Objectives and Key Results

I have worked with many advisors who set goals that were too much of a stretch. One advisor I knew had a goal to bring in $500 million in assets. His previous year he brought in about $45 million. Now a majority of his goals were to recruit advisors to help him hit that $500 million which is much more reasonable. However, he thought it was as easy as choosing a recruiter. By the end of the year, he didn’t recruit anyone and missed his goals.

I think everyone needs help with goal setting. There are many ways of doing it. One way that has worked with our team is the Objectives and Key Results framework.

Measure What Matters, written by John Doerr, is a valuable resource for financial advisors looking to improve their goal-setting and achievement processes. The book provides a step-by-step guide to using Objectives and Key Results (OKRs), a powerful framework for aligning and focusing teams, measuring progress, and achieving results.

Here is a summary of the OKR implementation steps, tailored for financial advisors:

Clearly define objectives: Establish specific, measurable, and time-bound goals for your clients and your financial advisory practice. Make sure these objectives align with your clients’ long-term financial goals and values.

Involve your team: Engage your team members in the goal-setting process to ensure everyone is aligned and working towards the same objectives. Foster open and honest communication to keep your team motivated and focused.

Set key results: Identify how you will measure progress towards your objectives. Choose key results that are specific, measurable, and achievable, and ensure they align with your clients’ goals.

Align and prioritize: Prioritize your goals and ensure they align with your clients’ financial goals and your practice’s mission and values. Focus on what’s most important and avoid spreading yourself too thin.

Track progress: Regularly monitor progress towards your objectives and key results. Celebrate wins and adjust goals as needed to ensure you’re on track to achieve your clients’ financial goals.

Communicate and adjust: Keep your clients and team members informed of progress towards your objectives and key results. Make adjustments to your goals as needed to reflect changes in your clients’ financial circumstances or the market.

Reinforce accountability: Hold yourself and your team accountable for your part in achieving the objectives and key results. Reinforce the importance of goal-setting and measurement to drive success for your clients and your financial advisory practice.

By following these steps, financial advisors can effectively implement OKRs and achieve their goals in a meaningful and measurable way.