For college basketball fans, it is “March Madness”, when tournament play will reduce a field of 68 teams to a Sweet 16, an Elite 8, and then a Final Four in April when a national champion is crowned. In the seeming chaos, one thing is certain: the winning team will have shown foresight, discipline and strategic integration in all its parts.
Recently, here at Rockefeller Capital Management, we gathered the top performers to talk about what characterizes the most successful money management teams. No wonder – we found clear parallels with top-ranked sports teams. For our purposes, we created “The Practice Management Excellence Equation”, our own version of “Elite 8”. They are here:
- Digital Proficiency. Marketing, prospecting, communication and servicing today is mostly done through social media. Each team must secure dedicated resources and training. Signal: linkedin Essential – Reaching 800 million users in 2021 is the most powerful way to expand the network and establish credibility. This channel should be central to any business development program.
- Focus – Narrow and firm. A successful business needs to be selective and efficient in taking on new customers. Not every team has a fixed niche, but partners in private equity firms, orthopedic surgeons, athletes and entertainers, or Greek professionals often have an ideal clientele in mind, to give a few examples. This approach creates a natural attraction to prospects.
- The market is going up. Generally, the higher the net worth, the more complex the financial problem, and the greater the need for your expertise. In general, the reverse is also true.
- Bullet proof. The industry has never been more competitive. The best of the best retreat regularly and stress test your own business. They ask, “If I were in the competition, what would I point to as lacking in this customer relationship?”
- Identify and display continuous differentiators. It’s not just a value proposition. It’s about creating real intellectual property that sets your firm apart and sparks interest in prospects.
- Leadership. When you search Amazon.com for books on “leadership,” you get about 60,000 results. there is a reason. Much has been written because it is such a difficult thing to do—lead. Most financial advisors are unable to bring in new clients, take care of existing clients, and lead an effective team. The best of the best all three can do.
- Pipeline Management. The best of the best teams are likely to apply great discipline in managing the pipeline—that is, sourcing, tracking, closing, and on-boarding—continuously.
- Investment and planning excellence. financial Advisors actually run three businesses- planning, investing and servicing. They are not mutually exclusive. Clients expect their financial advisors to bring superior investment insight, comprehensive planning skills and detail-oriented execution.
Vision, discipline and strategic integration—critical topics for effective teams in any field. and “Elite 8” – our exclusive formula for taking your money management team to the top of the league.
Michael Parker is Divisional Director, Northeast at Rockefeller Capital Management
