The most successful advisor team leaders don’t subscribe to one single business model, client acquisition strategy or inherently superior way of doing business.
Instead, they work to “change the hearts and minds of their people” and set a clear tone about what the firm is all about, why people should want to work there and how the it improves the lives of its clients and advisors alike.
That was the takeaway from a a live taping of the Standard Deviations podcast with Orion’s chief behavioral officer Daniel Crosby and Brad Johnson, the founder of Triad Partners, on the third day of the Future Proof Festival in Huntington Beach, California.
The pair spent more than 30 minutes dissecting the mindsets and shared traits of advisor teams that are growing their businesses at impressive rates.
“It’s not about having some magic bag of tricks,” said Crosby, who has analyzed the approaches of hundreds of Orion’s most successful clients, including Triad. “It all starts with mindset and messaging. It’s typical for a psychologist like me to say that, but it’s true.”
Far too many firms, according to Crosby and Johnson, fail to create this kind of culture, instead allowing “a culture of mediocrity” to take over by default. Every firm has a culture, they stressed, even those with leaders who aren’t managing the message.
“As financial advisors, we’re really the only industry out there that as a business gives ourselves the excuse to not grow,” Johnson said. “It’s called the lifestyle practice. How many times have you heard of an advisor reaching a certain point and saying, ‘OK, I’m good. I don’t want or need to grow anymore’?"
While reaching that level might be “enough” for a firm’s founder, Crosby said, it’s also a recipe for driving away young talent and putting a firm on a trajectory to fade away over time. This is especially true as other parties in the industry continue to raise the bar for what a financial advisor can (and should) be doing for clients with increasingly sophisticated needs and expectations.
“It’s so antithetical to the way great business operate,” Johnson said. “Could you imagine an Apple or a Tesla saying, ‘OK, it’s only September but we’ve built enough iPhones or cars for the year, let’s hang it up and go play golf until January'? It’s kind of absurd when you think about it.”
While growing the business will result in more revenue and returns for its owners and advisors, Crosby said, that’s not the only motivator at work.
“As financial advisors, our work does real good in real people’s lives,” Crosby said. “The next generation of advisors wants to be a part of a high-growth story because they want to be part of an organization that has a big impact on the world around them. They don’t want to settle for a lifestyle practice or a culture of mediocrity.”
Another standout feature of high-growth firms, the duo said, is they “truly believe” in what they're selling.
“That requires a lot of clarity about exactly what it is you’re selling and why it’s important,” Johnson said. “It’s not going to be the same answer for every firm, of course, but there needs to be a clear answer. How are you helping people get from point A to point B, whether that’s about getting them ready for retirement or helping them achieve their wealth accumulation goals? Success starts with clarity and belief on the part of the founder, which then translates to belief from the team.”
Finally, successful teams are mindful about the language they use both within the firm and in their interactions with clients. They are focused on delivering great client “experiences,” for example, and not on “selling product.”
“Language really does matter, but you have to do the hard work of letting the positive language actually change how you think and behave as a firm,” Crosby said. “The classic counter example is seeing Enron’s value statement being set literally etched in marble in the building lobby, talking about 'integrity' and 'respect' and 'excellence.' If your culture isn’t meeting the standards you talk about, it’s actually going to be corrosive. People notice and see the gap between who you say you are and how you act.”
Pictured: Daniel Crosby
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