Before I get into the first post of the year, there is something I wish to express: my heartfelt gratitude to you for all the love, encouragement, and support you have extended me over the last four years since I started this blog…Yes, it’s four years!!! What started as a modest journey with just 50 readers (of which 20 would have been my team members), this blog is now read by 14000+ mutual fund distributors, employees and executives of asset managers, and registered investment advisors across India. At the last count, you have allowed me in your inbox 427 times. I assure you that I take this privilege seriously. This is my 428^th post but I write this with the same enthusiasm with which I had written the first post.  My vision for the blog is simple: to make a meaningful and happy difference in your life while inspiring, motivating and guiding you to build the wealth firm of the future. As always, I would love to hear from you – bouquets or (constructive) bricks – both are welcome.

George Bernard Shaw wrote, “Progress is impossible without change, and those who cannot change their minds cannot change anything.”

Changing your mind is not a sign of weakness; it’s often a sign of strength…It means you are open to learning.

Embracing change, especially in the dynamic landscape of our industry, is the cornerstone of building a world-class wealth firm. As financial professionals, the willingness to evolve with the times, to challenge the status quo, and to innovate in the face of new information is not just valuable—it is essential. This openness to rethinking, unlearning, and relearning leads to a deeper understanding of the market’s rhythms, the subtleties of client needs, and the emerging technologies that can revolutionize the way of building a super valuable firm.

A world-class wealth firm is not built overnight nor from a static blueprint. Creating such a firm takes time and a culture of ongoing learning. Everyone, from new hires to you, should keep questioning and learning. This way, the firm stays strong through market ups and downs, regulatory changes, and shifts in what clients want (consumer behaviour). Here, changing your mind shows strength—it leads to better ideas and strategies that help both clients and the firm.

Prof. Adam Grant in his book, “Think Again”, wrote, “You probably don’t recognize his name, but Mike Lazardis has had a defining impact on your life. Mike’s first success came when he patented a device for reading the bar codes on movie film, which was so useful in Hollywood that it won an Emmy and an Oscar for technical achievement. That was small potatoes compared to his next big invention, which made his firm the fastest growing company on the planet.

Mike’s flagship device quickly attracted a cult following from Bill Gates to Christina Aguilera. “It’s literally changed my life,” Oprah gushed.

Mike Lazardis dreamed up the idea for the Blackberry as a wireless communication device for sending and receiving emails. As of summer of 2009, it accounted for nearly half of the US smartphone market. By 2014, its market share had plummeted to less than 1%.

When a company takes a nosedive like that, we can never pinpoint a single cause for its downfall, so we tend to anthropomorphize it: Blackberry failed to adapt. Yet adapting to a changing environment isn’t something a company does- it’s something people do in the multitude of decisions they make every day. As the cofounder, President and Co-CEO, Mike was in charge of all technical and product decisions on the Blackberry. Although his thinking may have been the spark that ignited the smartphone revolution, his struggles with rethinking ended up sucking the oxygen out of the company and virtually extinguishing his invention. Where did he go wrong?

Most of us take pride in our knowledge and expertise, and in staying true to our beliefs and opinions. That makes sense in a stable world. The problem is that we live in a rapidly changing world, where we need to spend as much time rethinking as we do thinking.

Rethinking is a skillset, but it’s also a mindset.”

 In our industry, just like Mike, many of us take pride in our knowledge and expertise.

And we don’t like changing our mind. We don’t consider rethinking…Partly because we think we know what we are doing.

At this point, it is quite possible that you are thinking – I don’t see this as a threat for me. Unlike Blackberry, I will continue to exist because my clients need me. They won’t get anyone else besides me and I have been with them for so long. So, they are used to me.

Given the nature of our business, some part of this statement is true.

The part that you will continue to exist (because you do not require a lot of clients) is the only part that is true.  Additionally, you will also get a mark to market appreciation in your AUM and revenue. You might even be felicitated by Asset Managers which is likely to distract you from the real situation in your business.

There are many truths that you might not be thinking about – First, there is no real organic growth in many firms…in fact, growth might be an issue for you too. Second, there is no real value that you are building in the firm. There are very few takers for such firms. Even if you never want to sell, the question is what is the legacy you wish to leave. Third, some of your key clients (with sizable AUM) are likely to leave you for other firms.

As you embark on this year, ask yourself:

• What knowledge do I need to acquire to build a valuable firm?
• What skills do I need to hone?
• How can I better communicate my firm’s unique value?
• How can I delight my clients?
• How can I get most of my clients to refer to ideal clients? What is the best way for me to grow the firm?

 The answers to these questions will form the blueprint of your progress. They will guide you in making the necessary changes to your mindset, your business model, and your client engagement strategies.