Leading Teams Starts With Mindset Shift

In any industry, the role of team leader is a significant one, typically responsible for the success of both the business and the people. For many financial professional teams, the leader is often the person with the longest tenure and is most likely the rainmaker. They are well respected from a sales standpoint and historically have focused their time on prospecting and meeting with clients. In the case of 401(k) plan advisers, that can often mean longstanding relationships with plan sponsors that oversee hundreds of millions in assets.

Many of these team leaders assumed the role at a point in time when it made sense, possibly when the team was smaller, the business was less complex and there were fewer moving parts to manage. They may or may not have proactively taken on the role, but at some point, “manager” or “leader” became part of their title—and it stayed. Their passion, most likely, has remained with the clients and the asset-gathering, but they have dutifully assumed the management role because it was expected of them.

The leader’s role is ever-changing, and as teams take on new responsibilities, so too does leadership. With growing client expectations, the influx of innovative technologies and the challenge of attracting and retaining talent, it may be time to reassess whether the current lead is best equipped to manage the demands financial professional teams face today. Doing so may break tradition, but it is critical in supporting any growth-oriented team.

From Financial Professional to Leader

Julie Genjac

To perform as well as possible, a financial professional team needs one person dedicated to running the business, establishing goals, setting objectives, overseeing operations and navigating associated challenges. The mindset needed in this position is not necessarily the same as a sales or client engagement role and requires more strategic thinking around business operations, culture and how success is measured—and celebrated. A strong leader also needs a certain level of poise to work through human-to-human frustrations.

This is not a part-time job. Leadership tasks must be prioritized day in and day out to keep the team running seamlessly. It is crucial that each team establish who the leader is and how that individual transitions from their previous experience as a practitioner in sales and client engagement.

One way a salesperson can disengage from an old role and become a leader is through delegation, which requires practice and getting in the habit of asking, “What’s the best use of my time?” when approaching asks. Eventually, enough delegation will require a new set of written rules and responsibilities for each team member so the group is performing at its highest level while using each person’s time most effectively. Alternatively, finding the right person to do the job might mean bringing on a new hire whose sole focus is being the team leader.

Leading Humans, Not Employees

Without a dedicated leader, there can be confusion about priorities, goals and accountability. Sales and business metrics may be strong, but the people-centric components of the team, such as culture, communication and establishment of roles and responsibilities, may be lacking. I always say that we hire employees, and “humans” walk through the door. Someone needs to oversee the humans on the team, and those humans need much more than numeric goals and spreadsheets. They need to be inspired, nurtured and challenged (key word: consistently). Team culture is one of those intangibles that is difficult to define but feels excellent when it’s humming.

Achieving a great team culture requires ongoing communication, planning, documentation and patience, plus much trial and error to really get it right. It does not involve sweeping issues under the proverbial carpet and hoping they fix themselves. Checking in on metrics and goals is very different than providing coaching and feedback on performance, growth and career trajectory, but both are key components of team-building. Just like it is one skill set to present a financial plan to a client, it is a completely different skill set to navigate job performance-related issues or lend a shoulder to cry on when someone on the team is navigating a personal issue. 

Introducing the COO

Another way to think about this leadership role is through the lens of a chief operating officer. Like a COO, your team leader should oversee daily operations—the staff and the processes—and be responsible for the smooth functioning of all systems. The COO interfaces between the financial professionals and the support team and ensures all parties are aligned.

You may have someone on your team who can step into this “COO” role, or you may want to search for an external hire. Remember that you do not necessarily need someone with significant industry experience, but you do need a professional with a high level of emotional intelligence. The leader needs to be able to read the room, motivate others and have candid—and sometimes difficult—conversations.

Planning Today for Tomorrow’s Success

Entering a new year is an ideal time to ask, “How would I grade my team’s leadership process?” and “Is there an opportunity to proactively enhance it this year?” Is your leadership structure built on past tradition, or have you selected someone who can really focus on the role and nurture the humans on your team to be outstanding performers, to collaborate, communicate and integrate?

If the answer is anything other than, “Yes,” it may be time to reassess the organizational chart.