It's time now to take your closing skills to the next level.
You can only use the techniques we'll talk about today in engaging your clients in the sales process to provide fantastic client outcomes if you have successfully and expertly identified:
- the areas of the clients financial and insurance solution that are lacking, and these have been clearly identified to the client and importantly to the referral source that ideally these clients have come from due to the success of the use of the wealth management index questions (as dicussed in our early posts)
AND
- you have engaged the client on a psycho-emotional level and discovered invaluable information about how they feel about specific areas of their lives, how they rate those aspects now and what they would like to see in the future around those specific areas
AND
- you have explored what success looks, feels, sounds like to the client and what are the regrets the client would have should time escape them and they do not fulfil their dreams
By doing this you would have positively engaged your clients in a manner and depth that few sales professionals in financial services do.
You would have clearly differentiated yourself from competitors and you would have developed an incredible level of rapport as a consequence of taking the time to understand your clients values and showing respect towards those values.
THIS DOES NOT MEAN THAT YOUR PROSPECT / CLIENT WILL BUY FROM YOU.
You now need to make a great attempt at pre-closing.
After you have followed all the above you have earned the right to ask questions about the clients final decision making process.
The range of questions you need to ask will cover:
- the types of financial and insurance decisions they have made in the past
- how and from whom that advice was delivered
- the experience the recollect in the delivery of that advice - their perception
- what stage they are at in the buying process
- what stops them making decisions
- who do they involve in the buying process decision - which voices do they listen to including the ones in their head
- what they expect from you
All of this combined with what you have learnt, from using the techniques we've discussed previously, about how they process information, will enable you to make the pitch of your life and win the deal.
And if you don't view every client presentation of the solution that you have invested so much time, education, professionalism and emotion is as the pitch of your life......the client/prospective client will know that.
After all what you do on a daily basis is make the lives of your clients better ....that's worth getting passionate about.
Follow Positive Client Engagement over the next few months and we'll show you how to deliver the best pitches possible.
Till next time
Wednesday, 25 January 2012
Tuesday, 24 January 2012
Increase client engagement and sales - client seminars and marketing
As we roll into the year and prepare to deliver you some new material and ideas to drive your sales, personal and business success as you positively engage your clients, we thought it important that you start with your marketing diary for 2012 and ensure that you provide continuous education opportunities for your clients.
This means revisting one of the four drives : the drive to learn.
The drive to learn:
- educate your clients - provide them with third party material that educates them on financial and insurance issues - use the resources that this industry provides to educate and dispel myths about finances, investing and insurances
- run tailored seminars that are in line with your clients wants - and can be subsetted into the "clubs" you have created above
- providing them the resources to make educated decisions is critical in meeting these needs
- write a blog or an informative newsletter - a blog is preferable - and have this on your website - make your website a resource centre for your clients - have a client log in where they can find tools and information to assist them
This does mean building some collateral OR in its simplest form it means tapping into the resources you have at your disposal as a financial services/insurance professional and some diary planning.
Plan to run seminars and create newsletter and leverage your relationships with your product providers to do the hard work for you.
That means you save the fun for yourself - engaging the clients.
This means revisting one of the four drives : the drive to learn.
The drive to learn:
- educate your clients - provide them with third party material that educates them on financial and insurance issues - use the resources that this industry provides to educate and dispel myths about finances, investing and insurances
- run tailored seminars that are in line with your clients wants - and can be subsetted into the "clubs" you have created above
- providing them the resources to make educated decisions is critical in meeting these needs
- write a blog or an informative newsletter - a blog is preferable - and have this on your website - make your website a resource centre for your clients - have a client log in where they can find tools and information to assist them
This does mean building some collateral OR in its simplest form it means tapping into the resources you have at your disposal as a financial services/insurance professional and some diary planning.
Plan to run seminars and create newsletter and leverage your relationships with your product providers to do the hard work for you.
That means you save the fun for yourself - engaging the clients.
Wednesday, 18 January 2012
Selling with assurance - letting your clients know they've made the right decision
We've spoken previously about generating referrals from yoru ideal clients and giving your newly engaged clients great comfort that they have made the right buying decision.
A client engagement letter is an ideal technique to increase your sales conversions and enhance the referrals you get from client advocates.
Here's a quick example that you can use as a base.
Enjoy the sales uplift!
1 January 2012
Mr X and Mrs Y Client
1 Smith Street
Smithsville VIC 3000
Dear X and Y,
Congratulations, you’ve made the right choice
Thank you X and Y for entrusting ABC Financial Services, with the development of your financial planning / insurance solution that serves to enhance/protect your lifestyle and the people and dreams that are important to you.
We are responsible for the service you receive
I as the principal adviser of ABC Financial Services am solely responsible for the service you receive during this process from my team. This means that any matter you need clarified or wish to ask questions about can be directed to me personally.
We are here for you
Accordingly please find enclosed our corporate brochure/my business cards/ our contact sheet for our office/ a handy fridge magnet so you have at your disposal the appropriate contact details for the office.
We value your feedback
As our business is a referral only business/ is built on referrals our existing clients are our biggest advocates. The constant source of referrals from our clients means we can spend less time on activities to find new clients and more time developing and servicing the solutions for the clients that find and stay with us.
Any feedback during and after the development of your solution will be greatly appreciated so that we can strive to have you as another client advocate and have a positive influence on not only your situation but for the people you value in your social and family circle.
Next Steps
Attached is our service schedule tailored to your situation that documents the process involved, time line for delivery and our service package/fees/charges/costs solution that you have chosen.
Please take the time to ensure that this reflects your understanding of our discussions and complete the section that requires your signature, and return in the envelope/by email and our work with you will commence.
Yours Sincerely
ABC Financial Planning
A client engagement letter is an ideal technique to increase your sales conversions and enhance the referrals you get from client advocates.
Here's a quick example that you can use as a base.
Enjoy the sales uplift!
1 January 2012
Mr X and Mrs Y Client
1 Smith Street
Smithsville VIC 3000
Dear X and Y,
Congratulations, you’ve made the right choice
Thank you X and Y for entrusting ABC Financial Services, with the development of your financial planning / insurance solution that serves to enhance/protect your lifestyle and the people and dreams that are important to you.
