The Business World's Watershed Moment
A significant shift just occurred at the American Business Roundtable, where 181 CEOs of America's largest corporations, including Jeff Bezos, Tim Cook, and Jamie Dimon, signed a new mission statement. For the first time in nearly two decades, they've moved away from shareholder primacy to embrace a broader mandate: providing value to clients, employees, and stockholders alike.
This shift reflects a deeper transformation in how businesses relate to their clients—moving from product-centric to solution-centric approaches.
The Commoditization Challenge
Financial services face increasing commoditization across multiple areas:
Traditional Products Becoming Commodities
- Life insurance policies
- Annuities
- Asset management services
- Stock and bond trading
- Tax return preparation
- Basic compliance work
When services become commoditized, professionals are forced to compete on price or add-on services, creating a race to the bottom. This is particularly dangerous in 2019's marketplace.
What Clients Actually Want
The key to success lies in understanding that clients don't want products—they want solutions to problems:
Business Growth
- Revenue enhancement
- Leadership development
- Strategic planning
- Operational efficiency
Confidence and Clarity
- Financial planning guidance
- Business advisory services
- Clear path forward
- Strategic direction
Tax Reduction
- Business tax strategies
- Personal tax planning
- Long-term tax efficiency
- Strategic tax positioning
Protection
- Family security
- Business continuity
- Asset protection
- Risk management
The Power of One Point Person
Modern clients don't want to call multiple professionals for answers. They want:
- One trusted advisor to call
- Coordinated solutions
- Comprehensive planning
- Integrated approach
This doesn't mean one person needs to be an expert in everything. Instead, successful professionals are adopting the family office model:
- One primary point of contact
- Backed by a team of specialists
- Coordinated service delivery
- Comprehensive problem-solving
Moving Beyond Products
Success in modern financial services requires:
Shifting Focus
- From: Product sales and transactions
- To: Problem-solving and relationships
Building Teams
- Internal expertise
- External partnerships
- Specialist networks
- Coordinated delivery
Creating Value
- Understanding client needs
- Developing comprehensive solutions
- Coordinating expert resources
- Delivering integrated results
The Path Forward
To thrive in today's market:
- Stop competing on commoditized products
- Start focusing on solving real client problems
- Build or join professional networks that can deliver comprehensive solutions
- Position yourself as a trusted point person
- Create value through problem-solving rather than product sales
The future belongs to professionals who can move beyond selling products to become trusted problem-solvers for their clients. Like America's top CEOs, successful financial professionals are recognizing that focusing on client needs creates sustainable, growing practices that benefit everyone involved.
