Registered Investment Advisors: Expect More, Get More – The High-Performance Playbook

Executive summary:

Transitioning to the Registered Investment Advisor model means learning how to potentially manage and lead a team without organizational support
Our head of Business Consulting, Tina Downing, says the gap between expectations and performance usually comes down to setting unrealistic expectations or poorly communicating them
Downing cites attitude, aptitude, agility, activity and accountability as the five key components needed to build an effective team

Many of us have spent years managing and leading teams with the support of the firms we're part of. Transitioning into the Registered Investment Advisor space means that, on top of new responsibilities, you may now have the crucial task of continually fostering a culture of productivity, collaboration, and execution without the ongoing support of a larger organization.

When I coach teams, I often see that performance issues, low morale, and lack of collaboration usually stem from setting unrealistic expectations or poorly explaining them. It's easy to blame employees for not meeting our expectations, but sometimes they need more: more direction, more clarity on how they'll be evaluated, more understanding of the consequences of underperformance, and more guidance on priorities.

I am privileged and excited every day to work with my team. They are motivated, high performing, collaborative and at the top of their game. They are experts in our capabilities and every day foster an attitude around execution. This does not happen on its own. There isn’t a secret sauce. It requires focusing on the things that matter and setting expectations that are clear, then reinforcing those expectations continuously when supervising, managing, mentoring and coaching your team.

I thought it might be helpful to share the five components of how I set expectations with my team.

Attitude: This is how you expect team members to behave, treat each other, communicate, and collaborate. Key aspects include:

Growth vs Fixed mindset: Maintaining a positive and proactive attitude, even in the face of change and challenges, is essential. Team members should approach problems with a solution-oriented mindset. Focus, critical thinking and process helps them get there. Formal development on our firm culture and what is expected from them is critical for new members but also to ensure legacy members are culture carriers.
Respect and Empathy: Team members should treat each other with respect and empathy, acknowledging and valuing diverse perspectives, behavioral styles and contributions. Learning to challenge each other while demonstrating a positive intent is key.
Communication: Open, honest, and transparent communication is crucial. Team members are encouraged to express their ideas and concerns constructively, push each other out of our comfort zones and actively listen and challenge the status quo.
Collaboration: Collaboration with healthy competition is emphasized. Team members should work together, share knowledge, and support each other to achieve common goals.

Aptitude: Time is allocated to learn, innovate and grow. Fostering a learning culture is vital for continuous growth and innovation. This involves:

Learning Opportunities: Providing regular opportunities for training, workshops, and seminars to keep skills and knowledge up to date.
Innovation Time: Allocating dedicated time during work hours for team members to explore new ideas, technologies, and approaches.
Knowledge Sharing: Encouraging knowledge-sharing sessions where team members can present new learnings or projects to the rest of the team.
Mentorship and Support: Establishing mentorship programs to guide less experienced team members and provide support for their professional development.

Agility: How do members handle change and how are you determining where your employees are in the change cycle at any given time? Handling change effectively requires a proactive and flexible approach.

Change Management: Implementing structured change management processes to guide the team through transitions smoothly.
Feedback Loops: Regularly collecting feedback to and from team members to gauge their comfort and adaptability to changes.
Training and Support: Offering training and resources to help team members adapt to new tools, processes, or organizational changes.
Monitoring and Adjustment: Continuously monitoring the impact of changes and making necessary adjustments to support team members in their transition.

Activity: Who sets the priority of activities and who owns that activity, especially when things get chaotic? Setting and prioritizing activities, especially in rapidly changing situations, requires clear ownership and communication:

Priority Setting: Establishing a clear process for setting priorities, whether that is within the regional team, the senior leadership or with internal and external stakeholders.
Ownership: Assigning specific owners to each activity or task to ensure accountability and clarity.
Flexibility: Maintaining flexibility to re-prioritize tasks as needed based on changing circumstances or new information. Pivoting should be done for a good reason and shouldn’t be done too quickly. Giving ideas time to play out is also important.
Clear Communication: Ensuring that all team members are aware of priorities and roles to prevent confusion and overlap, and that they know how to communicate within the team, senior leadership and key stakeholders.

Accountability: What is your formal accountability structure and team engagement plan that fosters a mindset among team members to be accountable to each other and your clients? A formal accountability structure and team engagement plan are essential for fostering a culture of responsibility:

Clear Expectations: Setting clear, measurable expectations for performance and behavior.
Regular Check-ins: Conducting regular check-ins and performance reviews to track progress and address any issues promptly.
Team Engagement Plan: Developing a plan that includes team-building activities, regular meetings, and opportunities for open dialogue to keep team members engaged and aligned.
Mutual Accountability: Encouraging team members to hold each other accountable, fostering a sense of shared responsibility towards each other and the clients.
Recognition and Rewards: Recognizing and rewarding team members for their contributions and accountability, reinforcing positive behavior and outcomes based on individual motivations.

Too often, we expect to hire the perfect person who can step into the role and succeed effortlessly. While that can happen, it’s not the norm. Setting broad expectations is a start, but creating individual development plans is key. Building a culture of high performance requires a clear plan, setting specific expectations for both the group and individuals, consistently reinforcing those expectations, and rewarding excellence. With these elements in place, you'll have a better chance of cultivating a thriving, high-performing team.