Day-to-day life is made up of promises, big and small. Some are kept and others, unfortunately, are forgotten. But research for Investment Executive’s 2007 Advisors’ Report Card makes it clear: advisors across Canada don’t want to be the ones left hanging.

The 1,727 advisors surveyed for this year’s Report Cards ranked delivering on promises as the third most important criteria for firms, with advisors rating it a 9.3 (out of 10). Meanwhile, advisors overall rated their firms’ ability to deliver on promises an 8.3, with only nine firms, including one insurance company, rating a score of 9.0 or more for living up to advisors’ expectations.

The results show advisors are disappointed by their employers, who don’t always live up to their expectations, much to the detriment of the institutions.

However, there are firms that strive to deliver on their promises — often small independent or regional firms — and so reap the benefits. For most of these firms, it is the knowledge they’re doing right by their advisors that keeps them honouring even the smallest of promises.

“I was raised with old-fashioned values,” says Merlin Chouinard, president and chief compliance officer of Saskatoon, Sask.-based Sentinel Life Management Corp. , “being honest, forthright and truthful.”

“Your word is your bond,” agrees Robert Harrison, president and CEO of Vancouver-based Leede Financial Markets Inc. , who feels the person to whom you are making promises is as important as what the promises are. “We’ll bend over backward to solve problems. At the time of hiring, we tell our advisors we’ll stand behind them. We take the time to get the right people.”

Adds Chouinard: “I’ve been fortunate to surround myself with people with the same value system. We’re small enough we can do that. In a large group, you can’t control hiring the same way.”

To the top-ranked companies, keeping promises is not only a question of integrity, it’s simply good business. “If it’s good for the client, then it’s good for the rep and good for the company,” says Jeff Dumanski, president and chief marketing officer at top-rated PFSL Investments Canada Ltd.

Unfortunately, it takes more than a mere willingness to be honest. Dumanski, Harrison and Chouinard agree: companies must really know and understand what they’re committing to, take their cues from down the managerial line and realize that sometimes, when plans don’t go true to form, they may have to grin and bear the consequences.

Indeed, agreements are breached when the lines of communication are broken, when bureaucracy runs unchecked. As the head of a relatively small organization, Harrison feels larger groups, such as the poorly ranked banks, contain huge numbers of middle managers, each looking for something to manage.

Instead, Dumanski encourages managers to take direction from the advisors themselves, who are best equipped to know what meets the clients’ needs.

“Most of our changes are driven up from the field,” says Dumanski. “Otherwise, there’s no feedback, no cohesiveness. We don’t like to overpromise and underdeliver. So, we do a lot of work before any promises are made to be sure we can deliver on them.”

Despite the precautions that may be taken, sometimes there are still misunderstandings or even outright violations of promises. In such situations, it would do banks, insurance companies and investment dealers to remember their integrity is priceless.

“I’d like to believe humans are good by their very nature,” says Chouinard. “But, sometimes, in our exuberance to achieve our objectives, we make commitments we can’t fulfil.

“The easiest thing is to cut a cheque and make it right,” he adds. “In the big picture, it’s better to take it off the bottom line and send people off with confidence in you.”

For advisors frustrated with middle-management runarounds, whose needs are not being addressed, it may be time to look for a smaller organization whose values system matches their own and that lives by their word.

“If something was promised through the branch manager,” says Harrison, “even if I didn’t like it, I’d break my arm off before going against his or her word.” IE