Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
This might sound like a very cliché problem, but unfortunately we are living it. Our firm’s founder and current CEO, let’s call him “Joe,” is a great guy. He is smart, motivated, fabulous with clients and has a strong investment background – the total package. At the end of the last year, in preparation for 2020, he informed us all that he is looking forward to retirement (he is 56 years old) and wants to start transitioning. He introduced us to his son, “Todd,” (yes, “introduced,” – we had not met this young man before) who just finished his graduate degree. Apparently his son is the heir apparent and Joe is taking a huge step back while we are all expected to inculcate Todd. Todd is not at all his father. He is arrogant, does not listen, seems disinterested in the investment side of our business and has already alienated one client by asking inappropriate questions.
I say this is cliché because it is the typical “parent with the blind eye” to their child. We’ve only known Todd for a few weeks and we can’t see working for him. Joe is such a nice man none of us want to confront him about Todd. Do we leave? None of us have ownership in the firm so there isn’t a financial hit except we’d have to find new jobs. Some of us have been here for over 10 years and we are loyal to the clients and to Joe. But the writing seems to be on the wall.
Have you ever seen this situation where the child steps up and is different once they are involved in the business? Do we go to Joe and let him know now we aren’t going to stay if Todd stays? Three of us are on the edge and don’t know what we should do to protect our careers. If you tell us we all should leave, it would have an immediate negative impact on the firm. We are the knowledge base and the go-to people.
T.I.
Dear T.I.,
I would never tell someone to quit their job, especially someone I didn’t know! If you end up making that decision, it should be because all other avenues have failed. Try to make things work in their current situation by trying different options and only leave if it becomes untenable.
That said, have you spoken to Todd at all about his behavior? Have you taken him to lunch and described the culture and the way people treat each other and interact? Rather than admonishing him, share why you all enjoy working for the firm and the camaraderie you enjoy. Some adult children want to be nothing like their parents, but you could talk about Joe’s attributes and why you enjoy working for and with him so much. You could share stories about how clients have responded well to Joe’s approach. Not knowing Todd, I can’t say whether this will work, but it is one option to try.
You could also talk to Joe directly. I know you say parents sometimes turn a blind eye, and I don’t know if you are a parent yourself, but most of us can provide a long list of the areas we would like to see our children improve! I doubt Joe is totally unaware of Todd’s areas for improvement, so suggest some “coaching” opportunities for Todd to improve. Again, if you approach this in the vein of being supportive of Todd’s success, and doing the right thing for the clients and the firm, I doubt Joe would see it as intrusive or upsetting.
It hasn’t been very long, since you talked about end of last year and “a few weeks.” I wouldn’t jump ship yet. It’s possible that Todd is trying to figure out his own way and doesn’t want to be in his father’s shadow. He might be deliberately going to one extreme that is the exact opposite of his father. It’s possible he will see on his own that this isn’t working and is counter-productive and then make some shifts to behave differently. The early indicators are not good, but it can be a difficult situation when a family successor comes in and is expected to slide into the role. Put yourself in Todd’s shoes. He is likely feeling a tremendous pressure, especially if his father is beloved and admired. Look for ways to support Todd in being successful. The more you become his supportive “friend,” the more likely he will listen to your suggestions and respond positively.
Dear Bev,
I had my annual performance review late in 2019. It wasn’t in time to get a bonus in for our January payroll run. My boss told me my bonus, when it does come, will be less than I have received the last few years because I have, “not been giving 110%.” She didn’t elaborate on what “110%” would be and I have always received excellent reviews in the past.
I’m discouraged and unmotivated. The industry is rife with opportunities. Is this the right time for me to leave?
E.N.
Dear E.N.,
As I said to the writer above, I would never encourage someone I didn’t know to quit a job. Yes, there seem to be lots of opportunities, but I also know some very good and talented people who are looking around. Finding the right job, in the right culture, working for the right boss and doing what you enjoy is very challenging. Take that on only after you have pursued other avenues internally and you make sure nothing will work.
I have to ask the hard question: Is it possible you haven’t been putting in the effort you might have in the past? Is there anything going on in your personal life or work life that has made you distracted or disengaged? Start by self-reflecting and ensuring you aren’t doing something that your boss has picked up on, but that you might be defensive about. I know this is difficult because you might be indignant in that I am suggesting it is you. But consider whether she is highlighting something you haven’t been acknowledging.
Next, ask your boss, “What exactly would 110% look like?” When people use words and phrases and we don’t see clearly what they mean or know what success looks like, we need to clarify and make sure we know what we’re aiming toward. I call this “defining the success outcome.” Tell her you want to give the extra effort, but you aren’t sure where you are falling behind and the more specific she can be, the better it will help you shift your behaviors. Press her until you see what she sees. If you can’t leave her office knowing what success looks like if you were putting in 110% 30 days from now, you are likely going to fail. Your definition might be different from hers, but hers is the one that matters.
You mentioned your bonus. Let her know you were a bit frustrated that your bonus was late and lower than expected. If you were counting on that money for something, and you have always received it at a certain date in past years, you can let her know the impact on you for the delay. Many managers are scrambling at performance review time and they don’t realize how time is flying. It isn’t an excuse but she might not realize the negative impact it had on you. So (nicely but firmly) point this out to her.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. The firm also founded and manages the Advisors Sales Academy. She is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here. 