Since 1950
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.....
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.
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