The disruption this past year may have felt like an isolated event—a slowly passing storm—but it’s likely to power changes that will shape our industry long after the pandemic subsides. Rather than reacting to future disruption, firms are looking for ways to drive it.

From record market gains to rapid digitalization and increased client engagement, RIAs have outpaced the wider economy in terms of adaptability, recovery, and resilience. The question now is how to take advantage of these positives to create a proactive strategy for growth—fortunately, the key may lie in a resource you already possess.

Owning Uncertainty
The financial sector has experienced a powerful rebound since the coronavirus pandemic began, and clients are exponentially more engaged with their finances—good news for RIAs. While we all know the power of a rising tide, this is a moment to level-up your growth strategy to build a solid foundation for whatever comes next—so you can continue to drive your own boat.

Research from Deloitte argues the key to thriving in 2021 and beyond is a renewed focus on human capital. This is a principle RIAs can run with no matter the size of your firm.

While technology is an important piece of the small-business survival kit, navigating disruption is not a tradeoff between investing in your tech or in your people—the pandemic proved you need both to survive. But to thrive, Deloitte argues that organizations must first approach every challenge from a human angle.

Adopting a team approach is a good start.

Team Mentality
People can provide an avenue for the skills and strategic thinking your firm needs to grow. Deloitte’s report found 72% executives said “the ability of their people to adapt, reskill, and assume new roles” was the most or second-most important factor in navigating future disruptions.

Teams are more creative and adaptable than individuals, and a team-based approach makes it possible to specialize your firm. You may have already assembled an ace team to be proud of, but have you taken the time to strategically plan for continued skill-building, cross-support for clients, or career mapping?

It’s key to allocate talent in a way that maximizes its strategic value—especially in terms of client-facing services. Leverage training, skill-building, and mentorship to help bridge coverage gaps or develop new services, empowering your team to grow and take on greater responsibility. Offering junior advisors and other staff opportunities to become more deeply involved with core business functions not only boosts efficiency, but also signals to your people that their career can flourish with you.

Dedicating a whole team to your client’s best interests can maximize efficiencies, provide more thorough oversight, and open the door for more creative solutions. Putting yourself in the client’s place, would you rather know that your advisor is working alone, or that a whole team is dedicated to supporting your financial health?

Among other things, building your team helps form a natural bridge to succession planning. Your clients will know they’re in good hands, and your colleagues will have developed the wherewithal to see the firm through thick and thin. Ultimately, a team-based approach demonstrates both to your staff and your clients that your firm is here to stay.

All Shapes And Sizes
No matter the size of your team, small or large, you may want to consider alternative ways of leveraging this concept—for example, outsourcing investment management to external money managers. One study showed advisors who outsourced added double the assets under management in a year compared to those that didn’t. (Perhaps that’s why 41% of advisors outsource more than 75% of their client assets.) That said, you should carefully weigh the pros and cons of outsourcing, as it can be costly and require additional oversight.

Some advisors go as far as to redefine their core business model from “investment management” to “client management.” This means outsourcing all investment-related activities so you can dedicate human capital to client-focused services like gathering assets, providing advice, and prospecting. On average, client-focused advisors spend 45% more time meeting with clients, and research has shown they can increase their annual revenues by 60% compared to traditional investment advisors.

Outsourcing isn’t the only way to expand your team, though. Explore opportunities for creative collaborations with professionals—such as CPAs, estate attorneys, realtors, or mortgage lenders—who can provide access to products or services you don’t offer in-house. These professionals can provide additional support and free up your human capital for more strategic work.

People Are Power
Tap into the power of human capital and team dynamics wherever you can: For the independent-minded, this can require a real shift in thinking, but a focus on human capital can provide tangible benefits for your firm, including making it more resilient in the face of future disruption.

But remember, human capital isn’t an infinite resource. Think creatively about how to leverage your support systems so your people can focus their time and energy on the work that is most important for your firm.

Gabriel Garcia serves as the managing director, advisor client experience for E*TRADE Advisor Services.