I love this story; I can relate to it, and what financial recruiter, advisor, or anyone in sales wouldn’t?

We all focus on setting and obtaining our goals, but do we ever stop to think about “why” we set them? Granted, we are financially motivated, but in reflection, it’s often about beating out our competition.

And as Steve Sanduski, CFP, and Managing Partner of Peak Advisor Alliance, a financial advisor coaching and practice management resources organization, points out this is really “negative motivation” and can lead to some serious problems down the road. Read his story…there’s plenty to reflect on.

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by nordique under CC BY  with wpseopix.com

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Here’s a great article that was written in October, 2011, for OnWallStreet, by Rick Rummage, CEO and founder of The Rummage Group. (Yes, a competitor in the recruiting industry.)

I never shared it on our blog site, but I think it appropriate now as many advisors gear up for another tough and competitive year in the Financial Services industry. Particularly if you are questioning your career status or trying to determine how to grow your business beyond what you achieved in 2011.

Even as a financial recruiter, I found much of what Rummage has to say relevant to my own career, and found myself asking “was I happy, insane, or a little of both”! I found my answer and am moving forward with enthusiasm and determination to make 2012 an even more successful year for Willis-Consulting, Inc. Here it is…happy reading. Are You Happy or Just Insane?

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“Relax, and just sit out the crisis,” says Fred Dickson, chief investment strategist at D.A. Davidson, a Montana-based brokerage and money management firm.

He calls it a one-in-a-100 chance that the government will not raise the debt ceiling, but if that “one” did occur, a 1% chance, then not to worry. He predicts a short disruption and perhaps a 2-3% drop in the stock market, which is an opportune time to buy.

Backing his prediction are: a rising market, good earnings reports and improved business investment, and an improving housing market.*

Hope he’s “right on” and we’ll know by the time this is posted.

*OnWallStreet, July 20 by Dave Lindoff

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With a history of hiring career changers and entry level trainees, Edward Jones wants to recruit at least 230 experienced advisors this year, at least one for each of their regions where they operate.

Earlier this year, they added three new recruiters and streamlined their hiring process.

Jordy Evans, principal of Edward Jones told Registered Rep,

“We intend to continue growing as a firm and we are not slowing down the recruiting of career changers or people who are unlicensed, but we want to add experienced FAs who care about their clients and are craving the stability we feel we can offer. It is an exciting time to be recruiting experienced FAs because of what is happening in our industry.”

So who qualifies? According to Evans, a veteran advisor with a minimum of three years experience serving clients, a minimum of $20 million of assets under care, and a minimum of $150,000 in gross revenues in the prior 12 months. (Noteworthy, is that the 50 veterans hired in 2010 had an average of $300,000 in annual revenues, about $50 million in assets under care and about 13 years experience.)

Edward Jones appeals to advisors who want the support of a full-service firm, but want a smaller more intimate culture than the wirehouses provide. Evans also noted they are also appealing to advisors nearing the end of their career as they have an attractive succession planning and profit sharing process.

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There has been a “rumble” since January when the SEC announced that FINRA would soon be regulating RIA’s and fiduciary standards would apply to broker-dealers.

Most of the RIA’s seem pleased about a uniform standard of conduct, but cautionary about the prospect of oversight by FINRA. Currently under regulation by the SEC, if their assets top $25 million, they fear an over regulatory burden (endless rules and paperwork), and would prefer a self-regulatory organization (SRO) and this may just happen. The battle will go to Congress.

For an in depth look at the pros and cons, see the link below, “The Tradeoff” by Larry Light for Financial Planning.

http://www.financial-planning.com/fp_issues/2011_3/the-tradeoff-2671696-1.html

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It was an interesting survey recently conducted by Grant Thornton LLP that pointed to the optimism of banking executives regarding the U.S. economy’s recovery in the next six months.

A robust stock market, stabilizing unemployment and improving corporate earnings obviously have an impact on their positive outlook.

One must ponder then over, the lack of increased hiring.

“Bankers are proceeding with caution focusing on building up capital and preparing for the costs of compliance and financial reform regulations”, reported Nichole Jordan, of Grant Thornton LLP. Supporting this feeling of confidence, are the high net worth investors with more than $2 million in assets beyond their primary residence whom expect their net worth to at least triple in the next decade.*

Which brings one to ask “Are our financial institutions to cater only to these elite high net investors?” If so, where are our Main Street investors going?

