Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
We are frustrated by the lack of new clients this year. We are coming off two of our best years ever (in the 13-year history of the firm) and now heading into September we have run dry. We are about 65% off from our goal for the year for new AUM and clients.
My advisors have been head-down focused on the markets and completely unresponsive to our concerns. They keep pointing out that we had a couple of great years so why can’t we take those successes and wait out the market gyrations a bit. I don’t agree. I think we should keep pushing and try and figure out what’s different and where we need to make mid-course corrections. It is still four months to go, so I don’t believe we should throw up our hands and say we are done for the year.
I could use some strategies and ideas about how to change this conversation from “let’s wait it out” to “let’s keep moving despite the outcome.”
S.E.
Dear S.E.,
I’ve seen this problem many times over, but every situation is unique. I’m always happy to help explore what could be going on. A few questions for you and then some advice:
1. Have the advisors previously operated with a plan for success? Do they know what they need to do or – like many firms – were they previously beneficiaries of a great market where a rising tide floats all boats so they don’t know exactly what they should do?
2. Have you been clear why these goals matter? You might assume that growth is important, and it is obvious why, but have you communicated the clear importance and the impact on the firm?
3. Do the advisors know how to sell? You mention they were successful in the past, but were they successful with their own efforts? Do they know how to repeat what they have done?
4. Is this growth goal necessary? I run a business myself, so I know all businesses have to grow. But consider whether you have set an arbitrary goal or whether there is some weight associated with it. The more clarity you can give on the “why?” the better people can jump on board and be part of something.
My advice:
1. Ask your advisors about their obstacles to success. Stay open about this. They may see or know something you don’t know. Don’t accuse them or diminish their observations. Be open to learning something you don’t know.
2. Be sure to offer training and support. Often when people don’t do something it isn’t because they actively resist it, it’s because they truly don’t know what to do. Make sure your advisors are adequately trained and supported before you assume they are just disinterested.
3. Communicate the goals, objectives and the importance of continuing to move the firm forward. If you can connect their livelihood through bonuses, equity or other to the success of the firm your advisors will be more engaged and more personally interested in the success.
Dear Bev,
Is coaching someone who doesn’t want to be coached an exercise in futility?
E.F.
Dear E.F.,
You don’t give me a lot to work with here with your very short question. But, yes, “coaching” someone who doesn’t see the need to change, has no interest in changing and isn’t participating in the process is going to lead you nowhere.
I often refer to the fact that the best 12-step programs for behavior change always start with someone saying, “I have a problem” and then going on to acknowledge their weakness and areas for opportunity and change. Without acknowledgement, you can tell someone all day long what to do (which isn’t coaching) and they won’t hear you and won’t change their behavior.
I advocate for the Socratic approach. Instead of telling someone where they need to improve, you adopt an air of curiosity and become inquisitive. Ask open-ended questions and seek to understand. Manage your own emotional intelligence (EQ) by focusing on the other person. You may not agree with their perspective, but you might learn something. This is the only way you can help.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry, in 1995. The firm also founded and manages the Advisors Sales Academy. She is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here. 
