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April 30, 2018 at 12:13 PM
Erik Dahlberg is the executive director of Baird’s Private Wealth Management Branch System, which includes 860 financial advisors and 93 wealth management branches in 30 states. Previously a regional director for Baird’s Private Wealth Management group and branch manager of Baird’s largest wealth-management office in Milwaukee, Dahlberg joined Baird in 1987 as a financial advisor in the Janesville, Wisconsin, office; he became a branch manager in 1993.
He spoke recently with Investment Advisor about the importance of mentorship at Baird, as well as the steps Baird is taking to recruit advisors to fuel future growth. The veteran branch manager also explains what the advisor of the future looks like and how rewarding his interactions with clients have been over the years.
INVESTMENT ADVISOR: How and why did you begin your career in wealth management?
ERIK DAHLBERG: Times were much different when I began my career than they are today. I graduated from the University of Wisconsin-Eau Claire with a bachelor’s degree in business management and a focus on finance. Fresh out of college, I was intrigued by the competitive nature of the industry, and fascinated by the activity and action on the sales side of the business. It was an exciting industry to be a part of and there was a big inflow of talented, young salespeople trying to get into the wealth management and financial advisor business.
I had a friend who was about 10 years older than me and a financial advisor at Baird’s Janesville office in Wisconsin. He introduced me to John Wood, who ended up being a lifelong mentor despite initially turning me down for a job. I interviewed with him right out of college, and he told me to come back and see him again in a few years, which is exactly what I did.
In the meantime, I went on to work at Regal Beloit Corporation where I worked a lot of hours, made some great friends and developed my skillset. It was an overall great learning experience, but three years later I went back to interview with Baird. It was 1987; I was 26 years old and newly married, and joined Baird as a financial advisor in the Janesville branch.
What have you learned from your supervisors and/or colleagues? Does one of them stand out as a model leader — and if so, can you tell us who that is and why?
I have been very fortunate throughout my career at Baird to work with many great leaders and role models. As mentioned previously, John Wood has been an outstanding role model for me since the beginning of my career. Though retired now, John spent his entire career at Baird. I learned a great deal from listening to the way John would talk to his clients — not only what he would say, but also how he would say it. He was very high-end, classy and professional.
Even during the days of brokers working on commission, John still acted as an investment advisor and financial planner. He was a client-first guy all the time. He was always doing the right thing, and had a terrific work ethic and lots of integrity. Not only did John Wood have a significant impact on me, but he was a community leader who had an impact on the city of Janesville.
As my career progressed, I continued to learn from my peers and leaders. Fred Kasten, Baird’s former chairman, was certainly a role model to all of us at the firm.
He served as president of Baird during the stock market crash of 1987, and it was his dedication to staying true to our culture and our core values that allowed Baird to succeed through the hard market tumult. You could learn a lot by listening to what Fred had to say. He was a very wise and caring person who always put our clients first.
I would also say Baird as a whole has benefited from having Paul Purcell, our current chairman, at the helm. Similar to Fred, Paul led Baird through a very turbulent 20 years, and you could not have asked for a more inspirational leader and role model. If you can’t learn something from guys like Fred Kasten or Paul Purcell, you are simply not paying enough attention.
What have the broker-dealers you’ve worked for taught you that has most helped your career?
Well, it has only been Baird for me. I’ve spent my career with Baird and in this business, and I continue to learn something new every day. During my 31 years, Baird’s senior leadership team has always set a strong example by staying true to our values and focused on the right things, even during challenging times when it would have been easy to get off track.
By simply putting our clients first and the firm second, by treating your team and coworkers well, and by being thoughtful about the decisions you make — even the tough ones — you will see great returns. The leadership team at Baird has always been a guiding light for this lesson.
What is the most significant change you have seen in the industry?
I’ve seen a number of pretty big industry changes throughout my career. One of the most impactful was the evolution from a commission-based business to an advisory business. It was followed by the transition from an advisory practice to a planning practice.
Both were very significant changes for a number of reasons, but I think at the end of the day, they’re positioning advisors to work more closely with their clients as partners. Ultimately, this is helping our industry attract new talent to the business — individuals who are interested in providing valuable advice and truly making a difference in their clients’ lives.
What is the biggest challenge facing your work team today, and how is your team responding?
The biggest challenge facing my team, the leadership group for Baird’s Private Wealth Management business, is the need to attract younger advisors and clients due to shifting demographics. Today the average age of a financial advisor is 51, with 38% of advisors expecting to retire in the next 10 years. What’s clear is that Baird needs a younger, more diverse advisory force to help us better serve our clients into the future.
Equally important is the need to attract younger, more diverse clients by adapting our service model to those at different life stages and enhancing our product offerings. One way that our team is meeting this need is by committing significant resources to train the next generation of advisors through our Private Wealth Management Foundations Program.
This is a two-year, full-time rotational program that provides an opportunity for younger, more culturally diverse recruits to build a solid foundation in wealth management, with the end goal of becoming an advisor or pursuing a career in wealth management. This program has been hugely successful for Baird.
Another approach we’ve taken to reach younger talent is through our partnership with the Wisconsin School of Business at the University of Wisconsin-Madison. Baird is the founding partner of the school’s Wealth Management and Financial Planning program, and continues to be deeply involved in delivery of the program’s curriculum with Baird associates helping to teach classes on campus.
There continues to be very high demand for the program, and we’re pleased to report that we’ve successfully recruited a number of students to join Baird after they graduate.
Importantly, Baird has remained committed to our wealth management training programs through good times and bad. Even when the markets went through a rough patch in 2008 and 2009, we didn’t waver in our support.
I am very proud of the financial resources, time and effort Baird puts into these programs because the payback on hiring young talented people to serve our current and future clients is forever.
What are the biggest issues confronting the wealth management field today, and how should it respond?
