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Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 19 APPENDIX: THE METHODOLOGY BEHIND THE INTELLIGENT FINANCIAL LIFE ADVISOR PRACTICE SCORE In the fall of 2021, Aite-Novarica Group conducted a dozen executive interviews and surveyed 483 financial advisors to obtain insight into how advisors deliver financial intelligence and wellness to their clients, and to gain an understanding of the advisor behaviors and capabilities that contribute most to client financial wellness. The survey collected a broad range of information about advisors and their practices, including the following: • The capabilities and services provided by their practice • Their planning orientation and their use of planning with clients • How they engage their clients and the issues they address with them • The characteristics of their client base, including number of clients, age, affluence level, and tenure as a client • Their use of technology within their practice • The size and structure of their practice, including AUM, revenue, and advisor and administrative staffing levels • Practice business models and how advisors are compensated • New business and retention metrics for their practice Aite-Novarica Group utilized the survey results to construct an absolute measure of client financial wellness within each advisor's book of business. This measure is based on client outcomes related to financial wellness that were observed in the survey. These outcomes included criteria such as how clients use their advisors, clients' satisfaction with and trust in their advisors, the level of clients' proactive communication with their advisors, metrics regarding client retention and client share of wallet, and metrics regarding new business. The scores ranged from 23 to 80, with a maximum theoretical score of 100 (Figure 3). Aite-Novarica Group then used the survey results to analyze the advisor behaviors and capabilities that were identified in the qualitative interviews as most likely to contribute to the delivery of financial wellness. As part of the analysis, Aite-Novarica Group created