Great advisors help organizations solve problems, improve business performance, create value and maximize growth.

Good advisors are like gold

The relationship between a Pensions Manager or Trustee and their advisor can (and should) be mutually beneficial. Sadly, that’s not always the case and I’ve sometimes worked with apathetic advisors who don’t feel invested in a scheme’s success and push their own agenda. However, I’ve also worked with some of the best advisors who know how to strike the perfect balance.

Good advisors are like gold; you want to hold onto them and never let them go, they provide a valuable resource and, if you’re very lucky, they will always hold their value in providing sound expertise and unbiased advice. The advisors that are truly priceless will also challenge and push you to fully exploit your potential.

In order to find the best advisor for you, spend time identifying where you actually need help. It may sound obvious but if you don’t know what advice you need you won’t get the right advisor for the job. That often means the relationship is doomed from the start.

Then, start to seek out advisors with a proven track record in their field. Talk to them and find out what excites and challenges them and make sure there is genuine rapport.

Key take-away: Real knowledge is knowing the extent of your ignorance

It’s all about the chemistry

Any successful relationship in both your personal or professional life relies on chemistry and any advising partnership needs to start with some level of rapport. Of course, we don’t expect you to find a soulmate but having a common passion is helpful and sharing the same sense of humour is always advantageous.

This is a professional relationship that will thrive when all parties can be frank, honest and objective. Having an advisor that is an expert in their field goes without saying, but you also need to feel happy with their approach and personality. Similarly, they need to reciprocate and be comfortable with you.

But beware – good advisor relationships should never get too comfortable. Both parties should always be asking the big and small questions (and getting answers), analysing previous strategies, suggesting new ones and being alert to any blind spots.

Treat an advisor like a colleague with whom you are given the freedom to politely disagree and don’t make it a one-way relationship. As well as learning from an advisor, you could reverse mentor them too. When we give and support we also gain and grow.

Key take-away: You don’t have to love each other – but it’s useful to like each other.

Set objectives from the outset

Good advisors should be deep into the ecosystem you are tackling. It is critical to allow ourselves to think strategically, which also ensures we mitigate headline risk.

Set specific goals at the outset and create an actual living, breathing plan with deadlines and milestones. You can adjust along the way, but build in metrics so you know you are actually making progress.

Key take-away: If you don’t know where you are going – how will you know if you’ve arrived?

VFM, evaluation (and removal)

It is important to implement a fair process that both parties agree to which regularly evaluates advisor performance and service. Start with value for money.

Are the services aligned to your needs? Be clear which services are ‘in scope’ and which are “out of scope”. I was once quoted £1,000 per hour – was I getting a pensions genius? Ensure that you’re comfortable setting the process for negotiating and agreeing fees because if you don’t ask – you don’t get.  

Do you budget and track scheme costs – the same ones that hit the P&L? Do you challenge budgets where you are not getting value for money? Anybody can cut costs but not all can create real value. However, don’t undervalue your advisor either. Commercial acumen and the right mix of skills requires a degree of spend that will provide a return on itself many times over.

Evaluating performance should be ongoing and exit terms are vitally important – so don’t overlook them. Consider whether the information provided by the advisor has been explained in terms you can easily understand? Do you feel that your advisor responds well to urgent, contentious or sensitive issues? Are you happy with their ability to proactively raise matters? If the answer is no then it’s time to make a change.

Key take-away: Nobody wants to be overcharged but equally you will have to pay for the right advice – it’s up to you to ensure it represents value for money by setting up wellness checks along the way so you can tweak the relationship and steer it in the right direction.

And remember,

The best advising relationships are those that challenge you. Having the proverbial ‘yes man or woman’ isn’t doing you any favours. Find an advisor that continually takes you out of your comfort zone – even if it feels like a penance. These are the people that will help you make tough decisions, push you to your limits, and even tell you when your jokes are weak.

Key take-away: Remind your advisors to always be honest and never pull punches. You can always hug it out later.