our community. So that's really important to me. There's a couple of different things that we measure. Talking about the pig and the g of pig is generosity. We do love to talk to our clients about how they're being generous. If they want to invite us into that conversation, we can be a part of it. And for a lot of clients, we've helped them establish a donor advised fund. 



And so a donor advised fund allows them to put money in it and then give it to other nonprofits. And if we set that up, then we are able to have optics on it and track it. And for the first quarter of 2023, our clients collectively gave away $125,000. So that's pretty cool. We're on target this year to see our clients through the donor advice funds that we can see give away half a million dollars back into the community. I don't know exactly which community that is. It could be a global community, but at least we know that it's going to another 501 nonprofit. One of the other ways that we measure our community, one thing that's kind of fun is that we give away birthday books to our clients. 



So we have given away 176 books in the past twelve months to our clients. I don't know if that's community impact, but it's at least growth. Clients are excited about it. They're growing, they're learning. That's making an impact. But getting back to the money side of things, gia gives away a certain budget. And so far in the past twelve months, we've given away $50,000 into our communities. 



Nice. 



And I think you know where we. 



Give some of that money know some maybe should I guess I was just. 



Trying to ask you a question so I could get a drink. 



Woodstock Arts. 



There you go. 



Woodstock Art. Winner. 



Yeah. Nailed it. Yeah. So we're big fans of the arts in our town. And there's other nonprofits that are doing great things as well. Schools or often give back to schools and different things that they're doing. The county that we're in is called Cherokee County. There's an educational fund that helps to provide different things for students in school. A lot of times they have special needs or physical disabilities, and they need specific equipment, whether they have a cochlear implant and the teacher needs a specific kind of mic or whether there's something in PE that they need some kind of equipment for. So that's what that Cherokee County Educational Fund will help to provide. So we're big fans of that. So there's some few examples. 



Nice. That's good. And I know at least we used to, might still support the Ramsay Solutions financial literacy program. 



Exactly. Yeah. So there are schools or teachers in schools that want to do Dave Ramsay's financial curriculum for their students. But just for whatever reason, either the budget is not there or they can't get it. Maybe the money, maybe they're a title one school. And so, yeah, for years, we've sponsored a lot of those schools around Georgia to cover that curriculum for those teachers, for those classes. 



That's amazing. Yeah, amazing. 



All right. 



And the fourth category here under our BHAGs is just related to the industry as a whole. 



Yeah. So, I mean, it's no surprise that if you Google or the proverbial like, look up in the encyclopedia, financial advisor, it's typically an old white male. 



They look like me. 



Yeah, I think you've got some youth on that typical picture there. Reed so I just would love to continue to see that our industry gets younger and gets more diverse. We've got more women and more folks of all kinds of backgrounds that are aspiring for this industry that feel like they are able to get into this industry. And so we do have Sharon on our team. We don't have as quite as diverse of a team as I think we will in the future. We're working on it. But I will say that the average age of a financial advisor is 55 years old, with a fifth of them being over the age of 65. So the average age of advisors here is 43. That's seven financial advisors. I think that's pretty solid. We've got no one over the age of 65. 



Reed so, yeah, let's see, I'm below average on the average financial advisor and above average here at our team. 



There you go. 



Okay. 



There you go. Even though that sounds like a low average age, 43, there's a lot of experience on this team when we really put it all together, how long everybody's been active financial advisors? So a lot of breadth, a lot of experience, as well as the educational part with the expertise, with the CFP. 



We just want our clients to know that we're more about just the money. 



Right? 



We are financial planners, advisors, but we're more about the money. And that's the first thing. But secondly, if someone listening is a business owner, and I was for many years. I love KPIs. I love key performance numbers, the five dials. If this number is down, you turn this and you can turn up your marketing or training or what, client satisfaction, all these different things. But what you really have to do is, especially from your team, your employees, you have to instill this level of purpose yes. That we're impacting the community for more than just managing their money. 



Yeah. And that part is important. And we track our KPIs a lot, but I think it's important to track these PPIs, these purpose performance indicators as well. And so I would just challenge any listener, whatever team that you're working on, to inquire if they don't have metrics like this that they're tracking, hey, could we track some could we put some meaning and some intention and some planning and some budgeting behind. One of the things that I forgot to share Read, was that we actually provide our team members, if they want to volunteer for a nonprofit, they can take a volunteer day off, so it doesn't count against their PTO. They're basically paid to volunteer somewhere else. And so we've done that about 50 hours worth in the past twelve months. So it doesn't just have to necessarily cost the company in dollars. 



Maybe they could offer something like that, or maybe there's some other way of tracking the impact that you want to make. I think if you are a decision maker for your company, that would be my challenge is for you to really consider what's the impact that you're making and could you make that an intentional part of your strategy. 



And just practically, I have to point out that all these little benefits that really you've offered your team, it's not like they all started 19 years ago. 



No. 



They have been woven into this business little by little over almost 20 years. 



That's right. 



So now it's a pretty attractive package. 



Right, but it wasn't initially. Yeah. So it's not like you had to make big decisions. I mean, even when we decided to say, what if we send our clients a card on their birthday and offer them a birthday book? And I was like, oh my gosh, they're all going to want books, and what do I multiply that by and can we really afford that? Then I realized, well, everybody doesn't have the same birthday, so that's going to be spread out somewhat evenly throughout the year. And not everybody takes advantage of it, but some folks really appreciate it and it just makes us feel good that we're helping people grow and they're always looking forward to getting a book. And my wife said the other day, I was like, hey, what book are you reading? She goes, I'm reading my GI birthday book. 



And I was like, oh, I didn't know. You got to take advantage of that. How nice. 



It was her birthday. 



Apparently she got a card in the mail, she made a call, she's got a book, she's loving it. 



That's awesome. 



Anything else today, tim no, I think that's great. And if I tried to explain something and didn't do it well, or if somebody's got a follow up question about something we talked about, I'm certainly available if folks have questions for clarity on these PPIs. Yeah, absolutely. 



If you have any questions on that or anything, just you can email us at moneypig@goodwininvestment.com. Tim, it's always great to have you here. 



Yeah, great to be here. You always do a great job. I appreciate you. 



Thank you. And thanks for taking time every few episodes to chime in on things. 



Absolutely. 



We hope those folks that were at the client appreciation event get to hear this, but we also want other listeners to be able to just hear what you're thinking about? 



Absolutely. 



As I say, you are weird in all the most amazing ways. I just put that on the record for everybody. No. One of my favorite people, so I appreciate it. And like I mentioned, if you're enjoying the show, please leave us a rating and review. Follow our show, ring the bell, click the notifications, whatever. Follow subscribe wherever you get your podcasts. And again, remember, if you want to have you have a question you want us to address in the future, send it over to us at moneypig@goodwininvestment.com. Until next time, be a pig, not. 



A hot money Pig podcast is hosted by Retriego, a financial advisor at Goodwin Investment Advisory. This podcast is intended to share information and perspectives, but should not be interpreted as legal, financial, or tax advice. The opinions shared by participants are not necessarily endorsed by the company. Goodwin Investment Advisory is regulated by the SEC, and the company operates in compliance with applicable securities laws and regulations. 



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