CRISIS (an 8 part series)
The inflictions of crisis and applied therapy
“Never Let a Crisis Go To Waste” — Rahm Emanuel, former mayor of Chicago
Recently read a book by Jared Diamond entitled “Upheaval – Turning Points for Nations in Crisis-”. It is a fairly deep study on how six nations (of recent date) have undergone various stages of crises and how they have attempted to address and resolve their problems. Given that the factors relevant to the solutions are also applicable to personal crises, it seemed reasonable to “steal” the general concepts necessary for therapy from Mr. Diamond. Of course, what follows here is original content and applicable only to our business and the people in it. My long and varied experience in brokerage will serve as the basis for my opinions; some may not agree with those, but hell – who cares? Here we go!
This is the first of an 8 part series titled “Crisis” to be published on the following dates.
- 7/14 Part One – Fear and Greed
- 7/21 Part Two – Lack of Confidence
- 7/28 Part Three – Fat City Complex
- 08/04 Part Four – Family Relations
- 08/11 Part Five – Bad Boss Complex
- 08/18 Part Six – Failure to Lead
- 08/25 Part Seven – Retention in the Colony
- 09/01 Part Eight – Synopsis
Part 1 of 8) Fear and Greed – The Infliction
Yes, those familiar words that we usually offer to the client, but which also can be assignable to the advisors. These traits, as usual, are part of the human condition and if left untethered can develop into a crisis bearing serious consequences. Fear and greed can indeed be a part of an advisor’s D.N.A., but can also emanate as an influence from outside sources. The application of advising people on the management of their wealth requires serious governance and the abilities and ethics of the advisor. Let’s take a look at a few of the fear factors that can beset a broker’s business. For a new advisor who has left a posting elsewhere in business, the concept of earning money on a commission-based platform can be intimidating. Knowing full well that the building of an asset base that will sustain his/hers needs will take a good two years equals fear on day one.
Beyond that beginning might follow the fear of losing money; more so in the losing of other people’s money. That sense of guilt and foreboding can create a crisis which, in some, is simply untenable and they walk away. The fear of failure to build a large successful business might easily lead to being satisfied with a “good enough” business. That, along with running into a litigious client and, ergo, the regulators, may sound old and trite, but I assure you that it’s out there, and along with a deeply troubled market, can create a crisis steeped in guilt and depression. Even in today’s improved client communication (no, I’m not kidding), the tendency to hide from reality only deepens the psychology of the crisis and ultimately weakens the client relationship.
Also, the greed factor amongst fellow-travellers should not always be construed to be simple career-building alongside the gathering of the illusive A.U.M.. The push factors toward that end finds that the number of today’s advisors on a mission to buy/acquire another’s book of business is at an all time high. It is widely prevalent in all ages and stages of a career and the prices demanded and paid for assets can be astronomical. The need to recover those costs as quickly as possible could (and does) conjure up some questionable management practices. Greed at the branch manager level is avarice once removed and historically produces a crisis within the entire branch because of the behaviour of a manager which falls outside of traditional ethical boundaries. The tendering of business, the allocation of assets and the assignment of referrals are all at the discretion of the manager. If he or she is the recipient of same, then he or she will be the bearer of the crisis to come. Whether greed comes from those and other sources the question is ‘how much is enough’? Ah! – back to the D.N.A..
Fear and Greed – The Therapy
One thing about ‘A-type’ brokers and mangers is that they all have a strong belief system—in themselves, of course. The problem with this personality is the lack of recognition that their fear and greed is in crisis and that the ensuing results are of their own making. This lack of recognition is a serious impediment to early therapy. The D.N.A. of those types is hard-wired into their personality. The innate preponderance to refuse to see the forest for the trees means that they will not hear the growl of a bear in the woods who just ran out of bathroom
Charmin during their ‘go’!
