“If the rate of change on the outside exceeds the rate of change on the inside, then the end is near.”

—Jack Welch

We know today the rate of change in the wealth management industry is eclipsing most organizations and they are struggling to keep up. In Good to Great: Why Some Companies Make the Leap … and Others Don't, author Jim Collins said, “Good is the enemy of great.” It takes a tremendous amount of courage and maturity to change the status quo, especially when the status quo is pretty good. However, if you're not moving forward in this business, you will soon find yourself overtaken at best and hurtling backward at worst. There is no room in the wealth management industry for being static or passive. The universe of financial products and services continues to expand, which makes keeping up with technology and product innovation an absolute necessity.

Defy Complacency

Advisors who have experienced relatively good production and performance and are satisfied with their current income tend to stop prospecting and, as a result, their business plateaus after about eight years. The asset growth of most advisors is flat‐to‐negative year after year because they get comfortable and start to coast. Defying complacency requires you to constantly redefine your business, goals, and who your most profitable clients are. You may have to create a new business model, change your infrastructure, or seek advanced training in areas in which you or your team may be lacking in order to move forward with a continuous sense of momentum. John F. Kennedy said it well: “Effort and courage are not enough without purpose and direction.” The war of whether or not your business plateaus is won or lost between your ears. Discover purpose again to provide the energy necessary to get you moving in the right direction.

Those with thriving businesses never become complacent; they reinvent themselves every three or four years and are constantly evolving through personal and professional growth. Above all, they never stop learning. They look for every opportunity to gain an edge: reading, attending seminars and workshops, hiring personal coaches, and networking with other smart professionals. This lifetime commitment of learning is not a part‐time activity, nor is it for the faint‐hearted. It takes total dedication. But it is both valuable and worthwhile on every level and, ultimately, the difference between thriving as a wealth management professional or plateauing and declining.

Set Goals

Goal setting is the very core of what drives our ambition, whether it is in business, life, or sports. Goals should be specific, measurable, and achievable. The outcome must be clear, quantifiable, and in harmony with our purpose. Over the years I have learned to modify my original goals because circumstances change. Staying focused on the big goals is what matters most.

Goal setting consists of five steps:

1. Objectively look at your total picture and determine where you want to go to improve your life.
2. Decide why you want to achieve this particular goal. What will it mean to you?
3. How and when are you going to do this? What's the timeline and what are the milestones?
4. Who is going to help you stay on track and be supportive?
5. Take action, get started, and reward yourself when you achieve your goal.

Setting goals helps us measure our progress and stay on course to achieve our desired aim. If we are not moving closer to our target, then we must reevaluate and change our course of action to get back on track.

It is essential to set medium‐term goals in order to bridge the gap between our short‐ and long‐term goals. Medium‐term goal setting provides you with additional encouragement and motivates you to continue the journey. Design a reward system. A reward doesn't have to be big, just something to celebrate your achievements. If you don't reach your intended goals as planned, don't punish yourself. Playing the win/lose game causes us to lose sight of what we are really trying to accomplish. If we adopt a flexible approach to achieving the desired outcome, instead of following a rigid path, then we are capable of addressing the bumps in the road without feeling daunted. It is okay to revisit and rethink how you are going to achieve results. Setting clear goals and having the confidence and courage to take action will help you overcome obstacles.

Conquer Fear

We know by studying successful people that high performers fail all the time. They take calculated risks, learn from their mistakes, and then move forward. This healthy blend of confidence and humility is fueled by a strong vision of where they would like to be and failing is viewed as just a detour on the path to success. When you just focus on the outcome you live in a state of constant anxiety. Once you do the best you can, you need nature to take its course. For example, you just finished your fourth meeting with a prospect and now you're waiting for him to make a decision about whether he will move his account or not. At this point the decision is out of your control and any energy you spend on thinking about it is a waste of good energy. Your head may still be thinking of a different tactic or approach but, as you know, pushing is not effective and often will backfire.

As Tania Kotsos wrote in her book, The Secret to Effortless Detachment,

Detachment from the outcome you want to experience is vital to creating your ideal reality. To be attached is to live in the fear that what you want will not materialize and traps you in a continuous state of desire. Attachment to anything or anyone turns love into fear and belief into doubt.

