Navigating unexpected change

Here are three questions that can help guide us as we move forward on this new path

For many in our industry, our value and success is built upon maintaining strong, personal relationships with our clients. The current crisis is redefining the nature of these relationships, as daily interactions with employees, advisers, clients and even friends and family are transformed.

What the COVID-19 pandemic has reinforced is how challenging it can be to manage a business through continued ambiguity. These challenges are well known, well covered and, unfortunately, far from over. But we are through the initial shock. And that gives us time to evaluate the many implications of this crisis and to ask ourselves how we navigate this unexpected change going forward.

We all prefer to be the agents of change, rather than having change forced upon us. But even though we didn’t choose to be in this position or have time to plan for it, we can still succeed — and ultimately become stronger because of it. What I have found is that asking three straightforward questions during times like these can help guide us on this path: What is not changing? What must change? How can this be a catalyst for new opportunities?

WHAT IS NOT CHANGING

Asking what won’t change in your business can bring great comfort and clarity. Do your mission and purpose still resonate with your clients and throughout the community? For us and our advisers, the answer is a resounding yes. On the surface, our people-first business model seemed very much under attack as this crisis forced us apart physically. But our value proposition is needed now more than ever. Ensuring that we remain connected and find new ways to define and serve our communities is critically important.

This, in turn, helps our advisers be there for their clients. Clients achieve peace of mind knowing that they can rely on advisers as a steadying force in their financial well-being, which allows them to focus their time and energy on other challenges. Perhaps what best reflects the strong foundation of trust our advisers have achieved is that clients have remained calm and engaged in the markets during these unprecedented times.

WHAT MUST CHANGE

Although our purpose remains intact, how we deliver on it clearly needs to evolve. While many processes and services are being reimagined, nothing better reflects what must change than how and where we work. Unlike many other businesses, we in financial services are equipped to work from virtually anywhere. Commonwealth’s technology suite and business continuity planning enabled us to get 98% of our staff working from home in a very short period, ensuring full support for our advisers and their clients when they needed it most. This allowed us to create a safe and productive environment for the 2% who were needed in the office. Just as important, we were able to provide our advisers and their staff with what they needed to work remotely and remain connected to their offices, clients and Commonwealth.

HOW CAN THIS BE A CATALYST FOR NEW OPPORTUNITIES?

As COVID-19 pushed us apart, we have all found new ways to connect. Improved videoconferencing has likely allowed you to check in with clients more often, right from your home office. But are there other ways we can engage that resonate with our communities and add value?

At Commonwealth, we host weekly conference calls to share news and insights on the pandemic, the markets and the economy. Perhaps of even greater value, we include a Q&A session to address what is top of mind for advisers and to provide all members of our community the opportunity to learn from the experiences of others. On a more personal level, we have held intimate chats with small groups of advisers to hear firsthand how their businesses and clients are doing or just catch up on life outside the office. To strengthen this connection with our advisers, we shared the cell phone numbers of every managing partner so advisers know they can reach someone any time they need to. And we have been thrilled to have so many take us up on it!

TAKING THE IMPORTANT NEXT STEPS

Asking yourself these questions and identifying the answers is only half the battle. You also need to clearly communicate with your staff and clients to share what has changed. Then, reinforce those messages in a thoughtful, accessible way.

But a key part of communication is listening. One of Commonwealth’s strengths is the feedback loop we have with our advisers. Your clients know better than anyone what they need from you. If you’re not listening to them, they will find someone who will.

While the real heroes of this crisis are the ones who are putting their lives at risk every day, we all have a part to play, and financial well-being is critical. We are unbelievably fortunate to be in an industry where we can truly make a difference in people’s lives. The mistake would be using this crisis as an excuse for failure. It is incumbent upon us to understand the change around us, identify and implement strategic steps to ensure the health of our businesses in the future, and position ourselves to continue to deliver on our promise and prove our value to the communities we serve.

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Trap Kloman is president and chief operating officer at Commonwealth Financial Network.