In 1993, I was hired as the “gatekeeper” of the largest Independent Broker-Dealer in the US – Royal Alliance. Every day, I would work with folks on the asset management side and help them better position their mutual funds within our community of advisors. At the time, my best relationships were with Putnam, Eaton Vance, Oppenheimer, MFS, AIM, Nuveen, and Fidelity Advisors. I still maintain relationships with many of these folks.
The beauty of the business back then was it was all relationship-driven. If you had strong, durable relationships, then you were given access and became a priority. You got good booth placement at conferences (near the bar), your speakers got ideal speaking times, and your products became approved with little headwind. In hindsight, I had solid relationships but was not as influential as my ego thought. Sure, I helped from a visibility standpoint but didn’t drive the sales process.
While the National Account role has evolved throughout the years, it has also created an inverse balance versus what it used to be. Getting access via relationships is no longer the priority, and now it is product placement; specifically access to research and discretionary models. We have moved into an environment I have labeled, Matrix Management. If a home office is going to give you access, it has to go through their matrix, which includes meeting certain criteria: AUM, fees, manager tenure, etc. We all know what these matrixes did to your product line-up when product rationalization occurred. Unfortunately, your relationships had little impact on these decisions. I am not suggesting that you were not able to save a few products during this rationalization, but you definitely lost more than you won.
This type of evolution is expected, given the volume of relationships the home office needs to maintain. What was once a local grocery store was now turned into a Walmart, and it is not feasible for them to realistically shelf all available products. While your relationships might give you some priority of visibility, it is probably not moving the needle in a meaningful way – translation: SALES
So, as a Nation Account person, you really only have one priority: infiltrating the Research Departments. This is your last bastion of hope to prove your worth. You will ultimately get graded on your ability to get products on their respective recommended lists and, ideally, get the “holy grail” of National Account achievement – placement in a discretionary account. Next to marriage and the birth of my children, winning placement in a discretionary account (especially when it includes “take-over” assets) is one of my most significant, life-altering events.
Now, here is the rub. To do this, it takes an Institutional approach to sales. This role requires you to be more of a CFA than the cool kid in high-school that everyone wants to be around. You need to marry your product knowledge acumen with your relationship and communication skills. Don’t be a “party planner” and simply arrange appointments for Portfolio Managers to visit with the Research Teams. Be a Product Specialist and make sure you can converse
intensely with the research teams. Make sure you are on the top of their Rolodex (if you even remember what that is) by proving you can speak their language and consistently add value to their daily activities. Your success will ultimately be determined by your ability to recognize and adapt to the changing dynamic behind the National Account relationships.
Good Luck