Communication Essentials for Financial Planners: Strategies and Techniques PDF
Preview Communication Essentials for Financial Planners: Strategies and Techniques
Communication Essentials for Financial Planners Communication Essentials for Financial Planners Strategies and Techniques John E. GrablE JosEPh W. GoEtz Edited by Charles r. Chaffin, EdD Cover image: © olgaaltunina/istockphoto Cover design: Wiley Copyright © 2017 by Certified Financial Planner board of standards Inc. all rights reserved. Published by John Wiley & sons, Inc., hoboken, new Jersey. Published simultaneously in Canada. no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under section 107 or 108 of the 1976 United states Copyright act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 rosewood Drive, Danvers, Ma 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & sons, Inc., 111 river street, hoboken, nJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. limit of liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. no warranty may be created or extended by sales representatives or written sales materials. the advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United states at (800) 762-2974, outside the United states at (317) 572-3993 or fax (317) 572-4002. Wiley publishes in a variety of print and electronic formats and by print-on-demand. some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com. Isbn 9781119350781 (hardcover) Isbn 9781119350798 (ePDF) Isbn 9781119350774 (ePub) Printed in the United states of america. 10 9 8 7 6 5 4 3 2 1 Contents Preface xi Acknowledgments xxv How to Use This Book xxvii Introduction xxix Chapter 1 An Introduction to Applied Communication 1 Introduction Financial Planning Outcomes Communication Defined The Theory of Communication The Importance of Feedback Conclusion Summary Chapter Applications Notes Chapter 2 Structuring the Process of Interpersonal Communication 21 Introduction Social Penetration Theory Orientation Exploration Affective Exchange Stable Exchange Relationship Benefits and Costs Accounting for Stress Building Client Trust: An Appreciative Inquiry Example Summary Chapter Applications Notes vii viii CONTENTS Chapter 3 Structuring the Process of Communication through the Office 37 Environment Introduction Identifying Target Clientele Understanding the Office Environment Stress and Communication: Bringing the Pieces Together Summary Chapter Applications Notes Chapter 4 Listening Skills 57 Paying Attention to the Client Attending to What Is Said Interpreting What Is Heard Transference and Countertransference Passive versus Active Listening and Responding Silence: A Stressful Time for Client and Financial Planner Responding to “I Don’t Know” Summary Chapter Applications Notes Chapter 5 Questioning 75 Introduction Open-Ended Questions Closed-Ended Questions Choosing Between Open and Closed-Ended Questions Question Transformations Swing Questions Implied and Projective Questions Scaling Questions Summary Chapter Applications Notes Chapter 6 Nondirective Communication 91 Why Nondirective Communication? Outcomes Associated with Nondirective Communication Clarification Summarization Reflection Contents ix Paraphrasing Styles of Paraphrasing Summary Chapter Applications Notes Chapter 7 Directive Communication 109 Direction: The Essence of Financial Planning Interpretation Reframing Explanation Advice Suggestion Urging Confrontation Ultimatum Summary Chapter Applications Notes Chapter 8 Trust, Culture, and Communication Taboos 135 Understanding a Client’s Cultural Attributes Interpersonal Preference Risk Management Culture and Trust Communication Taboos A Cultural Example Summary Chapter Applications Notes Chapter 9 Politeness and Sensitivity in Communicating 157 with a Broad Range of Clients The Power of Language Politeness Politeness through Inclusion versus Exclusion Sensitivity Language Sensitivity Summary Chapter Applications Notes x CONTENTS Chapter 10 Financial Planning—A Sales Perspective 173 Sales Models The Challenger Model The Consultative Model Manipulation versus Persuasion Consultative Selling and Compensation Understanding Client Behavior Dealing with “No” The Ethics of Selling Summary Chapter Applications Notes Solutions 189 About the Authors 193 About the Companion Website 195 Index 197 Preface For financial planners . . . communication . . . is the single most powerful antecedent to trust and commitment . . . —Dr. Dave Yeske1 The purpose of this book is to provide financial planners with insights on how they can improve their communication and counseling skills. The approach presented in this book is based on helping financial planners develop, practice, and use skills associated with the formal and informal sharing of information between a client and the financial planning profes- sional in an empathic manner that enhances the client–financial planner relationship.2 This book serves as a valuable resource for students and professionals alike. The ineffable importance of consistent and effective communication with clients is widely acknowledged by experienced financial planners. At the same time, few planners have implemented systems within their firms (or personal professional development plans) to increase knowledge and hone skills associated with client communication! This book provides pro- fessional financial planners, as well as the leadership within financial plan- ning firms, with a blueprint for taking their client communication to the next level. Inarguably, increased sophistication in client communication translates to higher client retention and a more effective financial planning process. Thus, the ROI on time allocated to toward communication skill development is quite high. Those who conduct research on financial counseling and planning also know that communication skills are the foundation to building a suc- cessful financial planning practice. Some researchers have even contended that, “effective communication is vital to successful financial planning.”3 Certified Financial Planner Board of Standards Inc. (CFP Board)—the pri- mary academic standards setting and enforcement board for college and university programs4—supports this notion, as it has identified communi- cation and counseling skills as an essential element of financial planning competency. xi xii Preface Why This Book Over the past two decades, myriad financial planning practitioners have emphasized the importance of client communication to business success and client satisfaction.5 In fact, the authors, who regularly hear practitioners speak about their professional roles when invited by their university’s stu- dent financial planning organization, have noticed a consistent emphasis on client communication and relationship building as the foundation of each presenter’s success. Many of these practitioners believe strongly that their method of client communication is effective, and undoubtedly it is at some level, but what they may fail to consider is whether another communication strategy or skillset could work even better. As will be highlighted throughout this book, the study of communication and counseling skills can assist even those financial planners who are already quite proficient communicators to become even more effective in their work with clients. Current financial planning practice standards mandate that anyone hoping to become a Certified Financial Planner (CFP®) professional must obtain proficiency in the following interpersonal communication domains: ■ Evaluating client and planner attitudes, values, biases, and behavioral characteristics and the impact these have on financial planning ■ Principles of communication and counseling The CFP Board’s requirement goes beyond a theoretical understand- ing to requiring proficiency. The role of communicating effectively with prospective and current clients permeates the financial planning process. Consider the CFP Board’s standards related to professional conduct and fiduciary responsibility, disciplinary rules and procedures, and practice stan- dards. According to the CFP Board, practice standards are intended to: 1. Assure that the practice of financial planning by CFP® professionals is based on established norms of practice 2. Advance professionalism in financial planning 3. Enhance the value of the financial planning process Practice standards apply to all CFP® professionals and those study- ing financial planning in a CFP Board Registered Program. The standards, however, also serve as a foundation for professionalism within the broader financial services profession. Practice standards were first developed in 1987, updated in 1994 by CTB/McGraw-Hill, an independent consulting firm, and again in 1999 by the Chauncey Group. These standards, tied directly to steps in the financial planning process, are shown in Table P.1.
The list of books you might like
