When considering new products and services, RIAs should seek thorough reviews from multiple parties, including those who will be affected by the change, those who will support it, and possibly legal and compliance officers.
Finally, advisors should seek out diverse opinions, which is healthy and helpful for countering inherent biases such as overconfidence. Advisors should not let business decisions define them, and instead strive for emotional detachment. This will help them achieve objectivity—and possibly even keep them from escalating a poorly thought out commitment and throwing good money after bad—in the event that things go awry.
Zohar Swaine is the president of Mink Hollow Advisors, a strategy consulting firm serving the C suite of the wealth management industry.