Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Readers,
Like most people, I have found myself working much, much more during this virtual world. It’s a pleasure to work with the variety of incredibly talented people in our profession. I feel blessed every day to do what I do for a living!
This week I am taking a break, finally, and going on vacation with my family, so in place of questions that might arrive – which will be answered next week when I return – I will share some of the most important take-aways I’ve learned from my advisors and the larger firms during this virtual experience:
1. Many advisors believe their skill lies in the “face-to-face.” If they can’t see the person and read the body language, they can’t connect in the same deep way with their clients.
This is simply not true.
My firm has done more than 50% of its client work for many years over the phone; in many cases it was solving very important issues without ever meeting the client in person. If you practice excellent listening skills, ask great open-ended questions, express a sincere interest in others and do not multi-task while the prospect, client or COI is talking to you, you can have a very deep and bonding relationship virtually. Do yourself a favor and don’t tell yourself that the in-person matters and if you cannot have it, you are missing out. Have these in-person meetings when you can, but don’t delude yourself into thinking you are “on” when in-person and not so much in the virtual world.
2. Communication always needs work and focus. Yes, the coffee discussions in the break rooms, the drop-in to someone’s office and the grab-everyone-get-into-the-conference-room approach helped us to have those ad-hoc, real-time conversations, and virtual has made this difficult. However, I’ve been doing this work a long time. As long as I have been interviewing firms both large and small, I’ve heard “communication is poor” as one of the major obstacles. On a good note, the virtual world has forced a bit more of a focus on how to have clear, ongoing communication but when your team returns to the office don’t assume communication will just pick up and you’ll be back to sharing informally without need for formal and scheduled interactions. Communication – whether in our personal or professional lives – takes work. When you return to the office, it is going to be a bit strange for a bit. Right at the outset make communication your focus so you are set up for success. I particularly like communication ground rules where teams have an agreement in writing, everyone signs it, and someone is charged with ensuring implementation.
3. Some team members cannot wait to get back and some are loathing the idea. It doesn’t mean some like their colleagues more than others, or that some are reclusive and others are sociable; it means that people are different. Some have missed the real-live interaction and might live alone, have difficult family situations or simply become energized by being in a room and brainstorming with others. They miss this interaction and look forward to being back in the office environment. Others have adopted certain ways of working on their own, new habits, family traditions and work/life balance and might find that a virtual experience works just fine for them, and they are more productive. There isn’t a one-size-fits-all approach. Try and be open and patient with your team members and let people talk about what they need and how they can best work as everyone re-integrates. Having spent many years in large organizations I realize that the bigger the company, the more the “rule” must be applied to everyone in order to be fair, but for smaller RIAs and large firms with work flexibility, stay open as much as you can.
4. Advisory firms are doing well financially. Most everyone I work with will say, “We’re having our best year ever. New revenue is up substantially. We are increasing AUM exponentially,” which is all great. However, take the time to examine your business and make sure it is solid and set up for success in all market conditions. One client the other day said their new revenue is through the roof, but their client exodus (largely due to retiring individuals and some deaths) is impacting their net growth. It’s important to take stock not just of the overall numbers, but the “real” numbers and what’s happening throughout the firm. Be sure your servicing is as tight as your new business development, that you are deepening relationships with the next generation, that your planning is updated and ongoing and that your team knows exactly who is doing what, to whom when in the processes you have developed. Many advisory firms examine things when times are tough – do it now when life is good, the money is flowing, and everyone is positive. Force yourself to look critically at what you could or should do differently.
5. Lastly, remember an important idea from these last several months – people have emotional reactions to everything in life. Stress impacts team. It impacts clients. It impacts decision-making. It is real. Most advisors have pushed through and provided excellent service throughout this difficult year, and their teams have stepped up in a big way. This doesn’t mean people aren’t all feeling the stress of the experience. Most people find themselves working from early morning until late evening – after all, where is the break between work and home? It is all right in front of everyone. The stress of the political environment, potential tax law changes, market movements, weather patterns, family dynamics, concern about COVID or about the vaccine added into the normal stress elements in life have taken a toll on many people. Be kind to yourself. Get that massage, speak to a good counselor, practice meditation or yoga, sign up at the boxing gym to hit the bag, have lunch with a good friend – take care of yourself, and support those around you as much as possible. It’s been a rough ride for many people and just because you are a professional, you are human! And so are your prospects, clients and COIs. Try to keep in mind the emotional piece matters just as much as those nice graphics you will present for the second quarter results. Combining the human with the technical is really important at all times, but crucial during times of change or stress.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. The firm also founded and manages the Advisors Sales Academy. She is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here. 