Practitioners who opt to stick to their current way of working usually convince themselves that they have no real choice: they simply don't have the time and can't afford the risk of changing. Please think twice, says Kees Stoute.
You may recognise the following sentiments:
- “The markets are extremely difficult; I really don’t how to make money anymore.”
- “My targets are very high; I am not sure if I can stay in this job.”
- “The last few products I recommended perform poorly; my clients are clearly annoyed with me.”
- “With all these compliance rules it is impossible to do normal business.”
- “I feel stressed.”
You will probably be able to add a few more to this list.
In this time of ever-shrinking revenue margins and increasing business costs, it is understandable that these uneasy (stress-related) feelings affect the quality of life of many wealth managers.
There are two extreme ways to deal with this:
- Go against the trend: work even harder to get more AUM and generate more revenues. Note: this will feel like swimming against the tide; ultimately it will drain you.
- Follow the trend: go with the flow by analysing what is happening in the industry and making sure that you position yourself smartly, benefitting from the opportunities and advantages that the trend brings.
Put this way, it seems obvious that the second option is preferable. The younger you are and the longer you are therefore expected to work in this industry, the more important it is to conscientiously avoid the path of exhaustion (and extinction).
This is probably correct. However, we have to realise that the second option is extremely difficult and challenging for two main reasons:
- You know and understand what you are doing now and feel comfortable sticking with what you know. Changing the way you work is risky: maybe your clients don’t want or like it, or maybe you are not competent enough to work in another way. The risk of getting it wrong may be lethal for your career.
- You are way too busy, depriving you of the luxury of the time needed to analyse the trend, define your (new) role, and acquire the knowledge and skills needed to excel in it. You are already stressed.
Today may already be stressful, but at least you feel some sense of control. And spending valuable time on exploring other options only adds to the stress you are already facing.
Although conceptually the second option sounds preferable, in practice the uncertainty that comes with it is not particularly appealing.
But consider the consequences of not changing: more stress, and possibly redundancy. Think carefully before you decide that risk and time are the factors that stop you from considering, and making, some necessary changes in your career.
Contact Kees: [email protected]