* (February report by the Scorpio Partnership and Standard Chartered Private Bank).

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When you think of your branch manager, what images come to mind? Does your branch manger send off positive, negative or neutral vibes? Perhaps the message is mixed. Because he or she represents the management of your firm more than any other executive, that relationship is most influential in determining your image of corporate culture. In fact, it is your branch manager who runs the ship, sets the tone, and translates home office ideals into everyday practices.

Corporate culture refers to an organizations values, belief and behavior. It is concerned with how employees interpret experiences and behave. It is management’s job to articulate and demonstrate the desired culture. In other words they cannot simply talk the talk, but must walk the walk. Firms with strong corporate cultures are typically very successful. Employees are more focused on what to do and how to do it. Furthermore, the message sent to clients and prospects tends to be more on point and consistent.

Many years ago, I was an internal wholesaler for a wirehouse and I traveled nationally promoting a product line. I had the opportunity to visit over a hundred branches, spending time with our managers and financial consultants. The differences among branches were shocking. Some were well organized and productive and others, well; they were disasters. Generally, the advisors at the less successful branches had negative opinions of the firm and there branch manager. Advisors at success branches usually felt good about the firm and either admired or at least respected their manager. It became evident that leadership and the culture they created were vital to my firm’s success at a local level.

Somewhere during my two year nomadic stint, I decided that I wanted to become a branch manger. Granted, I was tired of living out of a suitcase, but the real appeal was to be in a role where I could make a difference. So, I continued to travel the branches, and carefully observed branch mangers words and behavior. It became clear that manager’s presentations and attitudes had profound effects on advisors perception of the firm as well as their ultimate productivity.

This was the 80’s and as hard as it may be for some of you to believe, firms in that era aggressively promoted proprietary products. Government bond funds were the rage and most firms had their own version. Senior management expected every branch to participate in the initial offering and branch mangers were held accountable for performance. At most firms, the heat was on and it was clear that this was key initiative. My firm, which by the way is no longer in business, was no exception.

I was fascinated by the different ways mangers handled the dynamics of this offering. There was a group that preformed poorly and in the process lowered morale. Another that got the job done at the expense of branch culture. And finally, those leaders who engineered the desired results while also creating a positive team experience.

It was hard to believe how some of our managers were addressing the government fund in their sales meetings. I heard various versions of this approach. “Hey guys, this thing looks pretty good and the firm wants everyone to sell it. They are really putting a lot of pressure on me so help me out here” This appeal asked the advisor to help protect the manager from the big bad firm. The message was the firm does not care about the advisors or client interests, but my poor boss needs me to sells this stuff and help protect his job. Both the product and firm lost credibility while netting weak sales.

Then there where those with a heavy handed approach. “You will sell a lot of this fund or else!” This management style was fraught with threats and deals. Establish advisors were bribed with branch amenities. Goodies such as secretarial coverage, syndicate and account distribution were all tied to advisors ability to push the deal. Rookies were told to sell the deal if they wanted to survive! This technique usually yielded strong sales, but proved culturally destructive. Manager who operated in this fashion created a climate of fear which ultimately led to general negativity and advisor retention problems.

So how were some managers able to achieve top results while creating a positive cultural experience for their branch? First of all, they focused on the softer concept of customer needs rather than the numbers. It was obvious to everyone that the firm was pushing the product, but the best leaders focused on why it was a great idea, where it fit, and how to present it. They enlisted the support of branch leaders and asked them to share their success stories. The fund in these offices became a smart idea that was the right thing to do for clients. Not only did the manager like it, but the best advisors in the branch were all over it. There was idea sharing, team building, and great results. When I visited with advisors in this type environment, they were proud of how highly their branch ranked in the offering.

It is your leader in an organization who is most influential in establishing your perception of culture. My son played basketball growing up and was fortunate enough as a youngster to be on some very successful teams. We were both thrilled when he made the high school team, but I was floored by the presentation the head coach made at the first parent meeting. Coach told the crowd that he had been around for a long time and knew that none of our boys would ever be division one players. He added that we did not recruit players from outside our area, like some of our opponents who break the rules, so it not likely that we will win that many games. I heard this exact speech for four consecutive years thus felt confident that the boys consistently heard a similar message. He created the following culture: none of you are great players; our opponents beat us because they cheat; and we will not win many games. Unfortunately, the environment he created produced the results he expected. By contrast both our football and baseball teams who had very positive leaders won championships during the same timeframe.

