Teams Overview
Explore the strategies, dynamics, and insights needed to build, manage, and grow successful financial advisory teams. Whether you're merging, joining, or leading a team, these articles provide practical advice and solutions to common challenges.
Joining an Established Team
- Understand whether joining a team aligns with your long-term goals.
- Differentiate between vertical and horizontal integrations:Â Â
  - **Vertical Teams**: Leverage senior members' experience and networks. Â
  - **Horizontal Teams**: Collaborate with advisors at a similar career level, though this can present challenges
- Key success factor: Set clear trial periods and exit strategies to evaluate fit before committing.
Family Teams & Multi-Generational Teams
- Family teams require clear communication and boundaries to avoid personal conflicts impacting business
- Compensation structures must reward equal effort—frustration can grow if one member feels they are carrying the weight.
- Multi-generational teams offer a pathway for succession planning, allowing senior advisors to transition clients to younger members gradually while minimizing attrition
Large Teams: Roles and Dynamics
- With five or more members, large teams need clear accountability for roles, performance goals, and compensation structuresÂ
- Successful teams set goals that align everyone with revenue growth and client service benchmarks.
- Address potential resentment early: Junior FAs must be motivated to grow independently, not treated as administrative support.
Merging Established Teams
- Mergers can be strategic (succession planning) or tactical (expanding into new niches)Â
- A clear client service model is essential to maintain relationships across the merged book.
- Implement a flexible compensation structure and set realistic expectations to ensure alignment of goals post-merger.
Partnerships and Vertical vs. Horizontal Team Structures
- Partnerships work best when driven by tactical objectives—such as focusing on under-serviced client segmentsÂ
- Vertical partnerships leverage senior FAs’ expertise to manage specific client tiers, while horizontal ones often struggle due to compensation disparities.
- Always establish a written dissolution process (a "prenup") to ensure smooth transitions if the partnership ends.
Private Wealth Management (PWM) Teams
- PWM teams must focus on **time management and role delegation** to remain effectiveÂ
- Advisors should concentrate on high-value activities like acquiring new clients, while support staff handle administrative tasks.
- Teams with clear delegation improve productivity and maintain focus on acquiring new business.
Handling Conflicts in Teams
- Address small conflicts early—assuming they will resolve themselves is a mistake
- Implement a conflict resolution framework and create a safe space where team members can express concerns confidentially.
- The team lead must be proactive in managing conflicts to maintain team cohesion and productivity.
Roles, Responsibilities, and Goal Setting in Team Formation
- Define roles clearly to prevent overlap and ensure accountability
- Set **five-year numeric goals** tied to assets, revenue, and client numbers to measure progress.
- Regular 90-day check-ins ensure the team stays on track, and compensation structures should incentivize those bringing in new business.
Steppingstones to Ambitious Goals
- Embrace "irrational goals" to stretch your potentialÂ
- Redistribute less productive accounts to free up time for growth-focused activities. Â
- A mindset shift from managing accounts to acquiring relationships enables advisors to achieve outsized goals.
Conclusion
Building, merging, or leading a financial advisory team presents unique challenges and opportunities. With clear communication, strategic alignment, and a proactive approach to conflict management, teams can thrive and unlock new levels of success. If you’re interested in exploring team-building strategies further, **contact us today** for a consultation.