The importance of, and opportunities for, including your team in the transition

Another episode, another incredible behind the scenes look at a succession plan in mid-execution. Any advisor looking to pass the day to day running of a business off to his or her family member or trusted partner would be remiss in not watching this show. The focus for this one is on the staff transition and their reactions to this significant change to the business. And those reactions are telling. They convey the emotional investment in the firm and its leadership and the personal nature of this type of change. The fact is, you cannot discount or diminish the importance of including the people that make the business run, in the process of executing a succession plan. Gabe seems to get that instinctively, and that is evident in what this episode brings across, which is that:
1. Gabe entered the business as a peer, not a boss. He wasn’t handed the keys to the kingdom on day one. He came into the business as a peer and grew into the role of President/CEO. My situation was very similar. I started out as a wholesaler. And then as time passed, I moved into sales, becoming the sales manager, then gradually taking on more responsibility with the marketing team. Ultimately, I became President, and am now the CEO.
This didn’t happen over a period of weeks or months. It took me 20 years. Because I came in as a peer to learn the business I gained the respect of employees and developed an understanding of the importance of what they do for the company and their role with clients and partners. I experienced it, and can therefore relate to it. Gabe has clearly taken the same approach, albeit in a shorter timeframe, and the effectiveness of this is evident in how the firm’s employees discuss his ascension into the role of a leader.

2. I meet advisors every day that say that they put the client relationship first. And I believe them. They do all the right things from client appreciation events, to birthday cards, to helping clients connect with a mortgage broker. In many cases however, beneath the calm exterior, these same advisors’ offices are in disarray. Their staff is frazzled, under trained and in some cases, underappreciated. As such the turnover rate can be high. This causes the advisor to do a lot of the service work himself/herself. And this is unsustainable from a growth perspective.
The very best way to improve client relationships is to improve the advisor’s relationship with the staff. If the staff is trained, happy, and appreciated – they will in turn treat the clients with the same level of respect. Gabe understands the importance of his relationship with his staff. He understands that the client is #1 and the only way to deliver a high level of service is to have his entire team firing on all cylinders. If Gabe builds up a strong relationship with his staff, then they will in turn take care of the client relationship and experience. Gabe listened to his staff and improved their technology, their client review process, and implemented staff performance evaluations. These adjustments will pay off big when it comes to the client relationships and experience.
The bottom line? You cannot, as an adviser exiting the business or transitioning out of day to day responsibilities, underestimate the importance of including your team in the process. This is an excellent opportunity to boost morale, to make improvements, and to inject a burst of renewed energy into the business. The sooner the process starts, the more seamless the transition will be. An internal succession has advantages in that the personal connection and key drivers are inherently understood. So that advantage must be harnessed, not squandered, during execution. Thus far the Lapitos seem less in need of a makeover, and more like a firm giving the industry a blueprint for how a successful internal pass down of firm leadership is meant to be done. Click here to watch Episode 2 of Practice Makeover.
Todd Clarke is the chief executive officer of CLS Investments and can be reached at [email protected]