We are responsible for the service you receive
I as the principal adviser of ABC Financial Services am solely responsible for the service you receive during this process from my team. This means that any matter you need clarified or wish to ask questions about can be directed to me personally.
We are here for you
Accordingly please find enclosed our corporate brochure/my business cards/ our contact sheet for our office/ a handy fridge magnet so you have at your disposal the appropriate contact details for the office.
We value your feedback
As our business is a referral only business/ is built on referrals our existing clients are our biggest advocates. The constant source of referrals from our clients means we can spend less time on activities to find new clients and more time developing and servicing the solutions for the clients that find and stay with us.
Any feedback during and after the development of your solution will be greatly appreciated so that we can strive to have you as another client advocate and have a positive influence on not only your situation but for the people you value in your social and family circle.
Next Steps
Attached is our service schedule tailored to your situation that documents the process involved, time line for delivery and our service package/fees/charges/costs solution that you have chosen.
Please take the time to ensure that this reflects your understanding of our discussions and complete the section that requires your signature, and return in the envelope/by email and our work with you will commence.
Yours Sincerely
ABC Financial Planning
Tuesday, 17 January 2012
Reasons to Buy Life Insurance, Selling the Benefits to Your Clients
In our recent edition about the four drive theory, we talked about the drive to defend, that is enacted in response to threat. Particularly the threat to acquisitions (the drive to acquire) and to a clients self and family.
In financial planning a common train of thought is that insurance is sold, not bought.
We disagree.
We believe that insurance is bought. That financial planning and insurance agent clients make conscious emotional and strategic decisions to buy insurance, BUT ONLY IF they have been made aware of the consequences of adhering to the status quo.
Rather than a hard sell, we believe that clients will purchase the right insurance cover at the right levels and satisfy the drive to defend if you as a professional adviser in your sales process:
- give them the statistics......do your research and find issues that you are passionate about...namely underinsurance...and how changing family demographics and social issues exacerbate the underinsurance risk
- make them aware of the risks they know they face but don't speak of
- show them how they can defend themselves
- be passionate about it
- share your claims stories
- get emotional and connect in a profound way with your clients
This means you need to do your research. Good resources are:
- lifewise.org at www.lifewise.org.au
- the family characteristics and transitions report or any such demographic report that looks at issues facing families and highlights the value of intergenerational advice
But the most important tools in your arsenal are:
- you
- your clients that have claimed
- the client sitting in front of you
By using appropriate questions about what is important to them in their social and family circle and by dispelling myths they may hold about their vulnerability and capacity to cope, they will with your professional guidance self select the appropriate levels of insurance cover.
Your role in this is a guide, a resource and an advocate.
In financial planning a common train of thought is that insurance is sold, not bought.
We disagree.
We believe that insurance is bought. That financial planning and insurance agent clients make conscious emotional and strategic decisions to buy insurance, BUT ONLY IF they have been made aware of the consequences of adhering to the status quo.
Rather than a hard sell, we believe that clients will purchase the right insurance cover at the right levels and satisfy the drive to defend if you as a professional adviser in your sales process:
- give them the statistics......do your research and find issues that you are passionate about...namely underinsurance...and how changing family demographics and social issues exacerbate the underinsurance risk
- make them aware of the risks they know they face but don't speak of
- show them how they can defend themselves
- be passionate about it
- share your claims stories
- get emotional and connect in a profound way with your clients
This means you need to do your research. Good resources are:
- lifewise.org at www.lifewise.org.au
- the family characteristics and transitions report or any such demographic report that looks at issues facing families and highlights the value of intergenerational advice
But the most important tools in your arsenal are:
- you
- your clients that have claimed
- the client sitting in front of you
By using appropriate questions about what is important to them in their social and family circle and by dispelling myths they may hold about their vulnerability and capacity to cope, they will with your professional guidance self select the appropriate levels of insurance cover.
Your role in this is a guide, a resource and an advocate.
Saturday, 14 January 2012
Sales Questions for Top Sales Results
Clients of financial planning advisers rarely use only logic and rational thinking to make decisions.
That assumption pre-supposes that clients when buying financial planning services have clear well-articulated goals when in reality clients often have as a consequence of how they percieve and process information, limited and imperfect data to allow them to make a choice that the financial planner sees as the most rational option for the client situation.
Financial planning clients often, because of the mis-match in the clients learning and information processing style and the financial planners style of communication, find the financial planning process confusing.
Because emotions play a major part in the sales process then it makes sense that to increase your sales results you need to ask better sales questions. By asking the best sales questions about a clients decision making process, you can dramtically enhance your sales results and in so doing positively engage your client and assist them in making choices that are in line with their financial and emotional needs.
Client emotions are critical aspects to manage in the sales process. Clients emotional processing determines initial preferences for solutions, moods and emotions influence the process of evaluating financial planning solutions and emotions provide guidance when making buying decisions.
Gut feel is a big factor.
Sales success is far greater when your financial planning client feels that you, as a financial planner, know them, the client, better than your competitors.
Client Lifestyle Questionnaires provide the knowledge for the financial planner to be able to break down the communication barrier and pitch the financial planning solution in a way that makes sense to the goals and dreams of the client.
To help your clients make more effective decisions and in so doing increase your financial planning sales success you need also to short circuit the limitations clients have when making decisions.
You need clients to imagine future scenario's and different emotions both positive and negative.
Another critical part of the sales questioning process are "what if" scenario planning.
Ask clients what if:
- they had all the money they could ever imagine?
- they had 10 years to live?
- they had one day to live?
Then explore all the emotions and plans that have either been accomplished or missed out on.
This provides the client with what they should do in a financial planning solution to ensure that the above scenarios are planned for.
This step is important particularly in the sales process involving insurance.
Clients unconsciously block negative scenarios, anything that challenges the status quo and in particular anything that challenges safety or the concept that they have not looked after their family.
It doesn't mean our clients don't love their family. They do, but these planning scenarios are not something they are rationally able to process - without your help.
Develop your client lifestyle questions and your what if scenario questions.
It's a proven way to dramatically increase your sales results and using your financial planning and insurance solution skills and love of your clients, you will change your clients lives for the better.
That assumption pre-supposes that clients when buying financial planning services have clear well-articulated goals when in reality clients often have as a consequence of how they percieve and process information, limited and imperfect data to allow them to make a choice that the financial planner sees as the most rational option for the client situation.
