The numbers speak for themselves: According to Schwab’s 2024 RIA Benchmarking Study, 82% of top-performing RIAs (the top 20%) have a written strategic plan—compared to only 44% of firms under $250 million in AUM and 68% of those above that mark. It’s hard to ignore the clear correlation between strategic planning and firm performance: lasting, sustainable growth doesn’t just happen; it comes from being intentional.
This spread makes sense. Most firms around the $250 million mark are typically run by one or two advisor/owners with maybe 2-3 other teammates, where the focus has been on prospecting and great client service. But as you add more people to your team, you need to start laying the groundwork with clear direction and strategy instead of just grinding forward. You shift from managing a practice to running a real businessa with a team. Scaling demands a plan—a cohesive vision that aligns your team, prioritizes long-term goals over daily distractions, and pushes you to lead, not just advise.
When strategic planning is done with the right mentality and framework, you’re set up to witness the proactive, team-aligned execution needed for sustainable growth. I’m not here to break down every tactical step of strategic planning today; rather, I want to show why a well-executed plan is crucial. Simply going through the motions won’t automatically make you one of those top performers from the Schwab study—it’s about laying the groundwork to execute properly.
When your team truly understands where you’re headed and why it matters, your firm becomes a magnet for top advisors, talent, and clients who want to be part of something bigger. This is about building something bigger together—not just a practice—and getting everyone rowing in the same direction to finally break through those growth ceilings.
Proactive Planning = The Bedrock of Sustainable Growth
Too many RIAs spend their days putting out fires. That reactive approach leads to three big issues:
- Reactionary Decision-Making: Accepting clients indiscriminately rather than strategically selecting those who align with your growth trajectory.
- Unexplored Potential: Failing to fully capitalize on specialized market segments or expand service offerings strategically.
- Team Exhaustion: Advisors juggling an unsustainable combination of client relationships, new business prospecting, compliance requirements, and operational responsibilities.
In contrast, forward-thinking firms leverage strategic planning to:
- Anticipate Evolution: Identify potential resource gaps before they impede growth.
- Deploy Resources Strategically: Channel investments of time, capital, and talent toward the highest-impact initiatives.
- Capitalize on Market Opportunities: Confidently expand into new client niches or service offerings that prospective clients are demanding.
The point isn’t about having a crystal ball; it’s about being ready and prepared for what’s next. Sure, your plan will evolve, but moving from reactive chaos to purposeful, proactive execution is what makes the difference between chasing your tail and making real progress.
Team Alignment & Buy-In = Rowing in the Same Direction
No matter how great your strategy looks on paper, it won’t go anywhere without genuine team buy-in. Alignment doesn’t mean everyone agrees on every detail; it means they’re all moving forward with a shared goal.
Here’s how to build that alignment:
- Engage Everyone: Don’t limit discussions to just your leadership. Junior advisors, ops staff, and paraplanners can often identify problems and opportunities you don’t see.
- Disagree but Commit: Not everyone has to love every decision, but they do need to understand the reasoning and commit once the call is made.
- Assign Clear Ownership: Instead of vague goals like “improve client service,” set specific targets—like “reduce onboarding from 14 days to 7 days by Q3”—and assign one person to own each goal.
People support what they help create. Involving your team in the planning process builds the kind of energy and commitment that no memo can deliver. A fully aligned team executing a decent plan will always beat a fractured team chasing perfection.
Accountable Execution = No More “We’ll Try”
Plans often fail because there’s no real accountability. You see it all too often: a big committee forms, responsibilities blur, and nothing gets done. To avoid this, you need a framework that works:
- Individual Ownership: Don’t leave critical tasks to vague groups. One person needs to be the go-to for each objective.
- Link Incentives and Consequences: As Charlie Munger famously said, “Show me the incentives and I’ll show you the outcome.” Without clear rewards (or risks), nothing changes.
- Don’t Tolerate Stagnation: If someone keeps saying, “I didn’t have time,” it’s time to reexamine their role and priorities. Mediocrity drains momentum.
We see this struggle a lot in RIAs where client-facing advisors try to run the firm. Saying “clients come first” often means there’s no time left for strategic work. To truly grow, you must separate these roles or set strict boundaries so that firm-building doesn’t get sidelined.
Leadership: The Foundation of It All
Strategic planning isn’t a once-a-year event—it’s a core leadership responsibility. Good leadership takes a plan from theory to reality.
Three non-negotiables for leaders:
- Transparency: Don’t leave your team guessing why big decisions are made. When they understand the rationale, they’ll be more willing to tackle the tough stuff.
- Empowerment: Delegate decision-making to those on the front lines. Often, the best insights come from those closest to the work.
