As host of The COO Roundtable podcast, I’ve had the privilege to discuss operational best practices with many of the brightest minds in our industry. In Episode 80, I interviewed Linda Bready, author of The Exit Equation: M&A Strategies, Tools, and Insights for Financial Advisors. One theme that really stood out during our conversation (and detailed in her book) was the persistent blind spot in the RIA space: confusing ownership of technology with the true optimization of technology.
The harsh reality is that simply spending money on technology does not automatically translate into operational efficiency, scalability or increased firm value. As Linda emphasized, “Ownership isn’t the same as optimization. I’ve seen so many firms spend heavily on CRM, reporting, financial planning software, and then they don’t get any value out of them, or not the value that they should … because they skip on the hard part. Integration, adoption and training, and training is a huge one!”
This oversight isn’t just about missing out on ROI—it weakens staff morale, frustrates clients and ultimately erodes firm value. Linda likened the RIA industry’s approach to technology to the dog from the movie “Up”—always getting distracted and yelling, “Squirrel!” We constantly chase the next shiny object, never committing to getting the most out of what’s already in-house. “If you keep ‘trading up,’ you keep going through the same integration, training, adoption sequence, that’s going to fail over time. Plus, it’s going to drive your staff crazy,” she told me.
“The cold hard fact is the buyer doesn’t care what logo is on your CRM. What they care about is that your team can use it, that it supplies the firm the information that it needs and that it provides the client the information that they need,” Linda said. True optimization means technology is embedded into your workflows, used daily to the advantage of the client, the staff and the firm. Most firms don’t need more tools, they just need to fully leverage the ones they already have.
So, how can RIA leaders bridge the gap between mere ownership and true optimization? Drawing from my conversation with Linda, here’s a five-step process for maximizing your technology investment:
1. Assess Current Usage
Start with an honest audit of how your firm actually uses its technology. This goes beyond checking if everyone has a login. Examine workflows, investigate where data entry is inconsistent, where manual workarounds persist, and ask if all features are being utilized. As Linda said, “It’s not enough to just have the software. You have to make sure it’s actually being used, and used well, by everyone in the firm.”
2. Start Small—Pick a Single Process to Start
“Don’t overhaul everything at once, and don’t expect to be able to,” Linda advised. Identify a pain point—maybe it’s billing, maybe onboarding—and make that your pilot project. Take a rough plan, document one process and use that as your proof of concept. If the plan doesn’t quite work, revise and make a better plan later. The only mistake is allowing yourself to be too overwhelmed to start.
3. Communicate and Build Momentum
Communication is the key to successful change. Be transparent with your team about what’s changing and why. “Once you improve one process, it’s much easier to build momentum across the whole firm. The goal isn’t perfection; it’s progress,” Linda shared. Early wins help build confidence and buy-in for further optimization.
4. Empower Your Team
Your staff are your greatest asset in making technology stick. Linda’s advice: “Trust your people to know their jobs. Give them the map, the task, what you need and then get out of their way.” Empower your team to own the new workflows and encourage them to suggest improvements. When team members feel trusted and included in the process, they become more invested in making change successful and are often the first to identify ways to make systems work better for everyone.
5. Iterate and Scale
Early wins are proof points. Use them to build confidence, learn what works and gradually expand optimization efforts to other roles or processes. “The more steadily you build resilience into the business, the stronger it is. And then when opportunity comes, you have options, not panic,” Linda explained. Technology should be a living part of your operations, not a set-it-and-forget-it tool.
Technology optimization isn’t just about preparing for a potential sale of the business—it’s about building a firm that’s scalable, efficient and resilient. Most RIAs don’t need new tools, they need to fully leverage what they already have. By starting small, communicating openly, empowering your team, and iterating, you can transform technology from an expensive line item into a true engine of value. If you’re ready to stop mistaking ownership for optimization, today is the day to start.
This article originally appeared at Wealthmanagement.com.