Financial planning clients often, because of the mis-match in the clients learning and information processing style and the financial planners style of communication, find the financial planning process confusing.
Because emotions play a major part in the sales process then it makes sense that to increase your sales results you need to ask better sales questions. By asking the best sales questions about a clients decision making process, you can dramtically enhance your sales results and in so doing positively engage your client and assist them in making choices that are in line with their financial and emotional needs.
Client emotions are critical aspects to manage in the sales process. Clients emotional processing determines initial preferences for solutions, moods and emotions influence the process of evaluating financial planning solutions and emotions provide guidance when making buying decisions.
Gut feel is a big factor.
Sales success is far greater when your financial planning client feels that you, as a financial planner, know them, the client, better than your competitors.
Client Lifestyle Questionnaires provide the knowledge for the financial planner to be able to break down the communication barrier and pitch the financial planning solution in a way that makes sense to the goals and dreams of the client.
To help your clients make more effective decisions and in so doing increase your financial planning sales success you need also to short circuit the limitations clients have when making decisions.
You need clients to imagine future scenario's and different emotions both positive and negative.
Another critical part of the sales questioning process are "what if" scenario planning.
Ask clients what if:
- they had all the money they could ever imagine?
- they had 10 years to live?
- they had one day to live?
Then explore all the emotions and plans that have either been accomplished or missed out on.
This provides the client with what they should do in a financial planning solution to ensure that the above scenarios are planned for.
This step is important particularly in the sales process involving insurance.
Clients unconsciously block negative scenarios, anything that challenges the status quo and in particular anything that challenges safety or the concept that they have not looked after their family.
It doesn't mean our clients don't love their family. They do, but these planning scenarios are not something they are rationally able to process - without your help.
Develop your client lifestyle questions and your what if scenario questions.
It's a proven way to dramatically increase your sales results and using your financial planning and insurance solution skills and love of your clients, you will change your clients lives for the better.
Thursday, 12 January 2012
Sales Ideas for Client Advocacy
Create sales success this year by tapping into your clients "drive to bond"
- create "clubs" within your client base. People with like interests, occupations. Facilitate networks within these groups and they will attract other like people who are presently not clients and they will become your clients as the network that you are facilitating builds.
- give back to the community and involve your client base - do community focussed activities with your clients. Volunteer with your clients and enlist them to enact the values of community and social awareness.
- make your clients aware of the social activities and events that are in their special interests - this can be done using technology - social media and the like with less than two hours a week effort
- tailor your newsletter to highlight all the above
- send your clients gifts that are of value to them in context to the social groups / special interests they have
- create "clubs" within your client base. People with like interests, occupations. Facilitate networks within these groups and they will attract other like people who are presently not clients and they will become your clients as the network that you are facilitating builds.
- give back to the community and involve your client base - do community focussed activities with your clients. Volunteer with your clients and enlist them to enact the values of community and social awareness.
- make your clients aware of the social activities and events that are in their special interests - this can be done using technology - social media and the like with less than two hours a week effort
- tailor your newsletter to highlight all the above
- send your clients gifts that are of value to them in context to the social groups / special interests they have
Tuesday, 10 January 2012
Life Insurance Premiums / Life Insurance Premium Comparisons
A comparison table is critical!
How can you assess the fairness of the premiums for life and other personal risk insurance policies, in client speak.
To do this you need to understand and appreciate that for many clients they do not have a basis for relativity when it comes to life insurance premiums.
When presented with premiums for a protection solution strategy involving the purchase of personal insurance policies, a table comparing premiums of one insurance company to another really DON'T assist in illuminating the client on the price relativity.
This is because our comparison table compares relativity in our world - the financial services world. It's easy for a financial services professional/ life risk agent to feel comfortable with the comparison.
What the client needs is a comparison with costs that they can relate to.
Making the insurance premiums relevant and reasonable means looking at the premium comparison through a clients eyes.
One way of doing this is to compare the impact of simple life events to major life events AND THEN compare the costs of how they protect themselves against these "simple" life events versus how they could protect themselves against these major life events.
In simple straight forward and relative terms, tables like these position the need for insurance with relevance in regard to its importance AND position the price in a way that the client can appreciate the relativity.
Based on rates in Australia for a 40 year old male non-smoker, it's hard to understand why more people do not protect themselves at coverage levels like these for trauma and life insurance.
How can you assess the fairness of the premiums for life and other personal risk insurance policies, in client speak.
To do this you need to understand and appreciate that for many clients they do not have a basis for relativity when it comes to life insurance premiums.
When presented with premiums for a protection solution strategy involving the purchase of personal insurance policies, a table comparing premiums of one insurance company to another really DON'T assist in illuminating the client on the price relativity.
This is because our comparison table compares relativity in our world - the financial services world. It's easy for a financial services professional/ life risk agent to feel comfortable with the comparison.
What the client needs is a comparison with costs that they can relate to.
Making the insurance premiums relevant and reasonable means looking at the premium comparison through a clients eyes.
One way of doing this is to compare the impact of simple life events to major life events AND THEN compare the costs of how they protect themselves against these "simple" life events versus how they could protect themselves against these major life events.
In simple straight forward and relative terms, tables like these position the need for insurance with relevance in regard to its importance AND position the price in a way that the client can appreciate the relativity.
Based on rates in Australia for a 40 year old male non-smoker, it's hard to understand why more people do not protect themselves at coverage levels like these for trauma and life insurance.
Monday, 9 January 2012
New revenue ideas presentation for 2012 - client engagement
As part of the upcoming book release, a new presentation demonstrating how to incorporate positive sales techniques into your business has been developed.
We'll launch this soon and look forward to sharing this with you.
We'll launch this soon and look forward to sharing this with you.
Sunday, 8 January 2012
How to dramatically increase client referrals from accountants
Back in November of 2011, we looked at how to increase client engagement using relevant and thought provoking questionnaires.
A focus of that edition was the use of lifestyle questionnaires to uncover the dreams and motivational drivers of your clients.
Questionnaires can also be used to create a higher level of referrals from your accountancy referral sources.
