(Runtime: 8:00. Read the audio transcript.)
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Focus is a key professional discipline for financial advisors — one that is overlooked at the peril of their practices, says Chris Reynolds, co-founder and executive chairman of Investment Planning Counsel.
“Focus is what separates the great from the not so great. If you have focus, the really important projects get done,” he said.
“You have to do fewer things, do them better than anyone else, finish what you start, and if you can just do those three things, you will build a trusted brand of consistency, of delivery and of expertise.”
Speaking on the Soundbites podcast, Reynolds described the importance of focus — the third of six “circles of success” described in his book The Six-Circle Strategy: The Entrepreneur’s Journey to Wealth and Freedom.
According to Reynolds, the ability to concentrate one’s efforts on the most important priority is not something that comes naturally to most people.
“Focus is not something human beings do well on their own,” he said. “Focus takes courage, because it forces trade-offs. If you want to be highly, highly focused, it means you’re not throwing everything at the wall to see what works.”
He said wealth management businesses tend to add unnecessary levels of complexity to their operations because it sends a signal of competence.
“It feels like sophistication,” he said. “If we offer more products, more planning modules, have more meetings, have more tools, more seems better. But in fact, it’s the complete opposite.”
He said complexity may create the illusion of progress but it actually distracts advisors from the activities that drive client outcomes and business growth.
“It hides indecision. It makes accountability really fuzzy,” he said. “Busy is not the same as results.”
He’s a proponent of outsourcing non-essential tasks, giving principals more time to focus on productive work.
“The more things that you can get other people to do for you, the more you are able to focus your time on the incredibly important things,” he advised. “It gets rid of distractions.”
Chasing two rabbits
Focusing on the most important task prevents you from diluting your effectiveness, he said.
“The dog that chases two rabbits goes hungry. In other words, you can only have one strategic priority,” he said. “What happens when you have divided focus? What happens when you’re chasing two rabbits? You’re going to have mediocre client outcomes.”
He also described the difference between a ‘fixed’ mindset which causes people to continue to do what they’ve always done, and the ‘growth’ mindset, which focuses on innovation and forward momentum.
“The growth mindset supports focus, because now you’re not paralyzed by picking the perfect option. Progress becomes your journey, not your scorecard,” he said.
“Focus is way easier when perfection isn’t the goal but growth is the goal.”
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This article is part of the Soundbites program, sponsored by Canada Life. The article was written without sponsor input.