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In a world where the focus seems to be on growth “to infinity and beyond,” knowing the right number of people with which to engage can be pivotal. Robin Dunbar, a British anthropologist, posited that humans can maintain stable social relationships with about 150 people. This number represents the limit of meaningful connections one mind can handle. Beyond that number, relationships start to lose their depth and personal touch.
The Concept and Its Implications
Dunbar’s Number suggests a cognitive threshold on our capacity to maintain stable, meaningful relationships. Dunbar articulated it as “the number of people you would not feel embarrassed about joining uninvited for a drink if you happened to bump into them in a bar.” In a business context, this translates to the practical maximum of clients or contacts one can manage effectively without diluting the quality of those relationships.
In 2017, the Swedish Tax Agency reorganized its offices with a maximum of 150 employees each, explicitly citing Dunbar's research.
The Business Impact
At some point, our business model included a lot of best practices that had been bolted on, like many businesses. I came to refer to that as having a “Franken-business.” We had accumulated a large client base, serving approximately 250+ households of clients. The sheer volume strained our resources. Despite clear goals, the path to achieving them was obscured by the overwhelming number of relationships we were trying to sustain.
A Strategic Pivot
In 2008, faced with the reality that the current growth trajectory was inconsistent with our quality objectives, we made a bold strategic decision: to strategically reduce our client list from 250 to just 17 core ideal clients. This wasn’t about shrinking our business; it was about deepening our focus and improving the quality of our service. Our aim was to do more—and have more impact—on fewer families. That way we could offer more personalized, comprehensive service to a select group of clients, believing this would lead to greater overall success.
The Transformation
This decision was transformative. Concentrating on a smaller client base significantly improved the quality of our interactions and services. Here’s how this strategic pivot reshaped our business:
Enhanced Client Relationships: Reducing the number of clients allowed us to build deeper, more meaningful relationships. We were able to understand their needs, aspirations, and concerns at a much more profound level.
Personalized Services: With fewer clients, we could offer tailored solutions that met their unique circumstances. This shifted our role from being mere service providers to becoming trusted partners in their financial journeys.
Operational Efficiency: Focusing our resources on a smaller client base improved our operational efficiency. This not only enhanced our service delivery but also alleviated the strain on our team, enabling them to perform at their best.
The Ripple Effect
The benefits of this transformation extended beyond immediate client interactions. Our clients, recognizing the enhanced attention and tailored advice they received, could sense the increased value over simply having a “financial guy.” Our business growth significantly outpaced the industry average, with much fewer households than the industry average. This organic growth validated our approach and underscored the power of deep, focused relationships.
Deepening Our Approach
Implementing the principles of Dunbar’s Number required more than just reducing our client list; it involved a fundamental shift in how we engaged with our clients. Here’s a deeper look into our refined approach:
Expanded Service Offerings: Serving fewer clients allowed us to do more for our clients. You can’t be all things to all people, but you can do a lot when you’re working for a few. By not spending scads on marketing, like most firms do, we were able to invest in people and technology.
Proactive Work: With fewer clients, we had the space to identify potential issues, structure a solution, and move forward with implementation, often before clients knew there was even an issue on the horizon. This allowed us to be strategic about processes and checklists before they were needed.
Culture Change: When the focus shifts from growth to serving deeply, our professional life becomes all about providing an experience that knocks people’s socks off. In an industry that focuses heavily on sales bringing in new business, putting service first becomes a differentiator. No more mass marketing – only the idea of serving so well that people can’t help but tell others. Our marketing budget was reduced to virtually $0.
The Luken Way
At the core of this transformation is what we call the "The Luken Way.” This internal document for our team members encapsulates our culture, the core values and the guiding principles that drive our firm’s operations and interactions. Here’s a deeper look into some foundational elements of The Luken Way:
Do Unto Others: Inspired by the Golden Rule, we believe in treating others as we would like to be treated. This value is the cornerstone of our client relationships, ensuring that every interaction is respectful, genuine, and aimed at enhancing the financial well-being of our clients.
