The digital transformation of the wealth management industry has driven firms of all shapes and sizes to seek additional technology solutions. Their goal? To help make their operations run smoother and get an edge on the competition.
Firms without a solid business plan, change management strategy and a clear vision don’t implement software. They implement “shelf-ware.” It sits there unused and untapped of its true potential. Successful firms prepared for the change, adapted to it, had a plan in place for it, and remained nimble. They were flexible enough to roll with the constant influx of changes by creating a solid foundation of data.
But how do you and your firm become a nimble, adaptable team in an industry known for constant change? Like a builder who maps out plans and contingencies before they construct a house, change management requires a clear, concise and flexible blueprint.
At Skience, we have decades of experience helping firms and teams build and follow change management principles. From broker-dealers, to RIAs, and everything in between, we help firms successfully implement our industry-leading solutions. With experience, comes wisdom. There are five change management fundamentals that are key for financial advisors to create a successful business plan.
- Change Management Fundamental #1: Preparing for a Change
Preparing for change can seem impossible when tackling a large project. Success starts with building your team. No matter what project you are taking on – new technology implementation, custodial change, or updating your customer service processes—you’ll need to assemble a stellar team to lead the change efforts.
Including diversity of thoughts and qualities is key. You’ll want a group offering full representation of the rest of your organization, with different ages, roles and experience levels within your firm so everyone understands how they’ll be affected. And they will be affected.
Once you’ve chosen the team, have them help you identify all of the potential obstacles and risks in making the change. Lay it all out there. You don’t want to downplay any risks at this point and then be met with huge obstacles later on.
“Financial firms are struggling to unlock their maximum potential because, ultimately, it is a behavioral change problem more than a technology problem.”
— Spenser Segal, CEO, Actifi
CRM Unlocked podcast: Bridging the Gap Between Technology and Data Utilization
- Change Management Fundamental #2: Creating a Vision
The next step is to get a solid plan in place. Your change management team needs to clearly define and outline the objectives of the change. Resist the urge to use business cliches and vague wording. Be specific. Remember that people don’t like change and you need to win folks over.
Once you have everything laid out, ask for feedback and buy-in from key players. These players may not necessarily all be in leadership. Know who these folks are. You need some champions.
Next, put everything together into a timeline and communicate to all stakeholders. Consider everyone on every level of the organization when you craft this messaging. Again, try to keep the tone conversational, positive, and include as many details as possible. You don’t want anyone thinking that you are keeping them out of the loop. Consider having a forum for questions so that you can address issues early.
- Change Management Fundamental #3: Implementing the Change
Now it’s time to get to work and put your plan into action. If the change you’re making requires training and support for employees, build in plenty of time for that step. Resistance to change often comes from fear of the unknown. Training can help eliminate anxiety.
Be sure to set realistic deadlines and timelines. People will still take vacations, get sick, and do their regular work too. Constantly monitor progress and adjust your timelines if necessary. Keep in mind that adjusting in the middle of the project is easier than at the end. And you want to make sure that you aren’t pushing things through faster than people are able to handle.
- Change Management Fundamental #4: Setting Up Post-Change Processes
Throughout the implementation, be sure to document the success of the process and flow you created for the project:
This documentation and analysis will help you establish new processes and procedures.
Documentation, of course, isn’t to show you where you came up short. You will also know when folks hit certain milestones of the project, allowing you to celebrate those successes and recognize individual and team efforts. The best way to get people on board with new processes and a whole new system is to reward them for doing it. And when you are completely done, even if it does take longer than originally planned, make sure there is one big celebration for everyone to take part in.
“We often focus on employees resistant to change, which is important to be aware of and understand. But if you focus too much on those resistant, you lose those that are in the front and ready to move ahead.”
— Valarie Vest, SVP, Chief Experience Officer, Cambridge Investment Research, Inc.
CRM Unlocked podcast: Helping Advisors Embrace Innovation and Digital Transformation
- Change Management Fundamental #5: Performing Analysis and Review
Even when everything on the checklist is complete, the work isn’t over for your team. Conduct a post-implementation review and get feedback from the team and your key players. There likely will be areas that you identify for further improvement. These can be addressed by updating documentation or adjusting processes and procedures as the implementation turns into everyday tasks. Adaptation never stops.
As you gather feedback, record it so it can be easily referenced for future change management plans. If there’s anything certain in the financial services industry, it’s definitely change.
By embracing change and following these tips, advisory firm leadership can manage change effectively and ensure success for their firms.
- Build Your Blueprint for Success
Skience understands your business considerations evolve over time. You need an engaged partner to have meaningful conversations across your organization to ensure you get digital transformation right the first time. Contact us to learn more about our planning process, where we fully evaluate your firm and build a roadmap for success.