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?