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Technology is advancing at an unprecedented pace, impacting every aspect of our lives as consumers and individuals. Despite this, some financial advisors have been slow to adopt innovative and digital approaches in their practices.
Fintech firms, asset managers, custodians and broker dealers have an important role to play in helping advisors see how technology improves the advisor and the investor experience. For firms working closely with advisors, here are a few strategies to ease the change-management process, bringing advisors of every age and background onto the right path toward adoption.
Change is hard
Firms that serve financial advisors must solicit their input on what’s working and what isn’t. But this cannot be the last step. Though advisors certainly want things to improve, changing their behavior – and behaviors within the business – is a complex process.
To successfully implement tools based on advisor feedback, show the advisor that to do things better, they must do them differently. As Valerie Vest, SVP and chief experience officer at Cambridge Investments Research Inc., said on a recent episode of CRM Unlocked, “Different isn’t always better, but better is always going to be different.”
To provide advisors with the desired automation and ease of implementation, it's crucial for service providers to involve them in the change process and clearly communicate the necessary adjustments from the outset.
Collaboration and curiosity are key for proper prioritization
To ensure early buy-in from advisors, adopt a mindset of collaboration and curiosity. This helps advisors feel valued and involved in the process of implementing technological changes that impact their business. This collaboration should extend not just to seeking inputs on the current processes and level of automation, but also to any planned reengineering of workflows that would be part of the overall transformation.
Advisor feedback also helps firms prioritize what needs work when it comes to automation. Since advisors are the end users, their input helps firms prioritize their efforts in implementing changes that will have the most impact.
Moreover, automation is a multi-year journey that necessitates constant collaboration and communication with advisors at every stage. Be aware of the advisor’s stage in the process implementation to stay in sync with their needs.
Listening better with technology
Before technology came into play, the people who were most comfortable speaking up and raising their hands were the ones delivering feedback.
But with the advent of technology, tools such as surveys and call recordings have made it easier for all personality types to provide feedback, democratizing the process. Firms can now leverage these tools to obtain insights from everyone, not just the outspoken critics.
Listening shows advisors that their needs are being considered, but technology allows the firms that serve these advisors to listen at a level that was never possible before.
Don’t just focus on the advisors who are resistant
One common mistake in change management is to prioritize the needs of those who are resistant to change, overlooking those who are ready to embrace it. This can alienate the trailblazers who are eager to move forward. Striking a balance between catering to both the resistant and the receptive ends of the spectrum is crucial for successful change management.
Some stakeholders are early adopters – the ones who are enthusiastic about jumping into the future. A strategy to further involve and empower advisors who have already embraced the vision of digital transformation is to seek volunteers who can lead the transition.
This not only energizes those who are excited about embracing change at their firms, but it has a positive ripple effect and allows more skeptical advisors to be guided by their trusted peers. Technology is here to stay, so avoid letting the naysayers be the leaders of the movement. Instead, firms should find those who are the least resistant and allow them to shine as they lead from the front.
Paradigm shift from a scarcity to an abundance mindset
Many advisors are hesitant to adopt technology in their businesses because of a deep-seated fear of failure. They may feel that they lack the necessary skills to make the transition successfully, or that their clients aren't technologically proficient enough to cope with the shift.
Unearth why the change is hard for them. This will typically involve asking the right questions to determine the origins of their fear. Once you have a clear understanding of their hesitations, you can safely explore alternative possibilities. Instead of focusing on potential failures, shift their perspective to consider the positive outcomes of technological change, asking questions like "What if it does work? What if it leads to great success?"
Technology usually performs as programmed. But it's crucial for technology providers to ensure that it is implemented in a way that is beneficial for its intended users.
With a strong foundation of support from those leading the way into the digital world, advisors can move forward with greater ease and confidence. By providing technology that is seamless, easy, and intuitive, firms will help advisors adapt to the changing landscape. They can also help advisors overcome their sense of being overwhelmed and let them to embrace the possibilities of technology. By working together, firms and advisors can build a bridge to the future and thrive in the digital age.
Sanjeev Kumar is chief executive officer of Skience.
Read more articles by Sanjeev Kumar
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
