What is "culture" at a company anyway?

Can you keep that "culture" intact with so many changes happening within the organization?
AUG 31, 2009
Jordan Schultz, my Executive VP, and I were talking about the turmoil in the industry and what it meant to the Advisor who has stuck it out. If you are a 10 year veteran at one of the firms that was taken over or merged with a bigger institution, what did it mean to you to stay in your seat? What has really changed? The obvious changes are the money “out” (you lost money in your company’s stock) and the money “in” (you recouped money with retention bonuses). But what about the elusive “cultures”? Firms brag about their cultures. Senior management at merged firms claim that the cultures are “a fit”. We know that this is salesmanship to some degree, but what are the real changes that the 10+ year Advisor sees on a day to day basis and are those changes “cultural”? To me, the ties of tenure or “culture” that this Headhunter has to overcome when I am talking to a veteran Advisor about other opportunities are both emotional and functional. The emotional ties are best described as an Advisor’s “Work Family”. We all spend more time Monday through Friday with people at work than we do with our families. The extent that this gives an Advisor comfort vs. stress is also the extent in which this is an emotional handcuff, or a push out the door. If the people that give an Advisor comfort and a feeling of camaraderie disappear, then the cultural emotional tie is diminished. The functional ties reflect the connections that an Advisor has within his own company that enable him or her to get things done within a giant bureaucracy. Many long-tenured Advisors have been working with the support staff of his or her company for decades. If the traders, specialists, and back-office personnel are no longer there to take a call and solve a problem (because of merger induced layoffs) then the Advisor might as well be at a new firm. Bottom line: Can a culture be retained when so many of the “keepers of the flame” are no longer there?

Latest News

Investing for accountability: How to frame a values-driven conversation with clients
Investing for accountability: How to frame a values-driven conversation with clients

By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.

Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak
Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak

JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.

Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’
Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’

Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.

SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation
SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation

The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.

RIA moves: Wells Fargo pair joins &Partners in Virginia
RIA moves: Wells Fargo pair joins &Partners in Virginia

Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.