Developing the next generation of FAs to become activators

The study’s authors argue that the traditional trusted advisor role, while still relevant, is no longer the primary contributor to an advisory team’s revenue growth; it’s begun to be overshadowed by the new activator role. A recent Harvard Business Review report shows that focusing solely on cultivating deep relationships as a business development strategy—a key characteristic of the trusted advisor—can actually depress revenue growth.

Three specific behaviors set activators apart: They are committed to consistent business development; are adept at connecting with others in varied circles; and understand the power of creating and offering new content and thought leadership.

“The good news is that, with consistent coaching in these areas, all advisors can strengthen their business activation skills,” says Gralinski. “Mentoring and building activator activities into performance metrics will help to develop the next generation of successors.”

Firms that recognize this evolution, and create succession plans that include training talent to become activators, will be at a distinct advantage going forward.

“Those firms are going to be in a position to absorb the business and the respective money that will also be set in motion when the clients of the ‘ostriches’ realize they have not been provided with a continuity of care that others offer,” says Gralinski.

In other words, this is the year for financial advisory firms to be proactive and start looking for and developing the next generation of financial advisors.

For more information and insights on succession planning and developing your team, visit the Advisor Advancement Institute.

New York Life Investments is a full-service global asset manager. To learn more about solutions across asset classes, visit newyorklifeinvestments.com.

The Advisor Advancement Institute is a program within New York Life Investments. "New York Life Investments" is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company.

New York Life Investments Original Article