Page 46 - Investment Advisor April 2021

BROKER-DEALER BEAT

INDUSTRY TRENDS es the firm around innovation and has and institutions, but [also] what markets
Reflecting on what is most influencing helped lead this cultural transformation, can I open up and do that well to dif-
the financial services business, Kalbaugh putting the client in front — which is ferentiate us?”
points to “the velocity of change.” paying some really good dividends.” Of course, Arnold — who took the
“I’ve done this [work] now for 30-plus How does Arnold do this? “He’s reins from then-CEO Casady in early
years. Look at where this industry went helped crystallize why we come in every 2017 — must unify and successfully
from — when I was a wire operator day. Because at the end of the day, … execute these efforts, Kalbaugh adds:
punching in trades to [be sent to] an it’s [about] people’s hard-earned money, “He’s created a good team that plays
exchange floor — to today, when our which could be their life savings or their well together in the sandbox, and is
advisors can do this at a beach in Tahiti ability to send their kids to school,” focused on the end game and the goal
or elsewhere on a laptop. It’s a very dif- Kalbaugh explained. of the growth of the company and the
ferent world,” he said. support of our advisors.
At a leadership semi- Kalbaugh said he was “born with If we do that well, we all
nar he attended with win, right?”
LPL CEO Dan Arnold some of that [affable] personality,
a few years ago, two CASADY’S INFLUENCE
things jumped out at him. whether that’s my upbringing or “One of the reasons I’m
“However fast you’re here is because of Mark,”
running now, run faster; whatever you want to call it. I like Kalbaugh says. “He was
[your current speed] ain’t one of the final interviews
fast enough,” Kalbaugh people, and I think most people I had to get across the goal
said. Plus, “If anything, want to help people.” line [and join LPL].”
change will accelerate. During the interview,
So you’ve got to look at Casady asked him, “Why
people and process and talent and sys- As Casady told him earlier, “There’s a are you here? Why are you talking to
tems,” he explained. very noble reason we show up every day us?” according to Kalbaugh. “I said, ‘You
LPL, of course, isn’t immune to these and that’s to make our advisors’ lives a know, Mark, I’m a little tired of compet-
trends. “It’s hard to stay a market leader. little easier, so they can do the job that ing with you guys and maybe it would
We’re trying to make sure we’ve got the they need to do, which is to help their be a good time to join [LPL].’ … Then
best team on the field to create the best clients,” Kalbaugh said. “You see Dan he said, “That’s a good answer, because
firm we can to help our advisors and pushing on all those buttons.” what we’re really trying to do is just
institutions. It feels pretty good, actu- Rich Steinmeier, head of Business build the best team we can build.’”
ally,” he added. Development for LPL, also is making a Casady went on to play “a huge role in
While he insists he doesn’t “do well at difference thanks to the different views my early development at LPL. I still talk
pontificating,” Kalbaugh says it’s “really he brings to “how we look at strategy to him regularly. He’s got some wonder-
important for our advisors to keep push- and even at the markets that we serve. ful skills that I learned from — like his
ing to evolve.” He’s opened up doors that we otherwise deal[making], M&A ability. He’s done
“It’s a tough industry. You’ve got a didn’t have,” according to Kalbaugh, really well there,” Kalbaugh said.
wonderful opportunity in front of you, which should help the firm stand out And what lies ahead for Kalbaugh?
but you’ll have to clearly define the spac- and better compete in the future. “There’s another chapter,” he said. “I
es you want to play in, the market you “You’ve seen it through the acquisi- don’t know what that’ll be yet, but …
serve and how you will do that. Do that tion of Allen and Company, and with the to figure that out I thought I needed to
well, and you’ll stand out in the crowd.” expansion of the independent model to step out of the fast lane. As you step out
include employee services. That gives of the fast lane, you can look at more
ARNOLD’S ABILITIES us a bigger pond to serve more and more things. You could see what interests you
Innovation, of course, is key to address- people,” he said. and what may not interest you. I’ll figure
ing change at both the advisor level and Asking the right questions is critical. that out.”
firm level, Kalbaugh says, and Arnold Steinmeier would consider, “How do I
has done a good job at leading this continue to do what I’m doing and do it Janet Levaux is editor-in-chief of Investment
charge at LPL: “He constantly push- well, take care of our existing advisors Advisor. She can be reached at [email protected].

44 INVESTMENT ADVISOR APRIL 2021 | ThinkAdvisor.com