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The Take-Charge Visionary

This post is part one of our series on Financial Behavioral Insights from our Financial Performance in the New Behavioral Economy White Paper. The financial behavior insights will help you gain greater self-awareness for recognizing some of your own behavioral tendencies and also those of investors.

The Take-Charge Visionary

Behavioral Insight 3, Take charge investors, investor behaviorJack Sun is a 40-year-old driven businessman who has come to meet with you to discuss his finances. You have learned that Jack has just sold one of his businesses and he now has capital to re-invest. You ask Jack the question: What will your life be like in 3, 5 or 20 years? Jack is able to immediately respond that he loves running restaurants and managing people. As the discussion goes on it becomes obvious Jack has worked out his life plan and he will not be retiring. Further, he does not mind what he invests his investment capital in so long as it makes money. He says he is interested in the overall return and not the performance of any particular asset.

Jack is an Initiator with a dominant trait of being a Take-Charge Visionary. This means he is naturally a big-picture thinker. He can see his life out a long way. Being able to more easily get the big-picture clarity does mean he will be naturally more comfortable making long term investment plans. Further, this clarity will help Jack with being able to more confidently make financial choices.

Also, when it comes to managing investments, an Initiator with Take-Charge Visionary traits will be able to more easily look at their investment portfolio in the aggregate. This will generally help them focus on the overall result and not get stuck on looking at whether each particular investment is a winner or loser.

Behavioral Insight
Naturally big-picture thinkers and decisive people will be Initiators who are Take-Charge Visionaries. They know where they are going and will have a consolidated view of their investment portfolio.

Communication key: Keep the discussion high level and provide options on recommendations.

A struggle that an Initiator will have is listening to advice from an advisor because it is about their agenda and plans. This means they could miss learning important information before making a decision and over extend themself.

An advisor who is an Initiator with Take-Charge Visionary traits will be naturally good at giving the client direction but needs to slow it down and listen to what their client has to say. This type of advisor needs to be very careful that their dominant attitudes do not overly influence the portfolio.

Learning Point:
The Initiator with a Take-Charge Visionary dominant trait will more independently set the direction of their overall planning. The advisor should aim to guide them by providing options and recommendations on investment choices. Ask the client: What goals would be the most important for you to achieve in your life? Have you built a detailed plan for your wealth creation?

To read about additional client behavioral styles, download the full Financial Performance in the New Behavioral Economy White Paper.

What are your thoughts?

Discovering Communication Styles

This post is part 3 of our 8 part series on increasing Client Engagement from our Client Relationship Performance in the New Behavioral Economy White Paper. The insights will demonstrate in practical terms how to apply predictive behavioral insights to tailor client communication and provide unique client experiences.

Behavioral Insight 3: Discovering Communication Styles

In part 1 and 2 of this series, we learned about Chris Coddington and his meetings with a client named Frank Butler. Chris was given information about the 4 Communication DNA Styles (Click here to read the previous post in this series).

Chris commented that being aware of these four Communication Styles would be very insightful and made the mystery of knowing and then adapting to different clients much more concrete. The question is, How do I do this? In some cases there is not a lot of time to get to know a prospective client, or trust may not have yet been developed to have him or her complete a formal assessment.

We explained to Chris the most accurate and reliable way of getting below the surface to understand the clients natural DNA behavior is to have the client complete a validated online behavioral assessment. People have a natural personal bias based on how they see the world, which will somewhat shape how they see the client. Further, how you see another person is driven by how you see yourself. Our self-perceptions can change from time to time depending on the life and financial events we experience. This then makes what we personally observe not very predictable and often quite inaccurate. The key point we made to Chris was that the assessment process is objective and measurable.

Our advice to Chris was to present the profile request as a way of increasing his ability to serve the client. A simple request such as: We want to recognize your communication strengths and provide you with the highest service. Can you help us do this by completing this exercise, which will highlight your natural communication strengths and enable us to serve you in a great way?

Ultimately, no matter how personally evolved you have become, there will always be personal blind spots getting in the way of how you see others. This is normal. So, the ideal scenario is to have the client complete an independently administered profile to gain reliable insights, as natural DNA Behavior is inherently predictable.

