Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Readers,
While everyone was watching the election with bated breath, I was celebrating my birthday on November 3. Every year, I step back and take stock of what I have learned over the previous year. What insights or ideas can I bring to advisors for them to think about for the upcoming year?
In this week’s column, I’ll share six important insights:
The first three are about personal growth and the last three are about business growth:
1. Behavioral styles matter more than we know in communication. This week alone I have had five conversations with advisors about disagreements on decisions made, or agreements reached. Why does this happen? How can people who think they have reached a conclusion have a vehement disagreement months and years after the decision? The answer often lies in the style of communicating. Some people are very bold and direct. They negotiate well because they can state an opinion as a fact. They know they are right and they will push their perspective until others agree or capitulate. Other people are more mild-mannered. They will avoid conflict at all costs. They will seek to preserve harmony so they might agree to something when really, they disagree but they want to keep the peace. It’s important in any business engagement – internally with partners or team members, or externally with prospects and clients – to stay aware of your behavioral style. Ask others how you come across to get an outside reflection. Pay attention to the style of others and consider how you can modify your approach from time to time. You cannot be “heard” if you don’t understand how the message is being received. No style is right, and none is wrong. But ignoring them can lead to festering wounds where one party believes they were not listened to or understood.
2. There is always room for improvement. Over the last month I’ve worked with a team of professional salespeople who are very successful and sharp people. They are intelligent, thoughtful in approach and care about their prospects and clients. I have had the chance to speak one-on-one with each of them to talk about their obstacles. In each and every conversation, we’ve uncovered just one thing that person could do differently in order to improve and sharpen their edge just the slightest bit. It has reminded me that no matter how experienced, successful and talented we are, we all can benefit from learning just one new thing to implement to make us even better. Life is a big schoolhouse with lots of learning opportunities presented to us every day. When you have the attitude of being a student, new ideas present themselves and you continue to learn and grow.
3. Emotional Intelligence matters. This year during the lockdown I was able to obtain my certification in emotional intelligence (EQ). Financial advice is an intellectual business and it is important to know your craft and be a technical expert. However, every advisor also knows it is an emotional business – money matters to most people just as much as their health and family (and for some people, it matters even more!) Behavioral finance has been around for a long time, but the CFA Institute has published information on the importance of understanding emotion and psychological considerations. In its study, The Value of Premium Wealth Management, they explored the connection between IQ and EQ in serving clients. In short, the more you learn about your own emotions, and how to self-regulate them when needed, the better able you will be to serve your clients and help them manage their own emotions.
4. Growth doesn’t just happen. The most successful advisory firms I have the honor to support are constantly looking for ways to grow and develop new opportunities within their firms. The belief that, “if we build it well and serve them with excellence, they will come and bring their friends,” does not work. I’ve had hundreds of conversations with advisors this year alone talking about growth where many are somewhat embarrassed to admit their revenue has flattened, or even declined and they don’t know what to do. Advisors are not professional salespeople. I’ve never met anyone who chose this career because they answered a calling to be in sales. That said, advisors are good at planning and few take the time or put the focus on planning to grow their firm. They might execute a marketing campaign, update their website or attend networking events. But growth takes focus. It takes a coordinated effort of activities, measurement of outcomes and training to help hone the skills and make the process comfortable. It pays off, but like any process with an outcome, it takes time, energy and a plan to make it work well.
5. Stories bring your gifts to life. The most overlooked yet powerful tool to change the minds and hearts of an advisor’s prospects and clients is learning how to tell good stories and help investors shape their view by learning about what others are doing. In the thousands of growth conversations I’ve had with advisors over the years, one of the biggest “ah-hahs” I’ve uncovered is the experience they have dealing with a variety of situations, the outcomes they have achieved and how little they recognize the importance of these and share them with their audience. Putting a focus on stories brings your message to life in a way that facts and data never can.
6. Everyone can sell very effectively. Although advisors might not be wired or trained to do so well, they absolutely can learn. It doesn’t require you to change who you are or what you do well; it means adjusting the way you think about the process. You can help people – they need you but you have to let them know you are available! And when you love what you do and have a passion for it, it inspires others. Change your mindset from being a pushy salesperson to being an evangelist who wants to share with your target audience your enthusiasm and the many ways you can support someone – and change their life.
Now that I am into my own personal new year, I’m already keeping my eyes and ears open for what new things I can learn! Write in and let me know your experiences or questions, let’s learn together.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. The firm also founded and manages the Advisors Sales Academy. She is currently an adjunct professor at Suffolk University teaching undergraduate and graduate students Entrepreneurship and Leading Teams. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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