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HIRING – What You See May Not Be What You Get

Hiring is not an exact science, but there are ways to mitigate getting it wrong.

Twenty-seven percent of employers in the U.S. who reported a bad hire said that a single bad hire costs more than $50,000. (According to a CareerBuilder survey of 6,000 hiring managers and HR pros worldwide, 2013.) The internet is rife with tales of how expensive a bad hire can be.

But the bigger issue, and the one that has the potential to cause long-term damage to any organization, is the impact a bad hire has on productivity and morale. Matching candidates talents to the specific role, the team culture and conducting behavioral interviews to get below the surface, is more likely to get you to the right candidate for the role.

Sixty percent of hiring managers report that bad hires dont get along with co-workers, according to the Society for Human Resource Management.

Keep in mind that candidates will have a mixture of natural, learned and cognitive behaviors. These insights are measurable and, using a validated tool, can be revealed at the outset of the hiring process. Still, it isnt enough to fill a vacancy. The fit to the team, the organization, the culture and the up-line management, are significantly more important than the skill set a candidate brings to the table.

The lesson for CEOs: Dont hire yourself. Just because the interview went well and you connected does not translate to a fit for a role. Hire to the job. Hire to bring the talents you dont have to the organization.

And for you Recruiters? If you want to hire well, make sure you have a benchmark of the typical behavioral characteristics needed for high performance in specific roles. Not only do you need benchmarks for the role, you also need them for the team, department and decision makers. Without this information, the hire will be based on resumes, references and gut instinct.

Your reputation is riding on it. Candidates will be watching for vacancies at organizations who are known for their integrity, culture and treatment of their people. They will be more interested in the role than the salary. They will want your company name on their portfolio of work. They will want to boast they work for you.

Assessment Centers should take recruiting seriously too. Spend time with candidates. Its not enough to hire those that look good on paper and fit all the benchmarks; they also need the right character traits. If you are recruiting to a highly-pressurized role, you need to know their potential to manage others under pressure. Is there risk associated with the decision making in the role? How will the candidate respond under pressure? Are they going to become a rogue trader (for example)? Time spent in an assessment center provides insight into the extent a job applicant meets these qualities.

What to do?

  • Use a validated talent discovery system to get under the surface and discover the natural strengths and struggles.
  • Compare the outcomes to understand the candidates team fit and how they will interact with the leader and team members.
  • Have a list of powerful questions for conducting a behavioral interview based on the candidates natural strengths and struggles.

The most effective investment that a business can make into the hiring process, is to devote time and energy into benchmarking the talents and behaviors required for different roles. This makes for a smoother and more effective hiring process as you match candidates to roles.

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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Own it! And Succeed

The more we understand our own personality and behavioral responses, the better able we are, both as individuals and teams, to work together effectively and avoid the blame game when things go wrong.

In his recent article, The Blame Game, Marc Corsini observes, When salespeople, professionals or executives are underperforming, they usually complain about others first.

Taking ownership of behavior

We all have our strengths and struggles. But those who understand and take responsibility for their behavior, will gain respect from others and have a healthy respect for themselves. Accepting personal responsibility is one of the most important factors in defining a person’s true character.

There is something liberating about being behaviorally aware. DNA Behavior’s Natural Behavior Discovery process offers significant insights into our “go to” behavior – our default reaction when under pressure, or when we make a mistake or lose focus among life events.

Sometimes, when we’re struggling or lose confidence, rather than asking for help, we blame others for our lack of performance or our mistakes. On occasion, we are the ones being blamed and fail to stand up to the accuser. But the reality is that such a response is immature. We need to take responsibility for our own behaviors and responses. Becoming behaviorally smart is as simple as completing a highly-validated psychometric questionnaire and receiving detailed personality insight, together with detailed information on how to build on our strengths and manage our struggles.

Further, becoming behaviorally smart through completing the DNA Behavior Natural Discovery process will also reveal other areas where it is important to take responsibility for our behavior. For example:

  1. How we lead others.
  2. How we communicate and wish to be communicated with.
  3. The environment within which we are more likely to flourish.
  4. How we perform on a consistent basis
  5. Our reaction to the financial markets when they fluctuate.
  6. How we approach decision making.
  7. How willing we are to take risk or not.
  8. Our biases (we all have them, but the key is knowing what they are and how to manage them).

In leadership, it’s likely that people will work more effectively if leaders understand them. Sounds simple! But without insight into personality, communication, strengths, and struggles, leaders can’t be successful.

When a leader is self-aware and has gained insights into how to manage others through understanding and managing behavior – success is the outcome.