However, in the event that this cannot be done, then good personal observation of the clients type of conversation, speech tone and facial features will help. We suggested to Chris that he use the following table as a guide in observing clients. A caveat was given that the observation views in the table may not always be an accurate reflection of the clients natural behavior, as some people mask who they are on the surface.

What are your thoughts? For additional information on increasing engagement of others, visit our Communication DNA Website.

 

Four Primary Communication Styles

This post is part 2 of our 8 part series on increasing Client Engagement from our Client Relationship Performance in the New Behavioral Economy White Paper. The insights will demonstrate in practical terms how to apply predictive behavioral insights to tailor client communication and provide unique client experiences.

Behavioral Insight 2: Four Primary Communication Styles

In part 1 of this series, we learned about Chris Coddington and his first meeting with a man named Frank Butler. At the start of this first meeting Frank took over the agenda and wanted to get straight down to business to address the goals he had for the rest of his life and the way in which he wanted his money to be looked after (Click here to read Part 1 of this series)

Chris went on to say that he had been observing how different people behaved and that there seemed to be clearly different client styles with which he had to interact. He then made the comment that his normal approach of meeting with clients was that both spouses were present. In many cases, the spouses behaved and communicated very differently. Chris said this was always difficult when one was far more talkative than the other. The fact that one spouse may be more talkative did not necessarily mean the other spouse was not playing a strong role in the decision-making. However, Chris knew that an important key to his success and comfort in managing client relationships would be to learn more about the different communication styles. But he did not want to have to become a psychologist or certified behavioral specialist to do it.

We showed Chris that there are actually four primary Communication Styles, based on natural DNA Behavior, that drive client relationships, and they are very easy to learn. These Communication Styles all have specific communication strengths, learning styles, communication keys and client experience needs. The four primary Communication Styles are summarized as follows:

1.?? ?Goal-Setting Focus ? a person (like Frank Butler) who is focused on goals is interested in opportunities to expand his or her world.
2.?? ?Lifestyle Desire ? a person who is focused on lifestyle desires engagement, fun and making connections.
3.?? ?Stability Need ? a person with a need for stability is interested in safety and living in a calm environment.
4.?? ?Information Need ? a person with a need for information likes to analyze and focus on the tangible.

communication styles, know your client, communication training, client relationships, client engagement

Further, we demonstrated to Chris that in order to more consciously adapt his communication to each style of client all he needed to do was use the DNA Communication Guide below. Of course, the starting point is for Chris to know that his Communication Style is Goal-Setting Focus.

The wise advisor will be aware that in a competitive New Behavioral Economy, knowing client Communication Styles will be the key to increasing revenues and having less personal frustration from playing mind games in figuring out the client. It will then come down to the tactics that get employed to know the client. One of the biggest issues for advisors is their own personal fear to ask the clients touchy feely questions about how they wish to be communicated with, and about their life generally. From experience, clients want to be asked and appreciate it.

What are your thoughts? For additional information on increasing engagement of others, visit our Communication DNA Website.

 

The Influence of Natural Behavior on Client Relationships

This post is part 1 of our 8 part series on increasing Client Engagement from our Client Relationship Performance in the New Behavioral Economy White Paper. The insights will demonstrate in practical terms how to apply predictive behavioral insights to tailor client communication and provide unique client experiences.

Behavioral Insight 1: The Influence of Natural Behavior on Client Relationships

Chris Coddington tells the story of a first meeting with a man named Frank Butler. At the start of this first meeting Frank took over the agenda and wanted to get straight down to business to address the goals he had for the rest of his life and the way in which he wanted his money to be looked after. Frank made it clear that he wanted Chris to be direct and provide him with options and recommendations. He did not need to have detailed explanations up-front, although he expected Chris to be ready if he did ask for research. Further, Frank pointed out that his comprehension style was more to learn by discussion in a one-on-one interactive setting. Also, Frank said that he liked 30-minute meetings and that he did not see financial planning as a social experience. What is motivating Franks communication style?

Great relationships, know your client, business transformation, personal development

We often assume that the way a person behaves and communicates is shaped by the energy of money or business conditioning. However, it goes much deeper than this. The correct starting point to understanding our clients relationship approach is to discover their natural DNA Behavior, the core of who they are. This is the behavior that was hard wired into them by the age of 3 based on their genetic DNA and early life experiences. The natural behavior often sits deep below the surface, and the client and advisor can be easily blind to it.

