Leadership Decision-Making Through Intuition

As a leader you are faced with making difficult decisions every day. Often these decisions are complex with many factors to be considered. Hopefully, you will make many more right decisions than bad ones. Following your intuition is important. More often than not your gut feel is right. Nevertheless, it is also important to have the right decision making framework and not allow over analysis to get in the way.leadership development, leadership business, decision-making

Shelley Row, a strategic partner of DNA Behavior has written a great article on Leadership Decision Theory that addresses this point. Please refer to the 4 Styles of Decision-making, or contact Shelley at shelley@shelleyrow.com

The key to successfully using your intuition is firstly to know you have it and when it is working. You should not be afraid of it but also not be blind to its operation and such not be listening to it properly.? In my experience, the starting point to getting in touch with your intuition is to know who you are at the core and from there recognize your instinctive decision-making style. Then, with that self-knowledge having the capacity to manage your behavior particularly when your emotions are triggered.

Ultimately, it gets down to having trust in yourself. If you want to build more trust in yourself and have greater confidence in your decision-making start by learning your Natural DNA Behavior Style.

To learn more about discovering your decision-making style and how you are performing, please email us at inquiries@dnabehavior.com

Create a Behaviorally Smart Succession Plan

What is most frequently left out of an advisors succession plan is the client?? Not the assets, but the behavioral side of the client. After all, 93.7% of the financial planning process is the behavioral management of the client, so why wouldnt this information be a valuable part of your business and your plan?

When the advisor is close to retirement, the client really has three questions:
1.Will my portfolio be similarly managed and allow me to reach my goals?
2.Will the relationship with my new advisor be an enjoyable one?
3.Will I receive the same service?

You will notice that the majority of the clients concerns deal with personality and behavior.

Now lets move to the new advisor. They want to be sure to retain as many clients as possible. According to a Price Metrix Study, advisors retaining 95% of clients 2010-2013 grew AUM 25%; those retaining 80% of clients, grew AUM just 12%.

financial advisor, advisor successionWhat was a good fit for the retiring advisor may not be a good fit for the new advisor.? While you dont have to prospect to acquire this transitioned client, it can feel like you are starting over since you are just beginning the relationship.

There is a certain amount of trust that is transferred over from the retiring advisor but the new advisor will have to build it based on their unique personality.

Imagine being able to turn over your clients with the behavioral big data on how to sell, service and create a unique experience. The first appointment with the new advisor would be so much easier and the client would feel understood. Trust would be built at a much faster rate.? And trust is the key to retention.

Start building a behaviorally smart succession plan to ensure your clients will stay with a firm that you worked so hard to build!

To learn more, listen to Hugh Massies video on Behaviorally Smart Succession Planning.

New Report: Customizing Financial Planning Has Never Been So Simple

The new, all-in-one DNA Customized Behavioral Management Report helps you quickly and effectively tailor the financial planning experience for the lifetime of each client based on their unique financial personality.

We’re very excited to announce the release of our new DNA Customized Behavioral Management Guide. Advisors can now?tailor the entire financial planning meeting structure, style and content to match the clients natural behavior style.


All-in-one solution for behavioral management of your clients.

While providing guidance on how?to?best serve the client, the powerful and completely personalized behavioral insights in this report also make it easy for advisors to manage their own behavioral biases.?Adapting to the client?has never been easier.

Immediately make the application of behavioral insights in working with each client more practical and actionable in the following areas:

  • Behavioral Compatibility with the Client
  • Influences of Behavioral Biases on?Financial?Decision-Making
  • Discovery Connection Questions
  • Client Engagement ? Relationship Behavior Risk Management
  • Setting Goals – Financial Behavior Risk Management
  • Building the Portfolio – Investment Behavior Risk Management
    And more!

Learn more and view a sample.

Try Financial DNA Free for 30 days!

Do We Really Know Our Financial Selves?

financial behavior, risk profiling, risk tolerance, financial researchWith the progress of technology we have got used to instant gratification. We use the internet to research whatever grabs our immediate attention and we use social media to pass this information on. Similarly Reality TV has become a staple in many peoples everyday activity ? they watch it, they talk about it and they share commentary through social media. Whether we like it or not short term focus is the order of the day. And maybe it shouldnt be. Longer term perspectives and rational thinking to focus on what is really important is becoming harder to do, especially if you a trend follower of one sort or another.

Nowhere is this more obvious than in the area of personal financial matters.

Every so often, stock markets crash. Technically this should always start with economic reassessment but more often than not such falls get exaggerated by investor overreaction to the information at hand. Sometimes investors think that If everyone is selling the market then I should as well Such following of the herd, so to speak, is quite common and is fed primarily by the financial media. Nothing sells like a bad story ? Markets have fallen by xx%. investors fleeing the market and so on.

Once markets bounce back, you will rarely see anything similar in media coverage terms to the upswing. It isnt traumatic or sensational enough to grab our attention. This herd mentality to aversion is usually fed by instinctive reactions of investors where especially in adversity we tend to make decisions quickly and emotionally. But not rationally.

But of course once shares are sold, the financial position is crystallized. Then, as it is wont to be, the market creep back up happens almost anonymously in dribs and drabs. A quarter of percent here, half a percent there and before you realize the market occasionally jumps by one or two percent in a day. The losses have been reversed and so a wealth accumulation opportunity has been lost out on. Blink and youve missed it.

The financial media can also appear to provide expertise. In the US there are no shortages of financial pundits who will expound the virtues of particular stocks or investment strategy, so much so that they are almost entertainment in their own right so outrageous are some commentators statements. This can lead viewers to become over confident, thinking that they can be more successful at investing than they really can. Hand in hand with this is an optimism bias and an exhilaration got by investing in a certain way even if they know it is difficult to be successful.

behavioral finance, risk profile, financial dna, risk tolerance, investment riskOver the years I have got plenty of client phone calls in times of market turbulence but thankfully these numbers have become less and less as time moves on. This reducing number isnt due to a reducing client bank ? we have tripled the amount under advisement in the last five years ? it is due to our emphasis on making clients understand themselves first and then the markets second. Client behavioral education is a keystone of our approach in advising clients. If people appreciate themselves and their deep rooted financial preferences they can then make informed choices about the issues that they can control rather than those they cant, namely the reactions of others to stock markets.

By focusing on their own needs which are usually long term rather than the short term noise of financial media real benefits accrue. Market rises arent missed out and additional trading expenses arent incurred. Patience and calmness are real virtues that are often overlooked and undervalued.

Eamon is a Human Behavior integrator at DNA Behavior, and one of Irelands leading independent fee based financial planners. His single goal is to help clients make wise decisions with their money now and for the rest of their lives especially in the areas of investing and retirement planning.

Visit the DNA Behavior website to learn more about managing financial behavior and risk through greater self awareness.