The right questionnaire can:
- help a referral source explain and articulate your services
- illuminate just how your services complement their offer
- provide cross referral opportunities
- remove the need for the referral source to have to verbally raise the referral relationship and then explain what is entailed
- provide compelling reasons for clients to want to seek assistance
- provide a motivator for clients to take action
- provide a base measure that can be revisted on an annual basis and in so doing provide a measure of progress for both the client and the initial referral source
An index that offers clients three or more response options on a range of financial and financial structure questions immediately identifies the opportunities for referral or solution construction. By attributing a score to the responses a scale, an index for a clients situation can be recorded and it is the improvement of this score that becomes the driving force for the need for a referral and hence the engagement appointment with your business.
This taps into the motivation of either working towards a higher score or moving away from what a low score depicts as a problematic situation.
The types of areas the questionnaire should cover when dealing with an accountancy based referral source are:
- goal setting
- debt strategies
- budgeting
- asset protection
- estate planning
Then a range of area's suited to the accountants client base and IMPORTANTLY suited to your area of desired expertise ( this SHOULD also align to your ideal client concept - as discussed in previous editions).
Positive Client Engagement has a tried and tested base version of a questionnaire to be made available in 2012. For early inquiries contact PCE.
A focus of that edition was the use of lifestyle questionnaires to uncover the dreams and motivational drivers of your clients.
Questionnaires can also be used to create a higher level of referrals from your accountancy referral sources.
The right questionnaire can:
- help a referral source explain and articulate your services
- illuminate just how your services complement their offer
- provide cross referral opportunities
- remove the need for the referral source to have to verbally raise the referral relationship and then explain what is entailed
- provide compelling reasons for clients to want to seek assistance
- provide a motivator for clients to take action
- provide a base measure that can be revisted on an annual basis and in so doing provide a measure of progress for both the client and the initial referral source
An index that offers clients three or more response options on a range of financial and financial structure questions immediately identifies the opportunities for referral or solution construction. By attributing a score to the responses a scale, an index for a clients situation can be recorded and it is the improvement of this score that becomes the driving force for the need for a referral and hence the engagement appointment with your business.
This taps into the motivation of either working towards a higher score or moving away from what a low score depicts as a problematic situation.
The types of areas the questionnaire should cover when dealing with an accountancy based referral source are:
- goal setting
- debt strategies
- budgeting
- asset protection
- estate planning
Then a range of area's suited to the accountants client base and IMPORTANTLY suited to your area of desired expertise ( this SHOULD also align to your ideal client concept - as discussed in previous editions).
Positive Client Engagement has a tried and tested base version of a questionnaire to be made available in 2012. For early inquiries contact PCE.
Saturday, 7 January 2012
Society at large, is indeed, increasingly demanding higher standards of social responsibility from corporations
According to Milton Friedman, the only duty of business is to increase profits. NAB, the fourth largest bank in Australia by market capitalisation, (Ryan, P., Morgan, E. 2011),by Friedman's standard has without doubt, in the year to 30 September 2011, fulfilled this promise.
NAB, saw it's profit up 23.6% to $5.21 billion, with gains in both the personal and business banking sectors. Despite this, NAB chief executive Cameron Clyne, at the time the bumper profit was announced, would not commit to passing on a home loan interest rate cut in full, to his
customers, in response to any rate cut the Reserve Bank of Australia made at their next meeting(Ryan, P., Morgan, E. 2011). Considering that the NAB profit was in part the result of the NAB mortgage book improving growth at three times the rate of the banking industry, the conclusion may
be drawn that the NAB stated corporate responsibility commitment of “doing the right thing”(NAB Corporate Responsibility charter) means delivering shareholders an 88 cents per share fullyfranked dividend, rather than providing lending customers the certainty of an interest rate cut.
Mr Clyne like all business leaders is faced with the legal and moral obligation to strive for profits(Florini, A. 2003), but business as usual, in isolation, without reference to a social contract where doing the right thing means more than compliance with neo-liberalist norms, will not deliver the type of business success that a profit through principles approach (Haas, R, D. 2002) can deliver, for not only the business but for society at large.
Society at large, is indeed, increasingly demanding higher standards of social responsibility from corporations, that go beyond existing business practices (Florini, A. 2003). In her writings for the Brookings Institution, Senior Fellow, Ann Florini, wrote in 2003, drawing from her book “The Coming Democracy” that corporations had no choice to embed in their economic activities a social contract, otherwise face a public backlash. At that time human rights groups had forced pharmaceutical companies to drop a legal battle which was attempting to protect patent rights but by trying to protect these rights hundreds of thousands of South Africans died of untreated AIDS. Though they had dropped the case the companies found themselves labelled as profiteers that were complicit in the deaths of millions (Florini, A. 2003). Florini wrote that the lack of regulation to protect the rights of workers, communities and the environment, was seeing a powerful movement of consumers, pressure businesses to adopt codes of conduct and socially responsible policies. One
of these codes, the Social Accountability 8000 standards was the first global ethical standard and based on conventions of the International Labour Organisation and the Universal Declaration of Human Rights and sought to promote the ethical sourcing and production of goods and services. The Commercial Bank of Dubai (CBD) was seen as a pioneer when in 2008, some 11 years after the setting of the SA8000 standards, they signed up to the code stating that not only was it a
demonstration of their commitment to corporate social responsibility, but that it would allow CBD to build and re-inforce customer and employee loyalty which had the potential for a greater impact on profitability (CPI Financial News, 2008).
There is no guarantee, however, that the adoption of standards or codes of conduct can avert behaviour that is contrary to not only the codes themselves, but of what is good for society and actually meets the ambition of business to make a profit. By focussing only on profit
as a measure of success and by remunerating business leaders on metrics tied to profit, relies on what Lynn Stout, a professor at UCLA, and others call a homo economicus model (Stout, L. A. 2010) that is based on extrinsic motivations such as bonuses that drives selfishness. Treating people to care only about their own material rewards is a fait d‟accompli that they do. Some of the biggest corporate scandals in history, (Enron, WorldCom) are associated with a failure of business ethics and financial services companies, especially banks and brokerage houses present
employees with the homo economicus model where they are conflicted between the pursuit of their own material goals and being honest (Ariely, D., Mazar, N. 2006 and Stout, L. A. 2010).
