Why hiring a GM is a ‘necessary step’ for growth

Commencing earlier this month, Ed Terkelsen has joined Verse Wealth as its inaugural general manager, with the firm also appointing several other management positions as part of a strategic plan for the current financial year.

With the firm’s team expanding from five to almost 30 in four years, Verse Wealth chief executive Corey Wastle told ifa that bringing in a GM was a “necessary step” to ensure the firm could continue to grow, while also providing staff with individual support to ensure the best outcomes for them and their clients.

However, having held a number of GM positions in the past, Terkelsen explained that the responsibilities of a GM can vary considerably based on the size and maturity of the firm, while also filling any existing gaps in the business.

“You may come across a firm that has really strong skill sets around risk management and so the GM won’t need to spend as much time there,” Terkelsen told ifa.

“They may have to spend more time around the coaching aspect or client relations, providing dedicated leadership and support to client facing as well as back-office teammates, instilling operational efficiencies, executing on major initiatives, through helping identify strategic development opportunities.

“You’re really driven by the necessity of the firm that you’re working with.”

As much as the responsibilities of a GM are unique from firm to firm, so is the timing for when they should introduce a GM into the business, according to Terkelsen.

"As firm’s grow, it gets to the point where it’s no longer commercial ... for the principal/founder to be undertaking all the leadership and support for the development of advisers, associates and back office team mates," he said.

“If, as a practice principal, you’re spending more time in the business, rather than on the business, it could be a pretty good time to look for a GM that can provide the support that you need.”

Appearing on The ifa Show last year, senior consultant at Elixir Consulting and GSD Lab founder Lana Clark shared a similar sentiment, stating that “there is no tipping point” for when a business should get a GM, though she usually recommends considering once a firm reaches three to five advisers.

While the costs of bringing someone on in this role are not inconsequential, Terkelsen argued that employing a GM marks a significant “growth milestone” for an advice firm while also freeing up others within the business to spend more time with customers or chasing growth opportunities.

“There’s a lot of opportunity within the market, and me coming into this role means that it frees up capacity for others to get on and do what they really want to do,” he said.

“The vast majority are driven by that desire to really help clients, and all of them here at Verse are really heavily motivated by that desire to spend time with clients and help the clients live the life they want. So, anything that I can do here to give them back more time to be able to do that is a benefit.”

Terkelsen added: “In the long run, that’s how you enable that sustainable growth and improvement of the profitability of your firm.”