It will probably be when the advisor or manager sees the crisis enveloping their world that they acknowledge the presence and danger of the crisis. When they acknowledge further that the problem is their problem created by themselves, they can conscientiously stop the slide into oblivion. Actually, one would think that an obvious solution would be for the advisor to follow his/her advice to clients since they, as managers of money, suffer through those two dreaded words – fear and greed. Alas, that is probably not likely because for an ‘A-type’ personality, ‘do as I say” does not mix well with “do as I do”. When the rubber hits the road moment and clients and colleagues head for the door the very painful, but necessary self appraisal will come to the fore. At that point, the road will be open to a self-responsible solution: the re-build will take time, but it will come with a far more open and honest career.
Part 2 of 8) Lack of Confidence – The Infliction
This is one that hits a lot more people in the business than just the advisors. Let me give you again (previous article) some words that H. Ross Perot gave to me years ago as I interviewed with him in Dallas for a position in his then brokerage house, DuPont Walston.
“There is no problem or crisis (save a family loss) in your world that you cannot overcome and get back on track within twenty-four hours”
While there is a lot of truth in that, it doesn’t always work and it certainly doesn’t apply to everyone’s psychological profile. A lack of confidence may have deep roots in some or it may build and develop into an advisor crisis as a result of a particular set of circumstances present in the workplace. Most senior brokers are not likely to extend a helping hand or word to younger a/o learning advisors who might be suffering from doorknob fever or phonophobia. More likely, the fear factor will develop into a crisis of confidence and humiliation given that this is a business of communication. The result is that the advisor will begin to isolate into a safe place. This usually will include tidying up one’s desk and getting things organized for the marketing programme that will never launch.
Meanwhile, in the executive suite, the lack of confidence factor probably begins with the newly arrived smarty pants who knows next to nothing about tribalism on the marbled floor. Like the senior brokers downstairs, the help button is not often pushed (fear of showing weakness) and rarely answered. The vulnerability of one’s position on the floor is constant; the pecking order of power leads to one and only one office, and for the individual approaching a confidence crisis, a smile or a pat on the back from the chosen one is a burst of sunshine through the gloomy reality of being vulnerable. And empathy (forget about help) is in short supply when one executive walks into the office of a neighbour, sits down on the guest chair and says, “how’re things going?” His answer was, “what are you hiding?” My, my – this is an eat what you kill business, isn’t it?
Lack of Confidence – The Therapy
Where to start? The hurt and pain associated with a lack of confidence can be crippling. The hole that the advisor or executive digs themselves into can often reach a depth that is almost inescapable. It would be nice if someone would throw a rope to one in crisis, but in this business that is unlikely. Overcoming the paralysis will require a deliberate isolated focus on the problem at hand. The self-recognition of the weakness is the first step to breaking down the components of the crisis. A deep dive into the beginnings and foundations that build the confidence crisis will invariably lead back to one’s younger years. As unpleasant as that may be for some, it will serve as a prescription in re-building your ego. Practically, however, the strength required to re-build the presence of an ego will lie in your determination to succeed. Write a telephone script and practice its delivery in front of a mirror or in a recording. Then, practice some more and some more until the delivery is on your lips, not to be read from a piece of paper.
First is the pitch to the client via the phone and then repeat. Then, the face-to-face, again and again until it doesn’t hurt any more. This is a long road to travel, but the building of confidence has benefits that far outweigh the failure of crisis. The lack of confidence is undoubtedly one of the more severe crises facing a person in any industry where superior communication is essential.
Part 3 of 8) The “Fat City” Complex – The Infliction
Almost a proverb in the sales game and maybe a tired observation from one (me) who has been looking at this problem for a long time. The “fat” complex arrives at a broker’s doorstep when he/she has reached an earnings level that they find satisfactory. While today’s marketplace will certainly have something to say about that, the complex persists in more advisors than you might imagine.
My long-held belief is that this is a simple business, but its not easy. That statement, in and of itself, is perhaps over simplistic in today’s market. My belief is that the ‘fat city’ dwellers live in a state of limited ambition, and that their achieving the level of status quo that they deem satisfactory within their peerage, will ultimately prove to be their death knell. The psychology of “good enough” that ‘fat city’ brokers bring to the table is a self-made impairment to their growth in many aspects of their lives. The mindset begets a business that will produce a crisis that may prove difficult to overcome.