An analysis of the failures in the financial system that led to the global financial crisis highlighted three themes: a flawed method of remuneration, a failure of government, and a lessened focus on risk (Elliott, D. J. 2010). With regard to remuneration, it was the bonuses paid
to bankers tied to annual profits that saw financial incentives paid to investment professionals for generating short term profits regardless of the risk associated with the strategies adopted. More risk
was taken with less capital and more debt and the distribution model developed had at its core the intent to make risky financial instruments appear less risky and appear to perform well in the short
run. For the sake of profitability, with that being the sole focus and measure of success, people delivered what was required of them and in so doing delivered on the homo economicus model
where the higher the external rewards from being dishonest, the higher the degree to which an individual engages in dishonest behaviour (Ariely, D., Mazar, N. 2006).
Sadly the excesses of the US financial system were not quarantined to the US. Facing increased globalisation, French companies, especially banks, began a decade ago to place close attention to their market valuations to ward off unwanted takeovers. By linking compensation
to performance they began a value based management model linking decisions to the impact on shareholder returns and introduced these new value metrics into their remuneration systems(Ponssard, J-P. 2001). With French banks now owed the order of $450 billion Australian dollars by Greece and Italy, the same drivers of the homo economicus model that crippled the US economy have been at work in Europe with the consequences now playing out as both countries apply austerity measures to avoid sending the financial system into a downward spiral and the French banks into collapse.
There must be more to business success than profit. Responsible commercial success can be achieved and be built on trust and a social contract that not only delivers to society but to the legal beneficiaries of a corporation the shareholders. Robert D. Haas of the Levi Strauss family
advocated in 2002 after the tech-wreck and the shock of September 11, that corporations had to deliver more than growth in shareholder value and that doing the right thing was about business practices that, protected and supported workers, that cared for the environment and that supported
the community through philanthropic activities. Having leaders in the business lead in community service endeavours could see the business win in the battle for attracting talent, improve morale and generate community good will (Haas, R, D. 2002). Haas‟s profit through principles approach,
and Florini's observations that corporations have no choice but to embed such approaches have seen a myriad of companies espouse their commitment to corporate social responsibility (CSR). Businesses like the banks state that their objective is to do the right thing and many have built CSR
statements and programmes that give generously to the community. However whilst the focus and measure of success is profits and increasing profits year on year and whilst remuneration is linked to creating shareholder value, the CSR statements run the risk of being mere aspirations
rather than values to be measured against as a true definition of success.
References
CPI Financial (2008). CBD the „only SA8000 certified bank‟ in the region.
Retrieved from:
http://www.cpifinancial.net/v2/News.aspx?v=1&aid=6520&sec=Commercial%20Banking
Elliott, Douglas J. (2010). Some Thoughts on US Financial Reforms.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/papers/2010/1201_financial_reform_elliott /1201_financial_reform_elliott.pdf
Florini, Ann. (2003). Corporate Social Responsibility: the new Social Contract.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/articles/2003/09globalhealth_florini/florini200309.pdf
Haas, Robert D. (2002). Profits Through Principles.
Retrieved from:
http://www.brookings.edu/articles/2002/fall_corporateresponsibility_haas.aspx?p=1
International Institute for Sustainable Development. SA8000.
Retrieved from:
http://www.iisd.org/business/tools/systems_sa.asp
Mazar, N. And Ariely, D. (2006). Dishonesty in Everyday Life and Its Policy Implications.
American Marketing Association, 2006, Vol. 25(1) Spring 2006, 1-000
NAB Corporate Website.
Our Approach to Corporate Responsibility.
Retrieved from:
http://www.nabgroup.com/0,,103023,00.html
Ponssard, Jean-Pierre. (2001). Stock Options and Performance-Based Pay in France.
Retrieved from:
http://www.brookings.edu/articles/2001/03france_ponssard.aspx?p=1
Ryan, Peter and Morgan Elysse. (2011). NAB posts record profits.
Retrieved from:
http://www.abc.net.au/news/2011-10-27/nab-results/3603424
Stout, Lynn A. (2010). Cultivating Conscience: How Good Laws Make Good People.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/papers/2010/12_conscience_stout
/12_conscience_stout.pdf
NAB, saw it's profit up 23.6% to $5.21 billion, with gains in both the personal and business banking sectors. Despite this, NAB chief executive Cameron Clyne, at the time the bumper profit was announced, would not commit to passing on a home loan interest rate cut in full, to his
customers, in response to any rate cut the Reserve Bank of Australia made at their next meeting(Ryan, P., Morgan, E. 2011). Considering that the NAB profit was in part the result of the NAB mortgage book improving growth at three times the rate of the banking industry, the conclusion may
be drawn that the NAB stated corporate responsibility commitment of “doing the right thing”(NAB Corporate Responsibility charter) means delivering shareholders an 88 cents per share fullyfranked dividend, rather than providing lending customers the certainty of an interest rate cut.
Mr Clyne like all business leaders is faced with the legal and moral obligation to strive for profits(Florini, A. 2003), but business as usual, in isolation, without reference to a social contract where doing the right thing means more than compliance with neo-liberalist norms, will not deliver the type of business success that a profit through principles approach (Haas, R, D. 2002) can deliver, for not only the business but for society at large.
Society at large, is indeed, increasingly demanding higher standards of social responsibility from corporations, that go beyond existing business practices (Florini, A. 2003). In her writings for the Brookings Institution, Senior Fellow, Ann Florini, wrote in 2003, drawing from her book “The Coming Democracy” that corporations had no choice to embed in their economic activities a social contract, otherwise face a public backlash. At that time human rights groups had forced pharmaceutical companies to drop a legal battle which was attempting to protect patent rights but by trying to protect these rights hundreds of thousands of South Africans died of untreated AIDS. Though they had dropped the case the companies found themselves labelled as profiteers that were complicit in the deaths of millions (Florini, A. 2003). Florini wrote that the lack of regulation to protect the rights of workers, communities and the environment, was seeing a powerful movement of consumers, pressure businesses to adopt codes of conduct and socially responsible policies. One
of these codes, the Social Accountability 8000 standards was the first global ethical standard and based on conventions of the International Labour Organisation and the Universal Declaration of Human Rights and sought to promote the ethical sourcing and production of goods and services. The Commercial Bank of Dubai (CBD) was seen as a pioneer when in 2008, some 11 years after the setting of the SA8000 standards, they signed up to the code stating that not only was it a
demonstration of their commitment to corporate social responsibility, but that it would allow CBD to build and re-inforce customer and employee loyalty which had the potential for a greater impact on profitability (CPI Financial News, 2008).
