LPL Financial hires new 'digital' head of recruiting -- IBM exec Scott Posner -- after the old school approach was leaking oil
Pre-IBM, Scott Posner spent 17 years at BNY Mellon where he rose to executive vice president leading the company’s strategic Initiatives group, reporting to the President
Brooke's Note: Is there a means of digitally finessing your way to higher recruiting sales? LPL Financial will find out as the old sales crew gets sent packing and a more digital crowd is brought in. In a release, LPL defines the jargon of a digital approach in the jargon of PR speak: client experience, "meaningful engagement," data leveraging and transformation. What those mean on the ground on the recruiting wars battlefield remains vague. Jeff Spears and Ron Edde actually hit on the pro and con points of recruiting digitally in comments at the bottom of the article. Jeff Spears points out it's a very LinkedIn world of recruiting these days. Ron Edde throws three or four buckets of cold water on the notion we are near that point of root canals without drills.
LPL Financial just hired IBM executive Scott Posner to lead its recruiting efforts as the the giant independent broker dealer seeks to reinvigorate slumping sales after a series of recruiting departures.
The Fort Mill, S.C.-based broker dealer, with 16,000 advisor reps, is hoping Posner can hurl a lightning bolt into LPL's recruiting arm, says Ryan Shanks of Finetooth Consulting See: LPL Financial's tack to roll-up mode -- complete with trash-talking its sweet terms -- may send its rep count sailing past Morgan and Merrill.
"I think they're stepping away from the old way of recruiting to a more digital strategy. He's got this digital experience, and he's had significant financial services experience, too. Recruiting is still being done old-school. They still pick up phones and email people," Shanks says.
Posner most recently was a member of the financial services digital transformation team within IBM's management consulting practice. He helps companies transform into digital and cognitive enterprises enabled by cloud computing.
Follows Morrissey exit
An LPL spokesperson has not replied to a query asking who Posner is replacing at LPL. The former head of LPL's recruiting unit, Bill Morrissey, retired in June and was replaced by Richard Steinmeier. See: LPL replaces the great Bill Morrissey with UBS' digital whiz
According to the firm's press release, Posner will report directly to Steinmeier, with responsibility for setting the strategic direction for the recruiting organization and leading the sales staff team. He will be based in San Diego.
Prior to IBM, Posner was managing partner and financial services Practice lead at Decker Partners, a boutique strategy and management consulting firm. Before that, he spent 17 years as an executive at BNY Mellon holding leadership positions within the firm’s investment services business.
Given Posner's focus on financial services digital areas, Shank thinks he's going to bring that expertise into the recruiting strategy.
"It’s still being done the old-school way. Recruiters are picking up phones and sending email and pieces to home addresses. All of these guerilla tactics are getting used by LPL. I think LP has a war chest," Shanks says.
Shanks says that Morrissey also brought a more traditional approach, and Posner will likely be more creative.
"Bill was incredibly successful overseeing an inorganic way of growth, but, perhaps, it was done in an old-fashioned way with wholesalers. I think that follows a pretty antiquated recruiting strategy. Now, they're hoping he can identify some unique ways of going about it," Shanks says.
Poaching an architect
"He's coming in as an architect, and he's going to develop a new way to engage advisor recruiting. I think it's clever. LPL has shown a tendency to focus more on technology than financial services with its hires over the last three to five years. This is following suit." See: Victor Fetter turns his guns on LPL's thorniest software challenge -- 21st century performance reporting
In a release, Steinmeier translates the digital approach to a few whopping terms of PR-speak: client experience, "meaningful engagement," data leveraging and transformation. What those mean on the ground on the recruiting wars battlefield was left blank.
“Scott brings a wealth of sales and business leadership experience to LPL, along with vision for applying emerging technologies that enable productivity and improve outcomes,” Steinmeier said in the release. “His knowledge and experience will help us further differentiate LPL by leading through innovation and centering the sales and transition process around the client experience.”
In a statement, Posner says he is eager to join LPL and cites the company's interest in technology.
“I’m energized by the firm’s desire to leverage data, technology and innovation to transform the sales experience. I look forward to working with this dynamic sales team to maximize results for the firm and develop relationships with advisors through meaningful engagement,” he says.
Morrissey's imminent departure became an open secret after he helped oversee a sales blitz targeting Kestra, Ameriprise and Cetera. See: LPL Financial wages 'war' on Cetera, Securities America and Kestra after they pounced on NPH advisors in wake of sale
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