A couple of weeks ago I had the opportunity to attend the Fast Forward conference in Denver, CO. This is a great event where advisors get together, without sponsors, and are able to share best practices on everything from investment management to the actual running of their business. All the sessions are hosted by advisors and provide countless nuggets of information to take back to your practice.
This year one phrase stuck out to me. Check your ego at the door. Bob Federici and Dave Borden, both very successful advisors were on stage having a conversation about their practice and what it takes to develop a true team based approach to running a business. Dave was on the topic of compensation and giving everyone an inside view of how he and his partners handle compensation, ownership, and profit sharing. He said the key to those discussions is every time the partners meet on this topic each person needs to check their ego at the door. He further explained that each partner must be honest with themselves about the impact they have had on the firm and their contributions as a partner.
This is critical for anyone looking to establish a team based or ensemble practice. It reminds me of that old Harry S. Truman Quote, “It is amazing what you can accomplish, if you do not care who gets the credit.”