At first glance, it may not be obvious what a British wealth management practice might have in common with a California-based multinational technology company.
Yet a quick Google search confirms that it is not just technology companies who are asking themselves what they can learn from the creator of Apple.
Interestingly, one of Apple’s great strengths as it grew was to do just this – look to other industries and learn from the best. When the company was looking to branch out into high street stores, they asked their employees where the best customer service experience could be found. The unanimous answer was in top level hospitality, so all would-be store managers were promptly enrolled in the training and leadership programme at the Ritz-Carlton. Steve Jobs was never too proud to open the company up to ideas from the outside, although they were always given the Apple twist once they were incorporated.
Not long after Mr Jobs died in October 2011, Walter Isaacson – author of the best-selling authorised biography – wrote an article for the Harvard Business Review (April 2012 issue), The Real Leadership Lessons of Steve Jobs. It is an article that all managers should read, and from the 14 practices identified by Mr Isaacson that business leaders can try to emulate, there are three in particular wealth managers should concentrate on to sharpen their practices: impute, simplify and focus.
As wealth management practices go through the cycle from meeting prospective clients (marketing and connecting stages) to beginning to work with them (planning and investing stages) and to reviewing and delighting these clients, Mr Jobs’ lessons should be kept front of mind. Wealth managers must take the time to assess their practices and identify gaps that need to be filled. Consider these principles when you do that assessment.
Mr Jobs told Mr Isaacson that his mentor, Mike Markkula, taught him that people judge a book by its cover. This is the essence of ‘impute’, which became a key principle for him. He recognised the importance of this more subtle form of communication, at one point insisting a new iMac had a handle in the top. As a desktop computer, this iMac was not designed to be moved around, yet Mr Jobs saw an opportunity to demonstrate how a computer can be friendly, or even deferential, and therefore an opportunity to alleviate the intimidation many still felt at that time about computers.
It is abundantly clear that Apple employees obsess over every last detail of their products – to the extent that there is even a secretive packaging design room in the company’s headquarters in California. For Apple, the design of the disposable box that contains the product demands as much attention as the product itself, as the value of what the packaging can impute should not be underestimated.
For wealth managers, the lesson here is that people form an opinion about your company based on how it is presented and packaged. Apply the lens to your own firm first and ask yourself what your office design, personal appearance, company website or LinkedIn profile says about your company.
The principle of ‘impute’ is particularly important in terms of encouraging new clients through the door. By no means does this imply that all wealth managers must have Facebook pages, yet it is absolutely worth your time considering what having a Facebook page might say about you.
Naturally, some things are harder to impute than others and, while having a slick website or tidy office will make good impressions, being able to impute more complex values such as trustworthiness or professionalism may be more challenging. Think about how you can display these qualities (and more) through your time, interest and involvement.
“Simplicity is the ultimate sophistication” was a 1977 Apple slogan and simplicity is something Mr Jobs strived for throughout his career. There are numerous instances in Jobs’ life illustrating this crusade. Perhaps the most notable was the creation of the iPod, which was not the first MP3 player on the scene, yet its simple click-wheel (soon to be followed by touchscreen), as well as the iTunes ecosystem, propelled it way ahead of its competitors.
Less is more
Wealth managers, by contrast, can suffer from the complexity of the products and services they offer – not to mention the jargon involved. Too few firms across all industries – not just wealth management – have simplicity as an end goal and yet this is what worked so well for Apple. According to Mr Isaacson, rather than ignoring complexity, Mr Jobs focused on conquering it through creating devices that are intuitive to use.
To have this level of simplicity in a product, the creators must first have a deep understanding of the complex processes behind it. As Mr Jobs said: “It takes a lot of hard work to make something so simple,” and as wealth managers, your job is to do the hard work for your clients so that things appear simple to them. Simplify your communication and cut the jargon to make sure your clients fully understand what you are recommending through your conversations.
Famously, when Mr Jobs returned from his exile in 1997, he reduced Apple’s product list from dozens to just four categories – portable, desktop, for consumer and for pro. “Deciding what not to do is as important as deciding what to do. That’s true for companies and it’s true for products,” he told Mr Isaacson.
For wealth managers, this focus should rest on targeting new clients, refining and simplifying client communications and excelling in portfolio management. Ensure you know what market you are focusing on, and that you understand this market inside out. Ensure your communications are always relevant and necessary. Ask your clients what they want, but do not be afraid to say ‘no’.
Mr Jobs attributed his success to the mantra “the user is king”. By putting into practice the processes of ‘impute’, ‘simplify’ and ‘focus’, the user will be at their heart of your business, and this is key to your role as wealth managers. To become the Steve Jobs of wealth management, your focus must rest entirely on your clients. Needless to say, there is a huge opportunity for those who can make this happen.
David Patchen is senior vice president, Private Client Group Education and Practice Management at Raymond James
Key points
One of Apple’s great strengths as it grew was to look to other industries and learn from the best
Apple employees obsess over every last detail of their products
Wealth managers should target new clients, refine and simplify client communications and excel in portfolio management
