Raymond James lets six advisors steal the show at its national event with TED-style talks

Brooke’s Note: This conference round up hits many of the notes you’d hope for. It has the Raymond James statement of corporate positioning from the CEO, the stance toward new regulations from the president of the IBD. Both these execs address, with some directness, unpleasantness. Kudos to them. This piece by the capable Anthea Penrose, RJ’s PR director, has some distilled tricks of the trade from some of the top advisors. Throw in thoughts from Chris Gardner who is the real-life Chris Gardner from the movie “Pursuit of Happyness” and you’re really starting to get somewhere. I’d add that I called Gardner myself to augment this article and he provided such good thoughts that I chose to save them for another article coming soon to an RIABiz near you.

Last week’s Raymond James Financial Services National Conference for Professional Development 2014 included several advisors giving “Ted”-style talks about what made their success and one famous broker who completed the Dean Witter training program in the 1980s while sleeping, at times, on the streets.

Held in National Harbor, Md., the event hosted more than 3,500 attendees including 1,700 financial advisors. Virtually all are independent contractors or bank-based advisors, but many have their own RIA. In addition, there were 250 support staff (including registered sales associates, branch professionals and operations staff who support the advisors), 50 prospective advisors, 650 “guests” (i.e. spouses, family members), invited speakers and 800 “others” including sponsors, education partners, and home office associates.

Capturing data

St. Petersburg, Fla.-based Raymond James supports multiple channels of advisors and the various rules of fiduciary care associated with their regulation. So it was of particular interest when Scott Curtis, president of Raymond James Financial Services, made it clear where his firm stands on the Department of Labor’s anticipated changes to its fiduciary standard, which could make IRA assets subject to ERISA standards and require advisors to eliminate — not just disclose — conflicts of interest. See: Borzi: Exemptions from conflict of interest will be part of new fiduciary proposal.

“We don’t think these changes are healthy for the industry. We’re working closely with SIFMA and FSI to oppose this anticipated legislation, but it requires a grassroots campaign by all of us in the industry, so look for more information seeking your support for this initiative.”

Following the conference, the DOL announced it had postponed that proposal until next year.

New privacy rules may impact the way advisors do business as well, Curtis added. Clients who live in certain states will have to opt-in to have their data shared with another provider.

“Unless they do so upfront, we can’t move that data,” he explained. “We’re working to build a way to capture that permission early on to make it easy for you. Until then, we’ll work to help you better understand the rules in the states where your clients reside.”

Success and Succession

This year’s NCPD event marks the fifth time that Raymond James chief executive Paul Reilly addressed the advisors that comprise the Raymond James Financial Services division.

“Our desire to be the premier alternative to Wall Street means we want to have the size and scale and products of any Wall Street or custodial firm, but keep our Main Street values, that feel of a family firm that cares about our clients and our advisors — because that’s our strategic advantage.”

Scott Curtis: We don’t think these
changes are healthy for the industry.

C-Suite upheaval

After reminding advisors of the broker-dealer’s value proposition, Reilly addressed the recent changes among the firm’s senior management — the retirements of senior leaders, Chet Helck and Jim Fulp within a year of Dick Averitt’s retirement. Reilly acknowledged that it created concern among the audience but reminded attendees that those executives had a succession process in place, choosing the best possible replacements who understood the culture and the firm’s core values as well as they did. See: With Dick Averitt retiring, Raymond James taps a star from within to take on LPL.

“Succession allows us to build these bridges from generation to generation,” said Reilly, urging advisors to make their own succession planning a priority this year. “A good succession plan helps ensure the lessons and values you have acquired in your careers are passed on and persevere for the benefit of your clients and the next generation of advisors and clients.” See: The 10 biggest threats to the RIA business heading into 2014.

Looking ahead to the next five years, Reilly told the audience to look for more organic growth and improved synergies between divisions to bring more products and options to clients, further strides in technology development, reinvigoration of the firm’s service philosophy, and niche acquisitions where it makes sense.

Another tea party

Erskine Bowles: We must get the
right and the left to wake
up because the markets will eventually
recognize us as a dysfunctional government.

On the topic of regulation, Erskine Bowles, former White House chief of staff under President Bill Clinton, doled out equal amounts of praise and scorn to members on both sides of the Congressional aisle. “We must get the right and the left to wake up because the markets will eventually recognize us as a dysfunctional government — that we are addicted to debt and we are the largest economy on earth and we are operating without a budget. And the result will be the most predictable financial crisis in our history, and one that makes the last crash look like a tea party.”

