Are we as advisers too focused upon what’s not working in today’s marketplace that we are forgoing great opportunities?
Are we too blind-sided by non-performing markets, impending legislation, and continued economic gloom that we have become nervous spectators to a story well beyond anyone’s control whilst foregoing the role that originally inspired us to get into this business – that is, focusing firstly on our client and secondly on their money.
One of our newest clients (an advisory firm) shared with us a story yesterday that exemplifies the real tension between these two roles with the result being that an initially tense review meeting turned into one of his highest on-going fee-paying opportunity.
Before the meeting the adviser had made an assumption that his client would make ‘performance’ issues the meeting’s focus.
However, armed with a proper engagement process and mind-set he knew that he had to take control of the meeting, re-establish the principles underpinning his advice relationship and explore the tangible, objective outcomes being sought from the relationship before reviewing the chaotic performance over recent months and years.
As the meeting started, his assumptions proved correct – the client was frustrated thanks to a number of financial challenges not least of which was, she thought, the survival of her small business.
Five words turned it around for our adviser – “Can we explore that further?”
Not to deflect the client’s frustration but to best address it, he repositioned the meeting.
Whilst promising to address all the burning issues the client had he took control of the meeting, seeking to ensure she was not making wrong assumptions about the role his firm was providing whilst stressing that he too didn’t want to jump to incorrect conclusions about the outcomes his advice work was to achieve for her.
In the ensuring conversation where he kept focusing on listening, rather than talking, he kept asking to “explore that further” and uncovered:
- the client was facing considerable tension from her spouse over the performance of her business and she needed to resolve this issue urgently;
- she has grown up poor and didn’t ever want to be without money again; and
- she felt helpless managing her self-managed superannuation, realising that the administration was a bigger job than expected and wanted someone else to worry about getting the best outcomes.
Whilst there is still work to be done, the client left the meeting agreeing to a higher on-going fee.
Experiences like this are what we refer to as breakthrough experiences (i.e. ones that change your thinking and subsequent habits) that for our adviser re-confirmed his role as an adviser to the needs of his clients firstly and the performance/management of their money second.
These are great times to re-confirm the value we can provide clients who are suffering from inevitable uncertainty caused by today’s markets, the circumstances they find themselves in and their own subjectivity which clouds rational decision making.
There’s never been greater demand for great advice. To paraphrase Henry Ford when he said that most people don’t recognise opportunities because they came along dressed in overalls and look like hard work – too many advisers don’t recognise the opportunity in this market because the opportunities come disguised as challenges from fearful clients.
What do you think?