Change brings opportunity, but only to those smart enough to recognise it and brave enough to take a chance. Dennis Bashford explains.
I have been in this industry since it kicked off in the mid to late 70s, and I have learned to live through the constant, and often major change that has characterised this business.
And as has often been the case in the past, what is going on now certainly is going to change the environment in which we work.
But remember, we have faced traumatic change before. You might recall that in 2004, Financial Services Reform was supposed to have signalled the end of the world – and for some it may have. But the interesting thing was that others absolutely prospered, even though the environment was the same for all.
So really it all comes back to your capacity to adapt to the environment; to appreciate that change, properly managed, presents tremendous opportunities, but that it could mean difficult times for those who ignore it.
So let’s put things in context. Whenever there’s change, mistakes will be made; but without change there is no opportunity for improvement. So the question becomes: “Would we have preferred to keep the industry, and the type of people that made it up, exactly as-was, or do we think that it is better today?”
I think that today we are an industry that is very much more professional, and one which we can be proud to be part of, despite the misinformation that we are barraged with; and in fact it could be argued that we have become a profession, even if it is yet to be formally recognised as such. All of this progress is largely the consequence of change.
Despite the predictions, the world is yet to come to an end. In fact it could be argued that the world has become a better place.
Don’t get me wrong; change has not been easy and we have all suffered heartburn to varying degrees over the 30-odd years that financial planning has existed; but we are now more professional, credible and stronger, and we are an industry that has given tremendous comfort to hundreds of thousands of Australians.
Change brings opportunity for those who recognise that. We have all been surprised by people and organisations who come out the other side of disruption and upheaval much better and more strongly placed than ever. And we all ask ourselves: Why?
My father is a classic example of what I am talking about. His first trade was the same as his father’s (my grandfather’s) – he was a collar-maker. He made collars for horses. However, my father realised very early in the piece that the time for horse-drawn wagons was fast drawing to a close, and he went on to become a boiler-maker.
And, like you, he had the courage to go into business for himself. My dad recognised that the world was changing, and he identified the opportunities that the new world offered. He chose to exploit them and ended up building a large and successful business. To end the story, and to make my point, both his original boss and his father (my grandfather) could not adapt, and curiously, both of them ended up working for him.
It is difficult to draw too many parallels between financial planning and my father’s business, but the process he went through when faced with change is pretty much the same. It has been around for a long time, long before my father, and it is well proven.
Whenever an environment remains constant, growth and development tend to be incremental because there is little opportunity to leverage off anything. But when the environment changes, those who have positioned themselves properly find that the rewards are directly proportional to the degree of change.
So what does it take?
The first step requires the courage to take a risk. But it also means providing leadership, with a program that gives your staff the opportunity to grow and develop, and gets them aligned with the objectives of your practice. It means creating a positive and happy environment. It means giving them a sense of achievement, by giving them an understanding of the part they play in the success of your business.
Creating such an environment is not that difficult because if I can do it, it has got to be relatively easy, and obviously it takes no special skills or talent. So invest in your people – don’t skimp on them.
Don’t give someone a go and just hope that it will work out. Be patient, and only bring on people who you are confident can give you and your business what it needs. Have the courage to spend the money and have a plan to manage them.
Take the time to think about your business. Very few people seem to end up with the type of business they had hoped for. This is because they are too busy putting out bushfires; so little thought or commitment is given to the strategic requirements of the business, and it is these that will shape how it looks.
Don’t fool yourselves that you are too busy. Either do it, or accept that the way your business looks now is the way it’s going to remain. You need to work out what you want to work on. You need to get committed, and have the courage to make yourself accountable to someone who is not going to let you off the hook.
The opportunity is there and what you do with it is up to you.
Dennis Bashford is managing director of Futuro Financial services. This is an edited version of a presentation to the Futuro Business Forum.