Ownership: We take full ownership of our responsibilities and create solutions tailored to each client’s needs. This proactive approach ensures that we are always accountable and dedicated to delivering results that matter.
Details Matter: Attention to detail is critical in the world of finance. We understand that even the smallest details can have significant impacts. Therefore, we meticulously address every aspect of our work to ensure precision and accuracy in all that we do.
Expertise: Our team consists of highly skilled professionals who are committed, passionate, and focused on achieving results. We believe expertise is essential, as no one wants to work with amateurs. Our continuous pursuit of knowledge and excellence enables us to provide top-tier service and advice.
"You can have everything in life you want if you will just help enough other people get what they want." —Zig Ziglar
Ziglar was onto something. When we help our clients win, everyone wins. By serving a handful of clients deeply, we help them reach their money goals so they can do what they want to do. In the process, we have a business that works for us in the long run. It's a win-win. The way our business operates would not be possible without the implementation of the insights from Dunbar’s Number.
Concentrating on quality over quantity ensures that each client each client receives the wealth care they deserve. Sometimes, less truly is more.
Business Matters
September 2, 2024
In a world where the focus seems to be on growth “to infinity and beyond,” knowing the right number of people with which to engage can be pivotal. Robin Dunbar, a British anthropologist, posited that humans can maintain stable social relationships with about 150 people. This number represents the limit of meaningful connections one mind can handle. Beyond that number, relationships start to lose their depth and personal touch.
The Concept and Its Implications
Dunbar’s Number suggests a cognitive threshold on our capacity to maintain stable, meaningful relationships. Dunbar articulated it as “the number of people you would not feel embarrassed about joining uninvited for a drink if you happened to bump into them in a bar.” In a business context, this translates to the practical maximum of clients or contacts one can manage effectively without diluting the quality of those relationships.
In 2017, the Swedish Tax Agency reorganized its offices with a maximum of 150 employees each, explicitly citing Dunbar's research.
The Business Impact
At some point, our business model included a lot of best practices that had been bolted on, like many businesses. I came to refer to that as having a “Franken-business.” We had accumulated a large client base, serving approximately 250+ households of clients. The sheer volume strained our resources. Despite clear goals, the path to achieving them was obscured by the overwhelming number of relationships we were trying to sustain.
A Strategic Pivot
In 2008, faced with the reality that the current growth trajectory was inconsistent with our quality objectives, we made a bold strategic decision: to strategically reduce our client list from 250 to just 17 core ideal clients. This wasn’t about shrinking our business; it was about deepening our focus and improving the quality of our service. Our aim was to do more—and have more impact—on fewer families. That way we could offer more personalized, comprehensive service to a select group of clients, believing this would lead to greater overall success.
The Transformation
This decision was transformative. Concentrating on a smaller client base significantly improved the quality of our interactions and services. Here’s how this strategic pivot reshaped our business:
Enhanced Client Relationships: Reducing the number of clients allowed us to build deeper, more meaningful relationships. We were able to understand their needs, aspirations, and concerns at a much more profound level.
Personalized Services: With fewer clients, we could offer tailored solutions that met their unique circumstances. This shifted our role from being mere service providers to becoming trusted partners in their financial journeys.
Operational Efficiency: Focusing our resources on a smaller client base improved our operational efficiency. This not only enhanced our service delivery but also alleviated the strain on our team, enabling them to perform at their best.
The Ripple Effect
The benefits of this transformation extended beyond immediate client interactions. Our clients, recognizing the enhanced attention and tailored advice they received, could sense the increased value over simply having a “financial guy.” Our business growth significantly outpaced the industry average, with much fewer households than the industry average. This organic growth validated our approach and underscored the power of deep, focused relationships.
