Behavioral Finance

How-Facial-Recognition-Will-Shape-the-Future-of-Experiences-

When Botox Affects Your Portfolio

Facial Recognition software tools marketed by businesses such as Faception and Decipher claim to be able to identify an individual’s personality and behavior. They state that from a photo they are able to determine if the person could be a terrorists or pedophile. Further, their claim is that photos can identify likely poker or bingo winners. Mattersight goes one step further and makes the same claims using both video facial recognition and voice. (Photo Credit: Shriver Claes/Penn State)

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The individuals categorized in this way have likely played no part in providing in-depth information about themselves. They will not have completed a validated and sophisticated discovery process. They simply had their photo taken.

I’ve watched movies portray how law enforcement uses facial recognition to identify/locate a person already in their data base, but to randomly take photos from which a personality and behavior can be determined? Seems like science fiction. It could also be argued – it is discriminatory. In their 2016 article, The Underlying Bias of Facial Recognition systems, Clare Garvie and Jonathan Frankle at the Center on Privacy & Technology at Georgetown Law, outline the potential issues of bias around facial-recognition software. They state that depending on how algorithms are trained, they could be more accurate when identifying white faces than African American ones.

Of course, there will always be a place in society for tools that keep us safe. Maybe facial recognition will one day play its part. But along with Big Data gathering, if one under scrutiny is not involved in the process and have not completed a validated questionnaire, there is no way a tool such as this can uncover a person’s personality.

Cetera Financial Group CEO Robert Moore believes that facial recognition software (referring to Decipher) will provide a faster and more accurate read of a client’s risk tolerance and financial behavior than any questionnaire ever could.

Some questions to consider:

1. How will facial recognition tools predict individual’s reaction under pressure?
2. How will they predict the degree to which they will tolerate risk?
3. How will they understand their communication style?
4. What will be revealed about the individual’s ability to build relationships?
5. Are they more likely to be a loner/reclusive or the life of the party?
6. How will facial recognition determine my approach to wealth creation?

None of these facets can be revealed through facial recognition. Some through Big Data, but ALL with a robust highly validated process such as DNA Behavior Natural Discovery.

I’m all for innovation and new technology. I’m part of it. Our DNA Behavior platform is the world’s only all-in-one cloud-based behavioral analytics platform to know, engage and grow both employees and clients using all the dimensions of a person’s personality.

But facial recognition cannot reveal the true me. Yesterday I had a tooth extraction, my face was very swollen. I wonder what a photo of me would have predicted? Further, think of twins, I have a few twins and indeed triplets in my world and, as a behavioral analyst, I can tell you that neither group has the same personality or behavior.
This is me, this is my personality. My face won’t reveal this.

 

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We all make judgments when first we meet someone – often based on appearance. We then get to know them, and on some occasions don’t like what we see – or vice versa.

 

As Pedro Domingos, a professor of computer science at the University of Washington, said to the Washington Post, Can I predict that you’re an axe murderer by looking at your face and therefore should I arrest you? You can see how this would be controversial.

Princeton psychology professor Alexander Todorov told the Washington Post, The evidence that there is accuracy in these judgments (referring specifically to Faception) is extremely weak.

 

In conclusion – you’ll get to know more about me through a robust questionnaire than taking my photo.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior

As a Financial Advisor, how do you advise Entrepreneurs

Advising Entrepreneurs, as a Financial Advisor

A good idea, a solid strategy, an understanding of clients genetic makeup could be a ticket to their success. But without this insight – failure is more likely both for you as an advisor and for the client who wants to be an entrepreneur.

DNA Behavior International’s extensive research from recent academic research and studies supports the findings that a person is born with entrepreneurial genes. Providing advice to a client like this could be tricky.

A key for financial advisors is to understand the genetic makeup of an entrepreneur. What makes them tick. All entrepreneurs have similar characteristics. Their minds are genetically wired in the same way. In other words, they tend to depart from established patterns of thinking. Their resilience and appetite for risk are inherent qualities. The more mindful financial advisors are in their understanding of the entrepreneurial mind, the greater the chances of success in delivering sound targeted advice.

