Jones secrets revealed, part 6
Because I haven’t done a Secrets Revealed Topic in awhile I thought you might want to hear from the horse’s mouth the Secrets (Brutal Facts) that Edward Jones is currently facing.
The Executive Committe (Doug 3Mil Hill, John Bachman, Jim Weddle, etc) believes these brutal facts must be addressed in order to move Edward Jones forward. 1. Increased pressure from competitiors to recruit our financial advisors. 2. High attrition rate of new financial advisors. 3. Financial advisor growth has been slower than planned since 2002. 4. International operations are NOT profitable. 5. Low market share and low brand recognition. 6. Dated technology and infrastructure. 7. No formal long-term planning process. 8. We are late to offer financial planning. 9. Product pricing and financial advisor compensation are out of date. 10. Clients are more aware of markets and investments 11. Thin Management depth. 12. Escalating competition for the client. 13. High-Cost business model. 14. Highly regulated industry. 15. The firm is getting sued much more now than ever before. 16. NO diversity in key leadership positions 17. ONE PRODUCT REPRESENTS 60% OF NET REVENUE This is straight from the upper management at EDJ.You know you’re a loser when you are quoting current internal memos from a firm you haven’t worked for in years.
BUT, thank you for pointing out how proactive they are in addressing their issues. If only Mother Merrill and UBS had been so forward thinking…
And another thing…not sure that an internal memo sent to 50,000 employees is exactly what they deem a “secret”. Nobody is real concerned about who reads it. Actually, I was waiting to see who would be the first to comment on that in these forums…I figured it would be Spears! I guess you beat him to it…
Broker24, are the points true?
they are true- give them credit for this: often leaders pretend there are few Brutal Facts–or at least they never acknowledge them! This is a big step forward, but the last one should be first.
Well the turnover rate pretty much tells you all you need to know, and I dont think it is turnover due to reps getting fired. Would anyone else agree with that statement?
Hopefully they will luck out and get bought before they go under lol…maybe BAC wants EJ to try to compete w Wach/Edwards!
[quote=spikedkoolaid]Because I haven’t done a Secrets Revealed Topic in awhile I thought you might want to hear from the horse’s mouth the Secrets (Brutal Facts) that Edward Jones is currently facing.
The Executive Committe (Doug 3Mil Hill, John Bachman, Jim Weddle, etc) believes these brutal facts must be addressed in order to move Edward Jones forward. 1. Increased pressure from competitiors to recruit our financial advisors. 2. High attrition rate of new financial advisors. 3. Financial advisor growth has been slower than planned since 2002. 4. International operations are NOT profitable. 5. Low market share and low brand recognition. 6. Dated technology and infrastructure. 7. No formal long-term planning process. 8. We are late to offer financial planning. 9. Product pricing and financial advisor compensation are out of date. 10. Clients are more aware of markets and investments 11. Thin Management depth. 12. Escalating competition for the client. 13. High-Cost business model. 14. Highly regulated industry. 15. The firm is getting sued much more now than ever before. 16. NO diversity in key leadership positions 17. ONE PRODUCT REPRESENTS 60% OF NET REVENUE This is straight from the upper management at EDJ. [/quote] The sad part is that all these points have been known and discussed ad naseum on this forum at least the past 6 years. (just like the field was suppose to get email back in '98). If these problems so long why is the EC only admitting to it now? How will they address international operations (sell them off) will they sell, will they merge will they cut GP payouts (you the reader decide which will occur first)????Compliance Jerk,
I was going to mention that these points have been made several times in these forums but I didn't want to taint the responses from the kool-aid drinkers. I find it very interesting that when we were pointing out these "Brutal Facts" in these forums, people like Broker24 and others would try and make comments arguing their validity. Now that the "Brutal Facts" have been let out of the bag by the "Executive Committee" they are somehow received as "hitting the problem head on." Very interesting. I am amazed at the denial of some of the experienced FA's at EDJ. I also want to see them put these brutal facts in their recruiting brochures. One last point it's only been 1 1/2 years since I left Guyana.RUL- I am a Jones guy who sees a lot of problems, and I will not last here. HOWEVER, of all the issues, turnover is NOT one of them. This is not correct, as compare to competitors. Net # of FAs is over 11000 now. EVERY firm has turnover–Jones #'s are actually quite good.
I just want folks to stick to actual problems, not mythical ones.OK I’ll bite…what is the product that produces 60% of EJ’s net revenue?
Did I miss something…I did not see fee based platform on the list. Must be a low priority to the committee.
