Are you a 20-80 team or an 80-20 team? Answer… 20-80 is not a team, 80-20 may be a team.
There is more than enough high-quality literature on teams and teaming and the stages that teams go through. Anyone wanting to learn about teams can easily research that area and we strongly suggest that part of that research should include Psychologist Bruce Tuckman’s work that described how teams move through stages known as forming, storming, norming, and performing, and adjourning (or mourning). Note that the fifth stage, adjourning, was added in 1977, five years after the four stages introduced in 1965.
Michael Kitces also has articles on teams and teaming including a very interesting one at https://www.kitces.com/blog/advisor-teams-expertise-operational-development-productivity-firm-growth/.
This section however will focus on what is a real team vs. a team in name only. We have chosen to call the team in name only a 20/80 team because while there is a strong and highly appropriate trend to creation of teams, they are not always formed for what we believe are the “right” reasons. Some teams are formed today because they:
They want coverage when they are on vacation or out for a day or more
Management likes teams
Prefer a shared assistant between two or more known advisors
Junior advisors or each advisor can receive higher payout
Get some help from other’s experience
Market themselves as a team
Share marketing expenses
These teams are what we call “notateam”. Each advisor has their own agenda, their own clients, their own style, their own vision, their own goals, their own values, their own skill set, their own approach to the job, and other. These are teams in name only, several “teams” of one banded together for convenience and the thought of more earnings. These 20/80 teams don’t share a common commitment nor take advantage of the synergies multiple people have working together and sharing brainpower, skills, experience, different ways of approaching issues and problem solving. It’s not what clients or FAs need and can benefit from.
A real team is brought together because they can better serve their clients and themselves. The real team provides many benefits that serve both the clients and the teammates including improved productivity from synergy, increased innovation, more opportunity for the teammates to grow, learn, and gain fresh perspectives, all of which and more leads to improved client service levels. A well-formed team can also reduce stress. While teaming is highly recommended, it does come with extra work. It is critical to state that a well-formed team takes constant vigilance and work to make sure it remains well-formed. People in groups have the potential for cliques, there can be jealousies, people feeling they work harder than others, personality differences, people who strive for individual credit, and others the team leader must always be on the watch for.
What does that mean? A summary would be, One Vision, One Team; team accomplishments precede personal accomplishments:
Strong leaders with a vision, have high expectations, lead by example, and create a “safe” environment
Business plans guide the teams’ efforts, and everyone has committed
Attention to details, agree on mission, vision, values, and goals, and willing to have tough discussions
Determine shared strategies, tactics, and actions needed to make the vision a reality
Client-centric, focus on client loyalty and total team commitment to Ritz-Carlton like service model
Clients are clients of the team
Each team member has client acquisition goal, but all assets and production are pooled
One TEAM with clear roles and responsibilities, supportive, with accountability
Common strong work ethic, common processes, common standards
Daily huddles, weekly team meetings, formal reviews, decisions are team-based
Enjoyable working environment, high morale
Open-door policy, “problems” and “issues” resolved quickly with open and honest communications
High trust is essential
Commitment to ongoing improvement
In summary, Barron’s reports , “The movement (to teaming) is industrywide, which hasn’t been lost on Barron’s. In the 16th year of our Top 100 Financial Advisor rankings, we’ve added a new category: The Top 50 Private Wealth Advisor Teams—our acknowledgment that, for most wealthy clients, teams have become more important than individual advisors.” And, “In short, the expansion of teaming is good for clients, and it is also good for the business of wealth management.”