Cambridge Deploys S.W.A.T. Team in Succession Planning Emergencies

“What they tell me,” he said, “is that they want to increase revenue (as everyone does), but they don’t want to ruin their life in doing so.”

Another major issue with advisors, Schmidt says, involves succession planning. Although a worry for executives at the home office level for some time, advisors are now asking for it.

“We’ve instituted our ‘Continuity Express Program,’ which is a relatively new initiative of which advisors are gaining awareness,” he said. “In a catastrophic event, Cambridge will come in and support the practice through our S.W.A.T team, which is an acronym for ‘special wealth advisor team.’ We ask some pretty intrusive upfront questions, like where the checkbook is located; if they have a safe, where the key is kept; and, how can we gain access to the office?”

Schmidt related the story of a 38-year-old advisor who was seriously injured recently in a waterskiing accident to explain the two main components of succession planning: continuity planning and long-term planning.

“Continuity planning is like catastrophic insurance,” he said. “What happens if I get hit by bus No. 4; bam, one day it just happens? Conversely, long-term planning is really where the practice management portion takes place. It’s creating a vision of the future, one the advisor can see and take ownership of.”

Schmidt concluded that he would “love to make the ‘Continuity Express Program’ part of our onboarding process,” as it would help stave off many potential problems, “but these are independent advisors, and it’s very difficult to tell them they have to do anything.”