See the problem. The big boys say they want to implement, but when the rubber meets the road, it doesn't even make the list. So the FA's continue to be sold the future. I wonder what the motivation was to publish the memo. It only illustrates that they know they have a problem. Change has never been easy at Jones.Okay…newnew…so the exec committee is wrong on the turnover?? Hell, I’ve been gone about 10 months and I’d say 25% of the people in my old region are gone. They still have a core group of Vets, 20+ years, but from there it gets real weak. I’d say the exec committee brought this out to “bring together the troops”. In business you NEVER tell your employees how bad it is. This causes the internal strife to build and build and build until the company comes down. Lets go through another downturn where the GP’s continue getting their juicy payouts and the LP’s don’t, like 2003. Some lurkers here, who’ve been reading all the stuff I’ve said along with everyone else about the shitty model, low payouts, overpaid GP’s and the bullshit P/L will now start to look elsewhere. And all the little quirks that used to not bother them will now PISS them off. I think the market is reacting to EDJ memo…its off 220…I would be shorting EDJ…
American Funds (which isnt a bad thing for door to door IRA salemen)OK I’ll bite…what is the product that produces 60% of EJ’s net revenue?
New/New–
I think it's interesting that the Executive Committee got the Brutal Facts Wrong. Especially the attrition of FA's. I must say that you are wrong. You are the first person I've ever heard that says the troops are over 11,000. If you look at the growth in that number it is coming from Canada/England. Look at the other fact: International Operations Are NOT Profitable. Therefore, they are growing in FA's in a slower than expected pace and it's in a non-profitable area of the world! New/New I think it's time to start addressing the "brutal facts" instead of suggesting that the Executive Committee is wrong.I would assume American Funds. When I left, around the same time as Spiked, American was getting 85% of the mutual fund business. It could be A share mutual funds in general, but I bet they meant all revenue (include trails and the paltry revenue sharing they pay) from American Funds.OK I’ll bite…what is the product that produces 60% of EJ’s net revenue?
Oops, I didn’t read to the bottom to see that the question had already been answered.
By the Way,
If you read the 10k, it's American Funds, not just mutual funds that make up 60% of total net revenue.[quote=footsoldier]Did I miss something…I did not see fee based platform on the list. Must be a low priority to the committee.
See the problem. The big boys say they want to implement, but when the rubber meets the road, it doesn't even make the list. So the FA's continue to be sold the future. I wonder what the motivation was to publish the memo. It only illustrates that they know they have a problem. Change has never been easy at Jones.[/quote] They refered to outdated compensation, which I would guess covers this. It will be interesting to see how quickly they can address these issues. I actually think it's a pretty good list, but whoever said it is right...we've been covering this on this forum for a long time.I will take a bet that this is another tactic on their part to ACT one way (concerned about the future) and do something entirely different (nothing). I have referred to company doublespeak in the past and this is another example.
I ask the question to the Jones FA's. What possibly could be the motivation to publicize what's wrong with their model to the troops. How could that be construed as a morale booster?What I think they mean by outdated compensation is that the GPs are still being paid based on a very old formula. Therefore, I bet they are looking at ways to increase their own payout to bring it in line with more modern economic times! No?
[quote=compliancejerk][quote=spikedkoolaid]Because I haven’t done a Secrets Revealed Topic in awhile I thought you might want to hear from the horse’s mouth the Secrets (Brutal Facts) that Edward Jones is currently facing.