- Communication: Hold regular team huddles and skip-level meetings to share wins, discuss challenges, and ensure everyone knows the goals. Keep it simple and avoid buzzwords—speak plainly about what matters.
At a recent Summit Growth Partners conference, reported on by WealthManagement.com, General Jim Mattis said, “In future battles, outcomes will depend on the aligned independence of subordinate units.” That’s exactly it—teams that understand the mission can make faster, smarter decisions on their own, which is half the battle in effective leadership.
Scaling Past $500M AUM = Where Leadership Begins to Matter Most
When RIAs hit the ~$500 million mark and aim for $1 billion or more, you face a crossroads. It’s not about giving up client work entirely—you simply need to be disciplined about dedicating 25-50% of your time to working on the firm. Here are your options:
- Transition Yourself: Shift from being a hands-on advisor to running the business like a CEO by setting aside dedicated time to focus on strategy and growth.
- Bring in Leadership: Alternatively, or in addition, bring on key leaders like a COO or CFO to manage the growing complexities.
Too many firms stall because the founding advisor remains so immersed in client work that there’s little time left for strategic growth. Carving out that crucial time for the business—and holding yourself accountable to clear, strategic goals—is essential for breaking through to the next level.
Becoming a Magnet = How a Strategic Vision Attracts Talent, Clients, and Ambassadors
A strategic plan isn’t just for internal organization—it’s a secret weapon for attracting top talent, winning new clients, and turning existing ones into passionate advocates.
Here’s why it works:
- Top Advisors: They want more than just a paycheck—they’re looking for a firm with a clear vision and real growth potential.
- Clients: They aren’t choosing a random wealth manager; they want to know where you’re headed and why it matters.
- Ambassadors: When clients see your clear direction and feel part of your story, they naturally spread the word, drawing in more like-minded people.
Think of your strategic plan as your firm’s story. When you clearly lay out where you want to be in the next three to five years, everyone—from top advisors to loyal clients—gets excited to be part of the journey.
How to Get Started
Feeling fired up but not sure where to begin? Here’s a practical game plan:
- Set a Date and Get Offsite: Block out time for a dedicated offsite meeting with your core team to kick things off. (Going offsite separates it from the typical day-to day operating of the firm.) It doesn’t have to be perfect, and you certainly won’t finalize your entire strategic plan in one day. Strategic planning is an ongoing process, and the plan will undoubtedly evolve over time.
- Prepare the Right Deliverables: Before the meeting, give your team a meeting gameplan, combined with a clear list of questions and topics so they can arrive ready to share insights. Proper preparation is half the battle—outline what you want to discuss and make sure the right data or reports are on hand.
- Define Your North Star: Use the offsite time to start sketching where you want the firm to be in the next 3–5 years. Don’t worry about refining every detail; just get the big-picture vision on paper and look to work backwards on how you plan to get their
- Assign Ownership: When you do establish actionable goals, make sure each one has a single owner. This stops things from slipping through the cracks.
- Communicate Relentlessly: We recommend quarterly strategic planning sessions to keep momentum. Between meetings, hold short weekly huddles to track progress. Share wins, address hiccups, and keep everyone in the loop.
- Include Everyone (in Some Capacity): Not everyone can attend every strategic session, but do gather feedback from frontline staff. As Elon Musk’s skip-level meetings illustrate, those closest to the work often have the best insights.
- Consider a Facilitator: If you’re new to this process or uncomfortable leading these discussions, bring in a neutral third-party facilitator. They can surface the tough questions you might shy away from and ensure every voice is heard. Remember, it might take a few sessions to feel like you’re making real progress—don’t give up. The discipline of consistently refining your plan is what ultimately drives growth and keeps everyone working together toward your evolving North Star.
Concluding Thoughts
Most RIAs won’t do any of this if they aren’t already. They’ll keep going with business as usual, see incremental growth at best, and call it a day. But if you want something bigger—if you’re truly serious about scaling—here’s what you should remember:
- Lead, don’t just advise: Decide if you’re going to lighten your client load or bring in dedicated leadership to steer the ship.
- Align, don’t just plan: Involve your whole team in building the plan—this is how you spark real commitment.
- Execute, don’t just hope: Hold people accountable, assign clear ownership, and tie meaningful incentives to results.
A robust strategic plan sets you on the path to proactive, team-aligned execution—where everyone knows their role and is excited about the destination. In wealth management, it’s easy to say “the client comes first” and let everything else slide. But if you do that, you’ll never break through to the next level.
Embrace strategic planning. Empower your team. And get ready to see how an intentional, disciplined strategy can catapult your firm forward. Because if you fail to plan, you’re essentially planning to progress forward at this stage of your business—and I know you’re aiming for so much more than that.