Fostering Change in a Resistant Firm

Dear S.U.,

Please do not think I am being rude when I say I often laugh when people ask me how others do something, or what’s happening at other firms, or what is “normal.” There is never one easy answer to challenges that involve human beings and difficult conversations. As a first step, consider:

1. The culture of the firm you are now in. Are they open to new ideas? Are some of the complexities in place due to legacy issues that just haven’t been addressed? Do you see them implement new things or try new things in any areas? Understanding the cultural receptivity to new ideas is your first step. Scan the environment, use your EQ (emotional intelligence) around social awareness and make some discreet inquiries to get answers.
2. Your relationship with the senior managers from your prior firm. While you don’t need to be accusatory towards them, can you ask them about what they see as areas for change management? Can you casually ask them about plans to implement better ways of doing things? Are you able to make an objective observation about what you saw at your prior firm and what you are seeing here? This is called “putting out feelers” and could help give you a sense of how they will react before actually presenting your ideas.
3. Your team members and their appetite for change. Do others around you see some of the same things you are seeing? Has anyone else suggested there have been prior attempts to change things that have been blocked by management? This is also about social awareness, but it is more specifically about finding out whether you have allies, and/or whether things have been tried in the past and failed.

Once you get a sense of the culture, senior management’s interest in change and the support system in place, you will know whether it is in your best interest to raise new ideas or not. Should you decide you do want to point out something that could change, consider doing it in the following manner:

1. Always set the desired outcome first. It’s so easy to find opportunities for complaining and pointing out what’s wrong. It’s much harder to paint a picture of how things could be. So rather than saying “It takes too long to create a client portfolio presentation,” share a process that could alleviate some of the steps and who might be able to do what role and when.
2. Identify obstacles to change. It’s important to acknowledge there may not be an easy way to fix what you are observing. For example, have there been hiring freezes preventing the firm from hiring enough administrative staff to do some of what you are now doing? Are there constraints in place around technology or operational infrastructure? It may be easy to see what needs to be done, but the harder thing is identifying why it hasn’t been changed to date. If you don’t identify and understand the obstacles, you won’t be able to make a strong case for change.
3. Share what you would be willing to do to help implement a new approach. It’s easy to identify a problem and expect senior management to fix it, but they likely have other priorities. Rather than saying what needs to change, outline the steps you would be willing to take (even to lead the change effort). Your role could include anything from bringing a team together to figure out how to tackle the problem, to speaking with outside vendors who could help you, to outlining the steps the firm needs to take to change. Whatever it is, put yourself firmly in the process. If you aren’t willing to do this because you are too busy, or don’t want to, others are likely to put up similar resistance to getting involved.
4. Be aware that any new way of doing something involves costs. Whether these are financial “hard cost” investments that have to be made, or softer costs of people’s time and focus, they exist in any change effort. You want to be sure to recognize and acknowledge these too. The more you can show your senior management you understand the complexity of a change effort, the more willing they will be to listen to your ideas.

In most cases, team members can see a problem and know the problem should be solved, but they expect senior management to also recognize the problem and do something about it. Remember, senior people are human too; they deal with pressures coming from above, below and around them. Suggesting change is like any good communication. If you want to get someone’s attention and influence their thinking to gain traction with your idea, you need to get into their shoes enough to present a case they can understand and relate to!

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. The firm has won the Wealthbriefing WealthTech award for Best Training Solution for 2022, 2023 and 2024. Beverly is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. She 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.

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