The Business DNA research concludes that entrepreneurs have the following genes in descending order of dominance:

  1. Resilience (Measured by the Fast-Paced trait) – they achieve results, manage setbacks and rationally take quick action.
  2. Risk Taker (Measured by the Risk trait) – confidently take risks and tolerant of losses.
  3. Creativity (Measured by the Creative trait) – innovative with ideas and seeks to differentiate.
  4. Work Ethic and Focus (Measured by the Pioneering trait) – pursues goals and is often ambitious and competitive.
  5. Charisma (Measured by the Outgoing trait) – outgoing, connects with a lot of people and influences people to follow them.

Entrepreneurs are confident, passionate and determined to succeed. They are comfortable taking the risk and will invest heavily in their business venture, maybe to the detriment of other areas of their life.

However, being genetically predisposed towards entrepreneurialism doesn’t guarantee that an individual will become an entrepreneur and then whether they will succeed. It is not just enough to be born with the entrepreneurial gene, people must do something with it. Financial advisors need to be able to dig below the surface to understand the dynamics of the entrepreneurial client and then can target advice.

Behaviorally smart financial advisors should be:

  • Comfortable being a user to test the financial validity of an opportunity.
  • Confident enough to challenge ideas and ask questions.
  • Trustworthy enough to encourage yet confront when the entrepreneur’s ideas are spinning out of control.

When financial advisors understand that Entrepreneurs are driven by the need to succeed and control their own destiny, they are less likely to put them in a client box. They won’t deliver mundane advice but will recognize the importance of getting inside the mind and genetics of an entrepreneur.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

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DNA Behavior Wins FinTech Breakthrough Award for Best Risk Management Service

“DNA Behavior is recognized for its Risk Management assessment as part of the Financial DNA platform. The goal of the FinTech Breakthrough Awards is to honor excellence and success of FinTech companies, technologies, and products. FinTech Breakthrough Winners are determined by a panel of impartial senior-level judges.”

“DNA Behavior is honored to add the FinTech Breakthrough Award to the growing list of distinctions.” – Hugh Massie, CEO

(1888PressRelease) April 25, 2017 – DNA Behavior is pleased to announce that they have won the FinTech Breakthrough Award in the category of “Best Risk Management Service.” The competition was extremely fierce, with over 3,000 nominations received across different categories. DNA Behavior finds itself among other notable winners including Discover Bank, NerdWallet, Zillow, Square, Braintree, Bizfi, Xero and an impressive list of top companies and startups in the FinTech industry.

The goal of the FinTech Breakthrough Awards is to honor excellence and recognize the creativity, hard work, and success of FinTech companies, technologies, and products. FinTech Breakthrough Winners are determined by a panel of impartial senior-level judges, which include analysts, journalists, and technology executives.

Amongst other notable Risk Management Service providers, DNA Behavior differentiates itself from the crowd by offering the complete behavioral assessment of both the advisor and the client as well as their behavioral biases and goals-based planning preferences.

The company’s global offices mean support is available by phone or email through extended office hours. Additionally, the company’s flagship client tracking dashboard, Market Mood, remains a favorite among Financial Advisors, thanks to its real-time assessment of individual client reaction to market fluctuations partnered with customized scripts for engaging them in their preferred style.

“DNA Behavior is honored to add the FinTech Breakthrough Award to the growing list of distinctions. The company continues to improve its platforms and services based on feedback from customers and market opportunity.” – Hugh Massie, CEO
To learn more about DNA Behavior, visit https://www.dnabehavior.com/.

DNA Behavior, founded in 2001, delivers practical and scalable behavioral intelligence solutions to “Know, Engage and Grow” every employee and client online in over 123 countries through 11 languages and has 12 proprietary DNA Behavior Discovery Processes under 3 primary brands: Communication DNA, Business DNA, and Financial DNA.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

Entrepreneurs Cant be Lone Wolves and be Successful

Entrepreneurial Lone Wolves Can’t Be Successful

Entrepreneurs can’t do it alone. From start-up, the entrepreneur has many roles and will not have the skill set for all of them. Building the right team around them is critical to building a successful business.

