When it comes to client relationships, advisors must take the steering wheel
.jpg)
The technical work of financial advisors is now being commoditized by technology. The rise of robo-advisors, for instance, has taken some tasks off the advisors' plate.
But more than the technical know-how and the industry expertise, Bill Bachrach said advisors must possess leadership skills to be able to guide their clients in making financial decisions.
As it turns out, the smartest financial advisors have already shifted from being financial plan writers, asset middlemen, and insurance experts.
"If you are still doing the technical work, and not the leadership work it’s time to consider this transition or transformation. It’s better for the clients and it’s great for you," Bachrach wrote in a blog posted on Advisor Practice Management.
Bachrach argued that advisors should not just do what they are told by their clients. Instead, they should be able to lead their clients to become clear and certain about their financial plans and goals.
"Then they lead them by orchestrating the creation of a truly comprehensive plan to bridge the gap between where they are now and where they want to be so they achieve their most important goals and fulfil their most deeply held value," Bachrach said.
How should advisors do this? Advisors have to hold their clients responsible for implementing their advice and do their part.
In summary, advisors should never allow their clients to step into the leadership vacuum, a situation created when advisors lack the tenacity to take the steering wheel. Bachrach stressed that this is not a matter of taking control but of leadership.
"Consider something a top FA leader shared with me about how he handles this on the rare occasion when it occurs. He waits for the client who has taken over the reins of leadership to stop speaking and calmly says, 'I think we need to take a step back for a moment and re-examine our relationship. One of us is the client and one of us is the advisor. Tell me again which one you want to be?' That’s leadership," Bachrach explained.
For more of Wealth Professional's latest industry news, click here.
Related stories:
The difference between success and failure
Advisors, here’s how to help single retired clients
But more than the technical know-how and the industry expertise, Bill Bachrach said advisors must possess leadership skills to be able to guide their clients in making financial decisions.
As it turns out, the smartest financial advisors have already shifted from being financial plan writers, asset middlemen, and insurance experts.
"If you are still doing the technical work, and not the leadership work it’s time to consider this transition or transformation. It’s better for the clients and it’s great for you," Bachrach wrote in a blog posted on Advisor Practice Management.
Bachrach argued that advisors should not just do what they are told by their clients. Instead, they should be able to lead their clients to become clear and certain about their financial plans and goals.
"Then they lead them by orchestrating the creation of a truly comprehensive plan to bridge the gap between where they are now and where they want to be so they achieve their most important goals and fulfil their most deeply held value," Bachrach said.
How should advisors do this? Advisors have to hold their clients responsible for implementing their advice and do their part.
In summary, advisors should never allow their clients to step into the leadership vacuum, a situation created when advisors lack the tenacity to take the steering wheel. Bachrach stressed that this is not a matter of taking control but of leadership.
"Consider something a top FA leader shared with me about how he handles this on the rare occasion when it occurs. He waits for the client who has taken over the reins of leadership to stop speaking and calmly says, 'I think we need to take a step back for a moment and re-examine our relationship. One of us is the client and one of us is the advisor. Tell me again which one you want to be?' That’s leadership," Bachrach explained.
For more of Wealth Professional's latest industry news, click here.
Related stories:
The difference between success and failure
Advisors, here’s how to help single retired clients
