Behavioral Finance

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Behavioral Insights Decode Trump Family Values

Not since 1961 has there been such a glamorous, tight-knit celebrity First Family in the Whitehouse as the Trump family. Headed up by President Donald Trump this family is well used to public scrutiny and having the spotlight turned on their every waking move.

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It would foolish to believe that this noisy, fun loving, dynasty wouldn’t have robust dinner table discussions – even more so now that the head of the house is the President of the United States. But what about the apparently reticent Flotus, that is, Melania Trump? What could be her behavioral and communication style? Well – dumb she is not – she speaks five languages which could certainly be useful at state dinners. Her background is ordinary – raised in Yugoslavia not as part of high society in a Trump-like tower, but in a concrete apartment block tower. Married to the most influential leader in the free world, Melania Trump would need to be a special kind of woman to manage or influence her President husband and this blended family. Trumps Personality (Influencer DNA Behavioral Style) is well balanced by that of his wife’s personality (Facilitator DNA Behavioral Style). Melania Trump will be the glue to this high-powered, influential family. The Trump family, through understanding their Natural Behavior and Personality, has obtained insights into how to navigate human differences and communication styles to build a cohesive family existence. They get each other. They understand where and when to modify their behavior in certain situations based on experiences, education, and values. Work-Life balance is important to this family. President Trump uses a family residence rather than Camp David to relax. He refers to Mar-a-Lago as his Southern White House. A further example of work-life balance is their decision for the First Lady to remain in New York until the end of their young son Barons school year. They clearly believe in the age old adage a family that plays together, stays together. Summary of the Family Strengths and Struggles:

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The Trumps are no different to other blended families. They will have heated and robust discussions. This is typical family dynamics and isn’t just because they are the Trumps/First family. Not everyone in families is around the Thanksgiving table. There will always be black sheep or disenfranchised member – it’s called family. It is not unreasonable to assume there are personality challenges. There will always be blind spots in families. How we see each other depends very much on how we see ourselves. As parents, even in powerful, yet blended families such as the Trumps, we have different perspectives of our children because that is all that we can see or not see. The goal is to get more clarity. Understanding how each member communicates and how they wish to be communicated with can be a significant first step to delivering not just harmony, but where a family also works together, significant business success. With reliability factor of 91% and having been completed by millions of people – taking the DNA Behavior journey helps families to manage the information gap. Many families fail because they don’t understand how to live harmoniously when there are different personalities and communication styles to be navigated.

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

Leadership

11 Leadership Styles That Shape A Winning Organization

Building and shaping the culture of an organization begins with the behavior of the leaders. When leaders are behaviorally smart, and understand their leadership and communication style, they are more likely to set the kind of example they want everyone to follow.

There is no one leadership style fits all. The key, through self-awareness, is to find the balance that works with the teams you lead.

The Fast-Paced Leader

A leader who is fast paced, logical, challenging and tends to be critical may well deliver results, but can damage the talent they are responsible for leading. This style of leadership births a culture of stress, staff turnover and unwillingness to want to work under their leadership.

The Analytical Leader

The analytical, systematic, rigid, work by the rules, style of leadership may be a gatekeeper in terms of the processes of the organization, but can shut down innovation, spontaneity and the kind of creative approach to decision making required when things go wrong. This inflexible and rigid style of leadership does not inspire a culture of shared goals, thoughts and ideas.

The Skeptical Leader

In today’s rapidly changing market, businesses need innovation to survive. A skeptical leader who is not open to ideas, continually questions, is guarded and fails to build trust with their teams, will not create the kind of innovative culture that breeds success. Finding a successful balance between trust and a healthy skepticism that protects the business is tough.

The Competitive Leader

Similarly, leaders whose focus is solely on results, who is very competitive and wants always to be the one who sets the agenda, can push teams too hard to achieve goals. If these leaders see targets slipping away they can become manipulative and assume a driven style of leading that causes teams to crash and burn. This approach leads to a toxic culture – very difficult to recover from.

The Peoples Leader

Leaders who are highly people focused and expressive, can inspire passion and purpose, but if this style of leadership is not based on a foundation of a clearly articulated vision and mission, the culture they create is one of chaos and confusion – but fun. Leaders such as this need strong boundaries and need to learn to focus on one goal at a time.

The Risk-Taking Leader

Some leaders are comfortable with taking risks. They know their limitations and are comfortable with managing failure. However, when risk taking leads to over confidence, leaders will cut corners placing the business in jeopardy. Further, team members assume the culture of risk extends to them. This can lead to outlier behavior as they take inappropriate risk that undermines the organization.

