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Hosted by Financial Advisor Coach, Ray Sclafani, "Building The Billion Dollar Business" is the ultimate podcast for financial advisors seeking to elevate their practice. Each episode features deep dives into actionable advice and exclusive interviews with top professionals in the financial services industry. Tune in to unlock your potential and build a successful, enduring financial advisory practice.
Ray Sclafani (00:00.142)
Welcome to Building the Billion Dollar Business, the podcast where we dive deep into the strategies, insights, and stories behind the world's most successful financial advisors and introduce content and actionable ideas to fuel your growth. Together, we'll unlock the methods, tactics, and mindset shifts that set the top 1% apart from the rest. I'm Ray Sclafani, and I'll be your host. How does your team define high performance?
I've been part of many teams over my career, having led teams, served on teams, built teams, coached teams, and even observed teams operate under pressure. One consistent pattern I've seen repeatedly is that every team has its own definition of high performance, even when that definition isn't stated out loud. Sometimes high performance means production. Sometimes it means loyalty. Sometimes it means client impact or responsiveness. Sometimes it's being easy to manage or
means carrying more than your fair share. Sometimes it means being the person who challenges the room. And sometimes it means being the person everyone trusts when the work gets complicated. None of those definitions is inherently wrong. The issue is that many leadership teams often assume they are using the same definition of high performance, even when they may not be. One leader may reward independence. Another may reward collaboration and interdependence. One may value speed
Another may value precision. One may define leadership as bringing in business. Another may define leadership as developing others. One may value someone who never complains. Another may value someone who raises the hard issue before it becomes costly. And that's why the conversation and the question matters. What does it mean to be a high performing team? Not in theory, not in someone else's firm, not in a generic leadership book. What does it mean here in your firm?
Ray Sclafani (02:01.462)
With your strategy, your plan, your clients, the roles that you've created, and the stage of growth your firm might be in. Many leadership teams probably need to just slow down a bit. You've already got a strategic plan, an org chart, job descriptions, comp plans, annual reviews, but you may not have a shared practical definition of what meeting expectations, exceeding expectations, and far exceeding expectations looks like in the roles.
That matter most in your firm. Now that is a clarity problem before it becomes a performance problem. If a lead advisor cannot define what exceeding expectations looks like, well, how can that person aim for it? If a manager cannot define what far exceeding expectations means, well, how can that manager coach toward it? If the executive team cannot define high performance by role, how can it fairly evaluate talent across teams?
Think about how important the shift from individual excellence to enterprise performance is when you're building an enduring firm and growing enterprise value. For years, a highly productive advisor could carry a book of business, serve clients well, and build a meaningful business. Well, that still matters. And as you scale, the future will require more. The future is going to require advisors who can lead teams, build trust, develop others, drive organic growth, support enterprise value, and help clients experience the firm.
rather than just one person. And that is a different definition of performance. So how should a leadership team define high performance? We'll start with firm goals, then team goals, then role expectations. If the firm's goal is organic growth, well high performance cannot be measured solely by client retention. Retention matters, but growth has to be reflected in the role definition. If a firm's goal is client continuity, well high performance cannot depend on one advisor or
Holding every major relationship alone. The transfer of trust has to be evident. If a firm's goal is team based advice, well, high performance has to include collaboration, interdependence, delegation, development, and shared accountability. If the firm's goal is margin discipline, well, high performance has to include capacity, process, and better use of resources. This is where the execution team needs to do the real work for each critical role.
Ray Sclafani (04:22.146)
Define what does it mean to meet expectations? And meeting expectations should describe the reliable execution of the role at is as it exists today. The person's doing the job, the work is dependable, clients are served, commitments are met, the team can count on the person, there is consistency. Well, that may sound simple, but it's not minor. A firm needs people who consistently meet expectations. In many businesses, reliability is the major asset.
The mistake is undervaluing consistent performance. The mistake is confusing consistent performance with readiness for a larger role. Then define what exceeding expectations means. Exceeding expectations should describe contributions beyond reliable execution. The person creates leverage. They improve outcomes. They make the team better. They solve problems before they escalate. They help others succeed. They do not simply complete their work, they improve how the work gets done.
