Whether it’s in sports or business, when the game changes, champions change the way they play it. And it doesn’t matter whether it’s on the court or in the boardroom; those who fail to identify trends and evolve typically hasten their own extinction.
In the past five years, professional basketball has experienced a three-point renaissance. Once considered a gimmick shot, the amount of three-point shots taken throughout the league has risen by more than 50%.
Teams that have evolved and embraced this change produced the best records in the league, while teams that failed to embrace the new way the game is being played and took the fewest three-pointers in the league are not making the playoffs—they're staying home.
One person’s trick shot is another person’s shot at a championship. It is the nature of competition that those who shift their tactical approach in the face of changing game conditions have a greater shot at winning. Likewise, not changing your game can be the fastest road to obsolescence.
When it comes to servicing 401(k) plan sponsors, what is the next evolution of the game? In a recent study Wells Fargo conducted with plan sponsors around the country, we learned that the number one factor sponsors used to differentiate advisors was plan engagement.
Gone are the days of showing up once a year and delivering plan-level reports. Plan sponsors told us that elite advisors consistently demonstrate their expertise by offering insights on potential ways to improve plan performance and participant education. They continually review plan health and demographics to provide active ongoing service to the plan and to justify their fees.
Active, continual plan engagement is the three-point shot of plan service. What was once the exception has become the rule—at least for the championship advisory practice.
Here is your three-point shot for a championship practice. Integrating these three actions into your plan service model will help demonstrate your value, build plan retention, and more:
Take action: The Science of Satisfaction: Client Feedback Surveys guide and template
Take action: Defined Contribution Plan Insights
Changing your game with strategy and purpose is a practice of champions. Paradigm shifts in sports or in business are common and should be expected, and the competitive advantage typically goes to those who can identify and implement the necessary adaptations.
When you embrace the three-point shot of plan engagement, excelling at client retention is only the beginning of your new advantage. You also will be competitively positioning your practice for long-term victory.
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