How do you view technology? Is it one of those things you know you need to run your business, but you fight tooth and nail because it doesn't come naturally? Because it takes a lot of time to learn to use and maximize? In other words, a lot of trial and error.
Or do you embrace technology and all its accompanying hurdles and time demands, knowing that ultimately it will help you better serve your existing clients and bring in new ones?
Perhaps you're middle of the road, embracing some components but pushing back on others.
One way to determine how you feel about technology is to look at your budget. How much money do you spend on technology? Year over year, has that amount increased, decreased or held steady?
The 2015 InvestmentNews Adviser Technology Study found that the most successful advisory firms allocate more of their resources — 11.3% of overhead versus 9.4% at all other firms — to technology.
Further, 56% of firms identified in the study as top performers said they will boost their technology spending this year, with just 2% planning to decrease it. Among other firms, 55% say they intend to raise tech spending this year, while 7% plan to cut it.
How do you compare?
Looking at technology spending is one hard and fast barometer of what elevates a firm into the echelon of top performers, but there are other measures.
Top performers believe technology will be critical to their future. According to the IN tech study, two-thirds said fully utilizing their firm's technology will be critical in reaching their growth goals. Only 7% said technology will not play a significant role.
For all other firms, the responses are alarming: Just 51% said technology will play a major role in their firm's future success, and a startling 22% said it would not play a big role.
The point is that technology matters — a lot — and how you think about it, adopt it and build it into your business' daily operations will have a direct impact on your ability to grow and become one of those top performers.
Even if those numbers don't move you, if the specter of learning something new and spending gobs of time getting up to speed on systems, software and workflows stops you in your tracks, consider this final tidbit from the InvestmentNews tech study: Advisers at top-performing firms reported spending 85% of their time on “core” activities — developing business and serving clients. Other firms reported that number at 73%.
Isn't that why you're in business in the first place?
Not only does technology matter. It pays.
