The hit TV show “Breaking Bad” features a mild-mannered school teacher who, faced
with a mortal illness, turns his personality and his outlook around 180 degrees, and
enjoys fabulous success. While we are not recommending that anyone follow his footsteps
down the path of lawlessness, Walter White (the protagonist) does offer an invaluable lesson
for all of us: People rarely change until they’re forced to do so.
The brokerage industry has largely typified this lesson, resisting change except when regulations or competition have made it unavoidable.
Today, brokers face mortal threats from technology disruption, regulations, low margins, and changing consumer attitudes. And if they do not
make radical changes, they may face extinction tomorrow.
On the other hand, if they see the turbulence around them as an opportunity rather than
a threat, they may turn their fortunes around and enjoy fabulous success again. In this viewpoint,
we discuss the challenges they face and how to overcome them, including, among other things:
Historical evolution of the brokerage industry
Present-day challenges and how the industry is responding to them
What brokers’ priorities should be
How to meet operational challenges, including a decision framework for sourcing