Unsuccessful People Never Fail Because They Never Try

Too many people don't try because they are afraid that they will fall and not have the courage and confidence to get back up. In contrast, high achievers pay no attention to this scoreboard mentality. They do not tally how many times one succeeds versus fails. They are not driven by the desire to be accepted. They are driven by a greater purpose, which is to reach their full potential and “play to win,” while others “play not to lose.” It's a big difference and the resulting impact on their practices is tremendous. Because they are open to possibilities, they try new things and keep on growing.

Successful individuals are attracted to the wealth management industry because they can run their business in a flexible, entrepreneurial way and make a substantive difference in people's lives. This gives many of them tremendous satisfaction while building personal wealth for themselves and their clients.

As Colin Powell eloquently said, “There are no secrets to success: it is the result of preparation, hard work and learning from failure.” Once you determine you would like to grow your business by 20 or 30 percent over the next several years, you must ask yourself more in‐depth questions and explore how others have achieved their success. This process will allow you to make the journey from good to great without the fear of taking a step back or misstepping. A few years ago I had the opportunity to hear Colin Powell speak in New York to a small group of leaders. I asked him about mistakes and motivating people. He quickly responded by first saying that “You cannot motivate people; they can only motivate themselves.” As for mistakes he said, “In my line of work we make mistakes all the time, but you need to move on and not live in the past.” Certainly insightful words to live by.

Succession Planning

Succession planning is a challenge for many advisors. And, frankly, it doesn't matter if you're at a wirehouse or the founder of a large RIA. If you truly want to move from good to great, you need to think about the most important piece of the puzzle: human capital. It's key to attracting the best talent not only to help you take your business to the next level, but also to make sure your business and legacy lives on. The 300,000 advisors in the business now are getting older; the average advisor is about 56 years old. Therefore, if you would like to have more free time after spending 25‐plus years building your business, start to work just as hard identifying top talent to take over for you when you retire or semi‐retire.

The biggest issue I see is this: most advisors expect the right talent, the right fit, the passionate successor to fall in their lap. They often misjudge how much effort it takes to identify that top talent, the right fit. The smart advisors running very successful RIAs look for a successor CEO and over time give him equity into the firm. You must have the courage to relinquish that control when the time has come. Don't be afraid to hire people smarter than you.

Change Is Difficult but Not Changing Is Fatal

“Don't measure yourself by what you have accomplished, but by what you should have accomplished with your ability.”

—John Wooden

For the confident advisor, embracing change is an opportunity to grow. For others, however, change may be intimidating because they are comfortable and fear what they may lose. There has always been stress and anxiety in our business; I would argue those levels are higher now more than ever. We have always been stressed about helping clients achieve their objectives, market volatility, change in management, and succession planning. The list goes on and on. With the lightning‐fast pace of just about everything today, we usually feel we are in survival mode. We make decisions based on habits and beliefs that may not be in our long‐term best interest. In other words, choosing to change and be happy is not a natural state for most of us.

We must discover a better path. Choose to live with gratitude. Embrace personal growth. We are privileged to be in this business and must accept the awesome responsibility we have to serve our clients. We have the power to choose. Advisors with a growth mindset cultivate a state of mind from which they choose to create healthy change in their lives. They choose happiness over victimhood. Be committed to growth and be committed to live in joy and possibilities. This fulfillment can only happen if you take full responsibility for your circumstances.

Advisors may be resistant to a new business model, new technology, new products or services, or a new team formation. But savvy clients will be aware of these advancements and keeping up with these trends will help you keep up with your clients and, even more importantly, ahead of your clients. Being aware of new trends isn't enough. The old adage, “knowledge is power,” is only partially true. Turning knowledge into action is the real power.

It is often at this last step—action—where most advisors stumble. As Darwin said, it's not the most intelligent or strongest species that survive but those that are able to adapt, to evolve. I still see many advisors working with outdated skill sets.

