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We are on the verge of one of the most wonderful times of the year.
The air is getting crisper (We are down to 76% humidity here in Charleston).
Campuses are bustling.
We are on the verge of Oktoberfests, Pumpkin Spice, and America’s true pastime — Football.
College football is my jam, and this year will bring us into new territory with a larger playoff, new conference alignments, and many changes to gameplay.
New standards are afoot everywhere. How we work with them creates a new opportunity—if we seize the moment.
Here’s this week’s Connected Advisor.
- Change is Inevitable—Leadership is Optional
- On the Pod: Why Financial Advice is More Than Just Numbers with Scott Hanson
- Bookmarks
- My Episode of Bridging the Gap with Matt Reiner
- Shane Parrish on Intensity
4. Milemarker On the Road
Let’s kick this off.
Change is Inevitable—Leadership is Optional
Thirteen years ago, I was going through an existential crisis.
Nebraska had cut ties with the Big XII conference and joined the Big Ten. A conference that could count for one said there were ten schools growing from 11 to 12.
Around that same time, Nebraska linebacker Blake Lawrence had to retire from the game after a series of concussions.
With the rise of social media promotion, Blake took his setback and turned it into a business that helped athletes build their own brands.
Over the next several years, I was able to watch Blake ride a wave of athlete branding into the NIL era.
Today, Blake runs the foremost athlete platform for sponsorships, payments and NIL. He is one of the nations leading forces for change and athlete representation and his company, Opendorse, is a tremendous success.
The Only Constant
You don’t have to be a retired athlete to realize that way things have been, will not always be the way they are.
You do need to be ready for change.
Like a surfer in the morning waves waiting for the right moment, we all get a little perspective on what’s coming and we all can start to form an opinion on how to ride it.
It is more clear than ever that changes are coming.
And like that surfer, if we understand how to choose the right wave to take advantage of, we can use that moment as a springboard for a major shift in how we work.
What waves are on the horizon?
Glad you asked.
Prompt Based Planning
AI is changing everything. McKinsey predicts that 30% of all US-based work will be impacted by 2030.
I happen to think that’s a very low estimate.
Based on what I see, the way in which you work will be very different over the next 18 months.
Nearly every conversation I have with advisors today involves an AI Tech Stack analysis. The enthusiasm I hear from advisors who are using it far exceeds that of any other vendor they have ever used in our industry.
As consumers become familiar with AI as it debuts as a native feature on their devices, we will all shift from queries to prompts as our defaults.
In fact, in a couple of weeks, Apple’s Calculator app will be debuting on iPad. With this, users will be able to draw math questions, equations and scenarios — getting instant answers.
This powerful feature will be in the hands of 45% of American consumers who own an iPad.
This prompt-based technology is meeting consumers where they are, adding instant value, and subtly changing how we solve all sorts of problems.
Prove Your Value
For years, there have been quiet demands for ways for advisors to demonstrate their value better through improved reporting.
It’s no longer quiet.
Advisors know more than ever that they are struggling to tell the proper story that represents all the ways they work for their clients.
From communication on Alternatives, Insurance, and Budgeting to more proactive updates on things like Cash Loss Harvesting and Asset Location, it’s time for Advisors to step up, speak more clearly, and demonstrate the changes that have been rolled out.
Reporting is now less about changes in balance and more about the balance of impact and action over time.
Assuming you are largely following the index, your clients are looking to see how you can consistently add value relative to their unique milestones in life.
Firms that are bringing this to life in their client experience are winning.
Communicate Modernly
I don’t know about you, but the companies that I use to service my home and property communicate with me better than most wealth management companies.
- They understand that I’m probably not home, and I’m not really paying attention if I am. When the job I’ve delegated to them isn’t complete, and I have to communicate with them, it impacts our relationship negatively. On the other hand, when they do a great job, I can be guilty of not noticing their full contribution.
- They also understand that if I don’t see or hear what they’re doing, I will likely stop working with them over time.
- They know that I probably don’t check my email like I did ten years ago, but I do respond to text messages.
Don’t settle for old ways of talking to your clients. Work with your compliance team to be able to communicate with your clients in the ways they want.
Leading Through Change
In much the same way that people expect their home service companies to help them navigate each changing season, clients have an innate expectation that the advisor they're paying 50-100bps to will walk them through change too. The trouble with us is that the more that clients work with their advisor, the easier it is to become numb to the value that is provided. As your clients go through uncertain times, they naturally should ask themselves where their advisor is at that moment.
1. Is my advisor available to me?
2. Does my advisor actually understand what is occurring, and can they add any value to this situation?
3. Did my advisor do anything?
Make sure the value you’re adding to them is obvious, documented and actionable.
I’ve Watched You Change
Change is on the horizon today and every day ahead. Are we ready to lead our people through it? Can your team challenge the status quo and consider new solutions that will serve your clients through this change?
Related: Why Most Teams Are Just Group Projects in Disguise (And How to Change That)