The Fat City Complex – The Therapy
Going back a decade or longer, the ‘fat city’ complex was not necessarily an individual crisis. Production of $200,000 annually was still marginally profitable at some medium-to-large firms. And it still is at a number of the ‘C’ and ‘D’ level firms out there. The broker who has achieved and currently lives in ‘fat city’ certainly has the option of housing their book of business in these lower categories and avoiding the crisis. For those in the high-medium and larger organizations, the perceived status quo will not suffice. It is here where the crisis of reality sets in and the advisor who has been fighting off “growth” in their business will be faced with some unwelcome alternatives. With the rapidly changing demands out there for assets and the revenue-producing management systems, the advisor will have to answer the wake-up call as early as possible. The recognition of the impending crisis is essential and the need to fix the issue is imperative for those advisors who can insert flexibility into their working habits. The jolt required is somewhat akin to starting over in the business-building process: observing other successful models, embracing patience when a misstep occurs and applying one’s core values as you select the necessary changes to your business.
The absence of clear game plan and a determination to avoid a career crisis, combined with the demands of an ‘A’ or ‘B’ firm, will severely restrict your options as to when and how to survive. “Fat City” really does not exist any longer.
Part 4 of 8) Family Relations – The Infliction
In the course of human evolution, including the development of bipedalism, trekking to parts unknown, hunting for dinner, planting for more consistent dinners, grunting into a language and building a society, the most important part of the glue that gave the whole thing meaning was family.
In the general scheme of things, I do believe that is true, even as it fits into the ‘I eat what I kill’ market of today’s investment advisor. The position of family in the world at large is critical to the development and endurance of society as it faces numerous crises from many quarters. Why then can (and does) family produce multiple crises in the life of a financial advisor? Let us consider a number of factors which play a part in this serious problem. Probably above everything else is the time factor. Whether you’re building a business, maintaining a business, managing staff and simply keeping up with changes in models, platforms, compliance or regulatory protocols, it places some serious constraints upon one’s time. That time spent on the business invariably has a negative effect on the well-being of family life. Missing time means absenteeism – swimming lessons, baseball practice, the dinner table conversation and that all important date night. The ‘sacrifice” will play for a while, but sooner or later, the family starts stomping their feet and the crisis is afoot. On top of the time away from family, the ‘business’ will eventually creep into the family conversation. It happens during date night, at parties, at baseball practice with another parent – my God how boring! I have had that thrown in my face a number of times.
“Money, money, money” (I think that’s a song) is another factor which can add to the crisis. The more you make as an advisor allows you to accumulate more of life’s ‘necessities’ (bigger car, house, boat), and you and the family become accustomed to accumulating. Being able to afford such comfort food will build into a crisis of greed. Ultimately, panic will set in when the greed goals are not met, or worse, the goals are in decline and falling fast. Lastly, the crisis will grow within the family structure as the broker falls into a more insulated world. In that scenario, the advisor drifts into a separate life where money is the centre of their universe – not the family.
Family Relations – The Therapy
Developing a crisis within family relations can have some very serious consequences. I’m pretty sure that the ‘good ole days’ of bar gathering on Thursday nights or popping a few at lunch have faded significantly, especially during the very inconvenient time of Covid. But, as laid out in these pages, there is every likelihood that the records set by brokers in the areas of divorce, alcoholism and suicide are still relevant to some degree. Certainly, the divorce factor is consistently present, and if one were to argue that family responsibilities are a constraint to the growth of your business, then you are not solving the crisis – you are creating it.
While the following solutions may seem simple, it is none the less important to realize and accept that finding the answers to the family crisis puzzle carries great significance in the overall health of the investment advisor.
First, involve the family members in the business so that the unit members are aware of what it takes to build a business. At the same time, make the effort to teach your children about the whys and wherefores of money; that knowledge will prepare them for the future and give them an idea of how important your job is.
