Blue Chip Issue 79

COACHING Emotional

COACHING Emotional Connection: The fuel that drives the engine of financial advice When you meet with a client where do you focus your attention in the early part of the meeting? Is it on your client? Or is it on their money? At the core of adopting a coaching approach to working with your clients is the idea that you focus on the person rather than their money. In other words, your client is a person. Their money is not your client. Yet many financial advisors I work with feel more comfortable to focus on the money. On the thing they are qualified to advise on. After all, most financial advisors have not been trained in counselling or coaching skills. But this is changing. In South Africa over the past three years, I have worked with over 300 financial advisors who are consciously developing these skills. In Canada, training in these skills is compulsory to qualify as a CFP® Professional and I’m sure in time this will become a requirement in many parts of the world. I recently worked with a financial advisor who tells his clients upfront that in their interactions, he will deal with their personal lives, but at the start the journey will focus on money matters We all have a money story for our life that sits deep in our emotional programming. only. It is great that the financial advisor is willing to go there and engage his clients on their personal lives. But it is back-to-front. I would argue that it is critical to start talking to the client about their life first, as money is something that goes to the core of our being. It is not something that can be managed dispassionately at a distance. As much as we all wish it could be. Money is also a means to an end. It allows us to buy things. It is very useful. And this is where much financial advice focuses. How can your client use their money most effectively? But money evokes emotion in so many ways. It can provide a person with selfworth. If I have a lot of money I am worth something. Or if I don’t have a lot money, does it mean I’m worthless? I can use money to express myself. I want to be seen driving a smart car, because smart cars represent success. I want to be seen as successful, money helps me do that. Money can be a source of pride, or pain. Money is not simply a piece of paper or a coin. Cryptocurrency is highlighting that for us! We all have a money story for our life that sits deep in our emotional programming. In fact, money is the thing with which we have the longest relationship of any thing or person in our 56 www.bluechipdigital.co.za