The Executive Committe (Doug 3Mil Hill, John Bachman, Jim Weddle, etc) believes these brutal facts must be addressed in order to move Edward Jones forward. 1. Increased pressure from competitiors to recruit our financial advisors. - We have a lot more successful, veteran advisors than we did 10 years ago. They are a lot more valuable to other firms. However our attrition rate is actually lower than everyone thinks. 2. High attrition rate of new financial advisors. - That's news? I've been here 11 years now and this has always been an issue. I don't think it's going to change. 3. Financial advisor growth has been slower than planned since 2002. - Good! I don't want any other FAs in my region. 4. International operations are NOT profitable. - How many new start ups are? It takes a long time for a startup operation to create profit. It's not like the AGE/WB merger where WB gets a lot of already fully functional FA's they can just assimilate. We have to wait for years for all of those offices to become profitable before the operations as a whole can be profitable. 5. Low market share and low brand recognition. - We're not as well known as ML, but as better know than a lot. 6. Dated technology and infrastructure. - I'll bet this one isn't an issue 5 years from now. 7. No formal long-term planning process. - Relatively easy to fix. 8. We are late to offer financial planning. - Biggest mistake we've made so far. But we're on the path to fixing the problem. 9. Product pricing and financial advisor compensation are out of date. - This one is interesting. I think they are talking about fee based planning. I'm hoping they bump the payout. I'm not holding my breath. 10. Clients are more aware of markets and investments - Not just an EDJ issue 11. Thin Management depth. - More GP opportunities. 12. Escalating competition for the client. - Not just an EDJ issue. 13. High-Cost business model. - Trade off they always recognized. 14. Highly regulated industry. - Not just an EDJ issue. 15. The firm is getting sued much more now than ever before. - Not just an EDJ issue. The bigger you get, the bigger the target on your back gets. 16. NO diversity in key leadership positions - This one actually stated we have not increased diversity among individuals in key leadership positions. There's a big difference. 17. ONE PRODUCT REPRESENTS 60% OF NET REVENUE - No secret here. Jones is a mutual funds first firm. Mostly American Funds. I believe this will change in the next few years as the fee based platform evolves. It will in my office. This is straight from the upper management at EDJ. [/quote] The sad part is that all these points have been known and discussed ad naseum on this forum at least the past 6 years. (just like the field was suppose to get email back in '98). If these problems so long why is the EC only admitting to it now? How will they address international operations (sell them off) will they sell, will they merge will they cut GP payouts (you the reader decide which will occur first)????[/quote] These aren't problems the EC is just admitting to now. They've always know about them and for most of them would address them publically from time to time. This is just the first time I can remember seeing the EC make up this list and put it out there. I think it's a great move. It makes everyone accountable to fix these things. If I'm the GP in charge of technology, you have to know that my name just got put on everyone's radar screen. I'd better come up with some ideas to fix whatever issues everyone thinks we have. It will be interesting to see what happens to Jones in the next 5-10 years. I don't think the firm will sell out to BAC or some other bank. But I'll bet a lot of guys at AGE said the same thing.SHoott! So if I have the management at Amway call, you won’t have the Boaaaaaa put the call through? You’ve been with the firm 11 years and your STILL door knocking. This has to be a record.
I’m no EDJ supporter, and am thankful every day that I am gone. However, I will say in their defense that I think I was seeing a true changing of the guard with Weddle. Hill was never intended as anything but a placeholder, they just had to get rid of him a few years earlier than planned.
Weddle appears to "get it" that the EDJ model isn't competitive. For the most part, the only advisors staying when I was there were either already big producers and comfortable or still learning. The "up and comers", the seg 3 & newer seg 4 guys who were above expectations consistently, were leaving at a rapid clip, unless they inherited an office or had some other issues keeping them there. It was hard to justify staying when you knew you were leaving so much money on the table. And the "grass is greener" publication they had (still have?) was a joke that just added to the perception that it really was better elsewhere. It's kind of like telling your kid if they smoke pot it will kill them. When they try and it doesn't, then they assume everything else you say is crap too. This publication is at least honest, and lets people know that they recognize the problems (which they didn't 2 years ago, at least publicly). I think they are going to be a more competitive firm in a few years, which is a shame for me, because they are my main competition in my part of the country.Spiff…your words…
3. Financial advisor growth has been slower than planned since 2002. - Good! I don't want any other FAs in my region. Can you say see yuh to GP. You are on the other side now, it won't be long....Good point Foots. I will copy and paste this to Weddle himself. We’ve left you in the woods naked SPIFFY…
[quote=Spaceman Spiff[/quote]
These aren't problems the EC is just admitting to now. They've always know about them and for most of them would address them publically from time to time. This is just the first time I can remember seeing the EC make up this list and put it out there. I think it's a great move. It makes everyone accountable to fix these things. If I'm the GP in charge of technology, you have to know that my name just got put on everyone's radar screen. I'd better come up with some ideas to fix whatever issues everyone thinks we have. It will be interesting to see what happens to Jones in the next 5-10 years. I don't think the firm will sell out to BAC or some other bank. But I'll bet a lot of guys at AGE said the same thing. [/quote] spaceman, c'mon 11 years with the firm and you've only recently gone into the field????? This is usually an option for head office who can't cut it for one reason or another (under performance or can't handle the "pressure". Check the 10-K and you'll see who two of the highest comped GPs are (please note what areas these two are in charge of makes one wonder......hmmmmmm) http://www.hoovers.com/free/co/secdoc.xhtml?ID=40868&ipage=5071152-216222-219657 If they've been talking about these changes for a while as "YOU" allude to why for god's sake has nothing been done about it before? If the GPs knew previously weren't they put on notice then. What is the notice now "double secret notice" to paraphrase Dean Wormer? space-entity boob again you'd be better off just saying "....... one day in band camp"Number 18…the team who plays on our beloved Edward Jones Dome hasn’t won a freakin game. Losers attract other losers.
