D.B. Root & Company, is a leading independent financial advisory firm that seeks to solve complex issues for high net worth clients.
For Financial Advisors - The Future is Now
This week, we are holding a strategic planning summit for our entire team. It is a follow-up session to our September event held in Gettysburg where we set the stage for many of our major new initiatives for 2017. Our objective this week will be to communicate our goals and benchmarks for our firm centered on how we can better serve – and right serve – our clients in a rapidly evolving industry.
We will discuss how as the industry evolves, so too must our services. Our firm’s position remains that true Wealth Management is grounded in comprehensive Financial Planning. It is accompanied by a repeatable Asset Management process that embraces a portfolio approach that is simple, transparent and low cost. We believe this is the future of our industry.
This is going to take leadership - at all levels of an organization. Leadership expert, author and speaker John C. Maxwell outlined his ‘4 Steps to lead your team to win big.’ In our case, the team’s winning is all about serving the clients properly. That said, Maxwell’s four steps are:
1. Gather the right players
2. Put them in a position to win
3. Communicate and re-communicate the vision
4. Equip them to bring out their best
To meet the challenge, we’re developing processes that will not only meet the needs of today’s industry, but also create opportunities to serve clients in areas where the industry is going.
To do this, it requires several things. For example, strong partnerships and industry technology from iconic leaders like Charles Schwab and Dynasty Financial Partners. Schwab announced recently that they were slashing fees in what some referred to as a transition to an ‘Amazon Prime model’ – this directly benefits our clients and continues to place Schwab ahead of the curve. While this may or may not be an exaggeration, the transition to fee-based compensation for advisors continues to break down the barriers of custodial services. This trend was highlighted by the introduction of the Department of Labor’s Fiduciary Rule.
Although newly elected President Trump and his team want to take on Dodd-Frank and the DOL on this issue, (Consensus is building that it is likely to be delayed and potentially scrapped altogether.) the spirit of the fiduciary rule will live on. And in our case, fiduciary responsibilities are part of the fabric of independent firms like ours, while placing the concept of charging a commission in the rearview mirror.
With a considerable investment of time and resources, we’ve created an organizational flow that is focused on delivering the right service to the right clients in terms of their financial standing, time horizon and risk profile.
This includes four service offerings which serve two categories of clients - individuals and businesses. Our business services offer everything from 401(k) advice to executive counseling services. Individual clients are segmented into three distinct groups of individuals:
• High Net Worth (HNW) clients
• Core advisory clients
• Emerging Wealth/Young professionals aspiring to become High Net Worth
But even the best processes and services on paper are worthless without the development of a motivated and skilled team to manage and execute them. That is why we hold leadership summits. They allow us to align our services and personnel with clients to provide fresh ideas and ensure our service remains on the cutting edge.
This is especially important for a firm that is growing. We seek to avoid the trap described in an old military saying: “Staff grows, paper flows, no one knows.” That’s why communication is paramount to our success – and one of the reasons you hear from me on a weekly basis here.
As we take on the challenge of change, we’ve determined it critical to plan ahead for the prospects our clients will encounter. That means providing the tools, technology and training necessary to get the job done. And perhaps most importantly communicate the goals and results over and over as we take on the future.
The headline for this week’s edition was borrowed from the legendary pro football coach George Allen. He was described as having boundless energy, unending ideas, complete focus, and passion. I expect nothing less during our team summit this week.
Thanks for reading,
David Root CEO
D.B. Root & Company
d.rootjr@dbroot.com
www.dbroot.com
To learn more about D.B. Root’s client segments and service offerings, contact David Root d.rootjr@dbroot.com
As a reminder, many articles, including "A Further Look," contain opinions and observations that can shape or advance a viewpoint. However, when it comes to portfolio management, the challenge is to filter and translate opinions and observations into actionable items and to resist straying off course with, or within, a portfolio. To learn how DB Root’s approach to asset management attempts to meet this challenge for clients, please feel free to contact us: 412-227-2800.
This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.