There is no guarantee, however, that the adoption of standards or codes of conduct can avert behaviour that is contrary to not only the codes themselves, but of what is good for society and actually meets the ambition of business to make a profit. By focussing only on profit
as a measure of success and by remunerating business leaders on metrics tied to profit, relies on what Lynn Stout, a professor at UCLA, and others call a homo economicus model (Stout, L. A. 2010) that is based on extrinsic motivations such as bonuses that drives selfishness. Treating people to care only about their own material rewards is a fait d‟accompli that they do. Some of the biggest corporate scandals in history, (Enron, WorldCom) are associated with a failure of business ethics and financial services companies, especially banks and brokerage houses present
employees with the homo economicus model where they are conflicted between the pursuit of their own material goals and being honest (Ariely, D., Mazar, N. 2006 and Stout, L. A. 2010).
An analysis of the failures in the financial system that led to the global financial crisis highlighted three themes: a flawed method of remuneration, a failure of government, and a lessened focus on risk (Elliott, D. J. 2010). With regard to remuneration, it was the bonuses paid
to bankers tied to annual profits that saw financial incentives paid to investment professionals for generating short term profits regardless of the risk associated with the strategies adopted. More risk
was taken with less capital and more debt and the distribution model developed had at its core the intent to make risky financial instruments appear less risky and appear to perform well in the short
run. For the sake of profitability, with that being the sole focus and measure of success, people delivered what was required of them and in so doing delivered on the homo economicus model
where the higher the external rewards from being dishonest, the higher the degree to which an individual engages in dishonest behaviour (Ariely, D., Mazar, N. 2006).
Sadly the excesses of the US financial system were not quarantined to the US. Facing increased globalisation, French companies, especially banks, began a decade ago to place close attention to their market valuations to ward off unwanted takeovers. By linking compensation
to performance they began a value based management model linking decisions to the impact on shareholder returns and introduced these new value metrics into their remuneration systems(Ponssard, J-P. 2001). With French banks now owed the order of $450 billion Australian dollars by Greece and Italy, the same drivers of the homo economicus model that crippled the US economy have been at work in Europe with the consequences now playing out as both countries apply austerity measures to avoid sending the financial system into a downward spiral and the French banks into collapse.
There must be more to business success than profit. Responsible commercial success can be achieved and be built on trust and a social contract that not only delivers to society but to the legal beneficiaries of a corporation the shareholders. Robert D. Haas of the Levi Strauss family
advocated in 2002 after the tech-wreck and the shock of September 11, that corporations had to deliver more than growth in shareholder value and that doing the right thing was about business practices that, protected and supported workers, that cared for the environment and that supported
the community through philanthropic activities. Having leaders in the business lead in community service endeavours could see the business win in the battle for attracting talent, improve morale and generate community good will (Haas, R, D. 2002). Haas‟s profit through principles approach,
and Florini's observations that corporations have no choice but to embed such approaches have seen a myriad of companies espouse their commitment to corporate social responsibility (CSR). Businesses like the banks state that their objective is to do the right thing and many have built CSR
statements and programmes that give generously to the community. However whilst the focus and measure of success is profits and increasing profits year on year and whilst remuneration is linked to creating shareholder value, the CSR statements run the risk of being mere aspirations
rather than values to be measured against as a true definition of success.
References
CPI Financial (2008). CBD the „only SA8000 certified bank‟ in the region.
Retrieved from:
http://www.cpifinancial.net/v2/News.aspx?v=1&aid=6520&sec=Commercial%20Banking
Elliott, Douglas J. (2010). Some Thoughts on US Financial Reforms.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/papers/2010/1201_financial_reform_elliott /1201_financial_reform_elliott.pdf
Florini, Ann. (2003). Corporate Social Responsibility: the new Social Contract.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/articles/2003/09globalhealth_florini/florini200309.pdf
Haas, Robert D. (2002). Profits Through Principles.
Retrieved from:
http://www.brookings.edu/articles/2002/fall_corporateresponsibility_haas.aspx?p=1
International Institute for Sustainable Development. SA8000.
Retrieved from:
http://www.iisd.org/business/tools/systems_sa.asp
Mazar, N. And Ariely, D. (2006). Dishonesty in Everyday Life and Its Policy Implications.
American Marketing Association, 2006, Vol. 25(1) Spring 2006, 1-000
NAB Corporate Website.
Our Approach to Corporate Responsibility.
Retrieved from:
http://www.nabgroup.com/0,,103023,00.html
Ponssard, Jean-Pierre. (2001). Stock Options and Performance-Based Pay in France.
Retrieved from:
http://www.brookings.edu/articles/2001/03france_ponssard.aspx?p=1
Ryan, Peter and Morgan Elysse. (2011). NAB posts record profits.
Retrieved from:
http://www.abc.net.au/news/2011-10-27/nab-results/3603424
Stout, Lynn A. (2010). Cultivating Conscience: How Good Laws Make Good People.
Retrieved from:
http://www.brookings.edu/~/media/Files/rc/papers/2010/12_conscience_stout
/12_conscience_stout.pdf
Renewing your business attitude in 2012 and overcoming 2011 fatigue via emotional intelligence and self leadership
BELIEF IS THE KEY! Obtain your 2012 beliefs by working on your emotional intelligence and self leadership.
What we saw throughout 2011 within the businesses we started working with was a high level of fatigue. Depressed market returns, long term portolio strategy plans needing readjustment, difficulty with client engagement and overall a fear of communicating with clients and a lack of potency in the message to be delivered.
Financial planners themselves are not entirely at fault. The messages from investment houses, portfolio specialists, the "experts" were in the main, contradictorary, confused, inconsistent and convoluted.
The biggest hurdle however with these businesses was a big problem with BELIEF.
Belief in the potency of the purpose of the core of the business offer they had and a lack of belief in how they were to best communicate and articulate that client brand proposition.
Before you follow any of the PROVEN techniques from Positive Client Engagement, businesses and financial planning professionals, investment and insurance advisors, need to develop two areas: Emotional Intelligence and Self Leadership practices.