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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Fill Big Data’s Big Gap

The explosion of available information from social media, together with significant techniques for capturing this data, now provides financial advisors with a gold mine of information to help them identify and connect with clients.

Big Data gathering is only a starting point in terms of capturing user behavior. It delivers a glimpse of the client but leaves a significant gap and won’t offer enough insight to be able to advise or offer solutions to clients based upon their life goals.

DNA Behavior International fills the gap. With the use of behavioral psychological insights, revealed through a validated questionnaire, their powerful DNA behavioral intelligence, partnered with their Big Data Optimization program enriches firms employee and client data.

IBM in their Big Data and Analytics Hub ask these questions: Are you (financial advisor) generating targeted personalized offers for your clients? Do you know your customers and provide them with timely, relevant and optimized offers based on data-driven insights? By leveraging information about your clients’ behaviors, needs, and preferences, you can encourage high response rates from clients and enhanced relationships with them.

Client Insight for Wealth Management

When financial advisors use Big Data to enhance their service offering – what are they extracting from the data? How are they interpreting it? What is it saying about potential clients? Will clients be concerned that they are being advised based on their social media accounts alone?

Financial advisors who mine social media to serve client’s life events should know this does not reveal personality or bias. It doesn’t uncover decision making styles. It won’t predict a reaction to market mood. It won’t reveal influencing life events.

Advisors who are behaviorally smart understand there is a gap in Big Data mining. They know the importance of guiding clients with wisdom to self-discover who they are and their priorities to achieve financial wholeness. Financial DNA discovery delivers this self-discovery process. This strong, validated, structured approach reveals all dimensions of a client’s financial personality.
A partnership between behavioral analytics that reveal personality and big data offers financial advisors a significant key to identifying clients and delivering accurate advice.

As quickly as Big Data mining was the key to understanding customers now the added requirement is for financial advisors to be able to use cognitive and analytics to understand their clients.

 

Hugh Massie

 

Gauthier Vincent head of Deloitte’s US Wealth management consulting business is quoted in the Financial Times: Tools that help manage interactions with clients will soon be able to analyze data such as a client’s social media activity to work out their investment goals and advisers are thinking. There’s a lot of info out there I would love to have to create rich profiles of prospects so I can increase the odds of success when I [contact] them.

Well said – but Big Data will only ever become a significant tool for financial advisors when it shares its platform with a financial personality discovery process such as Financial DNA.

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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When ‘Brilliant’ Is Not Enough

The New York Times covers several aspects of the Uber CEO Travis Kalanick’s demise. It references the culture in the organization, speed of growth, shareholder concerns, and the aggressiveness of the leader.

In specific, it highlights Kalanick’s pattern of risk taking and references his lack of integrity. For example, the many years where Uber engaged in a worldwide program to deceive authorities in markets where its low-cost ride-hailing service was resisted by law enforcement or, in some instances, had been banned.

In other reads, Kalanick’s unhinged confidence and competitiveness are hailed as examples of what makes him such a brilliant entrepreneur. Yet he is prone to trash-talking and tantrums, further revealing that his position as a CEO/Manager is highly suspect.

These observations highlight the fact that he is not self-aware and will continue to simply get in the way of his own success. Had he been behaviorally smart, he would have known that while entrepreneurs clearly need the talent to start a business, they also need much more to grow into successful CEO/Managers.

Kalanick says this about himself, “I must fundamentally change as a leader and grow up.”

But when an entrepreneur has a pattern of risk-taking and lack of integrity then continues to present himself as bullet-proof, the behavior results in poor management. This is where genius can become insanity and entrepreneurship crosses over into illicit behavior.

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No single personality type makes up an entrepreneur – but there are wise steps that can be taken to manage the talents required to be a successful one. For example:

  • Managing creativity
  • Managing risk-taking
  • Developing innovation
  • Understanding personal EQ
  • Working with and through people

Highly innovative and creative individuals who see themselves as entrepreneurs (defined by Dictionary.com as those who identify a need—independent of product, service, industry or market) should take seriously the need to understand their personality before venturing into starting a business.

The DNA Behavior Natural Discovery Process is a highly-validated discovery platform that predicts behavioral responses through identifying personality traits, attitudes about money, risk tolerances, and behavioral biases. Independent research shows DNA Behavior’s behavioral intelligence solutions lead to:

  • Closing the 60% engagement black hole caused by the relationship gaps in employee and client interactions
  • Increasing the suitability of client solutions offered to 99.75%
  • Improved employee productivity by up to 40% and increased revenue by over 23% a year
  • Identifying the 5% of employees who are potentially rogue, costing 5% of revenue in losses per year

As Travis Kalanick mourns his ignominious fall from grace, one thing is for sure – when he starts a new venture (and he will) his first step should be to understand how to manage his behaviors. And maybe then he can begin to understand why he thought the number one commandment he set for Uber employees was – Always Be Hustlin. Not the smartest of values to build a business upon, but a very clear indicator of the person who birthed the phrase.

