Wealth management firms constantly strive to achieve growth and gain a competitive edge in many ways. Servant leadership is one of those approaches that can encourage growth and productivity by actions that put the well-being of others first.
Investopedia defines servant leadership as “a leadership style and philosophy whereby an individual interacts with others – either in a management or fellow employee capacity – to achieve authority rather than power. The system embodies a decentralized organizational structure.”
To understand servant leadership in the context of the wealth management industry, we reached out to David Crow, Executive Vice President and Head of Axos Clearing, based in Omaha, Nebraska. A strong supporter of the servant leadership management style, Crow explains what servant leadership looks like and how it works in the context of advisory firms and other wealth management businesses, as well as the benefits that can arise from it.
WSR: What does “servant leadership” mean to you and how does it benefit an advisory firm?
Crow: Servant leaders prioritize their teams’ needs to encourage growth. They can be successful in doing so by drawing on their personal life experiences and practicing vulnerability.
Although they are diversifying slowly, financial advising has historically been a male-dominated industry, and male leadership traits have not always lent themselves to vulnerability or open lines of communication with colleagues. I think there is a strong case to be made for shifting the leadership paradigm for the benefit of our teams and our clients.
Male leadership traits have not always lent themselves to vulnerability or open lines of communication with colleagues.
WSR: Give some examples of servant leadership in action for advisors and wealth management firms.
Crow: There is a vast number of examples of great servant leadership. I witness many of our clients, for example, offering co-sponsorship of charities that are important to their associates. We often participate in these, including disaster relief efforts for the many who have suffered through terrible Omaha storms over the past year.
WSR: What are some inventive ways that a firm can promote team trust and collaboration that go beyond formal team-building activities?
Crow: One of my favorite things to do is entertain, specifically barbecuing. A few times each year, I bring my mobile barbecue truck, dubbed “The Tailg8r,” to serve a meal to my Axos colleagues. It’s a fun, casual atmosphere where everyone chips in, and I barbecue for the team. For me, it’s a simple way to connect on a personal level – unscripted and authentic.
You have to be intentional about team building and “put yourself out there” as a leader to foster trust and collaboration. I have often found, almost by accident, we have been able to solve business challenges during these casual get-togethers because we have people in the same place, guards down, just talking. Beyond barbecue, the Tailg8r has a bourbon bar (reserved for non-work events), a TV, and speakers – it’s designed to make you feel at home – and it does!
Almost by accident, we have been able to solve business challenges during casual get-togethers.
WSR: How can a leader practice vulnerability and how does that impact a team of advisors and wealth management professionals?
Crow: Leaders who can find a way to bring other elements of their non-work life into work (e.g., a love of barbeque or a shared hobby like running) and allow colleagues to get to know them on a personal level will find more ways to connect with the teams they rely on day-in and day-out.
Financial advisors can manage a heavy client load which often averages between 50 and 150 according to SmartAsset. Safeguarding these relationships can be stressful. Just being there for open and candid discussions shows a leader’s team that they can lean on them for support during those tougher times, while also tapping into the brain trust of their colleagues who have weathered similar storms.
Janeesa Hollingshead, Contributing Editor at Wealth Solutions Report, can be reached at editor@wealthsolutionsreport.com.