“We can, if we so desire, refuse to cooperate with the blind forces that are propelling us.” - Aldous Huxley
The strategic planning process can reveal where minor adjustments can be made in your business, and highlight that it’s usually minor adjustments that can lead to major improvements. Very few advisors I work with are way off track, or need dramatic wholesale changes to the way they conduct themselves. But the adjustments needed aren’t always obvious without a fresh set of eyes to identify them.
Case in point, in our on-going practice management coaching with financial professionals we often remind our clients of this simple fact: being a great financial advisor in and of itself is no guarantee for success in this business. We have seen time and time again where the most effective advisors with limitless growth and progress potential aren’t necessarily the most sophisticated asset managers. The common thread however is that they are the most effective at practice and relationship management.
History provides countless examples in many walks of life that demonstrate the need to possess strong business acumen along with core skills. One of my favourite examples is the rivalry between Nikola Tesla and Thomas Edison, two inventors who both made enormous contributions to society but also had two dramatically different outcomes in life. Edison’s company ended up becoming GE while Tesla sold his patents to Westinghouse and ended up dying alone, impoverished, and in debt. Many argue that Tesla was as good, or even a better inventor, than Edison but Edison’s business skills were far superior.
Clearly I will never trivialize the importance of being a skilled asset and risk manager. But it is a given that you are effective there. My point is that there is little correlation between how effective you are as a financial advisor and how successful you will ultimately be in terms of unlocking your full potential. The days of building the better mouse trap and the world beating path to your door are long gone. Sure ongoing professional development to sharpen your asset management skills is essential, but do you invest the same amount of time sharpening your practice and relationship management processes too? They are of equal importance at the very least.
Contributed by: Duncan MacPherson