Keith Jacoby: How to Build and Lead a Large Wealth Management Firm
Barron's Advisor
Deep Dive
What is Keith Jacoby's approach to leadership and advisor development at Clarity Wealth?
Keith Jacoby focuses on process development and advisor development as CEO of Clarity Wealth. He emphasizes creating a consistent and repeatable advice delivery process, allowing advisors to take lead roles while ensuring clients receive a seamless experience. He also prioritizes advisor development by mentoring and transitioning senior advisors to support roles, enabling younger professionals to grow into lead positions.
How has Clarity Wealth grown in terms of assets under management (AUM) and team size?
Clarity Wealth has seen significant growth, with AUM and revenue increasing by 150% and headcount growing over 200% in the last two years. The firm now manages nearly $6 billion in AUM with 53 financial professionals across three offices.
What is the ensemble concept at Clarity Wealth, and how does it benefit advisors?
The ensemble concept at Clarity Wealth involves a team-based approach where advisors work collaboratively rather than managing individual books of business. This structure allows advisors to avoid plateauing by transitioning client relationships to support advisors, ensuring continuous growth and career development. Compensation is shared across the team, fostering collaboration and reducing silos.
How does Clarity Wealth handle the transfer of trust during advisor transitions?
Clarity Wealth uses a clearly defined, consistent, and repeatable advice delivery process to ensure smooth transitions. Support advisors sit in second chair during client meetings, gradually taking on more responsibilities until they can lead meetings independently. This approach maintains client confidence and ensures a seamless experience.
What role does process play in client satisfaction at Clarity Wealth?
Process is central to client satisfaction at Clarity Wealth. The firm uses a refined, repeatable advice delivery process that ensures consistency and quality. Clients receive the same experience, deliverables, and messaging, regardless of which advisor they work with. This process also allows for smooth transitions during advisor changes, maintaining client trust and satisfaction.
What are Clarity Wealth's core values, and how do they shape the firm's culture?
Clarity Wealth's core values are: 1) We care about clients and colleagues, 2) We take ownership of our roles, 3) We do things right by following a process-driven approach, and 4) We go the extra mile to exceed expectations. These values guide hiring, decision-making, and client interactions, fostering a culture of collaboration, accountability, and exceptional service.
How does Clarity Wealth approach talent acquisition and development?
Clarity Wealth focuses on hiring individuals who align with the firm's core values and have the potential to grow into leadership roles. The firm emphasizes mentorship, with senior advisors guiding younger professionals through a structured career path. This includes second-chair roles, gradual responsibility increases, and opportunities for professional development, such as earning the CFP designation.
What are Keith Jacoby's book recommendations for improving personal and business processes?
Keith Jacoby recommends three books for improving processes: 1) 'Getting Things Done' by David Allen for personal productivity, 2) 'Traction' by Gino Wickman for business structure and leadership, and 3) 'Shine' by Gino Wickman for entrepreneurial growth and personal fulfillment. These books emphasize the importance of structure, clarity, and continuous improvement.
What is Clarity Wealth's strategy for organic and inorganic growth?
Clarity Wealth's growth strategy includes both organic and inorganic elements. Inorganic growth comes from executing succession plans and acquiring retiring advisors' practices. Organic growth is driven by enhancing client experiences, building capacity, and fostering referrals through strategic partnerships and client events. The firm also focuses on creating capacity to support growth and re-engaging clients with fresh planning strategies.
How does Clarity Wealth ensure advisors are well-compensated and motivated?
Clarity Wealth uses a career track-based compensation plan that aligns with advisors' roles and responsibilities. Wealth advisors may have an 80-20 base-to-incentive split, while managing directors are more heavily incentivized based on firm revenue. The firm also plans to introduce long-term incentives, such as equity or profit-sharing, to reward advisors for their contributions to growth.
- Initially rejected by financial services firms
- Sold copiers door-to-door to gain sales experience
- Secured a position at Prudential Securities
- Progressed to leading a $5.7 billion business
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