The era of the product push has passed, but the pressure is still on branch managers. These days the focus is squarely on recruiting, a subject dear to heart. Much like your old college professor might have told you that he must “publish or perish”; your branch manager’s career trajectory is closely tied to his or her recruiting track record. Like the old basketball coach, some managers create a losing culture for their firms. They tell me that “it’s impossible to recruit in this town”, or “how can I recruit when the other firms have a better financial package?” So, what separates the great recruiting mangers from the rest of the pack?

The best recruiting branch manager are empathetic, positive, and passionate. Rather than just pitching their firm, they focus on understanding the details of a candidates business and personal life. They then discuss how that business might fit, and how the individual would prosper in the new culture. Whereas money is a key element in a candidate’s decision, top recruiting managers know that most are looking because they are unhappy with their current branch manager and the associated local culture.

Unfortunately, many branch managers are not happy with some of today’s trends. Certain managers feel that their firm affords them less freedom to create and make decisions a local level. Blaming mergers and increased regulatory pressure, they complain that it is more difficult to establish that unique corporate culture which traditionally had differentiated them. It seems that many feel that they are being asked to take on more responsibilities for the same or even less pay. Last but not least, the general compensation compression facing branch managers is not being well received.

Consolidation and complexing have forced an unprecedented number of experienced mangers to look for new positions. It is truly a buyers market and some are paying mangers what they can rather than what they are worth. To me it seems penny, but pound foolish for a firm to take advantage of the market at the expense of their leaders. If management discounts the leaders who are in charge of corporate culture, they risk harming the moral of those who represent their firms to a significant group of their employees and clients.

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Building a recognizable brand name takes time, but will ultimately keep existing clients loyal and attract new business as well. When developing your brand, you need to think about how you choose to run your business. Make sure when you establish your brand name, to be consistent in how you provide your services.

For instance, many clients like to be able to contact their financial advisors when they need them. Make sure to follow up with your clients in a timely manner. If your sales assistant is the first point of contact, make sure he/she assures the client the issue will be handled in a timely manner.

If an error has been made on an account, be sure to contact the client personally to discuss the issue and explain how it will be resolved immediately. Being honest and upfront with your clients will build their trust.

Brand recognition has worked for many years with any company in any industry. Many people can associate a product right now by a song or advertisement they saw on television. It is a very powerful tool for every employer.

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The baby boomer generation has been the primary focus for the majority of financial advisors as they have accumulated much of the nation’s wealth. However, now it’s the present and future generations’ turn. Gen X and Gen Y are quickly moving up the ladder of accumulated wealth with their fortunes in technology, etc. Financial advisors now need to turn their focus to these younger generations.

How will the baby boomer financial advisor be able to relate to the technology savvy Gen X and Gen Y and win their business?

It could be an uphill battle for the veteran advisor who is stuck in their baby boomer ways. Adapting to the younger generations is a must. There are even generational gurus who will help advisors with this generational gap.

First and foremost, you must learn how to market to the younger generation. The traditional ways of networking and marketing have long since gone out the window. Nowadays, you must be proficient in social networking sites such as Twitter and Facebook. For those advisors who are inept when it comes to online networking should consult one of the many technology savvy Gen X or Gen Y’ers.

The truth is, Gen X, Gen Y and beyond will be the key to building and retaining a successful advisory business whether it is inherited or new money. Those advisors who chose not to evolve or are late to the game will suffer the consequences.

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According to a quarterly study conducted by Bank of America Merrill Lynch,

“57% of affluent investors turn to their financial advisors for advice after making a financial mistake or financially irresponsible decision. This is the same percentage that turn to their spouse or partner. Forty-two percent consult an advisor before making a significantly expensive purchase and another 13% haven’t, but feel they should.”

Many people feel they will receive more sound advice from an actual person they know and trust rather than any online article or tool. This is why financial advisors are so important in this economy. Most affluent investors have very complex situations and each need to be handled differently. Dean Athanasia, the head of Bank of America’s global wealth and investment management and Merrill Edge, states,

“No one wants to simply talk to a machine for their financial advice…We have designed partnerships with advisors so that investors can gather information from our systems, but we back it up with licensed financial advisors.”

Investors are having to put off retirement for a few years due to their financial losses and need help regaining these losses. Dean Athanasia states,

“Investors are still skeptical…They are still seeking returns, but they have low tolerance for risk. They want to be sure that they are investing and working with advisors to proceed in the best way possible.”

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