The Creative Leader

The highly creative leader embraces new ideas, can be quite abstract in their thinking and open to imaginative approaches to decision making. However, such creative ideas need to have value, they can’t be random as this leads to a culture of anything goes. Creativity in leadership works when it’s part of a culture that is sensitive to teams, colleagues and the overall needs of the business.

The Cooperative Leader

Not many organizations survive on a cooperative style of decision making. When a leader is seen to be compliant others very quickly take advantage of them. They may well be able to communicate the vision and encourage input from teams, but without their own understanding of how to be behaviourally smart, this style of leaderships leads to the loudest voice getting their way. Further, it can lead to a culture of frustration as the leader seeks everyone’s opinion before making a call.

The Reserved Leader

Generally, the reserved, reflective leader tends to be a loner. They do not have an open-door policy and can be withdrawn. This style of leadership breeds a culture of suspicion and can lead to more outgoing team members driving the culture and making decisions that are inappropriate. However, when the leader understands the importance of building relationships, this style of leader is likely to be much more accurate in their instructions. They prefer to get things right first time and will reflect and focus on this.

The Patient Leader

When a leader is overly understanding and tolerant there will always be others who will take advantage of this. A culture of leniency will prevail and mistakes will be repeated leading to frustration and discontent from team members. Generally, this leader tries to create a culture of stability, believing that everyone will function more effectively within the environment. This approach only works when everyone has knowledge of each other’s preferred environment for working, otherwise the culture will be too relaxed.

The Spontaneous Leader

Spontaneity challenges many people who prefer leadership to be structured and predictable. A spontaneous leader creates a culture of impulsiveness and lack of planning and forethought. Spontaneity panics some people and can lead to disruption and stress in the workplace.

A Leader who can create a successful organization culture will not only understand their own natural behavior and how to manage it, they will invest time gaining insight into the behaviors of their teams. When they achieve this balance, the culture they create looks like this:

  • There is a shared vision – communicated in a way that everyone feels valued in role for delivering it
  • There are high levels of personal confidence
  • Everyone has a can-do attitude
  • Teams collectively look for solutions
  • The leaders listen to other ideas and suggestions
  • The individuals feel motivated
  • Attrition is low
  • There are clear goals and everyone knows where they fit in delivering them
  • Success is shared
  • Trust goes both ways
  • There are quantifiable measurable outcomes that demonstrate the culture of the organization

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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Simpler, more accessible tools to Advisor community

LEADER IN BEHAVIORAL FINANCE ROLLS OUT SIMPLER, MORE ACCESSIBLE TOOLS TO ADVISOR COMMUNITY

Atlanta, GA, February 08, 2018 (PR.com) Atlanta-based DNA Behavior International has introduced a simplified Starter Package for its Financial DNA platform and streamlined related tiers of the behavioral finance-based system. Financial DNA is an online solution that helps financial advisors and their clients maximize communication, while identifying their risk profile, behavioral biases, spending patterns and goals-based planning preferences.

Our Starter Package, Introductory Package and Behavioral Finance Package still include a 10-minute, 46-question tool to reliably reveal the core of a persons natural behavior but are designed to be much easier to use and implement for an advisor or firm, and now a lower-priced starting point is offered, says Hugh Massie, CEO of DNA Behavior and a pioneer in the practical application of behavioral insights.

The first of the three simplified packages starts with a $75/month commitment that includes free, self-paced online training (available 24/7), and enables advisors to co-brand the systems reports with their name and/or firms logo.

We objectively measure a persons natural, hard-wired behavior to reliably predict (with a 91 percent reliability level) how a client will make decisions over the long term, Massie says, and these new packages make this objective scientific measurement simpler and more accessible for advisors and the people they serve.

While many advisors and clients are familiar with risk-tolerance surveys, Financial DNA goes far beyond that one area, using validated methodology to identify things like how likely a client is to delegate financial planning, how likely a client is to save/spend, how a client sets/pursues goals, and financial emotional intelligence that is, how emotional will a client become, for instance, in the face of market upswings and downswings, and how well do they manage those emotions.

Founded in 2001, DNA Behavior delivers practical and scalable behavioral intelligence solutions to Know, Engage and Grow every client and employee online. The company says its behavioral insights have solved communication, goal-setting and investing challenges in over 123 countries through 11 languages and 12 proprietary DNA Behavior Discovery Processes under three primary brands: Communication DNA, Business DNA and Financial DNA .

DNA Behavior International Drew Plant 404-634-7102
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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.