Sir Richard Branson makes the following observation:
People tend to think of entrepreneurs as lone heroes, but this isn’t how it works in real life. Many live up to their reputation as risk-takers and some remain outsiders, but despite this outlier status, entrepreneurs need support to be successful. In fact, were a lot like Formula 1 race-car drivers: The person in the cockpit gets all the glory since fans tend to forget about the pit crew and the behind-the-scenes effort it takes to keep the driver on the track. Business is no different; an entrepreneur does not succeed alone.

Behaviorally smart entrepreneurs, who know their limitations, are more likely to have conversations about the skills they lack and reach out to others to fill the gaps.

Those individuals who have completed the DNA Behavior Natural Discovery process and read our significant research into Mastering your Entrepreneurial Style understand their genetics as outlined below:

1. Resilience (Measured by the Fast-Paced trait) – they achieve results, manage setbacks and rationally take quick action.
2. Risk Taker (Measured by the Risk trait) – confidently take risks and tolerant of losses.
3. Creativity (Measured by the Creative trait) – innovative with ideas and seeks to differentiate.
4. Work Ethic and Focus (Measured by the Pioneering trait) – pursues goals and is often ambitious and competitive.
5. Charisma (Measured by the Outgoing trait) – outgoing, connects with a lot of people and influences people to follow them.

 

Key TraitsSource: DNA Behavior International

More importantly, they will have a deeper insight into their entrepreneurial genes and feel empowered, through this knowledge, to bring others on board to take up some of the heavy-lifting.

As the business grows, entrepreneurs tend to feel besieged by the day to day workload. The appointment of someone, we will refer to as an Integrator, is a key first hire. Integrators should have the experience, skills, and temperament to manage the day to day business operations and understand how the entrepreneur ticks. This will ensure the business has a strong foundation. Further, it releases the entrepreneur to focus on building the business and using their entrepreneurial talents to do so.

Generally speaking, the talents are:

  • Big picture thinking
  • Creatively solve problems
  • Sees opportunities to go to market
  • Manage the pressure and risk
  • Has little patience for the day to day minutia

When the Entrepreneur and the Integrator have insight into their own and each other’s personalities, their communication style, and their decision-making approach, they understand where and when they need to modify their behavior to be a successful team.

Here are a few keys to building the Entrepreneur/Integrator relationship:

  1. Mutual respect
  2. Both passionate and driven to build the business
  3. Communicate directly
  4. Clear on boundaries
  5. Open to learning from each other
  6. Trust built on transparency and openness

Understanding each other’s strengths and limitations ensures the gaps’ are filled, and the business can move forward.

When an entrepreneur has no insight into their personality, hitting a no man’s land,’ such as dealing with day to day issues, managing 10-30 people and still trying to envision the business, they need to understand that failure is a very real possibility.

If there is no Integrator introduced, the next phase, when the business is getting off the ground and showing signs of success, will stall because:

  • It hasn’t the people to grow sales
  • It hasn’t got the innovation to keep growing.
  • It hasn’t the problem-solving capabilities

Once success is on the horizon, 30 employees can quickly become 50, 100, 500. This stage, moving into a sales organization, requiring sales systems and customer relationship management systems/processes, is where many entrepreneurs struggle. Such a level of hands-on day-to-day minutia (their interpretation) to grow can frustrate them.

This is where an Integrator and Entrepreneur working well together can take a vision to market.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

 

 

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Today I’m Going to be an Entrepreneur!

 

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Yes, there are times individuals wake up with an amazing idea and are convinced they are the next Sir Richard Branson, Bill Gates or Mark Zuckerberg. They persuade themselves that they are an entrepreneur. They may even attract investment for their idea. The market might be excited by this new offering BUT the truth is that most entrepreneurs fail to get their businesses off the ground. Even if they do, building and sustaining a successful business is rare.

The 2015 US Census Bureau reports that 400,000 new businesses are started every year in the USA but that 470,000 are dying, a worrying statistic.

John Chambers, Cisco’s CEO of 20 years, says this – More than one-third of businesses today will not survive the next 10 years. Shikhar Ghos, in his recent Harvard University study, claimed that three out of every four venture-backed firms fail.