EI is the set of competencies that give us the ability to monitor our own feelings and emotions and the feelings and emotions in others and to use this knowledge to guide our thinking and actions (McShane, S. and Travaglione, T. 2008).
There are four areas of recognising this awareness:
- self awareness : understanding your own emotions
- self management : how well you control your states and be optimistic
- social awareness: empathy and understanding your businesses mindset
- relationship management: managing others emotions, leadership,influence
Now here's the rub. To be adept at positively engaging your clients you NEED to master relationship management. But relationship management is the highest level of EI and requires all other areas to be competent.
Self management was a huge issue for the business owners we encountered in 2011. To work on your EI so you can catapult your business success in 2012 and engage your clients with a clear believable passionate and compelling message WILL require you to work on your EI throughout the year.
Coaching, practice, feedback can assist ((McShane, S. and Travaglione, T. 2008).
Assisting in no small way will be then the way you lead yourself. Only then will you be able to perform the tasks required to take your business to the next level in 2012.
Self leadership requires the resources of goal setting, planning, re-inforcement.
Similar to Positive Client Engagements approach keys are:
- set your goals and be crystal clear and specific
- develop thought patterns that are constructive
- design rewards for you and your team along the way - make these frequent, variable and desired and valued
- review and monitor your progress
- reward and re-inforce the outcomes and process
Critical is to change your internal voice. To increase your confidence in your approach and how you articulate it - you need to exit the negativity and start talking to yourself in a positive manner. Evaluate your capabilities and create a "yes you can" approach. You will find the solutions when you start to believe and will your self towards the goal.
HOW TO START
- resource EI
- research / speak to / read about - people who have set and acquired success through goal setting
Positive Client Engagements resources will continue to assist and our upcoming BOOK will have a goal setting work sheet and action plan.
For more information contact PCE, register to receive our blog and in the interim check out the current reading list of our founder Andy Marshall at
http://www.linkedin.com/osview/canvas?_ch_page_id=2&_ch_panel_id=3&_ch_app_id=20&_applicationId=1700&appParams=%7B%22view%22%3A%22readingList%22%2C%22uid%22%3A%22_sZtwuvcfk%22%7D&_ownerId=82500493&completeUrlHash=MdWh
or
http://au.linkedin.com/in/andymarshall68
What we saw throughout 2011 within the businesses we started working with was a high level of fatigue. Depressed market returns, long term portolio strategy plans needing readjustment, difficulty with client engagement and overall a fear of communicating with clients and a lack of potency in the message to be delivered.
Financial planners themselves are not entirely at fault. The messages from investment houses, portfolio specialists, the "experts" were in the main, contradictorary, confused, inconsistent and convoluted.
The biggest hurdle however with these businesses was a big problem with BELIEF.
Belief in the potency of the purpose of the core of the business offer they had and a lack of belief in how they were to best communicate and articulate that client brand proposition.
Before you follow any of the PROVEN techniques from Positive Client Engagement, businesses and financial planning professionals, investment and insurance advisors, need to develop two areas: Emotional Intelligence and Self Leadership practices.
EI is the set of competencies that give us the ability to monitor our own feelings and emotions and the feelings and emotions in others and to use this knowledge to guide our thinking and actions (McShane, S. and Travaglione, T. 2008).
There are four areas of recognising this awareness:
- self awareness : understanding your own emotions
- self management : how well you control your states and be optimistic
- social awareness: empathy and understanding your businesses mindset
- relationship management: managing others emotions, leadership,influence
Now here's the rub. To be adept at positively engaging your clients you NEED to master relationship management. But relationship management is the highest level of EI and requires all other areas to be competent.
Self management was a huge issue for the business owners we encountered in 2011. To work on your EI so you can catapult your business success in 2012 and engage your clients with a clear believable passionate and compelling message WILL require you to work on your EI throughout the year.
Coaching, practice, feedback can assist ((McShane, S. and Travaglione, T. 2008).
Assisting in no small way will be then the way you lead yourself. Only then will you be able to perform the tasks required to take your business to the next level in 2012.
Self leadership requires the resources of goal setting, planning, re-inforcement.
Similar to Positive Client Engagements approach keys are:
- set your goals and be crystal clear and specific
- develop thought patterns that are constructive
- design rewards for you and your team along the way - make these frequent, variable and desired and valued
- review and monitor your progress
- reward and re-inforce the outcomes and process
Critical is to change your internal voice. To increase your confidence in your approach and how you articulate it - you need to exit the negativity and start talking to yourself in a positive manner. Evaluate your capabilities and create a "yes you can" approach. You will find the solutions when you start to believe and will your self towards the goal.
HOW TO START
- resource EI
- research / speak to / read about - people who have set and acquired success through goal setting
Positive Client Engagements resources will continue to assist and our upcoming BOOK will have a goal setting work sheet and action plan.
For more information contact PCE, register to receive our blog and in the interim check out the current reading list of our founder Andy Marshall at
http://www.linkedin.com/osview/canvas?_ch_page_id=2&_ch_panel_id=3&_ch_app_id=20&_applicationId=1700&appParams=%7B%22view%22%3A%22readingList%22%2C%22uid%22%3A%22_sZtwuvcfk%22%7D&_ownerId=82500493&completeUrlHash=MdWh
or
http://au.linkedin.com/in/andymarshall68
Thursday, 5 January 2012
Get Unprecedented Sales Results By Designing Your Client Engagement Processes For FOFA and Maximise Sales $$ in 2012
Critical to your strategy for 2012 in a financial planning business is connecting with clients in ways that maximise the possibility that you engage with them and capture their focus, loyalty and advocacy.
If you have been following Positive Client Engagement you would have picked up several ways to engage with clients that do not require you to suddenly change your personality but rather require that you enhance your business processes.
It's time now to step it up for 2012. This year is about building and revolutionising your business and setting in place a methodology that will deliver you unprecedented sales rewards whilst delivering positive client outcomes.
You've probably heard of a multitude of motivational and behavioural theories that you can use to engage clients?
Maslow, ERG theory, other needs hierarchy theories.
Today, motivation specialists have to a degree shifted as a result of neuroscience discoveries to consider more complete approaches to the innate drives of human beings. (McShane, S. and Travaglione, T. Organisational Behaviour on the Pacific Rim, 2nd Edition, 2008).