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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Spend Your Kids’ Inheritance. No, Really!

UHNW global wealth is expected to reach $46.2 trillion US by 2020.

As many of these UHNW individuals reach their golden years there will be family conversations taking place that focus on the next generation and who will inherit what. Or will there be?

Rarely do we hear about or read articles that focus on wealth transfer conversations through the lens of the children. More often it’s the parent’s perspective; they make decisions for their children believing that they are setting them up for success. However, in many cases, the reading of the will is the first the kids hear of the parent’s plans.

Conversely, families that talk openly about money and have built a safe environment around the dinner table to discuss wealth, will have created a family dynamic within which succession planning is just one of many conversations.

Regardless the size of the family wealth, talking about dying, wills and inheritance within families is an emotional subject. Some family members cope well, others not so much. We all respond differently when under pressure, especially when emotions and close personal relationships are part of the scenario.

Families that have not made these topics part of normal family life will have a greater problem when estate planning becomes imminent. There will have been no discussion about preserving the inheritance. No consideration for the individual financial personalities of the inheritors. Families familiar with transferring generational wealth will have focused on training the next generation, listened to their whats and needs, and prepared each recipient based on their individual financial personality.

In the 2011 US Trust Research, their findings show that 84% of wealthy parents believed their children would benefit from meetings with financial advisors, but 59% had never even introduced their children to the advisors managing their assets. More than half had not fully disclosed their wealth to their children because they had not thought to do so.

By not communicating with their children:

  1. 60% of transitions failed due to a breakdown in communication and trust in the family unit
  2. 25% of failures in family wealth transfer were caused by inadequately prepared heirs
  3. 30% of family businesses survived to the 2nd generation and just 4% survived to the 3rd generation. Source: Independent Williams and Preisser Research

When discussing money and inheritance have not been part of normal family life, and heads of families believe they should be the main decision makers. The beneficiaries are left with no input. Many parents become overprotective of the family wealth, mainly because they read such statistics as the 70% failure rate when transferring family wealth from one generation to another, and the resulting loss of control of assets through mismanagement and poor investments.

The transition of wealth is very complex and in some cases, can reveal ugly behavior. Family members are all different, so are their attitudes about money. No longer are the kids isolated from what is happening in the world; they understand far more than parents often give them credit for. Healthy conversations about money and estate management ensure children won’t feel entitled to wealth, or become lazy and count only on inheritance.

When families speak freely about estate planning they can head off difficult situations, one being that the children don’t want the inheritance. Instead, they may:

  1. build a successful financial life for themselves and don’t need the family money.
  2. not want the family home as it would cost them a fortune to modernize it.
  3. not be interested in the family business as they are too busy running their own.
  4. be teaching values to their own children, requiring them to build wealth through their own hard work and diligent saving.

As lives become more mobile, some young people don’t want to be tied down to possessions that don’t fit in with a more disposable, digitized, transient lifestyle.

A good starting point is to uncover and understand each family member’s financial personality. DNA Behavior International offers a significant suite of tools to facilitate this discovery. Based on the outcomes, conversations are significantly more focused on the proper approach to address all involved about the transfer of wealth. These insights set the course for the formulation of the DNA Family Continuity Planning Vision. A process within which all opinions are valued in the family succession planning process and promote family harmony.

Beneficiaries have the right to know in advance what their financial future is likely to look like, as not everyone will be happy to receive an inheritance or be able to manage the responsibilities that come with it. Family dynamics, values, the amount of wealth to be distributed, and the maturity level and financial personality of heirs can vary dramatically from family to family. Better to know this up front so that plans can be made accordingly.

Rich dinner table conversations build sustainable relationships across generations, and it all begins with understanding one other’s financial personality.

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

The Canon Curve – Episode 19: Hugh Massie

Keeping us ahead of the Curve today is an individual who takes a unique approach to the financial services industry-understanding human behavior, not just numbers. By applying behavioral psychology to his company’s business principles, Hugh Massie provides practical solutions for clients to become financially self-empowered and for leaders to become relational and successful.

Mr. Massie, CEO of DNA Behavior International, walks us through his intriguing professional narrative, rich with international experience and entrepreneurial pursuits. Tune in to hear his story and insights on how you can learn more about yourself in order to become a more effective leader.