Common Mistakes Even the Best Managers Make
Especially with their new financial advisors
Especially with their new financial advisors
One of your most important responsibilities as a manager is to coach your new financial advisors and help them start developing their business. Juggling that responsibility with all the other demands on your time can be a challenge, to say the least. You know that! What you might not know is that seemingly small actions on your part can have major consequences, for good or for bad. In our 30-plus years of coaching, we’ve seen managers—even the best ones—make severe missteps in their mission to help their new advisors succeed. And they may not even realize it. Many times, the problem is that the manager doesn’t have the time to consider how his words or actions are being perceived by the advisors. So, in the spirit of “forewarned is forearmed,” we’d like to share with you some of these “mental mistakes.”
1. Inadvertently setting up expectations for failure.
When working with new advisors, you may feel that you need to caution them about the competitive realities of our industry. Though well intentioned, your words can inadvertently set new advisors up for failure. If you tell your new advisors that only a small number of them will succeed—say, only one in three (or worse)—guess what . . . you will be right! For better or for worse, your new advisors will meet your expectations.
A better way, we’ve found, is to express to your new hires your confidence that they are going to succeed. If you feel you must mention industry-wide failure rates, you should also add that these numbers don’t apply to your office. This adjustment in your attitude can make an astonishing difference. We’ve seen managers whose success rates with their new advisors reach 70–80% or more. A key reason is that they start off with the belief that their new advisors will succeed.
Of course, you need to back up your belief in your advisors with concrete action plans to achieve success. But believing in them is the first step—never underestimate its importance!
2. Making assumptions.
You know the old joke about the word assume (it makes an ass out of u and me). Some managers assume that their advisors (a) understand what they need to do and (b) are doing it. These managers are often sadly surprised. What may seem completely obvious to you can be completely oblivious to your new advisors. For example, you might think putting together a prospect list is so very obvious that you don’t have to ask your advisors whether they have prepared one. Think again. In our coaching sessions, it’s rare that we see a new advisor with a well-constructed, organized prospect list. Or, you might assume that although your new advisors are likely to have trouble talking to prospects that they don’t know, they surely know what to say to prospects that they do know. Guess what: often they don’t! Our experience tells us that 90%+ of the time, new advisors are saying and doing things what would make your head spin, if only you knew. Don’t assume anything, and you and your new advisors will be much better off.
3. Thinking that what worked well for you will also work for others.
Let’s start with this fact: your advisors are not you. What motivated you, the skills and habits you had when you built a clientele, and the environment you started in may be completely different for your new advisors. Yes, what worked for you may work for some of them, but maybe not for all of them. So, basing your coaching only upon your own personal past experience may not be the best course of action. Instead, as you help your advisors map out a plan for getting clients, you should step back and take into account each person’s unique strengths and circumstances.
4. Interpreting advisor inaction as a sign of laziness.
If your newer advisors aren’t doing much each day, you might be tempted to interpret their behavior as a sign of laziness. It seems a logical conclusion, and sometimes it may be the right one. However, our experience has shown that laziness or a weak work ethic is generally not the problem. Rather, advisor inactivity is usually a sign that either your advisors don’t know what to do (even if you have told them repeatedly) or they feel they can’t do it. Most often, it’s fear that holds them back: fear of contacting people, fear of making a mistake, and so on. You need to get to the root of the problem; just telling advisors to “work harder” isn’t going to get results.
5. Forgetting that job number one for most new advisors is opening up accounts—that is, starting relationships . . . not developing relationships (yet).
Most of the coaching that advisors receive these days centers on how to build relationships with clients: how to manage their book of business, how to meet client needs, and so on. We agree that building relationships is extremely important. However, some managers forget to coach advisors on how to effectively start relationships—in other words, how to get clients. After all, before you can develop a relationship, you need to start one!
6. Letting new advisors lead meetings!
How can this be a mistake? Answer: Because new advisors are just getting started, they aren’t qualified to lead meetings; they don’t know what they are doing. (Of course, some do—there are always exceptions—but most don’t.) One manager we know hired 15 new advisors over two years. All 15 wound up in the firm’s first quintile of performance! Incredulous, we asked him what he did to achieve those impressive results. Two things, he answered: first, he thought he did a good job in the selection process (clearly!), and second, he did not let his new people lead meetings. Instead, he required them to approach experienced advisors in the office and have the experienced advisors lead their meetings for them (with the new advisor in attendance). This allowed the newer advisors to see how meetings should be conducted and significantly increased the likelihood that the meeting would actually lead to a new client relationship.
