Can You Execute The Strategy?
When a strategy is both well-defined and the right one for your firm, there’s still one more question to answer: Can you execute it?
A big part of this is taking into consideration industry trends. Does the legal, regulatory, political and economic environment provide a path to accomplishing your objectives? (Again, “doing more” is not a strategy that will help you overcome these things.)
Meanwhile, another part of your strategy is making sure you have the right people in the right roles, where they can be the best versions of themselves. Naturally, this puts a premium on hiring decisions. But it also raises the stakes when it comes to making promotions.
Simply because someone is a good fit for one role doesn't mean they will perform well in another function with added responsibility. If they falter, it can have a cascading effect, impacting the success of the entire organization.
Additionally, you must be willing to invest in your people to improve the likelihood of future success. Firm founders/owners sometimes believe they can hold off adding head count or improving their tech infrastructure, thinking they can defer doing those things until the signs of growth emerge.
However, if they fail to invest on the front end, their desired growth may never materialize. It becomes a chicken or the egg paradox.
If we’ve learned anything this year, it’s that there is an opportunity in every crisis. And the more profound the crisis, the better the opportunity can be.
That’s why it’s so important to engage in some strategic planning each year. The process enables you to better understand the challenges you face and the market forces that could influence your business. This, in turn, will allow you to plan more effectively for the future and position your firm for sustained success.
If you haven’t begun this process for 2021, there’s still time. Get started today.
Industry influencer and transition specialist Carolyn Armitage is a managing director with ECHELON Partners, a Los Angeles, Calif.-based firm that provides investment banking, valuation, and consulting services to registered representatives, IBDs, hybrids and RIAs nationwide.