Then define what far exceeding expectations means. Far exceeding expectations should describe an enterprise contribution. The person expands the firm's capacity, they develop others, they strengthen client continuity, they improve the system, they raise the standard, they create value beyond their role, they make the business more transferable by reducing dependence on one person's heroic effort. Now, apply that to roles. Let me give you some examples here.
For a lead advisor, meeting expectations may mean strong client retention, responsive communication, sound advice, and reliable relationship management. Exceeding expectations may mean consistent organic growth, effective delegation, development of associate advisors, and a deeper engagement with spouses and next generation family members. Far exceeding expectations may mean transferring trust across the team, building enterprise value beyond.
The advisor's individual client responsibilities, mentoring future leaders, helping the firm grow without increasing founder dependency. Let's look at the associate advisor. Meeting expectations may mean demonstrating technical competence, planning, quality, preparation, follow through, responsiveness. Exceeding expectations may mean taking meaningful work off the lead advisor's plate, demonstrating client readiness, improving planning conversations, and building confidence among clients and teammates.
Ray Sclafani (06:47.874)
Far exceeding expectations may mean becoming a force multiplier who develops others, leads parts of the client experience, identifies growth opportunities, and demonstrates readiness for a larger advisory role. For a manager, meeting expectations may mean clear communication, basic accountability, regular check-ins, and ensuring work gets done. Exceeding expectations may mean coaching people well, delegating with clarity, addressing performance issues early, and building trust across the team.
Far exceeding expectations may mean developing other leaders, creating a culture of ownership, improving team capacity, and helping the business perform even when that manager is not in the room. For an operations leader, meeting expectations may mean ensuring service consistency, executing processes and workflows, resolving problems and keeping the firm moving. Exceeding expectations may mean reducing friction, improving capacity planning.
Using data to identify constraints and enhancing the client and advisor experience far exceeding expectations may mean building scalable systems, anticipating growth needs, integrating technology effectively and creating operating leverage across the enterprise. So this level of specificity will help people grow. Generic performance language rarely changes behavior. Clear expectations do.
People need to know what the next level looks like and managers need language to coach toward it. Without that, performance conversations become subjective. The person hears feedback, but they don't know what to do differently. The manager provides direction, but the standard shifts from day to day don't make any sense. The execution team talks about talent, but each leader uses a different measuring stick. That's not fair to the employee, and it's not good for the business or the clients.
A better practice is to ask each employee to define high performance in their role. Then compare that definition with the manager's and the executive team's definitions. The gaps will tell you a lot. Sometimes the employee is aiming too low because no one has shown them what the next level looks like. Sometimes the manager expects more than the role has been designed to deliver. And sometimes the executive team wants an enterprise contribution, but the comp plan still rewards individual activity.
Ray Sclafani (09:06.968)
So sometimes the firm says it values leadership, but it only measures production. And this is why I really like this question. Can we define meeting, exceeding, and far exceeding expectations in every role? It's simple, but not easy. It forces everybody on the team to get really clear. It forces managers to coach with greater precision, and it gives employees a clearer path. It connects individual performance to team and firm goals and it honors people.
When expectations are unclear, people guess. When standards are inconsistent, people get frustrated. When feedback is unclear, people either defend themselves or disengage. But when the standard is visible, people can choose growth with greater confidence. I often hear people talk about roles and responsibilities and clarity of role and responsibilities. Well, that all sounds good. Start with meets, exceeds, and far exceeds for every role.
looking at those responsibilities and define that more clearly. Because the future of wealth management will demand more from our teams, more collaboration, more interdependence, more leadership, more adaptability, more client continuity, more growth, more judgment, and more ability to use technology without losing the human edge. And that future requires a more mature definition of high performance. With each episode, I provide coaching questions so that you can use these
With your next executive team conversation. Number one, what must high performance mean for your firm over the next 12 to 18 months given where the business is headed? Number two, can you clearly define what meeting, exceeding, and far exceeding expectations looks like in your most important roles? Number three, where are current role expectations misaligned with team goals or firm goals or your enterprise value? And number four,
How would performance, coaching, and development improve if every employee could clearly articulate the next level of their role? Hey, thanks for listening. Please like and share this episode with someone you know needs to hear it. Well, thanks for tuning in, and that's a wrap. Until next time, this is Ray Sclafani. Keep building, growing, and striving for greatness. Together, we'll redefine what's possible in the world of wealth management. Be sure to check back for our latest episode and article.