Deepening Our Approach
Implementing the principles of Dunbar’s Number required more than just reducing our client list; it involved a fundamental shift in how we engaged with our clients. Here’s a deeper look into our refined approach:
Expanded Service Offerings: Serving fewer clients allowed us to do more for our clients. You can’t be all things to all people, but you can do a lot when you’re working for a few. By not spending scads on marketing, like most firms do, we were able to invest in people and technology.
Proactive Work: With fewer clients, we had the space to identify potential issues, structure a solution, and move forward with implementation, often before clients knew there was even an issue on the horizon. This allowed us to be strategic about processes and checklists before they were needed.
Culture Change: When the focus shifts from growth to serving deeply, our professional life becomes all about providing an experience that knocks people’s socks off. In an industry that focuses heavily on sales bringing in new business, putting service first becomes a differentiator. No more mass marketing – only the idea of serving so well that people can’t help but tell others. Our marketing budget was reduced to virtually $0.
The Luken Way
At the core of this transformation is what we call the "The Luken Way.” This internal document for our team members encapsulates our culture, the core values and the guiding principles that drive our firm’s operations and interactions. Here’s a deeper look into some foundational elements of The Luken Way:
Do Unto Others: Inspired by the Golden Rule, we believe in treating others as we would like to be treated. This value is the cornerstone of our client relationships, ensuring that every interaction is respectful, genuine, and aimed at enhancing the financial well-being of our clients.
Ownership: We take full ownership of our responsibilities and create solutions tailored to each client’s needs. This proactive approach ensures that we are always accountable and dedicated to delivering results that matter.
Details Matter: Attention to detail is critical in the world of finance. We understand that even the smallest details can have significant impacts. Therefore, we meticulously address every aspect of our work to ensure precision and accuracy in all that we do.
Expertise: Our team consists of highly skilled professionals who are committed, passionate, and focused on achieving results. We believe expertise is essential, as no one wants to work with amateurs. Our continuous pursuit of knowledge and excellence enables us to provide top-tier service and advice.
"You can have everything in life you want if you will just help enough other people get what they want." —Zig Ziglar
Ziglar was onto something. When we help our clients win, everyone wins. By serving a handful of clients deeply, we help them reach their money goals so they can do what they want to do. In the process, we have a business that works for us in the long run. It's a win-win. The way our business operates would not be possible without the implementation of the insights from Dunbar’s Number.
Concentrating on quality over quantity ensures that each client each client receives the wealth care they deserve. Sometimes, less truly is more.
Quality Over Quantity
The power of Dunbar's number in our practice
Estimated reading time: 6 minutes minutes
Follow us on Social Media
September 2, 2024
Business Matters
In a world where the focus seems to be on growth “to infinity and beyond,” knowing the right number of people with which to engage can be pivotal. Robin Dunbar, a British anthropologist, posited that humans can maintain stable social relationships with about 150 people. This number represents the limit of meaningful connections one mind can handle. Beyond that number, relationships start to lose their depth and personal touch.
The Concept and Its Implications
Dunbar’s Number suggests a cognitive threshold on our capacity to maintain stable, meaningful relationships. Dunbar articulated it as “the number of people you would not feel embarrassed about joining uninvited for a drink if you happened to bump into them in a bar.” In a business context, this translates to the practical maximum of clients or contacts one can manage effectively without diluting the quality of those relationships.
In 2017, the Swedish Tax Agency reorganized its offices with a maximum of 150 employees each, explicitly citing Dunbar's research.
The Business Impact
At some point, our business model included a lot of best practices that had been bolted on, like many businesses. I came to refer to that as having a “Franken-business.” We had accumulated a large client base, serving approximately 250+ households of clients. The sheer volume strained our resources. Despite clear goals, the path to achieving them was obscured by the overwhelming number of relationships we were trying to sustain.
