Crisis and Continuity

July 01, 2011 at 08:00 PM
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It's a conversation I'll always remember. Recruiting expert and Investment Advisor contributor Jon Henschen emailed me in the days following the tragedy in Joplin, Mo., to say he had a broker-dealer contact who was willing to speak. The BD, MidAmerica Financial, is small (only 142 reps), but operates in all 50 states.

When I was able to eventually reach Shaun Young, the firm's president, he sounded confident and in control, which belied the emotions of the cleanup, organization and—yes—search for survivors with which he was dealing.

He was on vacation in Las Vegas when he heard the news that an F5 tornado had touched down in his hometown. Jeff Stinnett, his partner, was in Washington, D.C. for the annual FINRA conference. Both men immediately began texting their employees to ensure they were safe.

"We heard back from every employee except one," said Young. "Eventually, someone saw the missing staff member walking down the middle of the street with a pile of clothes and her dog. Her house was completely destroyed."

Not being there when it happened and unable to help was "hell and frustration," he said. When he eventually did arrive in Joplin it was complete devastation on a level he struggled to describe.

"The high school, one of the largest in the state of Missouri, took a direct hit and is destroyed," he explained. "We're across the street."

Young and his employees found the office roof torn off and the interior destroyed. He was able to find new office space partially furnished, and was up and running (although in a somewhat diminished capacity) almost immediately.

I'll be as delicate as possible in making my point, which relates to this month's theme—succession planning. As advisor Kim Nourie notes in our cover interview, succession is more than simply planning for the exit—it's about continuity and continued client confidence in your business as a going concern. And it's about easing your state of mind in an unimaginable circumstance. Although FINRA requires a business continuity plan, too many broker-dealers and advisors view it as a chore and do the minimum required. Young formally updates his on an annual basis and tweaks as necessary when issues and ideas arise. Along with the close-knit community, the plan is something he counts as a major factor in keeping both himself and the firm running.

For now he's focused on the task at hand, which keeps him busy; but he knows it won't last, and eventually, the repercussions of what he's witnessed—and continues to witness—will need to be addressed. Three days after the tornado, he and two employees spent three hours in the afternoon looking for a friend's son.

"Frankly, I knew we were looking for a body," he said, before asking that the interview be stopped. "I was praying that, in a way, we wouldn't find him. I just didn't want to be the person to find him like that."

Young asks that donations and offers of assistance go to the Joplin, Mo., chapter of the American Red Cross.

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