Don’t Assume Your Standards Can’t Be Improved

Dear K.C.,

You are observing an important point around cultural differences and norms that is, unhappily, often overlooked in the M&A process. When teams come together, they tend to focus on likability, as in “Can we work together?” Or they focus on how they serve clients, as in “How much value do we put on the client experience?”

However, it is rarely about how they run their business, what ground rules they adhere to, what processes and practices are meaningful to them or what they want their overall team culture to be. The latter are the things that create the most havoc when teams are coming together.

You didn’t say what your role is on the team, nor what weight your insights may have with your senior leader, so I’ll suggest a few things you could do. Please take the ones that fit your situation:

1. Define what is important and non-negotiable for the team in terms of the way you run your business. Gather the team together to discuss this, and share these insights with your senior leader. Does everyone agree what is working now should not be modified or changed? Are there some things that you’re open to considering and others that have served your clients well such that there could be a danger in changing them? Have an open and honest conversation first to establish where you will be flexible, and where you want to insist on things staying as they are.
2. Create a list of important questions to have someone on your team pose during the interview with the team that may join yours. Make sure you include open-ended questions to learn more about the other advisor and team, how they do things, and why they do them a certain way. I don’t know how much exposure you have directly had, but it is possible your senior advisor is hearing some ideas that aren’t terrible. In order for the rest of the team to weigh in and have an opinion, you want to create questions that open up dialogue in a way that allows everyone insight into what the other team is doing and how it could enhance, conflict or complement what you are doing now.
3. Assuming you have good standing and your role is one in which you can do this, ask your senior leader what criteria he is using to consider the other advisors or teams. What matters most in the process to him? What is he looking for in the new teams? It’s possible it isn’t just revenue, and he wants to “shake things up” a bit. It’s also possible this isn’t his objective, so it’s important to stay open to his perspective. There could be something you don’t understand.

These steps should help you share what’s important to the team with your senior advisor so he recognizes your point of view, and help you uncover what’s meaningful to someone considering joining you, as well as allow your senior advisor to be open about his objectives. I think the steps could cover the important bases and, depending on what you learn, you would then have a good idea where to proceed from here.

Dear Bev,

We implemented a sales incentive program for our advisors. They are paid a salary and end of the year bonus (paid the following March) at the current time. The sales incentive is rich, 30% of a new client’s first year revenue and 10% for two years following.

However, not one advisor has brought in new business to obtain the incentive. It seems they aren’t motivated by money, so we’re not sure what else to do to motivate them.

L.S.

Dear L.S.,

I don’t speak German. But think about what I would do if someone told me they would pay me a healthy amount of money if I could have fluent German conversations with several people. I would likely buy a German-English dictionary, ask someone who does know German to practice with me and maybe even take a course. However, the likelihood of my speaking fluently is low. After all, I would not have had the benefit of coursework before someone put the “carrot” of the payment in front of me, and it would take a great deal of education to help me do well.

Now apply this to your advisors. Have you taught them how to sell? Are they comfortable finding new prospects, asking for referrals and creating connections to uncover opportunities? Do they have a sales plan they’ve created that guides them and gives them direction about what to do? Is there accountability in the firm to share what’s working and what’s not?

I asked all of these things because if you aren’t giving them the proper support, they won’t be able to change just for the sake of an incentive! While people are generally motivated to do what they are rewarded to do, my German speaking example illustrates they can’t do it without a lot of help and support. Make sure this is all in place before you decide they’re unmotivated.

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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