A Strategic Pivot
In 2008, faced with the reality that the current growth trajectory was inconsistent with our quality objectives, we made a bold strategic decision: to strategically reduce our client list from 250 to just 17 core ideal clients. This wasn’t about shrinking our business; it was about deepening our focus and improving the quality of our service. Our aim was to do more—and have more impact—on fewer families. That way we could offer more personalized, comprehensive service to a select group of clients, believing this would lead to greater overall success.
The Transformation
This decision was transformative. Concentrating on a smaller client base significantly improved the quality of our interactions and services. Here’s how this strategic pivot reshaped our business:
Enhanced Client Relationships: Reducing the number of clients allowed us to build deeper, more meaningful relationships. We were able to understand their needs, aspirations, and concerns at a much more profound level.
Personalized Services: With fewer clients, we could offer tailored solutions that met their unique circumstances. This shifted our role from being mere service providers to becoming trusted partners in their financial journeys.
Operational Efficiency: Focusing our resources on a smaller client base improved our operational efficiency. This not only enhanced our service delivery but also alleviated the strain on our team, enabling them to perform at their best.
The Ripple Effect
The benefits of this transformation extended beyond immediate client interactions. Our clients, recognizing the enhanced attention and tailored advice they received, could sense the increased value over simply having a “financial guy.” Our business growth significantly outpaced the industry average, with much fewer households than the industry average. This organic growth validated our approach and underscored the power of deep, focused relationships.
Deepening Our Approach
Implementing the principles of Dunbar’s Number required more than just reducing our client list; it involved a fundamental shift in how we engaged with our clients. Here’s a deeper look into our refined approach:
Expanded Service Offerings: Serving fewer clients allowed us to do more for our clients. You can’t be all things to all people, but you can do a lot when you’re working for a few. By not spending scads on marketing, like most firms do, we were able to invest in people and technology.
Proactive Work: With fewer clients, we had the space to identify potential issues, structure a solution, and move forward with implementation, often before clients knew there was even an issue on the horizon. This allowed us to be strategic about processes and checklists before they were needed.
Culture Change: When the focus shifts from growth to serving deeply, our professional life becomes all about providing an experience that knocks people’s socks off. In an industry that focuses heavily on sales bringing in new business, putting service first becomes a differentiator. No more mass marketing – only the idea of serving so well that people can’t help but tell others. Our marketing budget was reduced to virtually $0.
The Luken Way
At the core of this transformation is what we call the "The Luken Way.” This internal document for our team members encapsulates our culture, the core values and the guiding principles that drive our firm’s operations and interactions. Here’s a deeper look into some foundational elements of The Luken Way:
Do Unto Others: Inspired by the Golden Rule, we believe in treating others as we would like to be treated. This value is the cornerstone of our client relationships, ensuring that every interaction is respectful, genuine, and aimed at enhancing the financial well-being of our clients.
Ownership: We take full ownership of our responsibilities and create solutions tailored to each client’s needs. This proactive approach ensures that we are always accountable and dedicated to delivering results that matter.
Details Matter: Attention to detail is critical in the world of finance. We understand that even the smallest details can have significant impacts. Therefore, we meticulously address every aspect of our work to ensure precision and accuracy in all that we do.
Expertise: Our team consists of highly skilled professionals who are committed, passionate, and focused on achieving results. We believe expertise is essential, as no one wants to work with amateurs. Our continuous pursuit of knowledge and excellence enables us to provide top-tier service and advice.
"You can have everything in life you want if you will just help enough other people get what they want." —Zig Ziglar
Ziglar was onto something. When we help our clients win, everyone wins. By serving a handful of clients deeply, we help them reach their money goals so they can do what they want to do. In the process, we have a business that works for us in the long run. It's a win-win. The way our business operates would not be possible without the implementation of the insights from Dunbar’s Number.
Concentrating on quality over quantity ensures that each client each client receives the wealth care they deserve. Sometimes, less truly is more.
Quality Over Quantity
The power of Dunbar's number in our practice
Estimated reading time: 6 minutes minutes
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