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Finding Gold
Fighting for Success! The “Special Forces” Approach
By Michael Lovas
December 1, 2008
It seem as though every agency, advisory and branch in the country has gone beyond lean to the point of becoming anorexic. Still, we must compete, so we continue to look for an edge. But where is the real value?
The only real sustainable advantage has always been through people. But, working with people has always been qualitative (messy) and not easily quantitative (cut and dry), so resources have traditionally gone to quantitative areas.
Now, because we’ve cut back so much, the question in front of us is: Can an anorexic organization really compete? We say Yes. And, we know exactly how you can do it – by learning about people. By teaching your staff and producers how to be far more effective in their dealing with other people. If business relationships are your most valuable asset, how much do your people know about building and nurturing those relationships? Our experience is, far too few people know about people.
If you commanded a Special Forces unit charged with changing opinion in a distant population, what would you train your team in? The native language of that population, the cultural attitudes and beliefs. The native values and how that translates into behaviors. Once you know those things, you can use them to effect change. Well, isn’t that what you should be doing in your business? Yes, but few people in the industry are doing it. Here are some examples of the disconnect:
- Boomers are 180 degrees different from their parents – the Seniors that the industry sold to for so many decades. However, in spite of the significant differences, most producers insist on pushing Senior logic on the Boomers. That’s like trying to sell prime rib in India.
- Boomers really need a retirement income solution, but most of the products pushed at them don’t have one. That’s like trying to sell CB radios in a cell phone world.
- Only two personality types are open to small talk. Only two personality types make the most money. Only two personality types are interested in facts and data. But the vast majority of producers have never learned about personality types, so they can’t tell them apart. As a result, they are typically off-target in their business conversations. That’s like trying to sell bifocals to the blind.
Focusing on people and relationships is nothing new; you’ve probably heard it a hundred times. The difference that makes the difference right now comes down to training – the things you learn and the things you teach your employees. Until all your people learn how to deal effectively with your target markets, growth and profits will continue to look more like a middle-age hairline – constantly receding.
What’s the Solution? It has been our experience for many years that the key to sustainability and profitability is in the accuracy of the Mental Models you develop. When business gets tough, focus on people! If your people can’t develop a Mental Model of the people who are important to your firm’s success, then how can your firm succeed?
In a typical financial organization there are four key areas that offer significant opportunities for greater results. Let’s look at each one in terms of the basic problem and the people solution:
Problem 1. Marketers define their target markets in terms of either demographics or products. That’s focusing on data, not people.
Solution. To be more effective reaching your target markets, you need an accurate Mental Model of who your target markets are, what they value, their cultural and professional attitudes, and how they make buying decisions.
Problem 2. Producers deliver presentations relying on logic and appeals that are off-target for 75% of the people they pitch.
Solution. To be more effective selling, producers need to learn how to develop accurate Mental Models of the individuals in front of them. That’s how they’ll be able to adjust their pitch on the fly, thus being relevant for each individual they meet with.
Problem 3. Managers are managing people all the same way, as though all employees have the same motivations and goals – money.
Solution. To be more effective in motivating your people, you need an accurate Mental Model of each person, because not everyone is motivated by money. In fact, most people are not.
Problem 4. Recruiting and hiring the wrong people. The traditional approach for producers is to hire anyone with a pulse and a license. Is it any wonder that they have a difficult time generating repeat business and loyal clients?
Solution. To hire the right person for the right job, you need three things: 1) an accurate Mental Model of the target market. 2) an accurate Mental Model of the specific activities that lead to success with that target market. That includes skills and talents absolutely essential for success. Then, 3) you need to make a Mental Model of each applicant to make certain he or she has what it takes to actually succeed at the job.
The single, most-important tool in business today
We see the shrinking of organizations, down-sizing, and hyper-frugality of target markets. Businesses and leaders have their backs against the wall. They need to find effective solutions very quickly, and since none of the previous solutions seem to be effective now, they need to look in a different place. Not to products, not to email blasts, not to mass recruiting. The real solution for today is Mental Models. They are the single, most-important tool in business today. They are the keys to actually becoming more profitable in these frightening times.
However, you can’t develop a Mental Model without new skills. And, the new skills will recede and fail without coaching.
As we see it, you have two options: Continue to cut, reduce and down-size – tactics that have proved ineffective. OR, equip your people with the skills and tools to get inside the minds of the people who are important to your firm. In this way, they will know exactly how to build a connection with those people and turn that connection into a business relationship.
So, assume a fighting stance! Start to fight for your business in a smarter way. Picture yourself as the leader of a Special Forces unit. Each person is a true expert in the specific skills that give him (and the team) the greatest probability of success.
In Conclusion. Because business is about people, the more you know about people, the greater your probability of success. Poorly trained people give your firm a bad name and jeopardize your success. Poorly trained people give the entire industry a bad name. Poorly trained people alienate your target markets and cause business to walk away. So, what are the skills necessary to correct that and to succeed right now?
- The ability to read individuals.
- The ability to establish rapport.
- The ability to discover the other person’s values.
- The ability to use simple psychology to build a genuine connection with individuals.
- The knowledge of what actions build your personal credibility.
Your Reward.
One of the key areas listed above is marketing. One of the most effective things we do for our clients is give them a critique of their marketing. We explain the specific areas where their marketing breaks down and drives people away. If you want to know what’s wrong with your marketing, Copy this paragraph into the feedback form below. I’ll give you a $50 discount off our marketing critique. Be sure to include your phone number!
Great News! Our new book on credibility (Axis of Influence) has been accepted for publication by Morgan James Publishers. Watch for it to be released in early 2009!
MICHAEL LOVAS is the author of ten books, three columns, and a thousand articles on Professional Credibility and the Psychology of Communication in the financial industry. He's the co-founder of AboutPeople and the founder of Credibility Marketing.
Michael speaks at conferences and seminars in Canada and the US. He is an inspiring trainer and coach who helps advisors improve their businesses. He holds three prestigious certifications: Licensed Master Practitioner of Neuro-linguistic Programming (NLP), Licensed Trainer of NLP; and Clinical Hypnotherapist. They make Michael an expert at helping financial professionals succeed at a higher level by building more meaningful business relationships.
AboutPeople Books:
- (NEW) Questions Are the Answer! - A guide for using questions effectively in sales conversations
- (NEW) Axis of Influence! - How credibility & likeability intersect to drive success!
- (NEW) Words that Sell - The language of psychological marketing & selling
- Face Values - How to read people and connect with them in less than 3 minutes!
- The Boomer Report - The financial advisor's guide to understanding the boomer mind
- Presentation Magic - How to gain a psychological advantage in your seminars and sales presentations
- The 5 Levels of Rapport - How to create a meaningful connection with people who are important to you
- Magnetic Connections - Consultative selling for financial professionals
- IDENTITY - How to create and deliver the most important statement of your business life
- Inside the Mind of the Senior Market
- Beyond Wave Marketing - How to add credibility to your relationship marketing
Find AboutPeople books at: www.aboutpeople.com
Michael Lovas, C.Ht.
AboutPeople
(509) 465-5599
1503 E. Riverview Dr.
Colbert, WA 99005
www.aboutpeople.com
