Putting the P in partnership: A five-step plan

When wealth managers consider technology and outsourcing, there can be a misconception that selection is purely about price and function. At SEI, we believe culture is critical and a focus on people should be a top consideration when choosing a strategic partner for the long term. Culture in this context is well-defined in research by Grant Thornton, which reveals that a sense of community, investment in employees, and a purpose and value system are the most valued components of culture¹.

This trend reflects what wealth managers are seeing amongst their own customers. Research by EY reveals that while service and engagement are key considerations for selecting a wealth manager, purpose is becoming increasingly important, with 16% looking for sustainable investment options and 13% looking for a diverse team². 

Culture is also a key priority for regulators, and the recent consultation papers on diversity, equity, and inclusion published by the PRA and FCA reflect a continued drive to ensure culture and values are a key discussion point and action in the boardroom.

Focus on partnership

We are seeing a focus on culture at every stage of the selection process. This includes RFP questions, the roles of decision-makers, and the desire to get beyond the executive and understand the employee experience—the very fabric of an organisation. 

The scale and scope of the business transformation we deliver to our clients simply does not work if we are viewed purely as a vendor. We need to be working hand in hand with our clients and their people for years to come. Because of this, we believe that failing to consider cultural alignment as part of the buying process can lead to challenges in the implementation process and the long-term success of the strategic partnership.

So what should you consider at the outset of your buying process to ensure you find a strategic partner who is aligned with your values and shares your cultural DNA? 

1. Understand your own culture and assess against it

It may sound straightforward, but if you start the process by knowing what matters most to you, it makes it far easier to create the scorecard for evaluating a partner. For some firms, this is about their stated values, and for others, their mission or how they score and reward performance and success internally. 

Consider how this translates into practice. In many ways, your strategic partner’s people become a true extension of the team. Will they work at a similar pace, have the same expectations on communication, and perhaps critically, do they address challenges in the same way?

2. Bring HR and culture teams together

Organisations are increasingly bringing their HR teams into the process early, allowing them to share their foundations and strategies. 

Rather than feeling like a new hoop to get through from both sides, it’s important to recognise that people are the glue of a relationship . Involving HR and culture teams in the buying process is something we expect to be commonplace.  

3. Make time to understand peer-to-peer relationships

Strategic business partnerships can be won or lost on a senior team, but the reality is that people at every level will need to be able to work together. 

By taking the time to find the peer matches across both teams, spending time getting together, and understanding working practices, you’re at the beginning of imagining what a future of collaboration could look like. You start to discover how the wheels will turn and whether you can come together to deliver success.

4. Understand the people impact on both sides

It’s critical to understand the people impact. In some instances, clients need to move some team members to the strategic partner’s side, and some may move people around their own organisation to focus on different areas. 

A partnership needs to be built on investing the time up front to understand the impact of change, and you should expect your partner to be able to provide expertise around organisational change management as part of the implementation process. 

5. Take time to challenge

It’s easy to paint a picture of a perfect relationship, but partnership is best when it’s challenged. So ask for testimonials and references of what has happened in the past when the going got tough. 

At some point, every relationship has crunch moments. It’s how the teams pull together and fix it for the future that makes the difference. 

1. "Return on Culture," Grant Thornton, 2019.
2. "Where will wealth take clients next," 2021 EY Global Wealth Research Report, 2021.

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