To Tuck-In or Not to Tuck-In? Is That the Right Question to Be Asking?

By The Lerner Group on July 6, 2021

“When the day is done, the order in which items are completed should conform to the old Cavalry saying: The horse, the saddle, the rider.”  – Randy Schultz, Endless October

A couple of years ago, I was coaching a prominent Senior Financial Advisor (we will call him Joe for our purposes here) who, by all outward appearances, as the saying goes, “had it all.”

As I sat in the cozy leather chair across from Joe’s classic mahogany desk, I scanned the walls of his office. Joe’s walls were festooned with myriads of bling. Pictures, plaques, and recognition awards adorned his walls for decades of work with local charities. Each plaque, paperweight and diploma celebrated his attainment of a milestone. It looked like the trophy case in the hall of my high school gymnasium.

These recognitions or “carrots” got Joe fired up over the years. It must have worked, his practice had grown to the point that it appeared to be the envy of those he came up with in the business. Only now, his business was starting to show signs that it just might be out-growing him.

As we went to work on his practice, it became clear that something was amiss. After the opening courtesies of exchanging our backgrounds and stories about our families and hobbies, I could tell immediately by his demeanor that something big was missing.

As we talked further, a picture began to emerge. While Joe had been successful up to now, it came at a hefty price tag. Joe always put his own needs last. Clients came first naturally, but their demands and needs were taking a toll now that he had to wear so many hats to keep his business moving in the right direction. His practice and team could no longer run on “auto-pilot.” Big investments in personnel development and technology were looming over him.

But considering himself a bit “old school,” Joe lived by the values his father imparted to him or, as the old Cavalry saying goes: the horse, the saddle, the rider. Take care of your clients, take care of your people and your own needs should come last.

I shared with him the key findings from the Stress Test of his business I had just completed. Somewhat akin to a practice management MRI or Cat scan, we reviewed the diagnostics together. Despite a plateauing in recent years, the problem with his practice was being masked by a mere “look at the numbers.”

I told Joe that the stress test of his business essentially came out OK, but in talking to his team, I sensed that is not why I was really here. As Joe was a “no-nonsense” kind of guy, I asked him straight out, “Joe, what’s up? Why am I really here?”

“I am so glad you asked,” Joe said. As if taking off a heavy backpack at the end of a long day’s hike, he began opening up, so I listen intently.

“You see, for the first time in my life, I feel stuck, really stuck. Yeah, we are having another good year, our performance has been good, we are still getting some referrals but not like it used to be. And it must be me, but I just do not enjoy coming in as much as I use to. It is feeling more and more like a burden to keep things running. And it does not appear to be getting easier anytime soon. I wish I had my old mojo to power through it all, but I think I need help. Have you seen this happen before?” Joe asked as if he was a drowning man looking for someone to throw him a life preserver.

I asked politely, “Joe, do you feel you are running your business or is it running you.” He put his head down, embarrassed as if he was letting someone down and then nodded, saying, “it is running me, and in truth, it has felt like it for some time now. Perhaps I just was too proud to admit it, but I don’t feel I have what it takes to RUN the business like it needs to be from this point forward.”

Then, I asked him to describe for me his “ideal week.” As if offering him an ice cream cone, he lit up with enthusiasm. “That is easy he said, it would be spending more time with my best clients. Over the years, I have nurtured close relationships with a handful of clients who have become some of my best friends, in truth, I need them more than they need me… I really miss that … I miss them and the time we use to spend together over dinners, BBQs or going to sporting events. Somehow it seems in the drive to “grow and scale” this industry seems to have taken a wrong turn and lost that personal touch. Do you think it is ever coming back?” he asked.

I said, “I do not know if you can change the direction of the industry, but you certainly can change the direction of your own business and your role within it.” Then I asked Joe, “if you could remove all the things that got in the way of living your ideal week, would it be worth enough to you to make it happen?” He went silent. Then he lifted his head and shared, “if I could get back to the way I use to run my business, it would make all the difference to me, my family, my team and my clients.”

So, we went to work on whiteboarding his options and define a clear path for him to take his business “back to the future.”

The path forward in situations like these can often require an intentional assessment of 3 Key Alternatives as follows:

3 Alternatives for Taking Back Control of Your Business

Do It Yourself (DIY): This is the most obvious but likely the most difficult. It can require the principal operators of the business to go “off-line.” This means setting aside enough time to acquire the skills needed to be knowledgeable enough to apply the right “fixes and upgrades” to core systems, technology, and staff. Perhaps it is learning how to navigate a new CRM System or learn more about HR management or perhaps even compliance or legal headwinds facing the practice in the near future. Whatever form it takes, it is likely to take more precious time away from where you want to be spending your time, at least in the short run.

Do It For Me (DIFM): The rise of RIA Aggregators has provided dozens of options for advisors to effectively delegate much of the back and middle shop operations by plugging into well-defined infrastructures. More and more founders/owners find it the most attractive alternative to plowing the ground on their own. By “tucking in” under these central organizing platforms, they are willing to trade elements of their autonomy, brand, and degrees of freedom to enjoy the economies and remove some of the burdens of running all business components themselves. While it may feel like more of a “cookie-cutter” experience, this approach has clear advantages for some advisors that should be considered.

Do It With Me (DIWM): A third option appears to be gaining steam. This alternative provides the resources needed to upgrade the business while retaining the right measure of space for personal growth, autonomy, and engagement. By partnering with a firm that seeks to collaborate on all aspects of the client standard of care, execution effectiveness, and team development, you can replace many of the business’s burdens. This approach can result in finding new meaning by co-creating a role centered around your “highest and greatest” use. Thus, rather than being considered a “tuck-in,” think of yourself as a peer who retains strategic elements of your identity and client experience while removing many of the headaches that suck the energy out of what you wish to do with your day.

As if that mythic “light-bulb” went off over his head, Joe proclaimed, “I know what I have to do now. I know where I want to spend my remaining days in the business.” Then he turned to me, extended his hand in gratitude, looked me in the eye and said, “now help me get there?”

To explore which of these alternatives might be right for you, your team and your clients, contact Bill Kica at bkica@hightoweradvisors.com