Ultimately, successful advisors are not necessarily the ones with the impressive‐sounding degrees. They are people who think on their feet, who genuinely like people, who communicate effectively, and who are always looking to improve their skills. They are the ones who have mastered the fundamentals and are relentless on executing. They are willing to change. For example, you would be surprised by the number of advisors who manage a large business of $500 million who still come into the office every other Saturday to review statements, catch up on reading reports, or plan the weeks ahead. It's a myth that we only made the extra effort when we first came into the business. The simple fact is this: elite advisors enjoy what they do and as a result work much harder than most. It may look easy from the outside, but when you spend some time with them you can quickly see they are logging more hours. They want to keep the momentum going and have no interest in moving backward.

Successful advisors know the value of a mentor. A true mentor offers an impartial view, builds confidence, is nonjudgmental, and helps us push forward with our intended plans. You are never too old to be a mentor or to need a mentor. (Remember: successful advisors never stop learning.)

Many organizations spend millions of dollars on learning and development and run fairly effective programs, but that's not nearly enough to keep pace in this dynamic industry. It is up to the individual to stay at the forefront of changes that will affect their clients. Learning does not simply mean reading the Wall Street Journal or Barron's. It is a lifelong process driven by a continual thirst for knowledge, a desire for improvement, and the ability to turn that knowledge into action. “Lifelong Learning” was the cover story of the January 14, 2017, issue of The Economist.

What Have You Done Lately?

Lifelong learning is continuous, never‐ending learning. The degree you earned 10 years ago—never mind two or three decades back—is not enough. Consider what you've done recently to improve your practice or your performance. If you already have a highly effective team in place, what training have you done together to better serve the client? To create a better working environment, what technology or social media training have you had?

Many top advisors spend a considerable amount of money annually to improve their practice in one form or another. One of the best ways to learn is to teach, write a book or an article, or speak at community events. Curiosity drives learning and development and both keep you energized and relevant—and open to change. It forces you to be conscious of what's most important to you, your family, and your clients and also helps you to make informed decisions.

Part of what makes this business so interesting is the constant seismic shifts that signal new waves of change and innovation. In order to fully enjoy the journey and stay ahead of these changes, you must embrace a lifelong learning process.

Attitude Is Everything

No matter what business you are in, everyone has ups and downs that sometimes seem insurmountable. Viktor Frankl, Holocaust survivor and author of the classic memoir, Man's Search for Meaning, says we should banish the tendency to feel sorry for ourselves. We need a healthy focus. Why is it that some deal with crisis or setbacks better than others? Some bounce back even stronger. I am sure you have heard the old saying, “That which does not kill me makes me stronger.” Whether you talk about sports or the corporate world, attitude and mental toughness surface often because of the staying power and obstacles one must go through to achieve his or her goals, to hold up under pressure, to go the extra mile despite being mentally exhausted. Once again the question is: Why are some able to press on and others are incapable and feel they are the victim?

The first time I heard the expression “mental toughness” was from my high school coach. At the time, all that meant to me was getting through triple sessions under a typical hot, humid, scorching August day with very little water. In recent years, it has meant staying focused while building my consulting business and being there for my family. It's staying active and healthy and never losing my curiosity and passion to explore not only the world but also my own human potential.

As advisors, occasionally we stray from responsibilities that come with a demanding job because we lack mental toughness or the right attitude. It takes an abundance of mental toughness to address change. It takes lots of courage to stay focused when things around you fall apart. Viktor Frankl, in his book, said it best: “He who has a ‘why’ to live can bear with almost any ‘how’” As a Holocaust survivor, Frankl knows all too well that life holds meaning under even the most miserable circumstances. His experiences convinced him that a person is capable of defining and surmounting the worst conditions imaginable. Whether a person behaves with courage and dignity or succumbs to degradation depends on decisions, not conditions. That is mental toughness.

God willing, we will never know the likes of what Viktor Frankl experienced; however, we will go through difficulties in business and in life. Ultimately, you are one hundred percent responsible for your attitude. Don't blame anyone and don't be held hostage to a particular problem you might be going through. Make the best of life on a daily basis and remember that your attitude will ultimately be determined by the decisions you make—the changes you embrace—rather than outside circumstances. Once you admit that you are in charge of your life, you can take ownership and soar.