Of course, this is a purely hypothetical example—but you can probably see parallels to your own business goals in various different parts of the list. Your goals and strategic plan will look different based on your firm’s unique needs, opportunities, and challenges.
But one thing is certain: in order for the exercise to be effective for your firm, your three, top-level goals should inform everything you do in your business—every investment, every decision, every action.
That means the next time your team comes up with a new, great idea (and they will), pause and ask yourself how that great idea will move you closer to your top-level goals. Is the idea aligned with your definition of success? Is the idea distracting you from what is really important? If you can’t make a direct correlation between the next great idea and the goals that are driving your practice forward, then skip it.
When it comes to advising your clients and their investment decisions, many of you have probably said the line, “Stay focused on your strategy.” Like investing, focus is the single-most important thing you can do for your business. Focus is what makes or breaks your firm’s success. Focus will help you build long-term growth beyond the AUM number (pun intended).
Gretchen Halpin is co-founder of Beyond AUM.