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Why Succession Planning Fails—and How Credent Got It Right

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May 9, 2025

Succession planning is one of the most talked-about topics in wealth management—and one of the least successfully executed.

On paper, the plan always looks solid: identify a trusted advisor, groom them for leadership, and eventually pass the baton. But in practice, most succession plans fall apart. Not because the strategy is flawed, but because the people equation gets overlooked.

The Leadership Gap

Founders often assume that their most loyal or talented advisor can also lead the firm. But being a strong planner doesn’t automatically make someone a strong manager. The skill sets are different.

  • Wealth advisors excel at client service, financial planning, and relationship building.
  • Wealth managers need vision, leadership, and operational discipline to guide the firm forward.

Confusing the two is what causes succession to stall—or collapse.

How Credent Fixed It

David Hefty, CEO of Credent Wealth Management, learned this lesson the hard way. Instead of repeating the industry’s mistake, he designed a system where succession is built into the firm’s DNA.

Credent separated the roles of wealth advisor and wealth manager, giving each a clearly defined career path. Advisors focus on serving clients and growing relationships. Managers focus on building teams, scaling operations, and driving strategy.

That clarity makes all the difference. It ensures the firm isn’t left scrambling when a founder steps back or a senior leader retires. Leadership isn’t an afterthought—it’s a pipeline.

Beyond Handing Off Clients

True succession isn’t about simply transferring client relationships to the next advisor in line. It’s about building leaders years in advance, developing the next generation of managers who can carry the firm forward.

Credent’s approach guarantees continuity not just for clients, but for employees and COIs who depend on the firm’s long-term stability.

The Takeaway for RIAs

If your firm is serious about succession, you need to ask:

  • Are you confusing advisor excellence with leadership potential?
  • Do you have a leadership pipeline, not just a talent pipeline?
  • Are you building clarity into career paths so successors know exactly how to step up?

Succession planning fails when it’s treated as a last-minute event. It succeeds when leadership development is baked into the firm’s structure—long before the founder ever steps away.

These insights are inspired by the latest episode of Next Mile podcast featuring David Hefty, CEO of Credent Wealth Management. Dive deeper into the growth strategy behind one of the fastest-scaling RIAs in the country. Listen to the full episode here and explore more articles in this series.