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Written by: Jeff Thorsteinson
“It is not the strongest of species that survives nor the most intelligent, but the most responsive to change.” Charles Darwin’s quotation suggests that business survival and growth are based on an advisor’s ability to effectively and efficiently change their practices to maintain a competitive edge. As our industry undergoes constant evolution, this quotation strikes home.
Let’s explore what advisors can do to think about “change” and implement capabilities essential to running a modern and compliant advisory practice.
This week, it’s one of those call-outs to work on your practice for about 60 minutes. Clear the decks and turn off the cell phone for 1 hour. I guarantee it will be worth your time. Why? Because this week, let’s make it all about change. Well, it’s more than that. It’s about dealing with change and implementing what you need to ensure you respond to change best.
I would suggest it’s likely worth an hour to think about the following four areas of your practice:
- Business process engineering
- Process improvement
- Continuous improvement
- Total quality management
Theoretically, all of the above are similar principles and comparable in terms of aims and objectives. Most importantly, these principles look at their practices from the outside in. In other words, outside forces impact advisory practices to change. Primarily, I’m referring to regulatory and client expectations.
What do we need to do?
In preparation for creating the appropriate business processes to meet and hopefully exceed client expectations and regulatory requirements, we need to take action to:
- Understand the looming changes that are coming and the regulators’ expectations
- Proactively educate our clients, gather their feedback, and ensure that we can meet and exceed their expectations
I know from speaking to advisors that some process management people are in the fold. Change may be easier for these folks to manage. However, most career advisors haven’t been exposed to process or change management. Sure, they have been exposed to much change over the years, but it’s been reactionary in most cases. I’m one of those casualties. Let’s change that!
Let’s get Practical – 3 Steps to Success
Download the Excel attachment, save it, and open it. It’s a worksheet designed to help you contemplate potential opportunities, threats, and impacts and describe how you will take action!
https://us-ms.gr-cdn.com/getresponse-BwKsu/documents/ad8939b8-6757-42cc-b0a6-7610996b5f57.xlsx
STEP 1: Define Opportunities, Threats, Impacts, Action.
Select Tab 1: OTIA on the spreadsheet.
You'll see ten areas to consider on the left-hand side of the page. Then, beside each area, you’ll note three other columns: Opportunities, Threats, and Potential Impact. The last two columns – Action and Priority - are the most important. This space is designed for you to fill in how you plan to adapt to the change and then prioritize the actions for implementation. It would be best if you resourced the execution of each area. It’s rarely possible to do everything at the same time.
STEP 2 – Define 3 Highly Achievable Goals.
Select Tab 2: 3 3HAG on the spreadsheet.
This exercise will help you contemplate goals for the next three years and imagine your practice in 36 months.
This worksheet contemplates several practice objectives: assets, team, clients, products, competitive advantages, and capabilities.
STEP 3 – Make It Happen Sprint
The final step, in Tab 3, is to contemplate how you’ll get from 2024 to your practice expectations for 2027, given all of the work you listed in Step 1.
Bottom Line
I could read all the theoretical stuff about change management. The bottom line is that change is constant, and those who navigate these changes are prepared and flexible. One must be committed to change and a new business direction.
Also, as a leader, it’s essential to have your whole team in the same boat, rowing in the same direction. To embark on change without the support of the entire team will make for a difficult journey.
Related: Why Every Financial Advisor Needs a Client Advisory Board: Top 5 Benefits