Sunday Email - Purpose Process / Trust

Read time: ~5.45 minutes

Happy Sunday!

Every Sunday I offer strategies for the week ahead and a thought to fuel your action.

Passion ignites innovation and purpose, driving success forward. This is vividly illustrated in the story of Patagonia.

It began with Yvon Chouinard selling handmade pitons from his car. These steel spikes, crucial for rock climbers' safety and ascent, were the heart of his business for 16 years. 

Chouinard's dedication to perfecting this essential climbing tool led to expanding into clothing - a line specifically designed for rock climbers' needs, combining practicality with technical precision.

Today, Patagonia is more than a well-known outdoor brand. It's evolved into a cultural phenomenon, a symbol of authenticity. Wearing Patagonia is like wearing a badge of honor, and for good reason. They've transcended traditional branding, creating a purpose-driven identity.

Bain & Company's Elements of Value pyramid illustrates this transformation beautifully. It outlines four levels: functional, emotional, life-changing, and social impact. Brands like Patagonia that tap into multiple levels create a loyalty that goes beyond their products.

Patagonia exemplifies this. 

On a functional level, their gear is aesthetically pleasing, comfortable, and built to last. Emotionally, they connect through thoughtful design, crafted by and for rock climbers. Their commitment to quality and the environment fosters a sense of belonging among their customers. And at the highest level, their eco-friendly practices and stance on environmental issues elevate their community, creating a profound social impact.

Ultimately, as seen with Patagonia, our goal as an industry should be to extend beyond the value of our specific service. And, instead, help our clients align to an individual purpose that creates internal impact, similar to the external impact seen at Patagonia. 

What can this mean for our clients? 

Let’s start with this. Why do we get upset with things? It’s actually based on a simple equation: expectations - reality. 

• Expectations < Reality = excited, happy, delight

• Expectations > Reality = Frustration, anger, being mad

A purpose is a plan. 

Think of that time you have gone on a road trip with no obligations at your destination. Just a general excitement to get there. The traffic you hit isn’t as bothersome. You are more liberal on bathroom stops for the kids. And you are in a good mood, no matter how fast or slow it takes to get to your destination. 

On the other side of the coin, having obligations at your destination leads to angst. From ensuring you get out of the door at the right time. Traffic is more bothersome. Bathroom stops are less frequent. And the mood on arrival is a bit more uptight. 

Having a purpose creates the environment of the road trip with no restrictions or commitments. Reaching the destination is for nobody other than oneself. Nobody is requiring it. A boss isn’t imposing a deadline. It’s bigger than any task. It’s a way of being. It’s freeing. It’s obligation free. 

Of course, a purpose doesn’t guarantee perpetual happiness or elimination of challenges. Yeah, traffic, speed bumps, detours… all of it will occur. But they will be taken in stride knowing there is this greater purpose acting as a guide. The feeling allows for a sense of freedom to continue to explore and know that the purpose is greater than any “destination.” A deeper energy and motivation will push one through the challenges, enhancing perseverance and resilience. 

Wealth management must evolve beyond numbers to encompass values and reflection. It’s about guiding clients towards a purpose that transcends material wealth.

Advisors who embrace a purpose philosophy will stand out. This approach isn't just impactful for clients; it revolutionizes our industry's role.

Joe Duran of United Capital understood this. His focus on aligning financial advice with clients' deeper life goals led to remarkable success.

So, what might this look like in practice?

• Self-Reflection & Exploration: Encourage clients to delve into their past, exploring both highs and lows to uncover their passions.

• Identification of Values & Passions: Use this reflection to align couples on their shared and individual values.

• Assess Strengths and Skills: Identify what clients excel at and how these can align with their values and passions.

• Visualization: Employ technology or other methods to help clients envision a future that goes beyond conventional retirement plans like a beach house.

• Goal Setting: Set goals focused on personal growth, health, and social connectivity.

• Explore Paths: Guide clients in identifying tools and strategies to achieve their goals.

• Develop and Execute: Create a comprehensive plan with regular check-ins to ensure progress (what we know how to do already).

This approach may be a departure from traditional wealth management, but it’s a vital blend of finance and life planning. Like Patagonia, firms that pivot to a purpose-driven model will not only succeed; they'll redefine our industry's impact.

In essence, the future of wealth management lies in helping clients uncover and pursue their purpose, offering a journey not just to financial security but to a purposeful life.

A Thought To Ponder This Week

Ever wonder about the state of trust these days?

Do we trust each other more or less than we did 5, 10, or even 20 years ago? With our lives more connected than ever, it's ironic that while connections have multiplied, trust seems to have taken a back seat.

In this era of information overload, it's like trying to find a needle in a haystack when deciding whom or what to trust.

Charlie Munger says it best:

“The highest form that civilization can reach is a seamless web of deserved trust—not much procedure, just totally reliable people correctly trusting one another. . . . In your own life what you want is a seamless web of deserved trust."

That hits the nail on the head, doesn't it? We all yearn for that simplicity in trust. To effortlessly trust and be trusted in return.

Yet, achieving this seems like climbing a mountain backwards. Is it the overwhelming connectivity? The stark polarization? It's tough to pinpoint the trigger, but we know it's out there.

In the world of wealth management, where trust isn't just nice to have but essential, it should be our to reinforce trust at every turn.

 As we head into the weekend, a thought to ponder is this: what tweak can we make in our business this week to position the firm to build more trust with clients in the days, weeks, months and years ahead? 

The best is ahead!

-Matt