Most financial advisors understand how professional networking can help build their business. Many advisors who have been in the business for many years attribute part of their success to the advice they have received from mentors. You can take these business-building relationships a step further by creating a personal board of directors (PBoD).
A PBoD is a group of professionals that you can turn to regularly for advice and feedback in relation to the growth of your business, says George Torok, a business coach in Burlington, Ont. Although some advisors might hire a coach or trainer to help reach a specific objective, Torok says, a PBoD, which can include a business coach, tends to have more scope.
This approach has worked well for other professionals in the financial services industry. For example, Jeff Gallant, an analyst with Gluskin Sheff + Associates Inc. in Toronto, first read about the PBoD concept several years ago when he was in university. He describes himself as a “big networker” and typically calls upon several key contacts from a diverse set of backgrounds for advice.
“I quickly realized that this was akin to a board of directors for a company,” Gallant says. “Just as an executive of a large company needs a board of directors to introduce strategic plans and so forth, why wouldn’t it make sense for someone like myself?”
Gallant, who says he tries to “make [his PBoD] as diverse as possible” relies on six professionals from a cross-section of professions and demographics for career input: the head of a merchant bank; an entrepreneur who owns several businesses; a Canadian bank executive; a lawyer; and two other financial advisors with more experience in the financial services industry.
Having these key contacts on speed-dial has helped Gallant immensely with his career development. Thanks to their input, he says, he has a better idea of how to position himself as he progresses in his career. Gallant has sought advice from these individuals on typical professional concerns, such as which credentials might serve him well down the road. But Gallant also has garnered insight into broader professional-development issues, such as how best to seek out volunteer work that is in line with his goals.
“People have different values at different points in their lives,” Gallant says. “So, if I’m working at being a certain kind of person at one stage, I can see what they’ve done to get where they are.”
Gallant hasn’t yet formalized his PBoD arrangement, but he hopes to do so by the end of the year.
Cindy Wahler, a psychologist and leadership coach in Toronto, is a big believer in the value of composing your own PBoD.
“The main objective is to look at your career with strategic advantage,” she says, adding that collaborative relationships are imperative to professional success. However, she says, it’s not necessary that these key individuals meet collectively. Simply formalizing that network in your mind – as a way to push you to ask yourself the tough questions when it comes to leveraging your career – can be enough.
If you’re interested in creating a PBoD, here are some things to keep in mind:
– choose wisely
Torok suggests composing a PBoD consisting of three to six individuals – all with different strengths. Keeping your PBoD small and manageable is important, he adds: “You want to be able to have a conversation without having to take an hour to go around the room.”
You also need to obey the laws of chemistry and recognize that everyone on the PBoD has to get along well and trust each other for it to work. “There has to be respect all the way around,” Torok says. “A board meeting isn’t the place for contest or conflict.”
– state your purpose
When asking potential members to participate on your PBoD, Torok says, it’s a good idea to outline what you hope to achieve during the course of the relationship. Be clear about your goals, he adds, and let the members know that meetings will revolve around strategy; you won’t be wasting their time with operational issues.
There’s no need to be intimidated about asking PBoD members for their time, either. You can address this imposition outright by offering to pay potential board members a stipend. Or, you can promise them a good meal in exchange for their guidance.
“One [method of compensation] is not better than the other,” Torok says. Some coaches, for example, might be willing to participate free of charge because they learn from these experiences themselves.
Wahler agrees that despite the fact many people are self-serving and busy, there is both altruism and a sense of duty tied into our willingness to help others develop their careers. Besides, she adds, most people are happy to “pay forward” the help they received when they were starting out.
– make some promises
The first thing you need to tell your PBoD members is that the information and advice they share in meetings will be kept private.
“It’s a good idea,” Torok says, “to have people sign a confidentiality agreement.” A simple document can remind PBoD members that you take their trust very seriously.
You also should outline exactly the commitment you hope PBoD members are willing to make. For example, meetings should be scheduled quarterly and, even then, conducted only if there is actually something to discuss.
“Don’t meet just because it’s time to meet again,” Torok says. “You’re wasting time and the people on your committee will become bored.”
Providing an end date is also a good idea. It not only lightens the request but also gives PBoD participants the opportunity to bail graciously if they don’t feel sitting on your board is good use of their time.
One year is a good time frame, and a PBoD member’s desire to continue can be addressed upon the term’s expiry.
Following up with your PBoD participants after each meeting also is beneficial, Torok says, as it allows you to get feedback on what might make the next meeting run more smoothly.
© 2012 Investment Executive. All rights reserved.