This structure also gives firms the ability to be selective in the advisors and practices they invite to join the firm. If they feel there isn’t a fit, they can easily take a pass, regardless of the assets involved. This is because they don’t have an outside owner looking over their shoulder at their quarterly recruiting numbers. One of the ways firms can maintain culture is to be selective about whom they add, affiliating only those advisors who share their values.
How Not To Outgrow Your Culture
Firms that are in growth mode need to be careful not to get too big if they want to maintain the boutique feel and family-like culture their advisors chose to be part of in the first place. While actively expanding their reach, every firm has its limits. If they feel that they are getting close to a size where they can no longer provide their advisors with the high-touch, personalized service they promise, they should pump the brakes on growth. Look for an ownership structure, where advisors can be successful across their career spectrum, which gives the firm the flexibility to ensure its culture is never forced to change. That’s a good position to be in.
Jina Horton is vice president of business development for Diversify Advisor Network, the advisor-founded, advisor-led and advisor-focused full-service independent wealth management firm.