Critical success factors of Black financial advisors in the brokerage industry

Critical success factor analysis has been used by managers in numerous professions: IT, knowledge sharing, organization development and training, Catholic schools, and the Atlantic Coast Conference to determine those factors that were critical for success. In 2006, the Bureau of Labor Statistics reported that there were approximately 397,000 financial advisors and financial analysts, of whom less than 2% were Black. Successful Black personal financial advisors employ activities that ensure they meet the expectations of both employer and clients. This qualitative study utilized Stroman's critical success factor category (CSFC) analysis to identify 243 critical success factors in eight areas: global or industry-related, external, internal, temporal or enduring, risk abatement, performance, cultural, and marketing, as defined by 15 successful Black personal financial advisors. A structural interview guide was used to determine the five most critical factors: organizational structure and support, work ethic and business processes, market analysis/target market, communications, and compliance activities. The researcher recommends further application of CSFC analysis on the financial advisor profession, on women financial advisors, and on successful Black women in the banking industry.