Being a big professional sports fan, the springtime tends to be one of my favorite times of the year. Major League Baseball is just getting underway and all thirty teams seem to have a real shot at the postseason. After
endless months of games in the National Basketball Association and National Hockey League the playoff rounds are finally getting under way.
When I look at the most successful sports franchises one key
characteristic stands out; these organizations are true teams. They’re not just a group of individual contributors who gather onto the field at the same time, but also a group of professionals who collectively care about each other like a family. They trust each other, and when one player does well, they all celebrate as a team, and take pride in the success for the greater good of winning.
It should go unsaid that teams are a cornerstone of building and sustaining a successful business. Within the advisory industry, the team-based model of delivering superior service is where I see the highest future growth and the best model for success. This model delivers products and services to the client(s) as a team, utilizing pooled resources, and take pride in the greater good of the firm. In this team environment, the individuals’ clients are shared and are viewed as clients of the firm. The model enables the firm to be nimble, yet present a united front to the clients; bringing together various team members to work on client issues, based upon staff capacity, skill set, and cost.
When a firm utilizes all of its resources – personnel, experience, and expertise – it puts its best foot forward in servicing their clients individually. Additionally, the firm can present itself as a one-stop shop to its clients; a full service firm that has many experts servicing its clients. In a team-based model, clients become more accustomed to dealing with a number of team members and are not wedded to discussing all matters with the firm principal. This means that clients have the ability to get to know more of the firm and its people; simple client requests can now be managed appropriately down the line, increasing capacity of the principal to focus on other revenue generating activities. Clients will also feel the benefit of getting access and support in a timely manner.
Allocating several resources to work with an individual client is the basics to building a team-based organizational model. However, in order to successfully sustain it, the firm must learn leadership and coaching skills to develop a team culture. When a team culture is built and implemented the team-based organizational model can optimally function. Here are some proven strategies that I have seen work well in the best firms I have consulted with in our industry.
Set Clear Direction & Goals
I have found that the greater the clarity of the mission, the greater the odds of success. Individual team members, and the teams themselves, simply must know what is expected of them to meet or exceedexpectations. That is why I recommend that the principal or team leader always set clear goals and objectives and to provide regular feedback. Teams should set team goals based on tangible outcomes and results, rather than just on the amount of work that is to be done. A clear plan can then be determined about how best to accomplish the mission, as a group, as well as each individual’s contribution. This plan provides team members with clear direction and gives them something to aim for collectively. For example, if the firm goal is to increase revenue by 10% (over last year) the team will understand clearly the result and outcome that is needed. Subsequently, each person can take responsibility based upon their role in the plan, and what they are going to do specifically to help the team achieve that goal.
Recognize & Reward Success
Now that your team-based organizational structure is off and running, you will need to align your firm’s compensation structure to reward both individual and team results. I recommend doing so, through a team-basedincentive/bonus compensation plan. Plain and simple, a well-designed incentive/bonus compensation plan encourages higher levels of performance amongst your team members. Team-based incentive plans can be applied to a group assigned to a specific project (or mission), or a specific team within the firm, such as the client administration team, advisory team, marketing, or sales team.
The advantage of team-based incentive plans is that individuals are motivated to work collectively to achieve a common goal. Going back to the example of increasing firm revenue by 10%, team members have the opportunity to encourage one another, participate in brainstorming sessions and support each other in their efforts to achieving that increase. Thusly, if the goal of the 10% increase in revenue is met, the team should share in that fiscal victory through a team-based incentive/bonus award.
Check the Pulse of Your Team Regularly
As I previously mentioned, once a goal is established for a team, and a plan for meeting the goal has been set, it’s imperative to check in with the team to manage progress. I work with teams to create a regular process to discuss what is going well with performance results and what needs immediate attention to keep everyone on the same page. It is so important to understand each team member’s strengths and weaknesses in order to clearly see how they function as part of the team at large. There is no better way to build trust and confidence as leader than to show empathy and caring for each individual team member. If you aren’t meeting with people on a regular basis it will be hard to provide assistance when employees need it most.
It is equally important that the team members acknowledge mistakes during the check in process. The path forward to success for every team is forged around a series of course corrections based on what is working and what is not working. Candid and timely conversations are essential to shaping that path forward. Team cultures flourish when people express themselves openly and honestly. There should be a willingness to work through difficult situations or conflicts constructively and in a timely manner.
See the Potential in Every Team Member
Investing in your employees and having faith in their abilities can’t be overstated. My favorite tool for assessing a team’s talent is the Clifton Strengths Finder assessment. The tool is based upon the belief that every person possesses a unique combination of talents, knowledge, and skills. These are the innate traits and abilities people use in their daily lives to complete their work; to relate with others and to achieve their goals. Helping your team discover and develop their individual strengths positions them to do what they do best every day – both in and out of a team setting. Understanding your current team’s make-up and what unique set of skills and strengths they possess will help you develop a diverse breadth of talent. A diversity of skills and experience is needed so that all positions are covered, and each individual can be assigned a particular role on the basis of their strengths and skills. A variety of personalities, age groups, cultures experience levels, etc. can also bring creativity and a broad range of ideas to the team. This will enhance the client experience. Committing to developing each individual and building a deep bench of talent for the firm will create a team culture of engagement and retention.
Celebrate Successes & Have Fun
It shouldn’t be all work and no play! This can lead to burn out and lack of productivity, so it’s important to inject a bit of fun into working life. Teams who work particularly well together enjoy each other’s company and get together outside of the office from time to time to socialize and bond! Building a positive relationship with your colleagues can make for a much more relaxed environment and reduce conflict.
Some Final Takeaways
Whether you’ve just landed the largest client in the history of your firm or the goal of increasing firm revenue by 10% was achieved, it’s vital to have your finger on the pulse of your team all the time. If you’re out of touch and not seeing what people are feeling and dealing with day in and day out, your team — and ultimately, your business — will suffer for it. You need to stay close to your people and have empathy for their needs. In return, they’ll have more trust in your decisions.
Every role in your firm – individual and team – contributes to the overall client and prospect experience, and should be held individually and collectively responsible for results. Team members should contribute their fair share of the workload and fully understand what their responsibilities are and where they fit in with the running of the business. They will feel a sense of belonging to the team (the firm), and be committed to their work and the success of the company.
Lastly, the most successful advisory firms have built strong positive team cultures that are firmly grounded in the purpose of helping clients create financial goals and making them become a reality. To succeed in that purpose requires having a client-first mentality, rewarding excellence, honesty, and teamwork. As the ultimate team leader, you must model the way.
Kelli Cruz is a Financial Planning columnist and the founder of Cruz Consulting Group in San Francisco. Email her at kelli@cruzconsultinggroup.com or follow her on Twitter at @KelliCruzSF
