Before mid-2008, the overall environment for wealth management firms was fantastic. Advisors had happy clients and approximately 97% retention rates. As an industry, we had "good" problems: managing growth, hiring qualified staff, etc. We also basked in the luxury of inefficiency—simply put, running a great business was not necessary to make a profit.

Obviously, this has changed. The financial markets have taken away the past eight years' gains. Clients are concerned and unsettled. Employee morale is an issue. We now face revenue declines of as much as 30%, increasing expenses and the resulting reduction (if not elimination) of profits. Certainly the luxury of inefficiency is gone!

Studies of successful wealth management firms reveal several common characteristics. Most important, for the purposes of this article, is that highly successful firms invest in technology by upgrading existing systems, buying new technology and implementing ongoing training.

How do you get the absolute most out of technology to provide the highest level of client service, create maximum efficiency for the firm, create a high level of profitability—and most important, survive and thrive in these difficult times? Here is a six-step plan that will take you through.

One: Create Personal and Business Goals

To develop a successful technology strategy, it's critical to take a step back and develop clear personal and business goals. Are you trying to build a business or lifestyle firm? How much do you want to grow? What services are you currently providing and what do you want to provide in the future? What types of clients are you serving? What types of services are they demanding and what do you want to provide?

A clear vision of your goals will give you a framework for evaluating appropriate tech solutions. This is important to avoid making costly mistakes, such as purchasing software that does not fit your needs. You may already have done this planning work. If you haven't, there are excellent resources to help, including executive coaches and consultants.

Two: Analyze Your Business

A complete business analysis should cover all of your major systems and processes, including computer hardware, software, phone system, businesses processes and staffing. The goal is to get an accurate picture of the current state of your business and to identify problems. These might include outdated systems, areas of inefficiency, labor-intensive tasks that can be automated and/or streamlined, technical abilities of your staff and situations in which high-cost staff is stuck doing low-payoff work.

There are many ways to perform this analysis. Do time studies on various tasks and routine activities. If you don't have an office management system to gather this information, ask your staff to track their time for a few months. Even simpler, ask employees how long various tasks take them, which ones seem to take a long time, cause frustration, etc. In addition, ask people to document the tasks and processes performed by other staffers. This is not spying; it provides a fresh look at old routines and may bring inefficiencies to light.

Take time, too, to look at your hardware. In my office, we review every computer annually for capabilities such as RAM, processors and hard drive disk space; we generally replace computers or add memory so that no machine is more than three years old.

Three: Write Your Tech Plan

A comprehensive technology plan will include summaries of your personal and business goals and the results of your business analysis. Then, it will detail the systems you intend to upgrade and replace. It is essential to develop priorities. Start with projects that have the highest impact and benefits. Set a budget, so as you look at available solutions you can be sure that you can afford them. Spell out the order in which you'll take on your projects, based on your priorities, and be sure to set realistic time frames and expectations. The vendors of specific solutions as well as your IT consultant can help.

Get your staff involved in the planning process from the beginning. They should have already been instrumental in gathering information; ask them to offer ideas for areas of improvement and possible solutions. Most important, as you develop the plan, communicate it firmwide, making sure to point out the benefits to each employee. Finally, don't take on too many projects at the same time! That can be very disruptive.

Four: Evaluate Available Solutions

Solutions run the gamut, including hardware, software, outsourcing and other possibilities. The research can be daunting. Sources of information include industry publications, industry and practice management consultants, custodians and broker-dealers, industry association meetings, vendors and websites. Try networking with colleagues and joining online forums and discussion groups.