Behavioral Insight – Natural Behavior is Predictable
Natural DNA Behavior predicts how people wish to be communicated with, the type of service experience they desire and generally how they will respond to life and financial events. This behavior will then be the force driving advisory relationships and many of the clients life and financial decisions, particularly when under pressure.

When clients are under pressure they will revert to their natural DNA Behavior, as it is the
go to or flip back behavior. Pressure is often caused by money, relationships and events, which drive emotions. What we have learned is that a persons natural DNA Behavior drives how he or she uniquely wishes to be communicated with and the type of service experience that person will desire. Also, it will generally drive how life and financial decisions are made. A key point is that the natural DNA Behavior will remain inherently consistent throughout a persons life and therefore is highly predictive. Of course, people will communicate from time to time outside of their natural DNA Behavior because of current circumstances, life history, values and education. Therefore, it is also wise to know the influence of these life events on the way the clients want to be related to in specific situations and how their decision-making may be influenced.

What are your thoughts? For additional information on increasing engagement of others, visit our Communication DNA Website.

 

The Fast-Paced Realist

This post is part 5 of our 10 part series on Financial Behavioral Insights from our Financial Performance in the New Behavioral Economy White Paper. The financial behavior insights will help you gain greater self-awareness for recognizing some of your own behavioral tendencies and also those of investors.

Behavioral Insight 5: The Fast-Paced Realist

Max is a 62-year-old senior corporate executive who is used to making difficult decisions. Some colleagues call him Merciless Max for his ruthlessness about numbers. His view is that forecasts have to be met every quarter and a bottom line number delivered. Predictably, Max believes that the same approach should be adopted with his investments. He looks at the portfolio quarterly and makes the tough decisions that are needed to keep the portfolio in line. He calls this re-balancing. At times, however, his rational focus may mean a short-term swing is mistaken for a long pattern, and therefore too much pruning goes on.Client Behavior, White Paper, Financial Planning Performance

Behavioral Insight
A naturally logical and challenging person will be a Fast Paced Realist who is able to make very rational decisions without getting stuck but may be too impatient for returns.
Communication key: Provide the bottom line results and keep the discussion quick.

Max is your classic Fast-Paced Realist who generally knows when to sell winners and cut his losses. Fast Paced Realists do not have an aversion to taking losses. They are rational enough to see that at times selling losers instead of winners needs to happen even if it is embarrassing or causes short-term pain. They will act decisively and move on without getting too emotional when making hard decisions. Further, unless they have been misled by an advisor, Fast-Paced Realists will generally take responsibility for their decisions and not act like they have been burned because it has all gone wrong.

The struggle for the Fast Paced Realist is that their more aggressive results focused nature can lead them to heavily trading the investment account. Also, their natural lack patience may cause them to sell investments too fast because of a market blip. Therefore, the risk is they may sacrifice what is a good long-term investment for short-term results.

An advisor who is a Fast-Paced Realist has the logical strength of being able to help their client make rational decisions. Although, the struggle will be that whilst providing the rationality they may not recognize the clients feelings about the situation and the decisions to be made. Further, advisors who are Fast?Paced Realists would also be more likely by nature to over trade or churn their clients investments.

Learning Point:

Fast-Paced Realists need an advisor to help them with re-balancing their portfolio on a regular basis to maintain diversification, and in doing so show them the long-term investment fundamentals before short-term decisions get made. Ask the client: How do you approach making difficult investment decisions? What type of performance are you expecting on your investments?

What are your thoughts? For additional information on discovery through behavioral profiles, click here.

 

Creative People More Likely to Cheat?

A recent Harvard Business School study suggests that creative people may be more likely to cheat (click here to for details on the study).

Creative people, behavioral profiling, personality, harvard business review, creative people more likely to cheat

An interesting article and we agree based on our own research into DNA Behaviors that people who are creative will have a natural instinct to work around rules, problems and barriers. However, whether they do or not will also be related to their character which will influence decision-making. You cannot say all creative people are of bad character. Also, we have seen those people who are naturally ambitious and competitive could also have a natural drive to cut corners to achieve goals. So, if a person is both creative and ambitious then this natural motivation will be even stronger, subject to character.

What are your thoughts?