In a time when your industry is under more scrutiny than ever, how do you defend investment consultants to your critics?
The best thing consultants can do is to give advice that is as client-focused as possible, not investment consultant-focused. It’s a difficult task for any consultant—finding the balance of giving unbiased, candid advice while also recognizing that the consulting firm needs to increase its own shareholder value. The best consultants do this. Furthermore, they understand the distinctions among the multiple parties and stakeholders involved and provide the best advice and information for them. Most of all, they are able to challenge their clients, provide opinions, and disagree with them respectfully and constructively—not be the clients’ yes men.