It’s that time of the year when we must begin thinking about our goals for 2018(!). Investment managers should be especially motivated to do so, as the industry is in the midst of an upheaval. The latest reminder of this is a recent study published by the World Economic Forum. In sum, there will be continued pressure to scale the delivery of investment advice with diminishing resources. The three forces driving this groundswell are margin compression, automation and AI, and growth in external service providers. The end result will be non-core functions growing commoditized and value-chains shifting considerably.
Most agree on the problems. The solutions are comparatively elusive because most investment management firms have a narrow area of expertise.
Adam Grant’s Originals: How Non-Conformists Move the World identifies why solutions like these can be elusive. A key factor is that gaining expertise in a specific area leaves you beholden to its status quo. But Grant says that the status quo is under siege - an assessment consistent with the WEF’s study. This may not be readily apparent however because, according to Grant, hubris usually accompanies success. So as the status quo changes, previous success will likely result in poor performance.
See: Past performance is not indicative of future results.
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Grant channels the great economist Albert Hirschman in stating the four choices one has when confronted with a new environment: exit, voice, persistence, and neglect: “Exit means removing yourself from the situation altogether; voice involves actively trying to improve the situation; persistence is gritting your teeth and bearing it, even though you disagree with it; neglect entails staying in the current situation but reducing your effort, doing just enough at work not to get fired.”
If you’ve read this far, you probably fall into either the “voice” or the “persistence” category. You've probably caught yourself looking around for changes that can be made to help your firm compete, whether that means a more refined investment process or improved methods of client acquisition. At Harvest, we can’t help you with the former, but we can help revitalize your marketing and distribution efforts. Our platform is built to help scale your audience with fewer resources. Considering the WEF study, this type of approach can no longer be considered a novelty; it is a necessity.
Join us on Friday, October, 13 for our next webinar, What Does a Data Driven Product Marketing Campaign Look Like? In it, CMO Bob Dryzgula, will discuss how to create, distribute, measure, and learn throughout a campaign in order to improve your chances of raising assets.