Gary Neild founded Blue Sky 22 years ago. So much has changed in that time and so to mark this momentous achievement, our Marketing Manager, Kate Chastey, interviewed Gary and asked some key questions to help us understand his ‘why’ and his plans for the future.
Milestones and Legacies
Reflecting on 22 years, what are the most significant changes you’ve seen in the financial planning industry, and how has Blue Sky adapted to them?
I suppose when I started out, many moons ago, the financial services industry was a scary place. It was a survival of the fittest mentality, certainly, it was in the environment I was in. Very little training was given, and expectations were high, with pressure to sell to family and friends. It was a commission-hungry environment too back then!
I have never worked for an insurance company, bank or investment house, which may have been useful, but it always gave me a unique insight into how the consumer looked at things, because I had no formal training for the most part. I learnt it myself.
When I set up Blue Sky, I was keen to ensure there was clarity and transparency for all parties. At that time, it was easier said than done, because the distribution channels were mainly through insurance and investment companies. It was difficult to understand all the charges and transparency wasn’t easy to come by.
In 2002, when the business was established, I went looking for a platform which would resonate with my ethos. This is when I discovered Transact. Ever since they have been at the heart of our Blue Sky offering to clients. Not many people knew of them back then, but gradually over the years they have gained prominence and are extremely highly regarded.
Gradually we have seen elevated professionalism across the advisory space, driven by increased regulation and accountability. One of the major changes was the banning of commission for pension and investment products and laterally Consumer Duty introduced by the FCA, to ensure better outcomes for clients.
Without wishing to sound too congratulatory, the base changes for the profession have had little impact on Blue Sky operations, because, from day one, we always put the best interests of the client front and central. We were, and have always been, independent. It’s always been a privilege to look after clients’ money and therefore it’s always been important to behave accordingly.
What core values or principles have been the foundation of your longevity and success?
That’s easy to answer; integrity, honesty and trust.
It’s important to deliver and follow through on what you say you are going to do. Consistency is key.
Culture is everything in my world. Get the behaviours right and you have a much-improved chance of creating and delivering an excellent service for clients.
At Blue Sky we have never had targets, or bonus remunerations based on the amount of business written. We reward behaviours and when we are doing well, we reward as a collective and recognise outstanding commitment.
How has your leadership evolved over time, especially transitioning from founder-led to employee-owned?
My leadership hasn’t changed much in its core style, I don’t believe, but my approach has evolved. As we have grown, I have been able to delegate and empower the team. This is a philosophy and style which has lent itself to employee ownership and in our new guise, this is a core essential for the business.
I still need to lead and innovate but I do so in a more collaborative manner, but that is a natural progression as we continue to attract very talented and capable people to the business.
Employee Ownership Transition
What motivated your decision to transition to an Employee Ownership Trust; what have you learnt since doing so?
The motivation was all about legacy, trust and integrity.
I’ve never just seen the business as a cash cow. I’ve seen it as a business which represents my values. If you like, I’m authentic about what I stand for and I would like to think that I back this up with my behaviours.
I believe I have a responsibility to all those around me: family, team members and clients alike. I never wanted them to be a pawn in a game, to just see my business as a commodity, I’ve always seen it as being something much deeper. I did evaluate all the options for my succession plan, but in a heartbeat, my moral compass always brought me back to fairness and continuity, something that is closely ingrained in our team approach.
With regards to what I’ve learnt since becoming an EOT, it is probably the reinforcement that I couldn’t have made a better decision. It’s elevated everyone and clients repeatedly say how pleased they are that we didn’t sell to a 3rd party.
Since becoming an EOT, how has the company culture shifted, and what feedback have you received from your team about this change?
The culture hasn’t shifted but how it’s been embraced by the team and new recruits is to be admired. The EOT has attracted high quality, high calibre people with a shared value system.
I always said I didn’t want to hear anyone saying, “nothing really changed”; change is a constant. The EOT was an opportunity to elevate everything, and I believe we have.
The team have always been treated with respect, but they can now plan ahead with confidence. Just like our clients do. We operate a no fear culture, and the team are flourishing, as is the business.