The strengths that make people entrepreneurs are counterbalanced by struggles that can get in the way of success. Without this self-understanding, decisions will be made that can cause the enterprises to fail.

Much research exists now to confirm that entrepreneurs are born and not made. Having conducted extensive research to validate these findings, DNA Behavior International has identified the top five (5) genetic traits that are to be found in entrepreneurs.

  1. Resilience (Measured by the Fast-Paced trait) – they achieve results, manage setbacks and rationally take quick action.
  2. Risk Taker (Measured by the Risk trait) – confidently take risks and tolerant of losses.
  3. Creativity (Measured by the Creative trait) – innovative with ideas and seeks to differentiate.
  4. Work Ethic and Focus (Measured by the Pioneering trait) – pursues goals and is often ambitious and competitive.
  5. Charisma (Measured by the Outgoing trait) – outgoing, connects with a lot of people and influences people to follow them.

Having these genetic traits does not guarantee success for entrepreneurs. Learning to be behaviourally smart in using the powerful genetic ingredients they were born with is more likely to deliver success.

Of the 5 identified entrepreneurial traits listed above – resilience leads the pack. Building a business, handling the enormous pressure of setbacks, rejection of ideas, sustaining a business, managing staff, and dealing with market expectations, will never be plain sailing. If you are ever to see blue water, understanding the importance of resilience is a key factor.

Through their DNA Behavior Natural Discovery Process, the entrepreneurial genetic traits can be measured. The graphic below highlights, in order of strength, from the top down the behavioral factors (genes) which an entrepreneur exhibits:

FactorsPerformance

 

The resilience gene is measured by the fast-paced trait. When this trait measures more than 55 – results will be achieved, setbacks will be managed and the individual will be able to rationally take quick action in any given circumstance.

Success in business is rarely about how many challenges you face so much as it is a matter of how you respond to the challenges. Entrepreneurs who are behaviorally smart, and understand their personality and genetic makeup, will have a level of resilience which allows them to face an almost constant barrage of challenges without ever weakening their resolve or losing their passion.

Interestingly the DNA Behavior Research program found that when comparing entrepreneurs who had built a $10 million turnover business as against a $1 million turnover business, that all the key DNA factors do not measure differences in an overall sense, but they do measure stronger.

Do you see yourself as an entrepreneur? Are you heading up a business you founded? Have you taken over a family business? Whatever the situation that brought you to this season of life, if you don’t know your entrepreneurial traits and understand how to manage them, and perhaps more importantly, how to fill the gaps in your talent, you may be heading for the failure statistic graveyard.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior

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Effecting Change: The Key Traits Of Social Entrepreneurship

Today’s entrepreneur uses their creativity to apply practical, innovative and sustainable approaches to benefit society, often with an emphasis on those who are marginalized and poor. They tend to be passionate leaders of change, and don’t believe that the way things have always been done is the way things should remain. The character of these social entrepreneurs is a passion to improve the lives of others in their community and beyond.

DNA Behavior International in their recent extensive study titled Mastering your Entrepreneurial Style determined that Creativity is one of the key genetics found in entrepreneurs. They are creative and innovative. Along with other key talents such as Pioneering and Risk Taking these social entrepreneurs see problems as an opportunity to be creative.

Source: DNA Behavior International

Stephen Distante CEO of Vanderbilt Securities and President of the New York Chapter of the Entrepreneurs Organization (EO), makes this observation:

“Social entrepreneurship has disrupted that old-school business mindset. The DNA of the social entrepreneur is to engineer our businesses to make a positive social impact from the very start rather than waiting decades before contributing. That’s the modern way of doing business, and because it’s what Millennials and younger generations expect, it will soon be the only successful way to run a company. And it’s the way of business that EO has recently made a very powerful commitment to support.”

This new breed of entrepreneurs determines that they can make profit and purpose sit comfortably together. The pursuit of money and stuff no longer fit this generation of entrepreneurs. Their goals are higher. It’s not all about the pursuit of wealth. More importantly, they are focused on how to use their success to help others.

That is a significant shift in thinking.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior