Since 1950

 


The Baylor basketball team has not been to the Final 4 since 1950! What has changed and how did they do it?  This week we will look at how Baylor basketball can help independent wealth advisory firms. I am guilty for using sports analogies, but I can’t help myself. The changes Baylor basketball made can help us all.  We will look at two major rule changes and close with the important items that remain. 



Three Point Line

The big rule change was the three point shot and it became an essential skill for players and helped teams catch up.  No lead was safe with the three point line.  We have a similar line in wealth advisory.  It is the passive ETF.  Many firms don’t embrace the reality that they can’t outperform the stock market.  Baylor basketball embraced the reality that players needed to make three point shots.  Unfortunately, there are still teams and wealth advisors who don’t embrace reality.  I wonder what Steph Curry would say.....



Shot Clock

We have a need to get things done yesterday.  Basketball shares our impatience and instituted the shot clock that requires players to shoot the ball now.  Baylor passes the ball and helps their players get open shots that beat the clock. Wealth advisors and their clients need an investment clock that requires them to hold their investments.  This is easier said than done, but a buzzer and a clock could help us.



Three C’s

The one area that remains the same are the three C’s.  Coaching, Compensation and Culture.  Scott Drew coaches the Baylor team and his ideas and guidance have helped the team return to the Final Four.   Many independent firms do not hire a coach to lead their new firm. My experience is they harbor negative opinions of their managers from their old firm.  We need to follow Baylor’s lead and hire a experienced CEO. Unfortunately most new firms put their major shareholder in that role. Magic and Bird proved this approach didn’t work in basketball. The leader will develop a compensation plan that can attract and retain quality advisors who can make the three point shot. Finally, we must create a culture that people want to be part of and will invite friends to join. No one wanted to attend Baylor until they changed the culture.



Unfortunately we are all human.  This is a challenge when we all believe we are open!!!


Comments

Post a Comment

Popular posts from this blog

Inorganic

Image
Our industry has always looked down on Wall Street’s recruiting checks.  Last week there were numerous announcements that independent firms were offering advisors money to purchase their practice.  The term for these transactions is inorganic growth.  This week we will look at why these transactions are the new rage and examine if they are better than the old Wall Street checks. Wempy Popeye and financial advisors fall for the “I’ll gladly pay pay you tomorrow for a Hamburger today” pitch.  Unfortunately Popeye and and most financial advisors provide their hamburger but seldomly get paid what the firms and Wimpy promise .  Why?  The advisors need the cash and Popeye is gullible.  On Wall Street the deals adjusted when the advisors changed firms looking for a new deal every five to eight years.  The recent Luminous departure shows that the advisory contracts need to be adjusted.  The new contracts are written by experienced firms and lawyers to prevent serial departures. 
Read more

Stop Judging

Image
I have known that I have MS for over four years.  My doctors believe I have had MS for over twenty years.  Initially, When I received this diagnosis  I was very opinionated when I saw disable people. I assumed the worst. As a currently disabled person I can educate and warn you regarding things you shouldn’t say to me or disabled people..  This blog will educate on my disability. The places it manifests itself and how you can react and support me and other disabled people. The three items are: 1.) Needing a walker 2.) Government disability  3.) Falling MS causes me to loose my balance and fall.  The walker prevents this reality  I look at walkers as being as sign of old age,  I was incorrect and a good walker is an aid!  With a walker I fall less often.  I might look old, but I am OLD! Our government provides support to the millions of MS patients in the US.  Support is through Social Security and must be approved.  I am approved. The service can be cancelled if i get a full time job.
Read more

Career Hacks

Image
We are in constant pursuit to be the best we can be in our profession.  Is there a hack to help us?  Some days it feels like others have found one.  The Baby Boomer hack was to be a Doctor, a Lawyer or work for Goldman Sachs.  Millennials believe in the power of social media hacks and that a job at Google is on the Yellow Brick Road.  This week I’ll look at other experts and share my opinion that there isn’t an easy solution to professional success. Academia Those who  can’t do teach and those who can’t teach, teach gym .  Many of the established ideas that guide people in the wealth advisory business where researched in academia.  While their research is credible most academics remain as advisors not a practitioners.   William Sharpe  might be an exception to this rule.  He lost at Long Term Capital but was a recent  winner with Financial Engines .  Resilient and richer. Conferences and Media We attend industry conferences looking for hacks.  The concepts present
Read more