“If you have an apple and I have an apple and we exchange these apples, then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.”

—George Bernard Shaw

Growth is impossible for most organizations without effective collaboration. Leaders with a growth mindset embrace collaboration. They know what they don't know, aren't afraid to seek help, and aren't afraid to hire people smarter than they are. Of course, effective collaboration requires a strong culture that rewards and recognizes people that are strong collaborators. Without a well‐thought‐out process collaboration becomes much more difficult. The future will not reward the solo act as much as a well‐organized team that enjoys working together to make a difference. Creativity in creating an exceptional client experience will become even more important moving forward and collaboration will play a key role.

When I started in this business, collaboration was not a word that was used much. Building a business was highly transactional. We were all swimming with the sharks and each of us was rowing the boat alone. Most of us were sole practitioners; two advisors joined forces only out of necessity for succession planning.

Fast‐forward to today and you read statements such as “competition makes us faster; collaboration makes us better” in virtually every business vision statement. Collaboration is the backbone of the thriving cultures we strive to develop in our businesses. In the RIA, IBD, and bank trust world, collaboration can make or kill a business. If you are in the bank trust business, then you probably already know that the best advisors are also the best collaborators. They know how to leverage the bank and its resources for the benefit of clients. They respect others and are well‐liked. They get the job done. They don't allow their own egos to get in the way.

It's vital to strike the right balance between collaboration and making independent decisions because there are definitely times when collaboration can slow you down a great deal. I once worked with a CEO who runs a $2 billion RIA. He was a very smart and driven guy, but he needed to discuss every decision, even the smallest one, with the partners. This slowed down everyone, at every level, creating a vacuum that affected all aspects of the business. Sometimes decisions by committee make sense, but sometimes that extra input is not necessary. Creating the right balance and knowing the right time to collaborate is key.

Collaboration in action is demonstrated in specific situations and over time. Individuals who are labeled “collaborators” accumulate the reputation and earn the respect of an effective leader and cement that branding incrementally over an extended period of time. Leadership isn't on demand nor is it delivered only when needed; it is expected on a daily basis. And leadership, like collaboration, happens both when people are watching and when no one is watching. It is demonstrated in conversations, both one‐on‐one and in group settings, but most importantly it is shown by your actions. Effective leaders are aware that one leadership step backward requires at least five steps forward to recover. Authentic leaders don't proclaim themselves as the leader; rather their coworkers, peers, or clients view them as leaders.

I advanced my personal understanding of earned and respected leadership after collaborating with and observing Craig Pfeiffer when we worked together at Morgan Stanley. In his 30 years of industry experience, Craig has long advocated that demonstrating leadership generates more leadership opportunities, and ultimately management responsibility. Craig also promoted this notable theme: successful leaders require followers, and people follow leaders whom they connect with.

Connecting with people in your local business group, within the firm and across the industry, is often misrepresented as networking and navigating. Frequently, it is framed vertically in the organizational chart and horizontally with peers and colleagues. However, the secret to effective collaboration and respected leadership is connecting diagonally: “up and over” and “down and over” the organization.

Creating and sustaining diagonal relationships requires approachability, availability, and willingness to engage. This action is more critical in today's organizations with multiple (and vested) stakeholders requiring an extraordinary level of collaboration. Leaders who are accessible and participatory and contribute to the larger effort are quickly identified. They reinforce their approachability by listening, understanding, and using every interaction as an opportunity to learn. The better‐informed leader is able to make better decisions and deliver a positive impact.

Approachability is crucial for the interactions and the interplay that results. Interactions are moments of both commercial and personal activity. The personal element of an interaction for a leader is the opportunity to teach, advise, and help others help themselves. These moments of personal impact help develop the talents of the followers, build their personal capabilities, enhance their confidence, and bind their followership.

Long known yet often overlooked is the importance of talent development. A leader who understands, and remembers, that “building the skills of the organization” is one of his most important priorities, then has the ability to describe a vision, set the strategies, and marshal the resources to successfully execute. Leaders are responsible for setting the goals and establishing the path, identifying the midstream milestones, and attentively enforcing accountability. When they simultaneously create a culture of optimism, persistence, and resilience they are able to achieve collective success.

Diagonal relationships and collaboration assure connectivity to other inputs, provide insight to changes unfolding, and accelerate broad‐based execution. In an era with an abundance of data and metrics delivering mind‐consuming measurement and analysis, it is still “about the people.” When leaders engage across the organization they have followers, prepared and willing. And, remember, clients are people, too!

Collaboration Is a Competitive Advantage

Leaders who can build cultures where true collaboration exists have a competitive advantage because collaboration leverages all the strengths that exist within their teams and organizations. Collaboration must start at the top of a firm for it to be an effective component of the corporate culture. A collaborative culture enhances both morale and results, as teams are inherently more capable (and enjoyable) than are individuals. Perhaps unseen, collaboration is the power to create mutual accountability, as team members who are relied upon to achieve broadly communicated objectives are far more motivated. Finally, collaboration serves as a bulwark against negative internal conflict as the individual goals align with those of the team.

“There is more than one right answer.”

—Dewitt Jones

Effective Collaborators:

• Check their ego at the door.
• Are able to acknowledge that two heads are better than one.
• Are bridge builders who are always looking to connect people.
• Are generous. They give help, encouragement, and other resources as needed.
• Are curious. They like asking the right questions, such as “Why?” They don't interrogate, and they follow their natural curiosity, peeling back the onion on complex issues.
• Listen to understand, not just to reply.
• Are flexible.
• Are self‐motivated and inspiring.
• Are confident. They feel good about where they are going and so they welcome any and all suggestions about how to get there in a better way.
• Value all opinions. They know everyone has something to offer—and they are committed to ensuring that everyone has a chance to be heard and to contribute.
• Seek opportunities to recognize the contributions of others.

“Everyone you will ever meet knows something you don't.”

—Bill Nye

Collaboration Requires Diversity and Respect

When collaborating, be respectful of diversity in all forms, including the diversity of ideas, cultural backgrounds, and communication and leadership styles. In a group setting, not everyone will value what you value, not everyone will like what you like, but mutual respect goes far and it starts from you. In my consulting assignments I find many leaders are challenged by diversity of thought.

Surround yourself with a formal or informal board of advisors comprised of people you can count on for honest feedback and assessment. The key to this network is diversity. If everyone in your chosen peer group thinks just like you do, then it will be a waste of your time. Surrounding yourself with people who are different from you adds an invaluable dimension to your professional growth and expands the boundaries of your thinking and creativity. I firmly believe that people who can't or choose not to expand their boundaries do so out of fear—fear that they will be challenged—and lack of confidence. Surrounding yourself with “yes” people is a waste of time and energy. Differing perspectives are your friends. Challenges that expand your worldview are paramount to personal and professional growth and being an effective leader. By being open to new perspectives, you allow yourself to consider issues in a broader light. This requires a lot of humility, which itself is a necessary quality for a strong leader. The wider your worldview lens, the better you will be able to serve your clients and your team.

“You can already get your own point of view for free.”

—Lee Iacocca