Communicating during times of crisis requires a very thoughtful approach and presents additional pressure and challenges on a leader to find the right words and the right tone of voice to deliver the bad news but still reassure both clients and team members.
In the first episode of our Crisis Management webcast series, Philip Palaveev discusses the principles of managing an advisory firm through a crisis and how G2 leadership can help their organizations and clients navigate the bear market during the current COVID-19 pandemic.
A lot of younger professionals think a larger firm can’t give them the same experience they’d have going off the beaten path and founding firms on their own. But I want to reassure them: There are still many adventures to be had in our profession.
Clients hire trusted advisors because they have decisions to make that are too big and complicated to make on their own. There is nothing wrong with clients asking, “Why do I hire you, and how much do I pay?” Pricing is a critical decision, and the advisory industry has to be very mindful in determining its own way of pricing.
One of the most difficult issues in managing an advisory firm is establishing a fair balance in rewarding those who own a firm and those who contribute to its growth. In the short term, equity and the work contribution don’t have to be aligned, but in the long term they probably should be.
Many firms consider incentive compensation for business development. The carrots are there, but the bunnies don’t seem to be running. That warrants a discussion about whether the carrots work in the first place, and how bonuses ought to be structured.