The Drive to Excel
What motivates someone who has built a nine-figure financial advisory firm to continue growing? For John Nicola, the founder and CEO of Nicola Wealth Management, he desires to build a sustainable business and leave a legacy. All of us want to push as big a rock as we are capable of moving. The more capable the individual and the greater the motivation to excel, the bigger the rock they will attempt to push forward. John’s Vision is to build a business that ranks as one of Canada's biggest independent financial advisory firms. John applies the mantra to achieve his objectives: “You have to do it yourself, and you can’t do it alone.” John has achieved the pinnacle of individual success as a financial advisor. He is a Top of the Table Advisor, ranking in the top 1% of all advisors worldwide. When we first started working with Nicola Wealth Management, the firm managed $860 million in assets. It has grown to manage over $7 billion in assets on behalf of clients. John is reaching beyond personal accomplishment to build a world-class financial advisory firm.
Building a great business requires a high level of individual and organizational effectiveness. There are four dimensions of individual effectiveness:
- Cognitive Capability
- Knowledge and Expertise
- Personal and Relationship Skills
- Motivation
Dr Elliott Jaques, a behavioural scientist, demonstrated that cognitive capability is an important determinant of individual effectiveness in a role. Cognitive capability is the ability to exercise judgment, to solve difficult problems. In his research, Jaques identified natural “strata” of cognitive capacity in individuals. Cognitive capability consists of our ability to deal with complexity. Generally speaking, as a business grows and we assume more responsibility in building and managing the organization, we are required to perform more complex tasks. In terms of cognitive capability, John Nicola is a transformative thinker. He is thinking and working on tasks related to growing the business over the next ten years and beyond (see chart below).
Knowledge and expertise become more involved and complex as we assume more responsibility. John is building an organization that presently has over two hundred people and a nine-figure revenue stream. As CEO, he is required to develop knowledge and expertise in business strategy, putting in place the right structure and systems and attracting and retaining the best people. In short, he is required to work in parallel on tasks that include business and financial management, marketing, sales, client service, acquisitions, talent pool development, and career pathing. As an entrepreneur, he has learned on the job and through continuous study. John is a great advisor who has learned how to be a leader and manager. He is also a transformational leader. He is concerned about business viability, return on capital, and shareholder wealth. He employs innovative thinking with regard to the business model for Nicola Wealth Management.
Personal skills include self-management in such areas as time management, financial management, personal health and well-being. Entrepreneurs, more than most people, must have discipline, patience, and faith. Like other very successful entrepreneurs, John has a strong sense of personal accountability and an optimistic view of the future. Relationship skills are essential to building a high-performing team. To build a great business, you have to be attuned to the needs of all the stakeholders in the enterprise, from clients to employees, suppliers, and the community. John is at the integrative stage of his career development. He is able to integrate work, family, community, and personal interests in leading a balanced and complete life. Integrators can keep “five balls in the air.” They are effective in their work, involvement with their family and community while maintaining personal health and well-being and continuous learning. In other words, they have mastered personal and interpersonal effectiveness.
Generally speaking, we are motivated to do work that we value. Our experience in working with great entrepreneurs and bright people like John is that the motivation to grow is tied to the desire to do more intellectually challenging work. There is a lot of complexity involved in realizing the Nicola Vision. There are very few people who can do it. The drive to excel comes from a willingness to extend oneself in order to achieve great things, combined with the ability to meet the intellectual challenge, learn the necessary knowledge and skills, and gain personal and interpersonal mastery.
However, as John Nicola will readily attest, the realization of his vision is dependent upon building organizational capability. Build the organization, and the organization will build the business. Nicola Wealth Management has a very strong management team with John as the CEO, David Sung as the President and the leader of the Planning team, Jamie Duncan as the Chief Operating Officer responsible for the overall operations of the company, Karen Ikeda, responsible for the Wealth Management Division, Rob Edel as the Chief Investment Officer, Michael Taylor as CFO and Wayman Crosby. Each of the senior managers brings a depth and breadth of knowledge and expertise in their disciplines. John and the rest of the management team recognize that each of the firm’s leaders provides unique abilities that complement each other. Diversity does breed strength.
The senior leadership has a strong commitment to attracting and retaining the best people and providing them with the professional development necessary to realize their potential. The firm is investing heavily in the training and development of the people in the organization. In addition, there is a significant commitment to have state-of-the-art technology in place that supports the delivery of exceptional service to the High Net Worth (HNW) market. All great leaders recognize that they can only realize the fullness of their potential by surrounding themselves with competent people and bringing out the best in them.
While the above example might seem a stretch for many of you, it brings home the point of understanding the required organization for you.
SUMMARY
The John Nicola story illustrates the levels of complexity involved in building your business. It also highlights the depth of knowledge and expertise, personal and relationship skills and motivation required to excel. At each level, you will encounter a test of your ability to implement your strategy for growing your business. Each of these levels of complexity presents a test of your implementation capabilities.
Five tests to the implementation of your business strategy:
- What is your business model?
- What new products and services do you bring on board?
- How do you identify and implement your systems and processes?
- How do you assure quality and continuous improvement?
- What does service excellence mean?
The starting point is the articulation of your business model. The answers to questions 2 through 5 reflect the methods you will use to implement your model.
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The Covenant Group is referred to by many as the place entrepreneurs go to become Business Builders. They are considered to be thought leaders and have authored the best-selling books, The 8 Best Practices of High- Performing Salespeople, The Entrepreneurial Journey, and The Business Builder.