I believe the correct version of the quote you like so much is “…one time at band camp”
Oopsies, thanks ms!
space geek entity it should read "..........one time at band camp"[quote=compliancejerk
spaceman, c'mon 11 years with the firm and you've only recently gone into the field????? This is usually an option for head office who can't cut it for one reason or another (under performance or can't handle the "pressure". Check the 10-K and you'll see who two of the highest comped GPs are (please note what areas these two are in charge of makes one wonder......hmmmmmm) http://www.hoovers.com/free/co/secdoc.xhtml?ID=40868&ipage=5071152-216222-219657 If they've been talking about these changes for a while as "YOU" allude to why for god's sake has nothing been done about it before? If the GPs knew previously weren't they put on notice then. What is the notice now "double secret notice" to paraphrase Dean Wormer? space-entity boob again you'd be better off just saying "....... one day in band camp"[/quote] At what point did you hear me tell you when I left the home office? What gives you the impression that those who leave the home office to become an FA are failures? Most of the time it's the other way around. You go to the home office because you can't take it in the field. You're the first person that I've ever heard that said that the field is an escape route. Maybe you misspoke. I'll give you the benefit of the doubt. And spears, I've not been in the field 11 years. I still doorknock, but only when I want to. When I stop bringing in new clients with the technique I'll stop. I don't know why they didn't make a lot of changes before. My guess would be that there had to be enough change in management and pressure from the field for them to realize that some major changes needed to happen quickly. Weddle hasn't even been at the reigns for 2 years yet and there have been some major changes in our business practices. And there are a lot more on the way. The 10-K info is dated. Malone is gone. Vinny Ferrari is now the GP of IS. I don't know what his compensation package looks like, but it's probably not the same as Rich Malone's. I do know that he is the reason our technology is changing at such a rapid pace. Gary Reamey is Jim Weddle for Canada. I would guess that in most companies the guy who runs the biggest division is the one who gets paid the most. So, I'm still looking for your point.[quote=Spaceman Spiff
These aren’t problems the EC is just admitting to now. They’ve always know about them and for most of them would address them publically from time to time. This is just the first time I can remember seeing the EC make up this list and put it out there. I think it’s a great move. It makes everyone accountable to fix these things. If I’m the GP in charge of technology, you have to know that my name just got put on everyone’s radar screen. I’d better come up with some ideas to fix whatever issues everyone thinks we have.
It will be interesting to see what happens to Jones in the next 5-10 years. I don’t think the firm will sell out to BAC or some other bank. But I’ll bet a lot of guys at AGE said the same thing. [/quote]
spaceman,
c’mon 11 years with the firm and you’ve only recently gone into the field??? This is usually an option for head office who can’t cut it for one reason or another (under performance or can’t handle the “pressure”.
Check the 10-K and you’ll see who two of the highest comped GPs are (please note what areas these two are in charge of makes one wonder…hmmmmmm)
http://www.hoovers.com/free/co/secdoc.xhtml?ID=40868&ipage=5071152-216222-219657
If they’ve been talking about these changes for a while as “YOU” allude to why for god’s sake has nothing been done about it before? If the GPs knew previously weren’t they put on notice then. What is the notice now “double secret notice” to paraphrase Dean Wormer?
space-entity boob again you’d be better off just saying
“… one day in band camp”[/quote]
Why the hell would you be reading EDJ 10-K’s?? Why would you even care??! Get a life.
B-24,
I've always said my leaving EJ was like a bad divorce. If you've ever been in one or had a close friend or realtive go through one you may understand what I've been through. You're correct about me needing to getting a life. I was approached by the same WSJ reporter that contacted uwec but declined at the time due to a non-disclosure agreement. I'm just trying to get even in my own way by providing info to my former colleagues in my own way. Sorry if you don't approve but I'll do my thing and you can criticize or ignore my posts. Thanks for for your view point.bspears, it be really super if you would stop acting like a total douchebag on the internet. This is a place to share ideas and help each other out, not act like a fcking troll. Im sure you have to act like a professional wherever you work. Your act is old after a few days of reading your 10 year old shit. Get a new hobby in life. Thanks.