lives. We are born into a family that has a money story. Not only do our parents have their own financial circumstances at the time of our birth, but they have their own individual money stories into which we are born. After we die, our money story continues with our legacy. Did we manage to leave money to anyone or anything? Or did we use it all up before our last breath? Without a genuine emotional connection, you are unlikely to be able to serve your client optimally. improved by 40%. Operational costs with 23% less electricity and 90% paper COACHING used. Perpetual Guardian, a New Zeal based financial services firm, moved four-day week in late 2018. Product improved 20% over an eight-week pe an independent survey showed staff s levels reduced and work-life bala improved from dramatically. As you think about innovating to k up with constant change, don’t get s on technology and forget about people. They may just end up working business that has found a real way to m a dent in traffic congestion! no surprise, then, that Ricardo Semler, a R20k, and that the process usually involved References highly successful, innovative industrialist four meetings. The potential client had David Rock, The Neuroscience of Leadersh The first step in the internationally accepted Six Steps of and entrepreneur from Brazil, wrote a experienced so much value in just one – Improving Organisations by Understand Financial Planning process is to “establish the relationship” with the client. book But entitled little guidance The Seven is Day given Weekend. in conventional He aspect financial of the first meeting that they were the Brain, Talk at FPI Convention, 2012 advisor encourages training on employers how to do to this think on an differently interpersonal moved basis. The to ask if this was R20k per meeting Morgan Housel, The advantage of being a focus about tends to how be they more manage on the legal their relationship people, and between – not advisor because they didn’t want to pay the little underemployed, www.collaborativef and client. more importantly, A relationship how by its to nature get the is best meant out to be fee mutually but because they thought given the com, 17 May 2017 beneficial, of people. so the He first argues step that in the technology six-step process that requires value they had when already the focus experienced, is on the client. this And Ricardo the more Semler, the focus The Seven is on the Day Weekend, financial was advisor supposed to make to make some disclosures life easier such about as themselves was a and possibility. client, the more likely the advice that Penguin ultimately Publishing, given, 2004 will be find out laptops, information cellphones from the and client. email, As has a financial actually advisor, the sixstep process encroached requires on you people’s to disclose free upfront time. to the client The what value you in people At its core, a relationship is about emotional stress and connection. increased productivity, Without www. appropriate and effective. Robert Booth, Four-day week: trial finds lo can do for them, how you will do it, and what you will charge for a genuine emotional connection, you are unlikely to be able to serve But as he says, this can be a good thing In a knowledge-based economy, when you theguardian.com, 9 February 2019 it. The advisor is also obligated to find out information about the your client optimally. And you are unlikely to build the trust that if you have the autonomy to get your work are providing a professional service based McKinley Corbley, Microsoft Japan Recent client. The standard ways to get to know a client include tools like is so critical for clients of financial advisors. Often, I hear financial done on your own terms and to blend your on knowledge, experience, thinking and Gave their Employees a 4-day Week – and a financial needs analysis; a “discovery” interview; or some form of advisors complain about the fact their client is dividing their risk profile work life or personality and personal questionnaire. life. He suggests that interpersonal assets skills, up to to quantify be looked anything after by different Productivity financial Skyrocketed or investment by 40%, www. One innovative of the biggest employers mistakes will I eventually think financial realise advisors in make terms is of time advisors. – be Or it they your keep employees’ getting “quotes” goodnewsnetwork.org, from other advisors. Clients 8 November 2019 to follow that the people required may be regulatory more productive protocols if when they establishing working a hours who or do the this time are either spent acting with out a of some LinkedIn level Talent of mistrust, Solutions, or just 2019 Global Tal relationship have the with flexibility their client, to decide but not for to themselves connect with their client client – is a not disservice feeling a genuine to the value connection that with Trends their Report, advisor. 2019 emotionally. when to Relationships work and play, are by rather their than nature the emotional financial and planners There and is their much staff research potentially in the Samantha therapeutic McLaren, professions How these to 4 Compa money employer itself is an deciding. emotive influence Rather on than our time lives. Most in, advisors can add will to their suggest clients’ that lives. the outcome for clients are of counsellors, Embracing Flexible psychologists work – and Why Y have employers a “getting to ideally know should you” process, focus but on value this is out. usually not So based the opportunity and psychiatrists is ripe for is less the to picking do with their Should skills, Too, training, www.businesslinkedin.com, or modality 2 on understanding The importance the implications of of value your client was being to a innovate human they with adopt, respect and to more how to you do get with the May quality 2019 of the relationship being, and all the emotional and relational complexity that goes they have with the client. In other highlighted for me recently when I met and keep people and make them more with that. Having a full understanding of your client as a human words, it’s more about focussing with a financial planner who related how productive. LinkedIn’s 2019 Global Talent being is key to establishing a meaningful relationship with them, on the person, rather than their they helped a potential client resolve a Trends Report indicates that over 30% of which is the foundation for great advice. problem. In the context of financial For dilemma example, about let us assume their future you have retirement. a client who has job-seekers just won will advice, turn it’s down about a job focussing if there on are the the lottery They helped and asks the you client to help assess them retirement invest their R20-million not flexible work client, arrangements. not their money. Computer Connection winnings. options Once in the a more regulatory rigorous niceties and are creative done with, giant the focus Dell implemented is the fuel that drives flexible the work engine of the way conversation than if the could client shift had straight simply to the tried money practices and what in 2009. of your US financial healthcare advice. company And that to do to with do it. it Alternatively, on their own. the conversation No doubt could the begin Humana with did is what the same makes in you 2016, different using from how experience the client is feeling and thinking about their that newfound this planner fortune. technology It could to a Robo enable Advisor. call-centre Many workers advisors then had explore done what over aspects many of their years life will made be affected this by to it. work Which from I home. have worked with initially viewed other meeting people close very to impactful. them will be impacted? Who may now More seek recently connection Microsoft as a chemistry in Japan thing, financial support from the client? What are the implications of the “Something that happens, or When it came to discussing the financial experimented with a four-day week for win for the client’s own work-life approach? You may even want not”. But there are real skills and planning fee, the planner mentioned that their employees. Without an adjustment Rob Macdonald, Head of Strategic Adv to explore the reality that most lottery winners end up broke, and techniques you can use to facilitate Rob Macdonald, Head of the upfront financial planning fee was in remuneration. The result? Productivity Services at Fundhouse what is that about? What could the client do to avoid a similar fate? connection. I will consider these in Strategic Advisory Services As you can see, the R20-million easily fades into the background my next article. at Fundhouse 44 www.bluechipjournal.co.za www.bluechipdigital.co.za 57