Ep. 135: James Burton - Crisis can lead to Opportunity

Contact James Burton:
https://www.linkedin.com/in/jcburton/


Personal Capital:
https://www.personalcapital.com/


Advisory services are offered for a fee by Personal Capital
Advisors Corporation (“PCAC”), a registered investment adviser
with the Securities and Exchange Commission. Registration does
not imply a certain level of skill or training. Investing
involves risk. Past performance is not indicative of future
returns. You may lose money. PCAC is a wholly owned subsidiary of
Personal Capital Corporation (“PCC”), an Empower company. PCC is
a wholly owned subsidiary of Empower Holdings, LLC. 2021 Personal
Capital Corporation.



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FULL EPISODE TRANSCRIPTAdam (00:00):


Welcome back to Count Me In. IMA's podcast about all things
affecting the accounting and finance world. This is your host
Adam Larson, and I'm here to bring you episode 135 of our series
with featured guest, James Burton. In the wealth management
space, a few can claim to have accomplished more than James, a 20
year veteran of the industry, he has held executive, management,
and C-level positions at some of the most respected financial
institutions in the world. He now serves as Chief Growth Officer
at fintech trailblazer, Personal Finance, and joins Count Me In
to talk about how to turn a crisis into opportunity. Keep
listening as we head over to the conversation now.


 


Mitch (00:50):


So James, obviously the global pandemic of 2020 caused a crisis
for many businesses. A lot of our listeners felt this impact. For
you personally, I'd like to start off our conversation by just
having you explain, how did you help clients and organizations
navigate through these difficult times, particularly in the
beginning?


 


James (01:09):


Yeah thanks, Mitchell. You know, something like a pandemic and
the initial market slump that it caused, that really, that really
makes you reconsider everything, right? All your assumptions
about your business model, your strategy, your growth
opportunities, trying to see into the future. And naturally many
of our clients went through very similar reflections about their
goals and their financial situations, and they had a lot of
questions about the future too. And the demand for advice,
financial advice and expert support definitely increased. And in
this case, it turned out that our company, Personal Capital, we
were highly prepared for the crisis because we already had a
hybrid digital and human model advisory model is technology
enabled to operate remotely. So in a very general sense, we just
stuck to our knitting. That's a British term, I think, meaning,
we stayed on strategy and we continued interacting with our
clients and supporting them through their financial concerns
during the pandemic, particularly in those early, very stressful
months. But we also made a very crucial pivot to getting everyone
to remote working, from home literally overnight. And we could do
that because of how the company was designed and built. So, you
know, the result was that despite the initial market slump that
we went through, we actually saw strong growth last year. People
want advice. They want to holistic advice and they mostly don't
want to travel to a brick and mortar building or office with wood
panels, you know, nice little offices. They certainly didn't want
to travel during a pandemic, right. And now, you know, a year
later they know that in fact they don't need to go any further
than their kitchen or the home office, to work with us. So we
were able to help them, right away and we were able to help them
remotely, which was great.


 


Mitch (03:14):


And now, you know, kind of building on this conversation a little
bit, in leading up to our recording today, I was told that you
follow a quote from Winston Churchill. It's a bit of a mantra and
if I can just read the quote, "never let a good crisis go to
waste". So, to help explain for our listeners here, why, what
does that mean to you? How, do you go about using that as a
mantra?


 


James (03:37):


Yeah, so Winston Churchill, he certainly produced a lot of great
motivational quotes and I do particularly like that one, "never
let a good crisis go to waste". I find myself using it a lot
actually. And, you know, a good crisis, is very often a great
opportunity. And that's because it's when you're forced to
reconsider everything, you know, all your assumptions, your
business model, your strategy, your opportunities, even your very
survival sometimes. A really good crisis puts all of that in the
picture. And as a result, it's often when meaningful change is
initiated and it's when we move forward from the past, you know,
to the future way of thinking. And in the case of our company, as
I mentioned, we found that as it happened, we designed and
prepared very well for the lockdown and we could commit to this
virtual first approach. And as a result, we've proved beyond
doubt that virtual financial advice works very well. If you have
the right technology and business model and it's here to stay. So
a great crisis here, which it really was, and in many ways still
is, you know, helped us prove that and move into a future where,
you know, advice can look very different for Americans.


 


Mitch (04:55):


And now we are, you know, roughly 16, 17 months through this, you
know, it's been a year and a half and, you mentioned going into
the future a little bit more, not every bad thing that happens is
a crisis necessarily for business, right? We don't always face
something like the COVID-19 pandemic. How can this mantra, this
quote still apply on a daily basis, you know, once we kind of
returned to normal or the new normal, however you want to refer
to it. Can you give us some examples and some response options
for the daily ups and downs of business and responding this way?


 


James (05:31):


Sure, sure Mitchell, and look, you know, certainly these have
been some strange and scary times in the past year. But you know,
it's exciting to look into the future and see things improving.
I'm definitely happy to share some examples, but, you know, as
I've thought about this, as you point out, you know, real crises
and real opportunities, they're not exactly daily events, you
know, thank goodness. They tend to come along just when you think
everything's going great in your business, like maybe early 2020
for example. So every few years you may get a really good crisis,
you know, something really challenging or bad happens in the
environment or, you know, in your business. I've got some
examples of how to put, you know, a good crisis to work, but I
have to mention that they're not really day to day examples,
they're how to really harness the big situations. So if you'll
indulge me, I'll happily proceed, but, you know, I generally
wouldn't use an expression like, "never let a good crisis go to
waste", in the day-to-day environments, right. That's just doing
our jobs. So I'm happy to proceed with, you know, let's just say
longer term, bigger picture examples. I'll go for it.


 


Mitch (06:48):


Absolutely. Yes, please do.


 


James (06:50):


That's great. So, first of all, I could go back in the time
machine, maybe about 20 years. And, at the time I was working for
a well-known stock broker based here in San Francisco, and the
company had experienced huge growth in the late 1990s. And then
along came the crisis, the tech bubble burst in 2000. For anybody
who was active in the markets at that time...