Grove: How about some examples of how Ballentine Partners does things differently for its clients?
Edwards-Pitt: We believe that investments are central to what we do, but they aren’t the only way to add or increase financial value. A lot of money is saved for clients, and value is delivered outside of the investment process, especially through tax strategies and careful estate planning.
McMorrow: Every firm says clients come first. The difference is how those words are translated into the behavior of the senior management team. We must embody our values and our operating principles in our daily life. A key quality for us is honesty. So, it’s no longer OK to dodge client calls by saying, “I’m in a meeting.”
Grove: As it relates to succession, if you could’ve done one thing differently, or started one thing earlier, what would it have been?
Ballentine: One of the major issues to come to grips with years in advance is knowing how to attract the kinds of people that can run the firm in the future. I knew that I needed to create an environment that is attractive to high-caliber professionals. Part of that means offering career-pathing opportunities and soliciting [staff members’] inclusion in strategic thinking.
Grove: What was the hardest part?
Ballentine: There can be emotional aspects to the process, especially when the firm has your name on it. And I needed to disengage from certain processes where my presence would have been disruptive or myopic.
Grove: Everyone had been in their new roles for close to a year by the time you made the announcement in October 2011. Why the delay?
Ballentine: I was concerned that the announcement would be perceived as an outcome of winners and losers and it was not intended that way. By handling our internal and client communications first, it gave everyone a chance to settle into the new structure before putting them under a microscope.
Edwards-Pitt: It can be a process that ruffles feathers and we didn’t want to lose any of our key employees.
Grove: Retaining good people and attracting more of them can be one of the most difficult tasks a company faces. How have you done it?
Ballentine: I decided to study leadership to get some additional insights. Strong leaders attract other strong leaders, and I think we’ve made real strides there. A good example is our recent appointment of Will Braman as chief investment officer from his former post as Americas CEO of Fortis Investments. He brings more than 30 years of investment and leadership experience to Ballentine Partners, which enriches our intellectual capital.
Edwards-Pitt: Another part of attracting good leaders is finding the people that want the equity and leadership opportunities we can offer them.
Grove: Your corporate name indicates an equity partnership. Has that impacted your philosophy or the way you operate?
Ballentine: The organization needed to change its inflection point. We’d become too consensus driven and needed to get back to having more accountability and ownership for decision-making. We are a partnership of owners with agreed upon criteria that determines who we nominate and approve for partnership. We see ownership as separate from governance.
Grove: What is your ownership structure like now?
McMorrow: Ballentine Partners is majority-owned by six senior employees and we want to expand employee ownership to another eight to 10 individuals.
Ballentine: We also have some clients that we’ve offered ownership stakes to, many of whom like the idea of being involved in something that is focused on their financial security and success.
Grove: With Drew and Covie effectively running Ballentine Partners, how do you spend your time now?
Ballentine: I’ve maintained a hand in some client relationships. Other than that, my time is largely spent on board meetings and thought leadership activities that matter to our clients, the firm and the industry at large.
Grove: Of what are you most proud?
Ballentine: A client once told me that he’d never asked us anything that we had not yet considered. We pride ourselves in being incredibly proactive and thoughtful.
Grove: What are your current priorities?
Ballentine: Having been in this business for more than 30 years, I believe most people lose thousands to millions of dollars through some combination of poorly integrated advice, missed opportunities, mistakes and fees paid for value that has not been delivered. Ballentine Partners isn’t perfect, but we’re doing our best to decrease and eventually eliminate those situations.