What’s the one operational mistake that can quietly erode margins and stall growth? For Matt Sonnen, COO of Coldstream Wealth Management and creator of The COO Society, it’s misinterpreting fiduciary duty, a trap that leads RIAs to overserve clients at the expense of profitability.

In this episode, host Kelly Waltrich sits down with Matt to unpack lessons from his career as a COO and consultant to advisory firms. They dive into the realities of running a scalable, profitable RIA, from client segmentation and cost-to-serve to building processes before buying technology to managing change through mergers and acquisitions.

Drawing on years of experience helping firms standardize operations, Matt shares why profitability should matter just as much as growth, how COOs can earn buy-in from advisors, and why the emotional side of M&A often gets overlooked. Most importantly, he reframes fiduciary duty for modern firms: putting clients first doesn’t mean giving away every premium service to every client. It means eliminating conflicts, being transparent, and protecting the long-term health of both the client and the firm.

This conversation is filled with practical insights for leaders who want to scale without losing control of their operations, profitability, or culture.

Kelly and Matt cover:

00:00 – The COO’s role in driving communication and alignment

02:15 – Why profitability matters more than revenue growth

05:32 – Fidelity’s $9,222 “cost to serve” benchmark and what it means for segmentation

08:47 – How overserving small accounts can erode margins and capacity

12:05 – Why process must come before technology investments

15:42 – Common operational gaps exposed in M&A integrations

19:30 – Standardizing systems vs. flexibility in planning tools

22:18 – Managing the emotional side of selling a firm

25:54 – Building guardrails around advisor pricing and discounting

28:36 – Reframing fiduciary duty: eliminating conflicts, not overserving

30:12 – Matt’s “Don’t Do That”: Don’t misinterpret your fiduciary responsibility

32:40 – Final advice on scaling profitably without sacrificing client experience

About Our Guest:

Matt Sonnen has over 25 years of experience in the financial services industry. As Chief Operating Officer, Matt manages all aspects of Coldstream’s operational platforms to identify opportunities to scale and systematize processes ensuring capacity for the firm’s continued growth. In addition, Matt will also oversee the firm’s Information Technology, Performance Reporting, Client Service, and CRM efforts.

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