What advice would you give to other founders considering the EOT model, particularly in professional services industries?
Do your due diligence. Speak to as many people as possible, business owners, professional people, clients and the team. It’s vital though, that you have a chat with yourself and try and decant what motivates you. Do you still enjoy the business? Do you want to continue working etc?
For Employee Ownership to work, the business has to have been carefully managed. Profitability has to be high because deferred payments for the owners will come out of profits. Also, this helps with the valuation of the business. The business model has to be tight, and budgets and forecasts managed very carefully, with diligence.
This, however, in my opinion, is not enough unless you have the right culture. You don’t want people in your team who don’t embrace the philosophy but remain with you just for some nice payouts in a few years’ time, when the owners have been paid their deferred payments. You want people on board who are fully committed, dynamic and able to make a difference.
Business Strategy and Client Focus
With 22 years of client service, what distinguishes Blue Sky’s approach to financial planning, and how do you maintain trust in a rapidly evolving market?
It’s a lot of the things I’ve already mentioned, but I think it’s absolutely key to make sure you engage with clients as much as possible, demonstrating value and ensuring the service you deliver is bespoke to them. As I said earlier, don’t treat them as a commodity.
Asking powerful questions is important in our approach with clients. Interestingly, you tend to get more powerful answers back. We focus on creating an emotional connection to the numbers and ensuring our clients can live the life they want with confidence. Everyone should know their number (how much they need and when), but most people don’t, and in many cases, even when they have a financial adviser.
How are you leveraging technology to improve financial planning services and ensure relevance in a digital-first world?
We are committed to driving efficiencies for all concerned, but we are acutely aware about the need for robust security. We always challenge ourselves as to whether any new technology is just a nice to have or is it going to have a real impact on how we operate and our delivery.
Our commitment to Technology has stepped up significantly. One of our Directors, Russell, who was previously Managing Director is now our Chief Technology Officer. This was possible because we brought in a Chief Operating Officer to the business. We are excited about the possibilities.
We already embrace technology in an advanced way, so we are told, but we are acutely aware that businesses that don’t innovate and invest in their proposition won’t be around for much longer than 5-10 years.
What trends or challenges do you foresee shaping the financial planning industry in the next decade?
AI particularly, will catch out those financial advisory practices that don’t have a personal and compelling client proposition. Engagement and relevant communication are imperative in demonstrating value.
There is a difference between price and value. Fund management and platform costs are falling and it is now possible to go online and evaluate one’s options and compare prices and performance. However, the vast majority of people are not well informed and skilled in investment matters, which can make for a dangerous mix and possible mistakes and errors of judgement. I’ve always believed that a financial planner is like a behavioural psychologist. It is part of our role to understand a client’s relationship with money. All too often, we see that new clients have previously made wrong decisions based on confirmation biases and have not had the best of outcomes.
I also believe we can use technology to deliver more relevant numbers and create benchmarks, not just against fund sector averages but against goals. Creating an emotional connection to the numbers is vital as is the education and nurturing of clients to understand what’s possible, in a positive way, sometimes making dreams come true.
In summary, the financial planning sector has to continue to harmonise technology to elevate the client experience, whilst remembering that many people want to deal with someone who understands them, gives perspective and gives them confidence.
Personal Reflection and Vision
Looking ahead, what are your aspirations for the company in its next chapter as an employee-owned business, and how do you see your role evolving?
We want to keep attracting high-calibre people who want to flourish in a dynamic, yet caring environment. Two years into our EOT, we are having some genuinely exciting conversations with people across our sector who have been drawn to the ‘beacon’ that is Blue Sky.
I personally have been delegating and stepping back from frequent internal meetings. I’ve only been able to do this as I have a great team who get the pathway and are willing to commit to our future success. My role increasingly, is about working on the business, evaluating strategy and development, whilst still seeing some clients, particularly business owners. A lovely balance and one I’m very much enjoying.
Down the line, I will most probably end up being Chairperson at Blue Sky with a continued involvement in certain aspects of the company… if they want me!