Next, build and adhere to a time-off schedule when the DJI is not floating in that Friday night glass of wine. Do not let the rigours of the market distract you from maintaining a strong adherence to accepting your family responsibilities. Back at the office, re-set your goals so that they are inclusively attainable within the self-imposed constraints involving the family unit. And, in this case, look to your peers as to how they deal with this crisis issue; you may find some guidance there. In the end, it will be your belief in your ability to do this; if so, you are already halfway there.
Part 5 of 8) Bad Boss Complex – The Infliction
Here is where we have a costume change and YOU are now a “suit” (Read ‘boss’). In the securities industry, there is little, if any, formal training in the art of management. In times gone by, the road to management involved a process that began at the sales level; the logic being that someone who would be responsible for a sales force should understand and empathize with the rigours of that world. Within the context of that “training,” the candidate would progress into the role of sales manager and, if all went well, into that of assistant branch manager. The forward motion from there would depend upon a number of factors that included – a) an assessment by senior management as to how the sales force has related to the candidate, b) the candidate’s perceived capability to run a profit centre, c) an acknowledgement that this role takes him or her into a totally different relationship with his/her fellow brokers, and d) that the candidate could very likely have to give up or reduce his book of business as his/her responsibilities in management increase.
Now, does that sound like a workable plan? Well, it’s not and I’ll address the missing ingredients of good management in our business in the Therapy section. For now, let’s move into crisis as found under the Bad Boss Complex. It undoubtedly starts with ego which, of course, is a natural part of the human condition. Being chosen from one’s peers by an authority figure (the wise man) instantly elevates one’s self-perception and fosters the belief of being a step above those who were not chosen. That degree of self-importance will grow as the new manager starts to grind out the expected results of the position from the sales force and the accompanying staff. The pressure to validate the wise man’s choice can lead the new manager to a place where he/she begins to lose empathy with those who’s world he/she has left behind. As the rookie manager moves deeper into the executive suite, a sense of being pre-disposed to managing others could link up with the views of senior management that those who reside on the lower steps of the proverbial ladder are simply a resource to be used in the achievement of a bottom line from which bonuses are drawn. Ultimately, the manager’s way is the only way.
And where does the crisis come in for the bully manager as he or she pushed for results from a loftier position? It will come from the sales force and staff whose views and complaints have been shuttered in the silence emanating from the corner office. The resentment and disrespect for that office will spread from desk-to-desk like a contagion, and invariably the rubber meets the road with a loud thud as the door slams shut behind the exiting brokers and staff.
The crisis is afoot and the manager, like Lucy (remember ‘I Love Lucy”), has got a “lot of splainin’ to do”. There is absolutely nothing more fearful from a junior manager’s vantage point as having to face the wiseman as the revenue walks out the door. This is a crisis which will take you from the bully pulpit to a deep knee bend as the psychology of failure invades your world and that of your family. What happened and how did it happen?
Bad Boss Complex – The Therapy
The bully portion of the Bad Boss Complex is only a sample of a crisis that is highly destructive in the corporation as a whole. Therefore, it is quite justified to acknowledge the corporation’s lack of foresight as they prepare an individual for management. In today’s world, the candidates are not only drawn from the sales force, but also (and more frequently) from the ranks of compliance professionals, the banks and outside industries. Regardless, the problem is still the same in that the candidates are lacking in the skill sets of relationship management and behaviour management. Without correcting this fault line within a sales environment from the get-go increases the likely emergence of the Bad Boss Complex.
Having stated that proper and formal education in management development is the starting point, we now have to address the therapy involved in turning around a bad-boss crisis in full bloom. Watching the blood accumulate on the floor as staff leave for greener pastures, our manager-in-crisis has a number of tasks to undertake to stop the flow and bind some of the wounds. Firstly, as always, is to accept personal responsibility for the state of the nation (your branch, your region, your national sales team). Regardless of the circumstances pressed upon yourself, it is the bullets in your gun that shot the golden goose. Do not even try playing the pity me card and passing the deck to someone else! That is cowardly, dishonest and does not belong in a manager’s value-based arsenal. Next, you must remember your early days and step back into the world of those to whom you are responsible. Then screw up your courage and resolve and publicly acknowledge your shortcomings. Accompanied by a pledge to address (and fix) the issues. Be ready to have one at the ready with fix #1.
While you’re in a repair model, take the time to move your ego aside and study the models of others who have developed and maintained listening and coping skills. This is not a cry for help, but rather a call to arms to avert your crisis from sinking into chaos. Listen to the issues that are front and centre and bring in support factors to deal with them on a one-by-one basis. The sign that you show to your constituents that will hopefully turn the corner for their respect is that you will deliver on your promises.
And a suggestion for the wiseman who signs your pay cheque: make sure that any bonus structure that is paid to Mr. or Mrs. Manager includes a serious allotment of dollars based on relationship performance as evidenced by a twice annual employee survey.
Part 6 of 8) Failure to Lead – The Infliction
A number of years ago, I was with a large American firm running a small boutique branch in Toronto. The branch was made up of big hitters and specialists, and the personalities involved made for a fascinating management experience; a number of the advisors reached iconic status on the street and are still practising today. Next door to our branch was the very large Toronto branch run by a veteran manager whose advisors had nicknamed him “Leave it with me, Charlie.” You may ask how someone with years of experience in the business could get hung with a moniker like that? Simple, he could not make decisions on the spot and basically postponed the issue until it hopefully faded away. What appeared to be a bad habit born of laziness was, in reality, symptomatic of a failure to lead which ultimately created a crisis of confidence in the leader and, worse, in the firm’s leadership structure.
This scenario leads itself equally to the management of a smaller structure, namely in the role of ownership where the producer-owner’s business is large enough to warrant multiple staff members. Crises of confidence within large groups is as problematic as in smaller ones, but can be less visible. The causes of the impending crisis cannot be hidden away within a team of ten people. Rather, a clashing of personalities and opinions amongst as little as two staff members can be the elephant in the room. It is at this point where the leader of the laundromat is tasked with keeping the peace. If that leader is the same one who has difficulty making a decision, it is likely that psychological impairment will find the same discomfort in the guise of a peacemaker. And, it is almost certain that this deficiency will flow through to other critically important features of leadership, namely the vision and guidance required for the business.
Ultimately, in a small group, the crisis of confidence in the leadership will manifest itself as inefficiency in the workplace and a lack of productivity. The reputational pressures set upon the leader could easily lead him or her to making desperate decisions for the solution. And with that – game over.
Failure to Lead – The Therapy
To me, it is absolutely amazing how one person in the wrong place at the wrong time can cause such chaos in the workplace. When observing the potential results, it really doesn’t matter whether it happens in a large or small group. This crisis in full bloom can often be irreversible because, quite simply, when the flock loses respect for and confidence in their shepherd (a biblical bent if you will), the resulting group animosity can be palpable – and it sticks.
So, what does the leader of large or small groups do to salvage a desperate situation? Unless they were under a blanket, they couldn’t miss the hard fact that there was serious trouble in paradise and therefore acknowledging the crisis is pretty well a given. But, in many cases making choices to rectify the state of play is as difficult as making decisions. The weakness on display here would indicate that the leader will not take responsibility for the resulting crisis amongst his or her staff. In a larger group (i.e. a branch, regional or national setting), the firm does not have the luxury of time to evaluate and investigate the problem(s) (namely the leader) or to lay in a long term process to fix it. With productivity and profitability at stake, the inevitable solution will be to fire the irreparable leader out the door! In many, if not most cases (and I have pushed that exit button a number of times), that will be the correct hard love “therapy” to apply.
In a smaller group involving ownership with leadership, the confidence crisis could result in the loss of the business and cannot be solved by a simple replacement process. The leader/owner must make an honest self-appraisal of his or her deficiencies in the role of management. The leader then needs to isolate the complexities involved in changing those deficiencies, identify what works and doesn’t work in altering his or her psychological weaknesses, and apply the essential pieces of a successful model. Subsequently, he/she should convene a sit down with the staff, the people who are responsible for initiating and exercising your business model. This meeting is not an “I’ll think about it tomorrow” decision; it is all about saving your business. Laying the realities on the line, accepting your responsibilities and failures, listening to the input, and if necessary, applying some tough love.