7. Forgetting to compliment new advisors whenever you can.
Some managers think they are helping their advisors by giving them constant suggestions on how to improve. That’s okay, and it’s better than no feedback at all, but equally important is to compliment them on the things they are doing right. Positive comments can pay big dividends. When you catch an advisor doing something right, let them know. One top manager told us that for every criticism you give a new advisor, you should provide five compliments.
8. Relying on experienced advisors to teach newer advisors.
The fact that someone is good at something doesn’t necessarily mean that they are good at teaching it to others. This holds true in our business, as well. Yes, some successful advisors can effectively teach others. However, our experience has shown that many aren’t very good at it. It’s not because they don’t care (on the contrary, they generally care very much); it’s just because they don’t do it very often. Teaching is a skill in itself, and if you don’t do a lot of it, you don’t get a chance to build that skill. Moreover, some experienced advisors aren’t really sure how to help. For example, what they are doing each day is often very different from what a new advisor can or should be doing.
9. Forgetting how much money you have invested in a new advisor—and not protecting your investment.
Many firms report that they invest $100,000—sometimes much more—in a new advisor. To state the obvious: That is a lot of money! As a manager, you have a lot of responsibilities and demands on your time. Coaching your new advisors is an essential part of protecting your firm’s investment, but can you devote the necessary time and focus to this vital task? If you have any doubts, consider calling in experts—people whose only job is to show your advisors, step by step, how to succeed. For a surprisingly small additional investment, you can dramatically improve the success rate of your new hires. Failing to invest a little bit more to make the most of your six-figure investment is a mistake . . . a big one.
That’s where our firm, Top Producer, can help. Coaching financial advisors is all we do—and we get results. Managers who enroll their advisors in Top Producer programs typically report production gains of at least 15–50%. In one controlled study at a major firm, advisors using the program increased their gross production by 54% over 12 months, compared to just 17% for advisors in control groups: a difference of 37% attributable to the Top Producer program. Over the past 30 years, we have worked with over 30,000 financial advisors in firms across the country. To talk about your unique situation and how we can help, at no risk to you, please call us at 707-547-2040.
Article written by Joe Leadem
Copyright MMXV Top Producer. All rights reserved.
1. Inadvertently setting up expectations for failure.
When working with new advisors, you may feel that you need to caution them about the competitive realities of our industry. Though well intentioned, your words can inadvertently set new advisors up for failure. If you tell your new advisors that only a small number of them will succeed—say, only one in three (or worse)—guess what . . . you will be right! For better or for worse, your new advisors will meet your expectations.
A better way, we’ve found, is to express to your new hires your confidence that they are going to succeed. If you feel you must mention industry-wide failure rates, you should also add that these numbers don’t apply to your office. This adjustment in your attitude can make an astonishing difference. We’ve seen managers whose success rates with their new advisors reach 70–80% or more. A key reason is that they start off with the belief that their new advisors will succeed.
Of course, you need to back up your belief in your advisors with concrete action plans to achieve success. But believing in them is the first step—never underestimate its importance!
2. Making assumptions.
You know the old joke about the word assume (it makes an ass out of u and me). Some managers assume that their advisors (a) understand what they need to do and (b) are doing it. These managers are often sadly surprised. What may seem completely obvious to you can be completely oblivious to your new advisors. For example, you might think putting together a prospect list is so very obvious that you don’t have to ask your advisors whether they have prepared one. Think again. In our coaching sessions, it’s rare that we see a new advisor with a well-constructed, organized prospect list. Or, you might assume that although your new advisors are likely to have trouble talking to prospects that they don’t know, they surely know what to say to prospects that they do know. Guess what: often they don’t! Our experience tells us that 90%+ of the time, new advisors are saying and doing things what would make your head spin, if only you knew. Don’t assume anything, and you and your new advisors will be much better off.
