On Saturday morning, November 1st, Phyllis Scruggs peacefully passed away in the arms of her greatest dedication; her husband of 54 years, David Scruggs. Over the last week, I have spoken with many of her clients. You would expect respect, you would expect sadness, you would expect condolences, but what I received was so much more:
“I am living a life I only dreamed of because of her.”
“She saved me from all of the bad decisions that would have ruined me.”
“She knows more about my financial life than I do.”
“She wasn’t just my financial advisor; she was one of my closest and dearest friends.”
“I don’t think I could have gotten through my mother’s death without her.”
Corporate culture isn’t something you install, it’s something you express. It’s the fusion of the passions, values, capabilities, and personalities of the people within a firm that radiates outward as identity. I spoke with a reporter earlier this week about which achievement I am most proud of.
As W&A approaches our 40th anniversary, our greatest achievement is not the amount of money that we manage, it’s not the number of clients that we serve, it’s not our geographic expansion into a national footprint, and it’s not the numerous awards that we have received. Our greatest achievement is the continuity of our culture. We enrich lives by providing clarity. We do the right things for the right reasons. We voyage together with our clients, colleagues, and communities. We are always learning, so we are always improving. Our gratitude inspires us to honor your trust and confidence in us with dedicated care.
Phyllis Scruggs joined our firm in 1993 as our 4th member after selling her family business and immersing herself in technology and finance. Her rapid accumulation of academic and professional credentials (MBA, CFA®, CFP®) brought a new level of capabilities—and spirited debate—to our small firm.
My father founded W&A to rebel against a Wall Street culture that often manipulated, mismanaged, and misappropriated investor assets. Simply offering jaded investors with honest and capable money management services provided plenty of marketplace differentiation with which to build a business. W&A was a premium product business built on trustworthiness and investment results.
Phyllis wanted W&A to be a premium service business built on immersive financial planning and continuous client communications. While the asset management business and the financial planning business seem similar, they have vastly different staffing requirements and vastly different profit margins. At that time, the combination of the two disciplines, now known ubiquitously as “wealth management” didn’t really exist.
When I entered the firm in 2000, I settled the debate. We would use the financial planning process to determine the rate of return required for each client to achieve their vision of financial success, and we would use our asset management capabilities to provide the prescribed returns.
We would employ financial planners as relationship managers, not salespeople or stock-pickers, and our investment committee would supply them with portfolios to employ in coordination with client objectives. And because life happens and objectives change, we would communicate with our clients frequently to ensure continuous and proper calibration. This strategic decision evolved our business from a luxury product into a highly bespoke service, combining the best of Duke Waddell with the best of Phyllis Scruggs.
Only 30% of family businesses successfully transition to the second generation. Recognizing this dispiriting reality, succession planning became a priority as soon as I joined the firm. At the time, W&A had three partners: Duke Waddell the investor, Phyllis Scruggs the financial planner, and Bill Wunderlich the relationship developer. Before long, and with lots of courage—and debt, we began transitioning ownership from the founding partners.
When we approached Phyllis, the conversation changed. As a spirited negotiator, we anticipated an impasse, but none occurred. Phyllis wanted to create an ESOP with her shares. She wanted the associates she cared for to remain dedicated to our firm, and to our clients, and she wanted them to participate in W&A’s success through direct ownership.
We worked together, constructed the ESOP, and created a fantastic financial windfall for our associates. Following the transaction, Phyllis remained just as active within the business. She served on our board as Vice Chairman, she served as an active member of our investment committee, and she served her client base with the same professionalism and vigor as always. Phyllis was in it for the money… it just wasn’t her money she focused on.
Phyllis’s client meetings became legendary at W&A. Rarely did a call or a meeting not run for hours. We had to build additional conference rooms as Phyllis would perpetually commandeer one. With Phyllis, there were no small details. Her dedication to mastering her craft paled in comparison with her dedication to mastering her client’s details. She over-prepared and she over-delivered.
She became the standard bearer, not only within W&A but also within our industry. Phyllis served on the board of our local Financial Professional Association which won a national award for excellence in 1998 with Phyllis as Chairman. She served in leadership roles in many other community organizations as well as nationwide, each achieving newfound levels of success with Phyllis on the job.
Thank you, Phyllis, for providing our firm direction, for nurturing our associates, and for loving our clients. While you may no longer share your wisdom, you will always share your spirit. It lives within our design, it lives within our culture, and it lives within our hearts.
We will honor you by forever staying true to the values, craftsmanship, and dedication you lived, and instilled in us. For that is the true measure of our success.
Life and career well done, Phyllis. Rest easy.
David
This communication and its contents are for informational and educational purposes only and should not be used as the sole basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but is not a representation, expressed or implied, as to the accuracy, completeness, or correctness of said information. References to political figures or policies are for informational purposes only and do not represent an endorsement by Waddell & Associates. Any forward-looking statements reflect current opinions and assumptions and are subject to change without notice; actual results may differ materially. Past performance does not guarantee future results. Waddell & Associates may use artificial intelligence tools to help generate or summarize content; all outputs are reviewed by our team for accuracy and relevance.
