G2: Building the Next Generation

G2: Building the Next Generation

by Philip Palaveev


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Vital guidance to ensuring the future of your firm

G2: Building the Next Generation provides financial advisory firms with a clear roadmap to management succession. Based on the author's 17 years of experience with over 1,000 firms, this book provides a systematic process to help you identify, develop, and install the new leadership that will guide your firm's future. Extensive statistical research backs proven strategies for structuring management and succession, overcoming obstacles, selling equity, and more, while expert guidance walks you through the process and warn you of potential pitfalls along the way.

A generation of entrepreneurs used their talent and ambition to build an industry; to ensure that their success lives on, those leaders now face the formidable challenge of succession. With the future of your firm at stake, how do you recruit, train, mentor, and develop the next generation of professionals, owners, and leaders? This book shows you how to find the people you need, and develop them into the leadership your firm deserves.

  • Identify and develop future leaders from the pool of existing and upcoming talent
  • Structure management and management succession to ensure successful transition
  • Begin selling equity to your firm's next generation of leaders
  • Learn smart strategies for dealing with setbacks along the way

The next generation of leaders will shape the future of your firm, but collectively, they will define the future of the entire advisory industry. Firms who succeed in developing their best talent will continue to thrive—those who fail will be left with a great car, but no driver. Getting this right may be one of the most critical points of your career, and it isn't something that should be left to chance or "gut feeling". G2: Building the Next Generation gives you a solid, grounded, systematic approach for ensuring your firm's long-lived success.

Product Details

ISBN-13: 9781119370062
Publisher: Wiley
Publication date: 09/18/2017
Series: Bloomberg Financial Series
Pages: 256
Sales rank: 542,176
Product dimensions: 5.90(w) x 9.10(h) x 1.10(d)

About the Author

PHILIP PALAVEEV is the founder and CEO of The Ensemble Practice, LLC, and a recognized expert on the management of financial advisory firms and teams. Palaveev also is a business owner who speaks from the perspective of having built and managed successful businesses. He is the author of The Ensemble Practice.

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Table of Contents



Chapter 1 Who Are G2?

Defining G2

Developing the Next Generation Is Critical

Just Hiring Them Is Not Enough (But Start There)

What G2 Professionals Need

G2 Needs to Take Over Client Relationships

G2 Are the Future

Chapter 2 The Career Track

The Advisory Career Track

Non-Client-Facing Career Tracks

Progressing through the Career Track

Being Flat

Top Performers

Reaching the End of the Track

Chapter 3 Recruiting G2

Beginning with the End in Mind

Hiring Levels

Becoming the Employer of Choice


Recruiting in Small Markets



Opportunistic Hiring

Experienced Hires

Chapter 4 Taking Over Client Relationships

What Is a Lead Advisor?

Qualities of a Trusted Advisor

Transitioning the Lead to G2

Chapter 5 How Advisory Firms Develop New Business

The Business Development Process

When and How Clients Act

Existing Clients as a Referral Source

Some Theories about Referrals

Other Referral Sources

Beyond Referrals

The Simple Mathematics of Reputation-Based Selling

Principles of Business Development

Chapter 6 Be a Business Developer

The Four Stages of Learning to Develop New Business

Solving a Puzzle

Finding Your Mentor

Learning to Ask Questions and Listen

Finding Your Specialty

Developing a Niche

Following a Disciplined Process

Be Persistent

Chapter 7 Managing People

Defining Management

Prioritizing Management and Communication

Accepting Responsibility

Providing Feedback

Dealing with Poorly Performing Team Members

Performance Evaluations

Being a Mentor

Chapter 8 Managing Up

Speaking Up

Getting Involved

Taking Responsibility for Your Team

Supporting Your Colleagues

Measuring Your Criticism

Managing Your Own Expectations

Chapter 9 Managing Yourself

Defining Balance of Life

Balancing Time

Dealing with Weaknesses

Thoughtful Communication

On the Value of Conflict

Looking at Your Own Plate

Chapter 10 Owner, Manager, and Leader

Defining Owner, Manager, and Leader



Chapter 11 Adding Owners: The Firm Perspective

Criteria for Ownership/Partnership

Admission Process

Adding Family Members as Partners

Laying the Foundation for New Partners

Tackling Buy-In Financing and Valuation

Onboarding Partners

Chapter 12 Buying Equity: The G2 Perspective

What Does It Mean to Be an Owner?

Key Questions to Ask

Should You Buy Equity?

The Characteristics of Equity

Understanding Your Ownership Agreement

Small Firms and Family Firms

Owner Compensation

What If the Ownership Agreement Isn’t Right for You

Understanding the Valuation and the Price

Organizing Your Personal Finances

Beyond the First Purchase

Chapter 13 The Ownership and Governance Foundation for G2

Career Investment

Stability and Governance

Elements of Governance

Governance as a Function of Size

Reviewing Your Governance Model

Achieving Results

Chapter 14 Succession

Different Aspects of Succession

Internal Succession of Ownership

Finding the Motivation

The Big Transaction

A Large Number of Small Transactions

Passive Ownership

The Intermittent Transaction

Equity-Based Compensation

Profits Interest Options

Nonvoting Shares

Synthetic Equity

Mergers Facilitating Succession

Creating a Permanent Firm

Chapter 15 Keeping Up with the Industry

Being a Student of the Industry

Developing Your Industry Connections

Benchmarking Your Client Services

Learning Best Practices

Participating in External Training

Contributing to the Industry

Chapter 16 Conclusion

From G2 to G3

A Note of Optimism


About the Author


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