Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Wealth management firms aren’t slowing down when it comes to expanding their tech stacks. In 2023, 77% of the wealth management firms F2 Strategy surveyed enhanced their offerings by adding at least one new technology vendor to their platforms. While this growth and innovation is exciting, integrating a new vendor into a firm’s existing structure is a project that must be handled with care from beginning to end.
Unfortunately, in many instances, firms allocate significant resources to prepare for the new technology's launch date but neglect the critical post-launch phase. This approach can cause issues, exacerbating the difficulties of adapting to changes in infrastructure that inevitably come with the adoption of any new application. Regardless of the technology's operating system or the organization's size, if the incorporation of any new capability is to have long-term success, then every update to the platform must be accompanied by a comprehensive plan that ensures ongoing support, correct usage and continuous post-implementation monitoring.
The actual launch day of the technology on the platform marks the beginning, not the culmination, of the project. One might visualize this as starting a marathon a mile and a half behind the official start line, a stretch that represents the project-planning stage. The moment the technology goes live in the firm’s operating platform is the starting line. With the entire marathon still ahead, it is important to have a strategic plan in place to navigate toward the true finish line and the goal – successful adoption.
To facilitate a smoother transition and ensure long-term success, firms should focus on three key areas during the project planning phase:
- Proper documentation of workflows, controls and procedures around affected sequences
Long before any new tool is up and running, firms should document how various workflows will function in the new environment. This ensures that necessary controls and procedures are communicated clearly to everyone who will be interacting with the new system, helping to avoid misuse and gaps later.
Firms must put in place the correct mechanisms and controls to supervise and support the personnel tasked with operating the new tool. This points to the importance of having a dedicated workstream focused on documentation of all affected task sequences and operations. Documentation cannot simply be happening off the side of several teammates’ desks; it requires dedicated and intentional resources.
This portion of the plan could also include a detailed list of how the technology will be used on day one versus day 30. It might also outline necessary modifications for special processing days and other unique instances – such as high-volume trading days or market disruptions due to government shutdowns – that require their own set of controls.
- User training, adoption program and measurement of value
The success of new technology hinges on its users' ability to effectively engage with it. Leadership must prioritize comprehensive training sessions that not only familiarize users with the system but offer them the forum to provide feedback and ask questions. This proactive approach fosters a more welcoming environment for change and encourages honest communication about the technology’s functionality.
During such transitions, it's common to encounter more resistance, or “change saboteurs,” than support, largely due to an inherent preference for what's familiar. To mitigate this, it's beneficial to identify “champions” early on – individuals tasked with advocating for the new system, capable of clearly articulating its benefits, and providing practical guidance by addressing user queries.
Lastly, implement a system that can measure adoption metrics – such as the extent of employee engagement with the technology and their correct usage of it – prior to the technology going live. This measurement helps the firm assess if their investment, both in terms of time and finances, has been worthwhile.
- Ongoing innovation for the tool within the platform
Another trend I've noticed is that, despite a firm having numerous ideas for implementing and innovating a specific technology before its launch, many of these ideas are shelved once the technology is live. This represents a significant missed opportunity to fully capitalize on a substantial tech investment. Firms should integrate plans for ongoing innovation during the project planning phase and adjust their perspective on project timelines to mitigate project fatigue.
By establishing additional milestones that extend beyond the initial go-live date of the new system, firms can more strongly position themselves to maximize the benefits from their technology investment. Also, this longer-term perspective on the project's timeline serves as a constant reminder to the team involved that achieving full implementation and optimized functionality is a marathon, not a sprint to the launch date.
Critically, however, for the comprehensive planning process we’ve outlined above to drive fruitful integration, it must occur prior to the launch of new technology. Documentation, user training, adoption programs and ongoing innovation, often neglected in the excitement of implementation, are fundamental to any new functionality’s long-term success.
Though this planning is time-consuming and may require dedicated team resources throughout the project, it’s well worth the patience it requires. After all, it was the slow and steady tortoise, not the impulsive and hasty hare, who won the race. And if the internal resources aren’t available, it may make sense to hire a specialist to manage certain aspects. While various leaders at the company will serve as subject-matter experts, their inability to neglect core responsibilities and take on additional work represent a common obstacle – insufficient human resources for the task at hand. To effectively carry out what's outlined above and bring this part of the planning process to fruition, there needs to be enough hands available. In some instances, this may necessitate reinforcements.
Incorporating these plans for all the post-live activity into the pre-launch project planning phase is just as important as ensuring that the right data flows through the correct systems and that all user profiles are properly configured. If smooth firm-wide adoption is the goal, everything – from the first mile of the marathon to the last – must be planned for in the earlier stages of the project.
The journey toward digital transformation is not just about reaching the go-live date but about sustaining progress and innovation every step of the way. Endurance and commitment are the keys to crossing the finish line with success.
Scott Lamont is managing director at F2 Strategy, a wealthtech management consulting firm serving complex wealth advisory firms.
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out our most recent white papers.
Read more articles by Scott Lamont
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