Part 7 of 8) Retention in the Colony – The Infliction
Two things you should know about retention in the brokerage business: A) Retention is as important (if not more so) than revenue, and B) it always starts at the top of the management ladder.
In part 6, I dealt with factors that can threaten retention as a consequence of a failure to lead, and without doubt that consequence is valid. Retention, however, is a much larger issue which requires a deeper dive into the analysis of its origins. What are the factors and reasons that will move the retention needle to the point of crisis? The issues are ones of neglect as perpetrated by those who are supposed to provide the vision and the momentum of the firm. Over the years, I have observed that, for the most part, firm leadership has not been drawn from the sales ranks. Rather, they are comprised of accountants, bankers or bright young things from the wholesale side of the business; nearly none of whom have any inkling as to the day-to-day rigours of those who do not have the luxury of living on a salary. That alone, however, is not going to open the retention gates.
At the upper end of the broker population, it is the corporate neglect in areas of support that drive the levels of dissatisfaction. Technical support and back-office functions vary from firm to firm, but they are consistently on the radar when advisors sum up that support in their business on a day-to-day basis. The major moan and groan is directed at the over-bearing “support” of compliance departments. Granted, a great deal of negative operating systems is probably driven by a fear of running afoul the Regulators from Hell – – or Heaven, your choice. In some smaller firms, it is the lack of products and services that could feed the fires of change in attitudes while the poverty payouts at larger institutions will eventually get a look from advisors who are aware of dollars to be earned within a Principal Agent model.
And the neglect flows down to the supplicants at the national level whose lack of support in management training supports a lack of sustainable recognition for sales achievement beyond a trip to the exotic destination of Santa Barbara. The neglect flows further down to the Regional level of management whose members pretty well ignore sales training in favour of recruiting on a casual and inexperienced basis and who more often than naught treat branch visits and branch time as an afterthought. And the southward flow continues to the branch level in terms of topics we discussed earlier, namely relationship management and leadership skills.
Certainly, it is not a sudden coalescence of all the foregoing that will initiate a crisis in the sales force. It is the bits and pieces that, over time, get strung together to serve as a catalyst to changes on multiple levels. The crisis in retention ensues when different pieces of neglect hit different advisors at different times. The insidious part of these individual crisis is that it is akin to a creeping plague that can move so slowly that it appears undetectable.
“ The crisis you have to most worry about is the one you don’t see coming”
— Mike Mansfield, former Senate Majority Leader (USA)
Retention in the Colony – The Therapy
Within the neglect factors just discussed lies another uncomfortable issue; namely, a lack of support of people in the sales force by those in senior leadership positions. While certainly not applicable to every breathing soul in leadership positions, it is there. Having sat on both sides of the fence, I have seen it flushed out without reserve or quilt and it can be very disturbing. So, the answer to that issue and others, as observed, lie somewhere, but where? The issue of retention is so critical to the health of a firm in that advisor (and staff) losses will eventually become a sore on the reputation of the company. Without applying a real good band aid or two, the wound will continue to fester, and the competition vultures will smile and circle the colony.
The therapy must start at the top whose members must acknowledge the existence of a creeping crisis and who must refrain from assigning blame to management in the southern ranks. One initial move from the top would be to form an investigation committee to breakdown and rank the issues of neglect. That body must be composed of senior management with equal representation from sales, support divisions staff, compliance/legal and senior wholesale representatives (corp. financing etc.). Everybody on that list stands to lose as a result of a retention crisis. Once the critical issues have been identified and solutions have been proposed, it will be time to change horses and formulate a committee (same groups – different people) to initiate the changes.
By this point, the sales and staff employees (or principal agent) will have been made aware that their grievances are to be taken seriously and that they need to be flexible and patient as they observe the rollout of the critical changes. Obviously, there will be other topics that need to be addressed in the retention conversation. Namely, diversity growth in the sales force, compensation divergences between operating models, permanent divisional representation in management committees and limitations placed on overbearing compliance and H/R departments whose authority has overgrown its stated purpose.
