5 ways to achieve healthy innovation as an adviser

5 ways to achieve healthy innovation as an adviser
Firms should take steps now to intentionally create a culture of innovation
JUL 23, 2019
Amid all of the trappings of running a business, how do I find time to innovate? What if I'm just not the creative type? These are questions you'll find many business owners asking themselves in this new era of business where terms like agile, design thinking and creativity reign. There's a perception that innovation and creativity are things that certain people are good at and others aren't. However, this belief is limiting — personally and professionally. Innovation, like many things, can be achieved in a multitude of different ways, and in stages. It's also not an innate skill, a notion that was debunked by an article in the Harvard Business Review: "Studies of identical twins separated at birth indicate that our ability to think creatively comes one-third from genetics; but two-thirds of the innovation skill set comes through learning — first understanding a given skill, then practicing it, experimenting, and ultimately gaining confidence in one's capacity to create." (More: Innovate or else: Advisers must leave the comfort zone before it's too late) So how can firm leaders foster a culture of innovation in their organizations so that they are able to effectively grow and scale business? Here are five simple steps you can introduce to your organization: 1. Slow down before you speed up. Innovation is often conflated with speed, but innovating too fast without attention to your business strategy and overarching industry trends can be damaging as well. There is a lot to be excited about right now, and many firms are riding the wave of an up market. But it's important not to overextend your team or your firm, so take care to distinguish an opportunity from a distraction. Sometimes you'll find slowing down and evaluating the business and industry from a bird's-eye view yields more clear, creative ideas and gives you time to do your due diligence when it comes to making new decisions — something I like to call being a fast follower. (More: Investing to sustain innovation) 2. Buy down your risk. Assess what safety nets need to be in place so your team can safely explore new processes and offerings. By putting these in place early on, you will be able to offset costly risks. This is all in the spirit of creativity, but you want to make smart innovations, not just innovate for the sake of innovating. 3. Think small before thinking big. Taking small, calculated risks is the key to pushing ahead without overextending yourself or your team. Agile, iterative processes can help make manageable work of big ideas. As a bonus, introducing innovation in small waves can help make new ideas palatable to stakeholders (or clients) who are used to the old way of doing things. Starting small can also bring internal stakeholders out of their shells. People who might not want to voice their big idea early on can get comfortable with the new culture of innovation. 4. Look to your team. Innovation, especially at the firm level, doesn't rest with any one person, even if they're the Steve Jobs of the financial world. Your internal stakeholders are experienced with day-to-day client challenges and company processes and are often the best source of new ideas on how to innovate your offering. Remind teams from time to time that innovation is highly valued — even rewarded — and that company leaders are listening. 5. Spend some time daydreaming. There will always be plenty to do and it's easy to get bogged down in the daily grind. I recommend structuring your future weeks, months and even years in a "Next" model. Outline your "Next Now" (the next three to six months), your "Next Next" (six to 18 months out) and your "Next Next Next" (two-plus years in the future) — delineating between what you must conquer today versus what lies on the horizon and, ultimately, where you want to go with your firm. Too many people stop after "Next Now" either because of capacity constraints or lack of a defined vision. The future of financial advice will be nimbler and more unpredictable than ever before. While it can seem daunting as a business owner, take the meaningful steps now to intentionally create a culture of innovation. It's what our profession — and your clients — will demand. (More: Technology must reinforce trust, or else) Ron Carson is CEO and founder of the Carson Group, which serves advisers and investors through its businesses: Carson Group Coaching, Carson Group Partners and Carson Wealth. Follow him @RCHusker.

Latest News

DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week
DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week

Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.

Retirement without guaranteed income streams may mean near-total asset wipeout
Retirement without guaranteed income streams may mean near-total asset wipeout

Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.

Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney
Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney

Nine-month electronic trading freeze and share lending program at the center of dismissed claim.

RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone
RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone

Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.

Rethinking diversification amid a concentrated S&P 500
Rethinking diversification amid a concentrated S&P 500

With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline