The benefits of distance

Seven weeks into work from home for many and a new kind of operating rhythm is being achieved. As this “new normal” becomes second nature, we also get some distance on our conventional ways of working, which can be valuable – much as going on holidays, or off site meetings and study tours, allow us to see things more clearly through the combination of distance and structured evaluation.

So could the distance that work from home brings be an opportunity for constructive introspection? Some questions a business manager might ask themselves: Am I happy with how I am spending my time, personally and at work? Am I doing what I enjoy and what has greatest meaning to me? What is the essence of the value our business provides to clients, expressed as 3 or 4 key benefits? Is our value proposition clearly articulated and understood, by clients and by the people working within the business? Who are we trying to serve, and are our client acquisition strategies up to date? What competencies should we always have within our firm vs those we can outsource? Do I have appropriate policies and processes in place? If I am going to make changes, how will I manage that process?

At Philo, we do a lot of work with advice firms addressing these types of issues as part of designing a managed account service that will meet their needs. Our general observations: Business principals are more considered about how they allocate their time than 5 years ago. While most people are clear about their value proposition, they often struggle to articulate it in a powerful way that is impactful for clients. Most firms are clear about target clients and many are taking active steps to align their actual client base with that target. There is a quiet revolution underway on aligning competencies to value propositions and the question of insourcing vs outsourcing – the most telling manifestation is the growing investment in portfolio management skills and investment governance. From a process management point of view, the aggregate industry investment in processes that are no longer optimal is enormous, which creates inertia. Management of change is an area where much work has been done, but more is required from all of us. Those that have started the journey have conviction that they are on the right track.

Taking the time to reflect on how things can be improved during a period of enforced “distance” can be an enduring legacy of “work from home”. We wish you well in your reflections.

Have a good week.

Brett Sanders