From Fitbit evaluations about our health to grades from a school midterm exam, we live in a world that gives us constant feedback, whether we like it or not. So, your ability to lead and develop successful teams, relate well to clients and become a significant contributor to your profession and community will be a function of how you handle feedback. Being able to see the world through the eyes of others and accept their feedback is a growth opportunity that can make a difference in developing as a leader and a Whole Person.

Poet and philosopher Henry David Thoreau put it this way: “Could a greater miracle take place than for us to look through each other’s eyes for an instant?” Peter F. Drucker, one of the greatest business management experts of the last century, believed that if objective data was used as the basis for feedback, then the negative and emotional responses to it could be mitigated. Applying objective measures can add a positive spin to what otherwise would be perceived as bad news.

Advisors occasionally are the bearers of bad news, like an adverse underwriting decision or poorer-than-expected investment performance. But if an objective set of expectations was shared beforehand, like the criteria for underwriting or a reasonable range of potential investment returns, the conversation can be focused on alternatives for moving forward rather than dwelling on negative news.

The classic feedback loop measures progress toward previously agreed-upon objectives with data, so the activity can be evaluated as either being done, not done or not done well enough. A good feedback loop also requires that you have enough self-awareness to recognize your own shortcomings as you receive feedback and the opportunities to offer feedback to others.

Let’s break the art of feedback down to the logical steps, or loops, needed for building and maintaining a successful financial services practice.

Prospecting loop

This feedback loop opens the door for a conversation about people your clients know who are just like them — your ideal client. The objective of prospecting is not only to add names to your pipeline but to add the right names. The feedback you seek from prospecting is information about the values, attitudes and capacity of people. Such information can be found in public records, through personal observation or from conversations with prospects, but the best way is by speaking with people who know them or know about them. A clear understanding of the qualities and attributes you are looking for in an ideal client is essential for this feedback loop. So, as names come into your prospecting pipeline, evaluate them against the attributes you’re seeking in an ideal client. As you know more about them, that feedback drives your attempts to meet and convert them into clients.

Fact-finding loop

Clients will tell you everything you need to know about them if you ask the right questions. A key area of questioning concerns expectations. Gathering what clients want and expect allows you to craft appropriate recommendations and build a list of objective criteria for measuring this feedback loop. Begin your fact-
finding by asking, “What is important about money to you?” This open-ended question solicits feedback that may be wide-ranging and lead to all kinds of expectations to be measured.

Case design loop

During the development of a financial plan or set of strategies, keep in mind the feedback gathered from fact-finding. Client expectations should be clearly listed with each recommendation. You can design feedback loops into the plan where objective measures are stated and results are quantified. The best recommendations are tied to outcomes that can be measured and reported based on the feedback you received from clients.

The presentation loop

The most effective client interactions occur when clients are encouraged to speak and give you feedback. The Greek philosopher Socrates used creative and thought-provoking questions to get his audiences to respond with feedback that often led to the actions he was attempting to convince them were in their best interest. Get your clients to see the logic of your recommendations by using the Socratic method. Begin by listing the objectives the client told you during the discovery phase. Ask them to confirm your representation of what they told you, as this will establish clarity and foster an open exchange. Then outline your strategies by presenting them as questions. This approach will either get an affirmation or lead to a series of questions and answers until there is an agreement. For example:

“You said your most important objective is to have enough income in retirement to feel free to do whatever you wished. Is that correct? OK, so do you think that investment markets are predictable enough to provide you with enough steady income for the rest of your life?

“Would it fit your strategy for retirement if we could put some level of guarantee on the income? If you approve, we could set it up so it wouldn’t run out and continue to support your spouse if you died. The remainder would be paid to your heirs if any money was left over after both of you were gone. Would that be in line with your strategy?”

At this point we present the product showing how it fits the objective. When the client makes the connection, it almost feels like it’s their idea.

Gratitude and appreciation loop

Poet and civil rights activist Maya Angelou said, “People will forget what you said, people will forget what you did, but they will never forget how you made them feel.” A well-known business principle is people do business with people they know, like and trust. Know, like and trust then are the key elements you are trying to measure in your relationship feedback loop. Woven into your prospecting and fact-finding loops are many bits of data about clients’ likes and avocations. As you develop lifelong relationships with clients, apply this knowledge effectively.

Client service loop 

This loop has four basic building blocks. All clients expect these four actions, and failing to deliver will sour the relationship you’ve worked so hard to build. These principles will not only cement your relationships but create clients who are your raving cheerleaders. You can build a set of objective data points to measure your effectiveness and provide self-feedback on your ability for doing the following: 

• Show up on time – Time is the world’s most valuable resource because it is nonrenewable and cannot be replaced or recovered once it is spent. Show up not just physically but spiritually and with timely information.
• Do what you say you will do – Be dependable and trustworthy.
• Finish what you start – Close the loop on actions in a timely way.
• Say please and thank you — Your mother was right.

Review loop

One of the most important promises an advisor makes is to evaluate a plan regularly. Your objective with the annual review is to demonstrate your ability to provide the desired results. But sometimes conditions and circumstances cause you to fall short of those goals. So, it is important to listen and reexamine expectations during the review, otherwise the annual review loop will break down and damage the relationship. Sometimes the clients have to let off some steam. In those moments, if you accept the sting — valuable feedback and part of the relationship loop — they will respect you for listening and be more open to a resolution. By being emotionally open to feedback, the review may lead to more opportunities for you.

Referrals loop

All the feedback loops are designed to lead to this golden goose. Remember during prospecting how we looked for characteristics of people who fit our ideal client profile? There’s no better source of prospects than referrals from your existing clients. The first step in this feedback loop is getting validation from clients for whom you have met or exceeded expectations. Next is doing your homework and learning who they spend time with personally or professionally. Use pure observation and social media for your research. After getting affirmation from your client, suggest a name, get a response and wait for them to offer an introduction.

If you build your practice on a logical model of receiving and giving feedback from and to others in a kind and holistic way, life is much less stressful and more successfully happy. Good luck.

Thomas Levasseur is a 35-year MDRT member from Dover, New Hampshire, USA. Contact him at tom@thebeaconfg.com.