The following is in response to Dan Richards’ column,Six Lessons for Advisors from the Mayo Clinic, which appeared last week:
Dear Editor,
I have no qualms with any of Richards’ lessons, which deal with basic principles about delivering quality services no matter the business or profession you are in.
But consider the premise of the article. A man goes to the Mayo Clinic to get a second opinion.
For investors, if not advisors, that’s the key lesson: The man went to get a second opinion. In medicine, there is an understanding of the need for second opinions.
When was the last time you heard a financial advisor tell someone they should consider a second opinion? Yet, there is vastly more uncertainty in finance than in medicine. One is a tricky physical science, to be sure, but the other is a social science with very few clear diagnoses and, by the way, a fair bit of quackery.
You might argue that the analogy is imperfect, that one situation is a matter of real life and death, while the other merely involves the financial health of the patient. No matter; it fits.
The gold standard for an advisor is the willingness to do right by the client no matter what. Yes, that means having a client seek a second opinion in certain situations. What percentage of advisors do you think do that?
Tom Brakke
This letter originally appeared in Tom’s blog.
The following is in response to Dan Richards’ column, How to Turn Acquaintances into Clients, which appeared on December 4:
Dear Editor,
I have yet to see curricula designed to strategically guide the “acquaintance” to the “client.” But that’s precisely what I wanted to learn when reaching out on a project with Dr. Joseph Michelli, a world-renowned expert on client experience and best-selling author of books on Ritz Carlton, Starbucks, and Zappos – Dr. Michelli and I recently coauthored The Book of WOW for financial advisors.
The question we sought to answer in our latest program for advisors on quality client acquisition was straightforward: How do we create the optimal prospect experience? There’s been much ado in the last several years about the ideal client experience, but again, what about that acquaintance’s experience, up to and including the ask for the business?
Clearly, anybody who has ever been in a client-acquisition capacity knows that we have to act appropriately, based on the unique characteristics of the prospect. A WOW experience for one acquaintance is not necessarily a WOW for another. So I would respond to Mr. Richards’ thought-provoking piece on “signaling”: The communications must be individualized and appropriate.
Sports Illustrated reported early last year that Tom Brady is one of the greatest quarterbacks of all time, not because of his arm strength or speed. It’s his unparalleled ability to customize his passes based on the unique catching characteristics of his receivers. Some like the ball high, or off the hip, or with a tight spiral. Wow, now that’s getting granular. Likewise, the sooner you get a sense for how the acquaintance prefers to hear from you, the better. Perhaps it’s early-morning emails, or handwritten notes, or time on the porch. Know the signals!
As a former RIA for one of the top RIA firms in the southeast US, I know first-hand the significance of proper, customized signaling. I worked with a number of surgeons from around the state – typically drivers in their personality. I knew I had to be bold, brief, and gone when communicating with them. Show value with conviction, and then be on my confident way. Alternatively, when working with socials, I knew I had to make extra time and energy for discussing passions and interests of this group. Indeed, by doing so, I was winning inter-personal alpha, with the client or prospect; I was outperforming my competitor down the street. Lastly, it behooved me to know if I was dealing with an analytic– quite often, our friends the CPA’s! With this group, I had to signal accuracy; attention to detail is paramount. They had to have a clear understanding of my investment-policy statement, or I would be quietly dismissed.
Finally, Dr. Michelli underscored the importance of examining emotional dynamics and communication preferences for prospects so that chances might improve for winning over that acquaintance. Indeed, signaling is significant, but knowing how to signal to each individual opens accounts!
John L. Evans, Jr.
Executive Director
Janus Labs
Janus Capital Group
The following is in response to Richard Vodra’s article, Is Fracking a ‘Happy Solution’ to our Energy Needs?, which appeared on January 2:
Dear Editor,
I am a financial advisor and career investment/commercial banker who has witnessed first-hand the disruption near my family ranch in Texas caused by fracking.
At the same time, I am benefitting from the near historic low prices of natural gas as that is my space-heating and water-heating fuel source. As I transition from natural gas to solar thermal for my residence (populated by three lovely ladies who enjoy a long shower) some of my friends and neighbors have questioned my investment. Meanwhile, I tease some of my more progressive friends for using solar photovoltaic (PV) as “house jewelry.” There are big difference between solar thermal and PV technology of course.
An aside, of my $10k investment, I have included some space heating through radiant floors – which bumped my state tax credit from $1,500 to $3,500. My federal credit of $3,000 and my municipal rebate of $2,000 left me $1,500 out-of-pocket for the fuel switch. This includes the addition a re-circulating pump that will also save me water. As a financial advisor… a no brainer.
Your article points out that these historic lows may be temporary (and in fact we have seen natural gas prices ticking up as of late) – not to mention the potential for environmental damage. This is a complex issue and most don’t appreciate the difference between transportation fuels and electricity generation.
It is so refreshing to see a summary of the pertinent facts not presented in an opinion page chock full of hyperbole! I especially like the background you provided upfront. Bravo.
You research and summary are greatly appreciated,
Anonymous
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