We are all often tempted to believe that we have trusted relationships with our clients, but if we look more closely at most firms we will likely find that those clients are at best just having their needs met. It is ultimately the job of a relationship manager to make sure a firm can do better.
Can The Job Be Shared?
There is an inherent tension in the job of the client service manager and the client relationship manager. It almost sounds like a “good cop, bad cop” routine that implies two separate jobs. Firms can often be tempted to split the job in two and have one manager and one service person. I strongly believe, however, that the best relationship manager is the person who actually knows the client best—i.e., the same service person, i.e., the advisor.
Some firms manage their client relationships primarily with policies rather than adapting to different situations, and I think that is a mistake. In those situations, a firm defines what is allowed and not allowed, what is included and not included. The firm governs pricing and engagement terms. The advisors in those cases become “the good cops” who are helpless because they don’t make the decisions about the firm’s overall policies. They feel friction between the desire to please and the need to follow through on their firms’ plans for profitability. The result, though, is a worsening relationship between a client and the firm and often between the firm and the advisor.
Another dysfunctional strategy is to designate “overseers” who help advisors manage the situations that may arise and approve decisions. Larger restaurants take this approach. There is usually a maître d’hôtel who oversees the floor and handles the more unusual requests or customer issues. Again, this leaves the client confused and often frustrated with all involved. It leaves the customer service people equally flustered.
Instead, I believe the answer is giving lead advisors training on managing relationships and making those decisions. After all, they are the people who know the client best and have the most information. Lead advisors can also communicate with the client more effectively and more frequently. When it comes to training clients to work with the firm, no one has a better ability to deliver and revisit that training.
When lead advisors manage clients, it also removes the tension between the firm and the advisor that would otherwise exist. In fact, many wirehouse advisors I have spoken with seek independence because of relationship management decisions that their firm is making that are clearly not driven by compliance. In a way, there is no real independence unless you also have the ability to manage your relationships.
Advisors are also in the best position to manage the relationship toward growth and success, not just the minimization of liability. A good relationship manager will also be able to find those new opportunities.
How We Learn Relationship Management
Relationship management skills are critical for the success of a professional but they are really not part of any university or even professional educational curriculum. Professionals tend to acquire the skills through trial and error. But they often fear the topic and shy away from that type of approach.