The ClientWise Blog

In the literature of financial advisors, as well as the lexicon of sport, “leadership” and “heroism” are virtually clichés. We read all sorts of articles and books on leadership and heroes. Yet, what really is leadership? What’s a hero? When, and how, does one become a leader…or a hero?

The word “entrepreneur” is of French derivation (entreprendre, to undertake) and is defined as: a person who organizes, operates, and assumes the risk of a business. With this definition, it is clear that most all financial advisors are entrepreneurs.

With the upcoming election 21 days away, there’s a great piece in the October issue of OnWallStreet, “Using the Election to Spur Clients to Prepare for the Future,” which offers a timely perspective.  Authored by John Diehl, Senior Vice President for Hartford Life Distributors, the article discusses how top-performing financial advisors can use the upcoming election to catalyze their clients to think, and act on their financial future.

I’m reading a first-rate new book, Uncommon Service: How to Win by Putting Customers at the Core of Your Business, by Harvard Business Professor Frances Frei and global thought leader and consultant Anne Morriss. This is a book with vital insights for the elite financial advisor, especially with respect to their financial advisor marketing.

Dramatic change lies ahead for financial advisors. A possible inflection point in the industry? Only time will tell.

Every year, the list of Barron’s Top 100 Financial Advisors offers a snapshot of some of the premier financial advisors in the nation. Published in an issue of Barron’s in mid-April, this group of successful financial advisors, accompanied by a select group of 400 advisors hand-picked by their firms, assembles for the Barron’s Winner’s Circle for Top Advisors Summit. This year’s Summit is scheduled for Sept. 12-14 in Orlando, Fla.

It’s a paradox! Just as opportunities for financial advisors are on the rise, more advisors than ever before are leaving the industry. A study by research firm Cerulli Associates reveals that the ranks of U.S.-based financial advisors fell by 2.3 percent or 7,000 in 2011. The firm expects this trend to continue, with the industry losing approximately 19,000 advisors during the next five years.

Business and succession planning expertise is an important expertise that many financial advisors bring to their clients. However, according to ClientWise research, less than one-third of all financial advisory practices are adequately prepared for their own business succession.

You may have seen this provocative article in this past weekend’s NY Times, “A Fancy Financial Adviser Title Does Not Ensure High Standards”.

Read any good books lately?