The need for innovation

By Lee Rossini

Change has been thrust upon us, whether we want it or not and the future is unpredictable and non-linear. This means that to keep our businesses going, we need to be innovative, to think differently and be willing to take risks that we never thought possible. Although there will be services that will revert to what we knew, many services will need to change. This need to change will create space for businesses to re-imagine previously accepted ways of doing things. To take hold of the opportunities requires innovation and flexibility.

Innovation is the process of implementing new ideas; it is about doing things differently. It is about the application of better solutions that meet the new requirements and unarticulated needs or existing market needs. It is applying our current knowledge in new, meaningful, and creative ways results in innovation. This includes overcoming the obstacles and limitations that may lie in the path of implementing an innovative idea.

There are many different aspects of a financial advice business that are open to innovation, including a complete or partial overhaul of the business model.  Some of these include:

• Checking where expenses can be reduced and running a leaner business operation.
• Consider working remotely in the future. After lockdown is lifted, look at the possibility of employees only coming into the office only if there is a need, for example, to see clients.
• Research the possibility of working four days and giving staff a Friday off. This can be a day to do chores, relax, to catch up on work or to think deeply about a new project or problem that requires an innovative solution. Research is demonstrating that staff are more productive when working fewer days.
• Consider the possibility of outsourcing non-core activities and focusing only on the core business.
• Reward employees on outcomes. This enables remote or distributive working.
• Collaborate more with colleagues and other financial advice businesses.
• Research innovative ways of delivering outstanding service to clients online.
• Focus on financial advice rather than product advice.
• Focus on client engagement.
• Work with a business coach and a personal coach. The business coach will assist you with testing your innovative ideas and whether they will work in your business and the personal coach will support you in letting go of old ways of doing things.

How can innovation be encouraged? New ways of doing things will only happen through an openness to new ideas. Take your current business model and work through the different aspects checking what you could do differently. Read about thought leaders, ask colleagues who are innovative in their business thinking and application. Ask your employees for ideas and more importantly, ask your clients about the type of financial advice and service they would like to experience.

The disruption due to COVID-19 has been severe, however, as with most economic crises, new and innovative ideas will start to emerge once the dust has settled. Things will be different, but the opportunities will be there. It will take innovation, resilience, agility, and the willingness to take a risk to take advantage of them. Use this time as an opportunity to pivot; to change course and to transform your business. As the old saying goes, necessity is the mother of invention and the innovations made today may serve us far better when the next crisis hits.