“A strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean opportunity to rise to new heights. But it may just as likely signal the beginning of the end.”
Andy Grove—Only the Paranoid Survive
In your world of financial services, this concept of a “strategic inflection point” is not about one singular event that must be addresse—but rather an ongoing challenge. Which is why firms and financial advisors will need to continually innovate and explore new avenues for providing value.
Grove goes on to say these inflection points are essentially “an event that changes the way we think and act.”
The reality is that most people are immune to change—hardwired to resist change—myself included. Which is why businesses that are about to be disrupted by an inflection point are incapable of jumping ahead of the point of inflection. Just think of the taxi business. Yes, inflection points create disruption.
The following are simply a handful of the top disrupters, some of which most of us use.
- Uber
- Airbnb
- Warby Parker
- Tesla
- Netflix
- Amazon
- Dollar Shave Club
The following are five inflection points that, if not already, will soon be disrupting how financial advisors go about their business. As I list them, think of jumping ahead, the potential relevance to your business model and the changes, if any, you can make.
Addressing them is a basic requirement for rising to new heights. Focus on what you can control, continually assess the financial services playing field and remember that it’s not one single event that’s going to disrupt financial advisors; rather it’s an ongoing challenge.
Always continue to explore new avenues for adding value.
Matt Oechsli is author of How to Build a 21st Century Financial Practice: Attracting, Servicing, and Retaining Affluent Clients. www.oechsli.com