Thanks for you input duochbag…I’ll consider.
So I’m interested in the WSJ reporter stuff. Do Tell. What were they fishing for?
Please stay on task people, let's get away from the ad hominem attacks.[quote=compliancejerk]
I'm just trying to get even in my own way by providing info to my former colleagues in my own way.
[/quote] Exactly what are you trying to get even for? BTW, the 10 people who read this board at Jones and give a rip what you say aren't going to be convinced by people like you or spears that EDJ is an evil empire. They already know that Jones has some faults. You aren't telling us anything new.My uncle had a drinking problem. He admitted he did and tried to get straight, but unfortunately he was to selfish to see what he was doing to his family. He eventually lost his family and his life. I see Jones spiraling down this same path. WE KNOW WE HAVE PROBLEMS, LOTS OF THEM, A TREMENDOUS AMOUNT OF THEM, AN OVER ABUNDANCE OF THEM, MORE THAN OUR FAIR SHARE, WE"RE NOT PERFECT, WE KNOW WE"RE NOT PERFECT. Problem is Jones doesn't know what Jones wants to be....commission only, A share company....fee based-financial planning....the more and more time passes from the death of good ol' Ted Jr...the more Jones becomes lost...I remember when management use to preach about growth as a way to lower the cost to the IR. You know...spread the cost over the more and more IR's....for some reason..the money paid to the GP's kept getting higher and higher..and in my 6 years my costs never went down....GREED BABY...GREED.
Anyway Fixedincome…the firm I work at is MY OWN. I’m a real owner, not an employee…I asked myself if it was okay to post here and guess what…I said YES!
Spiffy–
You are classic. I am not trying to bring the evil empire down. I'm trying to uncover the truths "brutal facts". I have been posting on these message boards for 1 1/2 years and I kind of find it therapeutic. I agree with you that there are probably 11 people reading these things but something about exposing the truth about, the holier than thou, approach to helping people with their money makes me want to post these "brutal facts." On a side note, I don't now, nor have I ever felt that the GP's were making too much money. Does George Steinbrenner make too much money? No. I just don't care about what the GP's make. What I do care about is the GP's not making the kind of changes that were necessary for me to stay at EDJ. I will say it again, "Jones was a great place to start...It is a horrible place to be a producer at." Right now when I turn on my lights on January 1, I am grossing $330,000. I don't have to sell a thing....How wonderful is that. Now I sell a few things every month and I'm gonna do $650,000. The phone hasn't rang once this morning and I've been here for 4 hours. It's beautiful.Spiked-
Spiffy is coming. He's fighting it, but he will leave, just as we all have. And he will then understand.[quote=Spaceman Spiff][quote=compliancejerk]
I'm just trying to get even in my own way by providing info to my former colleagues in my own way.
[/quote] Exactly what are you trying to get even for? [/quote] You'll only know when you've left and get treated like yesterday's trash when at one time you were a "role model for others." There are a few of us that would just like to score a few points back. By the way, I think there are a few more than 11 people out there silently lurking, and what we say has led to many having their eyes opened.[quote=CIBforeveryone][quote=Spaceman Spiff][quote=compliancejerk]
I'm just trying to get even in my own way by providing info to my former colleagues in my own way.
[/quote] Exactly what are you trying to get even for? [/quote] You'll only know when you've left and get treated like yesterday's trash when at one time you were a "role model for others." There are a few of us that would just like to score a few points back. By the way, I think there are a few more than 11 people out there silently lurking, and what we say has led to many having their eyes opened. [/quote]I think it's funny that you believe everyone is as naive as you seem to be, EJ is a $3 billion company, I would be surprised if anyone gave a rats ass if you left or not. Their only concern would be you taking what they consider their clients, while all your trying to do is change companies and keep what you consider to be your clients. It's to bad your feeling were hurt in the transition, were you thinking that the leadership in your region would have you over for dinner to discuss how things were going in your new business? Grow up.
I’m not stupid enough to think EJ cared if I stayed or I went, but certainly they build themselves to be something other than just another $3 billion company when you are there. They prove when you leave they aren’t any different than anyone else. If a few of us can tip one good producer over the scales enough to leave, it is a victory. Plus it’s just fun. We do this in place of attending callout sessions and quarterly regional meetings. Ra ra!
Silly boys
BTW every large company holds themselves out to be different then all the other large companies out there. Seriously are you really so naive?
Boy, this thread unravelled quickly.
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