Bowles was appointed by President Obama, along with retired Wyoming Republican senator Alan Simpson, to chair the National Commission on Fiscal Responsibility and Reform. Bowles and Simpson’s plan was ultimately voted down by Congress, which subsequently pushed through a Band-Aid budget to avoid the “fiscal cliff” and delay sequestration. The budget crisis continues, Bowles said. See: Fiscal Cliff vs. Jimmy Cliff: How the leap may look more like Y2K or the Mayan calendar.

Deftly tapping into the theme at this year’s conference, “Making a Monumental Difference,” he said: “You all can make a difference, a monumental difference. You feel the way lots of the American people feel. You’re tired of the ultra-partisanship. You want people to pull together and make some tough decisions. You want to see compromise, without compromising principles.”

Bowles then urged the attendees to go home and put pressure on their congressional representatives to do better.

'Plan B sucks’

Chris Gardner: Hope is never enough.
You’ve got to have a plan.

On Wednesday afternoon Chris Gardner, stockbroker, entrepreneur, philanthropist and famous father who was catapulted to fame after writing his memoir “The Pursuit of Happyness,” which was made into a film starring Will Smith, took the stage.

Gardner offered a glimpse into the year of his life marked by homelessness, tenacity and hope. He said he’s often asked if he’d be able to make the journey from extreme poverty to the heights of success as a stockbroker in today’s economic environment. His answer? A resounding “yes.” Gardner noted the similarities between today’s economic, financial, political and social environment and that of the 1980s. See: What the reincarnation of E.F. Hutton says about the pace at which RIA business is moving.

His overarching point was that the thing that makes you unique is what makes you capable of succeeding despite the wrong circumstances, family or zip code.

“You can choose the spirit of who you’re going to become. Embrace it,” Gardner said. “That same spirit can be beaten down, so you have to make a choice. I could have been defined by my life, but I chose to go the other way.”

Still, he emphasized that goals aren’t achieved without practical application of will in the form of an expertly crafted plan.

“Hope is never enough,” he said. “You’ve got to have a plan. And it must be compelling, concise, consistent and committed. You must be truly passionate about your plan and have no Plan B. Commit to Plan A. Plan B sucks.”

Disengage and delegate

This year’s conference­ offered a new format for the top-advisor sessions. Instead of offering competing sessions, where advisors were forced to choose one over another, conference organizers invited six successful independent advisors to a “Ted” talk of sorts to share their best ideas. One common thread: willingness and a desire to commit their time and money to better serve local and national charities.

Mark J. Smith: The rule of
thumb is you’ll need one staff
member for every quarter million you
want to achieve in production.

Mark J. Smith, branch manager and president of M.J. Smith & Assoc. in Greenwood Village, Colo. delivered these takeaways.

- “View new team members as investments to help you reach your production goals. The rule of thumb is you’ll need one staff member for every quarter million you want to achieve in production.”

- Disengage and delegate. “Embrace the idea to let go of the little things you should not be doing. Stay focused on developing deeper relationships, enhancing referrals, and, of course, being more productive in prospecting.”

- Manage risk. “Managing risks is more important than higher returns. Control what you can, and plan for what you can’t control. I tell my clients that I can’t control the economy, stock market, inflation or interest rates, but I can bring value by helping to manage investor behavior. It’s the biggest risk most investors face. My goal is to keep them in the markets, help them ignore the clutter and stick to their plan.” See: First, own all the risk.

- Reduce taxes. “Taxes are a real concern for the affluent investor. Be proactive in providing and promoting tax-planning services. Understand the tax laws; get knowledgeable about the various products and charitable giving strategies. Be the person with specific ideas to help save on taxes.”

Be brave

Judith McGee, co-branch manager and CEO at Portland, Ore.-based McGee Wealth Management, shared her office’s borrowing of Toyota’s Kaizen philosophy of continuous improvement:

- Focus on culture. “It takes time to build staff and nurture new advisors. You have to see the promise and cultivate that over years. Think about staff development. Pay them. Train them. Build their credentials. Share your vision. Use the law of reciprocity with your clients. Do something for them without any expectation of something in return, and they’ll want to give back to you.” See: Stockbrokers are ready to shed their sales culture, says SEI Investments study.

- Take care of operations. “Invest in technology, systems and processes until you create a well-oiled machine that’s prepared to grow.”

