The changes in this industry over the past 18 months have had powerful implications for everyone. Many financial advisors recognize that much of the knowledge that led to their past success no longer seems as relevant. Industry standards have shifted, requiring advisors to augment their professional conduct. For one thing, it is no longer enough to make client decisions based on suitability, but rather they are being asked to raise their level of expertise and possibly base financial decisions on a new fiduciary standard.
This move toward greater accountability also underscores a “continuing duty of care or loyalty to the customer.” This may require advisors to have a deeper relationship with their clients. It also may require changes in advisor behavior, such as increasing the quantity and quality of their documentation, having more evidence and justification for recommendations and conducting more frequent and detailed client meetings.
But as much as advisors are feeling these changes, branch managers may be even more affected. For many managers, the numerous corporate mergers have required them to embrace new work cultures to lead advisors successfully through transitions. Others have been faced with either limited professional opportunities or a substantial change in their own job descriptions.
This dilemma became crystal clear in the Morgan Stanley and Smith Barney merger. As a result of that deal, Morgan Stanley had a nationwide shift to a complex office structure, resulting in 100 branch mangers being displaced. Some were offered positions on the product development side, while the rest could either become producing managers or full-time advisors. These redefined roles require branch managers to possess alternative individual strengths and skill sets to be successful and will likely mean lower earnings. As part of its restructuring process, Morgan Stanley acknowledged the need for branch managers to learn the new skills to succeed in their redefined roles and offered a training program to address time management, value proposition and advance prospecting.
The key to sustainability for branch managers faced with such a job crisis is to be agile. Researchers have long known that in turbulent markets, individuals and organizations that are nimble will not only survive, but thrive. Such individuals must have the staying power to drive their core businesses over the long run as well as the ability to shift focus and execute quickly.
Specifically, being agile requires the willingness to modify your thinking in a fresh, more powerful, direction and embrace new behaviors. But, most individuals resist taking the necessary steps for this type of change because of their reluctance to get out of their comfort zone.
Learning to Be More Flexible
The first step to developing agility is to understand the relationship between change and transition.
Change is external. It is the caused by an action required to enact a new policy or execute the behaviors necessary in a new job description.
Transition is the internal psychological reaction that results from change. It requires that people undergo three separate periods: endings, exploration and new beginnings.
Endings is the phase of saying goodbye to the old. Transition management research has shown that the most serious issues for organizations and individuals occur during this phase, especially when the entire senior management team is in flux. At this stage, managers and advisors are experiencing culture shock. Branch managers who have traditionally focused on sales development, mentoring advisors and recruiting may now find themselves expected to be a producing manager, too.
Some managers who have been used to autonomy and responsibility have found that their roles have been diluted. For instance, key decisions that affect their branches and advisors are now handled remotely by individuals who have not been immersed in the corporate culture or understand the history of their old company. The firm, people and resources that they once relied on may no longer be there.
For many branch managers and advisors, it’s a struggle to accept the demise of the company and culture they have been a part of for years. Many of us know someone who is always saying: “In my old company we did it this way,” or “in my last position, it was done that way.” But, if you can’t let go of the past, you will never be able to move forward.
Explorations is the state of being in the neutral zone. Here, you are resigned to the notion that things aren’t resorting to how they were and you’re feeling less hurt, confused and angry. Yet, it is an uncomfortable place to be because, although you are no longer part of the “old world,” you aren’t yet fully indoctrinated into the “new world” either.
At this stage, some people try to rush ahead into a new situation, while others backpedal and have a hard time letting go of the past. This is the time that many advisors or branch managers seriously consider leaving their firms.
But, it is not the best time to make a change. In fact, it is important to allow yourself the opportunity to go through some of this phase’s uneasiness. Spending adequate time in the neutral zone is essential because it is the place where creativity and the real transformation take place. For instance, Shell Services International, a unit of Royal Dutch Shell plc, found transitional management training to be so critical that in 1999 it made the practice part of the company’s policy worldwide.
New beginnings is the process of moving forward and requires not only acceptance, but also starting new behaviors. It can put your sense of competence and confidence at risk because you’re in uncharted territory. This is the time when you can really assess whether this new corporate culture and job opportunity are right for you.
As you head deeper into this new experience of becoming more agile, it is essential to have a focused idea of what you want to achieve. Equally important is to zero in on your strengths, while being aware of your personal limitations.
That is best accomplished by asking yourself these questions: What can I learn from this experience? What prevents me from achieving success to the fullest? What can I do differently? What am I willing to do in a fresh way? What are some of my irrational beliefs or fears that limit me? What stops me from setting the challenges higher and achieving them? What motivates me? Is it intrinsic or extrinsic? Is it the love of the challenge, the work or money? What do you gain by success, self-confidence, self-respect? What are my current strategies? Do they have the potential to inhibit, rather than help, me? Why do they limit me in areas, such as having trouble asking for help or getting advice from others?
Your honest responses to these questions provide insight into the stumbling blocks that may interfere with your becoming more agile. Remember that you are not a victim of the changes in the industry, even though you may feel like one at times. The more open you are to changes in your thoughts and behaviors, the more empowered and successful you will be as you navigate the industry’s evolving landscape.
This article was originally published On Wall Street.
