2006 Broker-Dealer Conference Blog

"The Learning Organization"

Speaking of learning and continuing your education at conferences such as OneVoice . . . "the learning organization" was recently named as the #2 idea or concept most likely to affect the way businesses are conducted in the long run from the "10 Most Enduring Ideas" of the past 10 years, as presented in Strategy+Business magazine, published by Booz Allen Hamilton.  S+B describes the learning organization as one that is "deliberately designed to encourage everyone in it to keep thinking, innovating, collaborating, talking candidly, improving their capabilities, making personal commitments to their collective future - and thereby increasing the firm's long-term competitive advantage. Even the most hard-nosed managers are aware that they can gain sustained competitive advantage only by developing the learning capacity of their people...it doesn't just mean sharing knowledge and skills; it means cultivating the habits of personal character that lead people, up and down, the hierarchy, to become more capable."

"A Bull Market in Regulation"

How much does compliance cost the securities industry? Try $25.5 billion, according to a new survey done by the Securities Industry Association and reported on in the Wall Street Journal (link to the article here, but requires a WSJ.com subscription). SIA surveyed 56 member firms and found that in 2002, the industry spent $13 billion on compliance and $25.5 billion in 2005, more than 90% of which was for staffing. CEOs now report spending 20-to-25% of their time on compliance-related matters, more than quadrupling the time they spent five years ago. More information on compliance and its quantitative and qualitative effects on broker-dealers can be found in the new FSI white paper "Making the Case for Independent Broker-Dealers and Financial Advisors" . Download a copy now, along with two new "FSI On the Issues" papers.

Service from Real Live Human Beings

If your b-d is still wrestling with what good "customer service" really means - and how to deliver it (both by people and by technology) - take note of a new service crusader and his attempt to remind executives everywhere that customer service is bad - and getting worse. Paul English, a "veteran technologist and serial entrepreneur," created a blog and web site with a cheat sheet that explains how to break through automated interactive voice-response systems and actually speak to a human being. Now, his full-blown crusade is turning into what he calls a grassroots movement "to change the face of customer service." Read the recent New York Times article on English and his crusade and web site.

OneVoice Speaker Materials Available

Just a reminder that all materials from speakers and sessions at OneVoice are available for download on the FSI web site. Click on the Meetings tab and go to the OneVoice Conference speakers page.

FSI White Paper Now Available

In 2005, FSI commissioned research of its independent broker-dealer members in order to collect and analyze data on its members' business practices, gauge perceptions on the current regulatory environment, and evaluate the impact of a rapidly changing regulatory climate on their businesses and the businesses of independent financial advisors that are affiliated with them. The results of this research is FSI's first white paper.  An Executive Summary of the white paper was distributed to all OneVoice attendees.  The full white paper, entitled, Making the Case for Independent Broker-Dealers and Financial Advisors, is now available from FSI's web site.  In addition, a series of helpful exhibits to the white paper are available for download. 

"I'm Listening"

She came, she spoke, she listened. Mary Schapiro, current vice-chair of NASD and incoming chair (December '06), told CEOs that her challenge during the transition year is "to see the agency with fresh eyes" and to embark on a listening tour that will help answer the questions: "What are you worried that I will do? What are you worried that I won't do?" Acknowledging that FSI had made its presence well-known at the NASD, Schapiro told CEOs of her own worries about the industry and asked for CEOs to tell her about theirs. Read more....

Full Agenda - and Room - for Compliance Discussion

The FSI Compliance Discussion - surely one of the largest collections of compliance talent ever assembled - covered a wide range of current concerns and issues that impact member firms.

Low Cost Employee Appreciation

One of the best ideas on how to thank and acknowledge employees in a low cost way, from Cath Kachur's session on customer service: give an employee and spouse some of your frequent flier miles - enough for a ticket for each. It costs  you nothing, and if you're one of those who travels regularly for business and has amassed hundreds of thousands of miles, the last thing you want to do is get on another plane! Spread the love by sharing the miles.

"Everything Else is Overhead"

In the marketing track session Tuesday presented by Ashley Agard and Robin Rodermund, these two veteran marketers opened with a great quote from the wonderful Peter Drucker: "A business is essentially about a customer's need and the company's ability to  meet that need. Everything else is overhead."

Other interesting nuggets from the session:

- The Rule of 3: in most mature industries, only 3 firms will dominate (up to 90% of market share). "Which 3?" is an interesting question for independent b-d's to ponder.

- A brand is what your CUSTOMERS think you stand for - not what YOU think you stand for.

- Get a "definition" of your firm's marketing type ("growth champion," "brand builder," "best practices advisor" etc.) at Marketing Profiler: Here's the link.

East-West Trivia

Trivia question of the day, from Pat Lencioni's opening keynote speech: What is the difference in how West Coasters and East Coasters say "good morning"? Email us if you know the answer.