Following the worst start to the year for Australian shares since the COVID-19 pandemic, the global market volatility in April 2025 created further headaches for the investment and wealth industry.  

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When revenue is calculated as a percentage of total assets under management / advice, how can you look through the market noise and focus on delivering your strategic goals?

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This is a question that we have fielded from a number of clients in recent weeks as they consider their financial position and business goals.

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And it’s not easy!

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Having spent many years in the industry, the inclination is often to implement cost controls and organisational “right-sizing”. In our experience, cost cutting without reference to strategic goals, is just a straight path to mediocrity. And, while it is easy to say, “stay the course,” in practice, it is much harder to shoulder the short-term worry.

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We would suggest consideration be given to these three key pillars when weighing up your strategic ambitions against your financial realities.

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1. Invest in growth

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To attract the right people, partners, and investors, your business will always need growth. It is still important, perhaps even more important in times like these, to invest in diversifying your revenue streams, whether that be new profit centres or through product innovation.

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Furthermore, invest in client experience. It is always much longer and harder to on-board a new client than it is to retain and grow with an existing relationship. With digitisation, it is also so much easier now for an existing client to move elsewhere.

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Growth enablers require long-term investment in order to reap future rewards.

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2. Invest in productivity

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Continue to look for and root out inefficiencies in your business. By modernising your operating models, you will be able to upgrade your business’ productivity, reduce costs and minimise the risks that can come with outdated processes and systems.

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The two important questions here to ask are, “Is this core (where the business has a distinct advantage or differentiator)? If not, can it be bought, borrowed, or outsourced?”.

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Volatility in markets often reveals risks with service providers that may otherwise have remained unknown. With CPS230 and the obligation to know your service providers, this is an opportunity to take another look at your operating model to see if it is fit for purpose.

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3. Executing on business transformation

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For any business transformation to be successful, twin pillars need to be working together: the hard and the soft stuff. What does that mean in practice?

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Check back in on your financial disciplines and ensure that your leaders are owning their team budgets and exercising financial responsibility. Identify any operational disruptions occurring that may be impacting either BAU or transformation activities. Review your financial risks and adjust budgets, as necessary. If needed, consider organisational design and whether it is future fit.

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And do not underinvest in the required cultural transformation and change management. This industry is ultimately a people business. For business transformation to be successful and enduring, ensure your employees believe in your business vision and purpose. Empower them to embrace change through communication, training, and participation.

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As the saying goes, do not let a crisis go to waste. This market volatility may present an opportunity to look across your business and uncover new pathways to growth, productivity, and transformation.

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Uncertainty is the new normal. But strategy always wins.

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Mavin Advisory Group is a specialist investment and wealth management consulting firm that provides tailored solutions to meet the unique needs of its clients. Founded by industry experts with a deep understanding of the evolving financial landscape, Mavin delivers compelling insights and innovative solutions to help clients achieve their strategic goals.