3. Thinking that what worked well for you will also work for others.
Let’s start with this fact: your advisors are not you. What motivated you, the skills and habits you had when you built a clientele, and the environment you started in may be completely different for your new advisors. Yes, what worked for you may work for some of them, but maybe not for all of them. So, basing your coaching only upon your own personal past experience may not be the best course of action. Instead, as you help your advisors map out a plan for getting clients, you should step back and take into account each person’s unique strengths and circumstances.
4. Interpreting advisor inaction as a sign of laziness.
If your newer advisors aren’t doing much each day, you might be tempted to interpret their behavior as a sign of laziness. It seems a logical conclusion, and sometimes it may be the right one. However, our experience has shown that laziness or a weak work ethic is generally not the problem. Rather, advisor inactivity is usually a sign that either your advisors don’t know what to do (even if you have told them repeatedly) or they feel they can’t do it. Most often, it’s fear that holds them back: fear of contacting people, fear of making a mistake, and so on. You need to get to the root of the problem; just telling advisors to “work harder” isn’t going to get results.
5. Forgetting that job number one for most new advisors is opening up accounts—that is, starting relationships . . . not developing relationships (yet).
Most of the coaching that advisors receive these days centers on how to build relationships with clients: how to manage their book of business, how to meet client needs, and so on. We agree that building relationships is extremely important. However, some managers forget to coach advisors on how to effectively start relationships—in other words, how to get clients. After all, before you can develop a relationship, you need to start one!
6. Letting new advisors lead meetings!
How can this be a mistake? Answer: Because new advisors are just getting started, they aren’t qualified to lead meetings; they don’t know what they are doing. (Of course, some do—there are always exceptions—but most don’t.) One manager we know hired 15 new advisors over two years. All 15 wound up in the firm’s first quintile of performance! Incredulous, we asked him what he did to achieve those impressive results. Two things, he answered: first, he thought he did a good job in the selection process (clearly!), and second, he did not let his new people lead meetings. Instead, he required them to approach experienced advisors in the office and have the experienced advisors lead their meetings for them (with the new advisor in attendance). This allowed the newer advisors to see how meetings should be conducted and significantly increased the likelihood that the meeting would actually lead to a new client relationship.
7. Forgetting to compliment new advisors whenever you can.
Some managers think they are helping their advisors by giving them constant suggestions on how to improve. That’s okay, and it’s better than no feedback at all, but equally important is to compliment them on the things they are doing right. Positive comments can pay big dividends. When you catch an advisor doing something right, let them know. One top manager told us that for every criticism you give a new advisor, you should provide five compliments.
8. Relying on experienced advisors to teach newer advisors.
The fact that someone is good at something doesn’t necessarily mean that they are good at teaching it to others. This holds true in our business, as well. Yes, some successful advisors can effectively teach others. However, our experience has shown that many aren’t very good at it. It’s not because they don’t care (on the contrary, they generally care very much); it’s just because they don’t do it very often. Teaching is a skill in itself, and if you don’t do a lot of it, you don’t get a chance to build that skill. Moreover, some experienced advisors aren’t really sure how to help. For example, what they are doing each day is often very different from what a new advisor can or should be doing.
9. Forgetting how much money you have invested in a new advisor—and not protecting your investment.
Many firms report that they invest $100,000—sometimes much more—in a new advisor. To state the obvious: That is a lot of money! As a manager, you have a lot of responsibilities and demands on your time. Coaching your new advisors is an essential part of protecting your firm’s investment, but can you devote the necessary time and focus to this vital task? If you have any doubts, consider calling in experts—people whose only job is to show your advisors, step by step, how to succeed. For a surprisingly small additional investment, you can dramatically improve the success rate of your new hires. Failing to invest a little bit more to make the most of your six-figure investment is a mistake . . . a big one.
That’s where our firm, Top Producer, can help. Coaching financial advisors is all we do—and we get results. Managers who enroll their advisors in Top Producer programs typically report production gains of at least 15–50%. In one controlled study at a major firm, advisors using the program increased their gross production by 54% over 12 months, compared to just 17% for advisors in control groups: a difference of 37% attributable to the Top Producer program. Over the past 30 years, we have worked with over 30,000 financial advisors in firms across the country. To talk about your unique situation and how we can help, at no risk to you, please call us at 707-547-2040.
Article written by Joe Leadem
Copyright MMXV Top Producer. All rights reserved.