- Connect. “Communicate, speak, write, advertise. We’re segmenting our messaging and marketing to deliver what our clients say they want. And we’re doing so in ways that support our vision, intention and purpose. It creates relationships that are high touch and authentic, supported by personalized service.”

- Get involved. “Community is very important, but don’t do things in service that don’t feel right. You need to build a rich life experience for yourself, as well. Participate on boards that help your brand, your life, that connect you to those who’ll advocate for you. And create a culture among your staff to embrace service. Everything we do is about making a difference in people’s lives.”

- Be brave. “Know that building a business takes time; ask for mentoring; ask for communication. Be brave. Top advisors want to help; they’re generous about sharing. You just need patience, persistence and self-discipline.”

Preparing to leap

Mal Makin, branch manager and president of Professional Planning Group in Westerly, R.I., joined the firm in 1989, which now has more than $1 billion under management. He shared these thoughts:

- Listen to Lou. Holtz that is. Show up, show up on time, show up on time and be prepared.

- Leapfrog. Don’t wait for your break. Be prepared, leap to the next step and declare yourself to be at a different level.

- Take care of people. Offering value or something extra fosters business and friendships. Connect in a very human way and good things will follow.

- Present your best self. Have a sense of your own value and what you bring to a client’s life. Remember the client’s interests always come first. Surround yourself with good people in an atmosphere that looks good and look good yourself. See: One-Man Think Tank: When Wall Street has investors’ 'best interests’ at heart, watch out.

- Be the person your dog thinks you are.

Listen up

Midland, Texas’s Van Pearcy took the stage next and encouraged everyone to stand and stretch their legs in the middle of this two-plus hour session. He shared several humorous stories that boiled down to:

- Listen well. In our business, either we don’t listen well or the clients don’t. Sometimes they didn’t hear much of what happened in the meeting. Use visuals, like GPM, to tell your client’s financial story.

- Partner. Develop connections to strategic partners and private coaches to become more productive and efficient.

- Remember how you got here. “Lower-tier clients helped butter our bread, so I couldn’t pass them along.” Instead, Pearcy uses Raymond James Freedom asset allocation models and other technology tools to manage smaller clients. See: A few things I learned about the Raymond James RIA effort in an NYC sit-down with Bill Van Law.

Words to the whys

Gerry Klingman, a branch manager and president of Klingman & Assoc. in New York City loved the idea of an inspirational Ted talk and shared how one such video changed his practice. The 2010 talk by Simon Sinek challenged him to start with “the why.”

- Start with the why. Most companies figure out what they do, how they do it and why. Sinek’s golden circle prioritizes the why first. For Klingman, it was a passion to help clients, their families and associates reach their life’s goals and dreams.

- Communicate your “why” well. What is your why? Start there before you get to the how and what. It’ll be different for everyone. Then share the why with your staff so that it becomes part of the culture.

- Plan for the future. Set your goals and become accountable for them. If you want to connect with the next generation of clients, recruit and mentor the next generation of wealth managers and invest in processes that will help you get there. And find people to teach you about what’s happening now with technology, social media and new opportunities. See: Where RIA technology stands heading into 2013 after 2012 lost some steam.

Cohesive culture

Last to speak was Randy Carver, branch manager and president of Carver Financial Services in Mentor, Ohio, who celebrated his 50th birthday last week. His personal story of triumph over physical adversity was inspiring on a number of levels. His professional success and best practices seemed like icing on the cake. His thoughts:

- The steps to success are simple, but not easy. You can achieve all the success you want, regardless of how you define that success, but it doesn’t come easily. It takes discipline, time and persistence.

- Learn from those who’ve gone before. Not just the successes, but the failures. Find out what works and what doesn’t. See: What is the value proposition of a financial advisor — and how is a budding RIA culture upping the ante?.

- Build a team. Nobody does it on his own. Create a cohesive culture for your team and share your vision. Organize staff by strength and define their roles.

- Define goals in specific, measurable ways. Then plan around them using tools that are consistent with your long-term goals. Know where you’re going and be persistent and determined about getting there.

- Don’t just plan, do it. Push the envelope a little bit; get off the ledge and move forward.

- Invest in the practice. Client events cost money and take work, but they could be the key to getting in front of clients. Succession plan, not just for you and your clients, but for your team, too, so they’ll have faith in the future of the company.

Anthea Penrose is public relations manager at Raymond James Financial and has one of the more pleasing voices in the industry.