In wealth management, big visions often crash into operational bottlenecks. Behind every ambitious growth plan is a need for structure, process, and leadership. In this episode of In The Money, Rusty Sommer sits down with Matt Sonnen, COO of Coldstream and host of the COO Roundtable podcast, to explore the vital role of operations in building sustainable enterprises.
From Consultant to Operator
Matt shares his career journey from COO to consultant and back, explaining why he returned to operations after founding PFI Advisors. His story underscores the importance of “doing the work” and finding fulfillment in solving real challenges inside a firm.
The Power of Community
Loneliness often defines the COO role, surrounded by sales-driven teams. To combat this, Matt founded COO Society, a dedicated space for operations leaders to collaborate, share resources, and feel less isolated. Courses, networking, and regular peer calls provide invaluable support.
Process Over Technology
Too often, firms look to technology to solve problems rooted in broken processes. Matt explains how errors blamed on tools like rebalancers are often caused by a lack of standardized client models. The lesson: clean up operations before replacing technology.
Fewer Clients, Deeper Relationships
Borrowing from Jerry Maguire’s mission statement, Matt emphasizes the need for fewer clients and stronger relationships. This focus on the 80/20 rule not only boosts profitability but also enhances advisor satisfaction and client outcomes.
AI and the Future
AI holds promise, but Matt cautions that it’s still in its early stages, comparable to the dot-com boom. While firms should experiment with AI for efficiency, the real breakthroughs are yet to come from large vendors investing heavily in the technology.
Profitability as a North Star
At the heart of Matt’s perspective is a reminder that revenue alone does not sustain firms. Profitability and a well-structured service model are what separate growing practices from enduring enterprises.
Conclusion
Operational leadership may not grab headlines, but it is the backbone of wealth management growth. Matt Sonnen’s insights highlight why COOs are not just administrators; they are the architects of scalable, profitable firms.