Part 8 of 8) Synopsis
Crises in its many forms are an unfortunate testament to the human condition. Thomas Hobbes observed that life is “short, nasty and brutish” in its make-up. It’s not surprising, therefore, that individual crisis is a natural adjunct to that situation. Of course, there are many out there who would argue that Hobbes was, at best, a pessimist stuck in a particular time in the evolution of Mercantile Society.
So, instead of groping in the darkness of the Industrial Revolution we should search for answers to today’s crisis facing individuals (and corporations) in the securities industry.
Is the advent of a crisis inevitable in the business? The answer is yes, if for no other reason than the psychological aspects of the players involved, when confronted by the powerful forces of market change, can make for a perfect storm. Can one prevent a crisis by acting in anticipation of the event? Maybe in the event that the advisor or corporation has the foresight to recognize the emergence of the problems and address them before they develop beyond control. Can a leader make a difference? Absolutely, if they possess a strong skillset in crisis management. The ability to maintain compos mentis in a climate of panic is a gift that can stem the tide of disaster. There are not many who possess that gift.
We must acknowledge that individual crisis is situation specific. The psychology involved in a particular situation does not necessarily sync with a particular solution. Often, it can take the actual upheaval of a crisis to compel an individual (or a corporation) to undertake and install major change. To paraphrase a quote from the movie The Day the Earth Stood Still —
“Only at the Precipice do we Evolve”.
Here we must review the actions required to forestall further damage from the crisis and ultimately initiate the solution.”
a) Acknowledgement by the inflicted that the crisis exists. Without recognizing the reality of that truth and treating it as a daily issue in the business, it will lead from crisis to ongoing disaster. You will never find a solution to the problems by strolling through the park as if in a Van Gogh painting. Once acknowledged, the door is open to consider solutions.
b) Acceptance by the individual advisor or leader that the problem before them is of their own doing. This is the tough one where you have to look in the mirror, grit your teeth and plead guilty to your inner self. You cannot, at this juncture, pass responsibility for the crisis to the guy who is hung up on the cross next to you and mutter, “they know not what they do.” That may be a thought-provoking reference, but as The Donald would say, ‘it is what it is.’
c) If you’re still reading (past referrals in ‘b’), then the next step is the conducting of a self appraisal so as to weed out the deficiencies in your make-up that allowed the problem(s) to morph into a crisis. This is a dig-deep exercise which enables the inflicted to perform a catharsis of the root causes that allowed the crisis to evolve and flourish. This cleansing allows you to apply the next steps to a solution.
d) Flexibility in one’s personality is the key to presenting yourself to your peers as one who can effect change for the better. This will not be easy in that the long-held views of others (especially towards leaders and corporations) are difficult to unwind. Nevertheless, the flexibility must be accepted as genuine if the results are going to be accepted in a positive manner. The person who can demonstrate flexibility in their decision-making will likely be seen as a person who can listen to the voice of others and enact the changes for all concerned.
e) In the journey to find the solution(s) to the crisis, the practising of patience and tolerance when applying the remedies is essential. The crisis, whether on an individual or group basis, will not repair itself easily simply because steps have been taken to rectify the various problems. Given that the severity of a crisis upon an individual or a variety of people has developed and progressed over time will mean that the conclusion to the crisis will require the patience for real and meaningful change and tolerance when progress takes a temporary step back.
Can we learn from the existence of crises of all stripes in our business? Surely the answer is yes and certainly it must be yes. And do we learn from the lessons of history in the Churchillian sense? The answer is no, and even Winston was wrong when he assumed that those who did learn from history would not have to repeat the issues. The problem with trying to balance the above ‘yes’ and ‘no’ is people and how they evolve from a state of grace to a state of crisis – over and over again. So, we in the brokerage industry keep trying to make our way from inning to inning, searching for perfect solutions to the crises we brought into the ball game. Well, if that is the best we can do for now, let’s keep improving our base running before we get tagged out!
“There’s always an opportunity with crisis. Just as it forces an individual to look inside himself, it forces a company to re-examine its policies and practices.”
— Judy Smith, Crisis Manager and former Special Assistant to President George H.W. Bush
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