Harvard professors Lawrence and Nohria proposed the four drive theory.
The theory organises human drives into four categories and suggest that these drives are innate and are hardwired and are pro-active - that is we regularly try and fulfil these drives.
The drives are:
The drive to acquire: to take control, build and accumulate, to get recognition, status, need for esteem. And this drive is INSATIABLE.
The drive to bond: to form relationships, and align with social groups
The drive to learn: to know and understand
The drive to defend: to protect ourselves, our acquisitions - and this drive is triggered by THREAT.
So how do you apply this to your business? Build your deliverables - your service offering, your CVP to meet these drives for clients.
The drive to acquire:
- you need to tap in and uncover a clients dreams, hopes and ambitions. The best way to do this is to engage them about what it is that they love and what it is that they do that makes them feel good. Your standard fact find just won't do this for you. You NEED a lifestyle questionnaire. Contact Positive Client Engagement to procure one!!!
The drive to bond:
- create "clubs" within your client base. People with like interests, occupations. Facilitate networks within these groups and they will attract other like people who are presently not clients and they will become your clients as the network that you are facilitating builds.
- give back to the community and involve your client base - do community focussed activities with your clients. Volunteer with your clients and enlist them to enact the values of community and social awareness.
- make your clients aware of the social activities and events that are in their special interests - this can be done using technology - social media and the like with less than two hours a week effort
- tailor your newsletter to highlight all the above
- send your clients gifts that are of value to them in context to the social groups / special interests they have
The drive to learn:
- educate your clients - provide them with third party material that educates them on financial and insurance issues - use the resources that this industry provides to educate and dispel myths about finances, investing and insurances
- run tailored seminars that are in line with your clients wants - and can be subsetted into the "clubs" you have created above
- providing them the resources to make educated decisions is critical in meeting these needs
- write a blog or an informative newsletter - a blog is preferable - and have this on your website - make your website a resource centre for your clients - have a client log in where they can find tools and information to assist them
The drive to defend:
- give them the statistics......do your research and find issues that you are passionate about...aged care, inadequate retirement funding, underinsurance...changing family demographics, social issues,
- make them aware of the risks they know they face but don't speak of
- show them how they can defend themselves
- be passionate about it
- share your claims stories
- get emotional and connect in a profound way with your clients
That's it. There's a lot there for you to do. It's not easy. We never said it was going to be. It requires your energy, your drive, your motivation. But most of all it requires your passion.
We'll help. Our book, I Can't Say That to my Clients : Positively Connecting Your Business to Fulfill Your Clients Unspoken Needs, will be available soon together with two questionnaires to uncover these needs, from clients and referral sources, and generate unprecedented sales results. The book is a step by step guide on how to enhance your client proposition.
For early bird inquiries please contact Positive Client Engagement.
If you have been following Positive Client Engagement you would have picked up several ways to engage with clients that do not require you to suddenly change your personality but rather require that you enhance your business processes.
It's time now to step it up for 2012. This year is about building and revolutionising your business and setting in place a methodology that will deliver you unprecedented sales rewards whilst delivering positive client outcomes.
You've probably heard of a multitude of motivational and behavioural theories that you can use to engage clients?
Maslow, ERG theory, other needs hierarchy theories.
Today, motivation specialists have to a degree shifted as a result of neuroscience discoveries to consider more complete approaches to the innate drives of human beings. (McShane, S. and Travaglione, T. Organisational Behaviour on the Pacific Rim, 2nd Edition, 2008).
Harvard professors Lawrence and Nohria proposed the four drive theory.
The theory organises human drives into four categories and suggest that these drives are innate and are hardwired and are pro-active - that is we regularly try and fulfil these drives.
The drives are:
The drive to acquire: to take control, build and accumulate, to get recognition, status, need for esteem. And this drive is INSATIABLE.
The drive to bond: to form relationships, and align with social groups
The drive to learn: to know and understand
The drive to defend: to protect ourselves, our acquisitions - and this drive is triggered by THREAT.
So how do you apply this to your business? Build your deliverables - your service offering, your CVP to meet these drives for clients.
The drive to acquire:
- you need to tap in and uncover a clients dreams, hopes and ambitions. The best way to do this is to engage them about what it is that they love and what it is that they do that makes them feel good. Your standard fact find just won't do this for you. You NEED a lifestyle questionnaire. Contact Positive Client Engagement to procure one!!!
The drive to bond:
- create "clubs" within your client base. People with like interests, occupations. Facilitate networks within these groups and they will attract other like people who are presently not clients and they will become your clients as the network that you are facilitating builds.
- give back to the community and involve your client base - do community focussed activities with your clients. Volunteer with your clients and enlist them to enact the values of community and social awareness.
- make your clients aware of the social activities and events that are in their special interests - this can be done using technology - social media and the like with less than two hours a week effort
- tailor your newsletter to highlight all the above
- send your clients gifts that are of value to them in context to the social groups / special interests they have
The drive to learn:
- educate your clients - provide them with third party material that educates them on financial and insurance issues - use the resources that this industry provides to educate and dispel myths about finances, investing and insurances
- run tailored seminars that are in line with your clients wants - and can be subsetted into the "clubs" you have created above
- providing them the resources to make educated decisions is critical in meeting these needs
- write a blog or an informative newsletter - a blog is preferable - and have this on your website - make your website a resource centre for your clients - have a client log in where they can find tools and information to assist them
The drive to defend:
- give them the statistics......do your research and find issues that you are passionate about...aged care, inadequate retirement funding, underinsurance...changing family demographics, social issues,
- make them aware of the risks they know they face but don't speak of
- show them how they can defend themselves
- be passionate about it
- share your claims stories
- get emotional and connect in a profound way with your clients
That's it. There's a lot there for you to do. It's not easy. We never said it was going to be. It requires your energy, your drive, your motivation. But most of all it requires your passion.
We'll help. Our book, I Can't Say That to my Clients : Positively Connecting Your Business to Fulfill Your Clients Unspoken Needs, will be available soon together with two questionnaires to uncover these needs, from clients and referral sources, and generate unprecedented sales results. The book is a step by step guide on how to enhance your client proposition.
For early bird inquiries please contact Positive Client Engagement.
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