Modernizing your firm’s technology stack is essential for growth. Firms that evolve and adapt are better equipped to meet evolving client expectations, attract next-generation talent and build competitive, scalable businesses. 

Recent reports evidence this, as 85% of high-net-worth clients under 40 would leave their advisor if the digital experience didn’t meet their expectations, and 67% of next-generation advisors consider “modern tools and workflows” a top three factor when choosing a firm.1,2

But when it comes to modernization and technology, do firms know where to start? Only 28% of RIAs feel confident in their current tech stack, so there may be room for improvement. 3

At AddeConf25, three leading firms shared industry insights in a session focused on modernization. We were joined by Zach Handelman (Meyer Handelman Company), Josh Whitehurst (Ehrenkranz Partners) and Matt Shaia (Brockenbrough), who discussed modernizing tech, change management and measuring ROI. Their message was clear: a successful approach to modernization goes beyond upgrading a tech stack, it is a mindset that requires cultural buy-in and careful strategic thinking. 

Beginning with a strategy, not software

Modernization isn’t a quick fix, or as simple as finding a new tech partner. In practice, the most successful transformations start with a thorough analysis of the firms’ needs, pain points and business goals. By painting a holistic and accurate picture of the firm’s current operations, firms can use that information to build a lasting, tailored modernization strategy.

For Meyer Handelman Company, documenting processes and mapping out the current state of the business is where change begins. “You need to know where you are before you decide where you’re going,” says Handelman. “Treating this like an IT project is the biggest mistake you can make. It’s not about software — it’s about mindset.”

This process revealed some critical pain points for the firm to address. “We wanted to free up operational barriers and create scalability,” says Handelman. “There were serious capacity limitations. We were turning away smaller accounts, even clients’ children and grandchildren, because we couldn’t scale. And beyond that, we didn’t want to be seen as dinosaurs.”

Shaia agrees with the importance of reflection at the start of the process. “Even though the firm is 50 years old, we still asked ourselves: who do we want to be when we grow up? That simple question helped us codify where we wanted to go and build conviction in what our platform needed to look like underneath the hood.”

Handelman adds: “Strategic clarity — more than any single product decision — is what sets firms up for successful transformation.”

Leading change through culture

While technology often triggers change, for firms looking to modernize, it’s teams and individuals that determine its success. All three leaders emphasize the importance of cultural alignment.

“Your customers aren’t just external, they’re internal,” says Handelman. “Everyone needs to feel heard. It becomes a project management exercise.”

Shaia agrees: “The biggest challenge is not the systems. It’s balancing the day-to-day job with the time required to do thoughtful implementation. We’re a thirty-person firm. Everyone wears a lot of hats. It’s a big ask.”

Changing or modernizing processes or technology too quickly and without firm-wide backing can lead to challenges, particularly if teams feel overwhelmed. “We decided to transition our CRM, portfolio reporting system and trading system all at once - an objectively terrible idea,” said Shaia. “We learned a lot about ourselves and how to sequence and prioritize through that humbling experience - In particular, just how important finding and establishing a single source of truth can be and building around it.”

Change also demands leadership at every level. “There need to be champions of the integration,” Shaia says. “It needs both upstream and downstream support — people who carry the message, build trust and model the behavior.”

Measuring the modernization ROI

Streamlined workflows and enhanced efficiency are usually the first things noticed when modernizing — but there are many more benefits to kickstarting the process, including stronger client relationships, increased valuations and improved client experiences. 

At Ehrenkranz Partners, Josh Whitehurst saw immediate gains. “We’ve automated nearly 60 to 80 percent of all the data coming into Addepar. That drastically reduces maintenance — and more importantly, it frees our team to focus on client deliverables instead of backend processing.”

For Meyer Handelman the returns are clear. “Since we started our modernization initiative, we’ve grown from $2.1 billion to $3.1 billion in AUM while only adding two to our headcount,” says Handelman. “We’re now getting about a referral every two weeks — with little marketing. Are clients sending you their friends? That is the greatest measure of success.”

Returns on the investment can also be found in the impact modernization has on resources. “People who used to do pencil-and-paper reconciliation are now strengthening client relationships,” said Shaia. “Portfolio managers with better tools are having bigger-picture conversations about wealth.”

Whitehurst adds: “Modernization isn’t just about cutting costs. It’s about empowering people to do more strategic, value-added work.”

Sustainable change requires continuous reassessment

Modernization doesn’t have an end. Building a truly long-term strategy is an important consideration for firms or advisors looking to modernize their processes, workflows and technology. A successful approach to modernization consists of an ongoing process of feedback, iteration and evaluation. 

“There’s no such thing as achieving perfection,” said Shaia, “but it’s the pursuit of perfection that makes everyone excellent. Once you embrace that, it becomes part of the culture.”

Handelman agrees: “We’re constantly asking: what’s next? What’s adding complexity? What’s genuinely improving the client experience? Adopt the mindset of continuous improvement, try not to remain stagnant and have a long-term vision.”

“Find the balance between conviction and humility,” adds Shaia. “You won’t get everything right the first time. But if you keep learning, listening and aligning your strategy to your service, you’ll end up in the right place.”

To find out more about how Addepar can help your firm meet the needs of the next generation, get in touch.

References

  1. Capgemini World Wealth Report, 2024.

  2. Fidelity RIA Talent Survey, 2023.

  3. T3/Inside Information Tech Survey, 2024.

Disclaimer

The perspectives shared by representatives of the firms mentioned above are based on their experiences as current clients of Addepar. No compensation was provided for their participation or quotes, and there are no material conflicts of interest related to their statements. Individual results, including any references to growth or efficiency, may not be representative or guaranteed. This content is for informational purposes only and should not be considered investment advice.