Overcoming the Capacity Crisis

In this insights piece, Angie Herbers highlights that capacity—not productivity—is the greatest challenge facing financial advisory firms today. While traditional metrics like growth rates, profit margins, and productivity ratios dominate industry conversations, they often overlook the human side of the business—advisor well-being, client relationships, and the ability to build for future growth. As turnover rises, retirements loom, and new advisor failure rates remain high, the profession is facing a capacity crisis that threatens long-term growth and sustainability.

Herbers argues that solving this challenge requires a shift away from short-term performance metrics and toward strategies that expand future potential. This includes prioritizing advisor training, creating space for deeper client connections, and building capacity for growth rather than simply measuring output. By leveraging human capital consulting and broader growth strategy planning, firms can position themselves for enduring success. Research from McKinsey & Company reinforces that addressing capacity today will be critical for the next decade of client service and advisor retention.

Read the full article in Citywire for a deeper look at this perspective.