Last week I attended Bob Veres’ Insider’s Forum conference in Dallas, TX. The conference addressed three primary areas of focus for financial services firms: the CEO role and leadership; the CIO role and investments; and the COO role and operations. An overarching theme of the conference was the future of financial services firms and succession planning. We heard from those who have been succeeded as well as their successors and from consultants on what makes a firm valuable. We heard about metrics and numbers, statistics and valuations. Yet, we also heard about the challenges not involving numbers — challenges such as, what is the role for the former owner of the firm and how can the legacy be passed on without stymying the growth of the new generation? How does the successor navigate between adding value through new initiatives without stepping on the former owner’s toes? The answer is different for every firm and each person.
Technology was also ever present and not just on the devices used by the attendees. How can technology streamline some of the necessary tasks in a financial services business? How can it improve the client experience? What threat does technology and the large firms with big budgets pose to the smaller firms? How does this change the client relationship?
While there are various ways to value a firm and all types of creative ideas for doing so, as well as making the client experience richer, the core of all of this comes down to trust – the trust we build with our clients, our colleagues and team members and the value we contribute. Client retention during a transition can be a measure of the value of relationships, yet if you asked your client, what value would they say you add? Discover the answer to this and you will hold the key not only to building a successful firm, but also a legacy and impact that will last long after you are gone.