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Using Coaching in Financial Advisory


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Coaching skills can be very effective when providing financial planning advice for clients

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Using Coaching in Financial Advisory

  2. 2. About Dr. Shayne Tracy• Educator: Teacher, Principal, Assistant Superintendent Human Resources• Business founder: HR Technologies Inc.• Organizational Development Specialist• Certified Behavioral, Values, CompetenciesAssessment Professional• Director- Odyssey: The Business of• Senior Facilitator- Behavioral Coaching• Certified Master Coach-• Shareholder - ,• LinkedIn
  3. 3. Who Cares!“As a leader in wealth management andretirement in the U.S. and as an assetmanager with an increasingly global business,Ameriprise Financial has earned top 10positions in each of its main businesses,including mutual funds, life insurance andannuities.”Financial Planner
  4. 4. Who Cares!!“Ameriprise Financial is the largest financialplanning company in the United States and isamong the 25 largest asset managers in theworld. It is ranked 246 in the 2011 Fortune500”Financial Planner
  5. 5. “If you want to help people tochange, you must be prepared tomake the first qualifying step bysuccessfully changing yourself.”
  6. 6. The Role of CoachingConsultingTrainingMentoringCounsellingCoachingKnowledgeCompetenciesPracticesLearning ProcessesBehavioral Models
  7. 7. 80/20 RuleConsulting 80% -telling, advising, directing20%- questioning, reflectingCoaching 80%- questioning, reflecting20%- telling, advising, directingKeys for the Master Practitioner is versatility,flexibility, timing and trust
  8. 8. What Is Coaching?• Coaching is creating a safe, supportive, trustbased environment for the “client” to havetheir “internal conversation” out loud• Coaching lives in language—language ofchange—change language, reframe, refocus• Coaching is creating a context for planned, selfdirected action and focused results
  9. 9. The Coach’s Arena of InfluenceEmotionsFeelingsPhysiologyThe Brain Beliefs Values AttitudesBehaviorWhat We Do and SayIssueOpportunityNeedsLearning
  10. 10. Self-Esteem — Intrinsic ValuingSelf-Awareness + Self-Acceptance = Self-Concept(Self-Esteem, Personal Vision, Intrinsic Valuing, Solution-Finding)Self-ConceptClientRiskTakingLowHighPreliminary, InnocuousProbing , ExploratoryClarifying, ConfirmingQuestioningProcess
  11. 11. Point ACurrent StateInner DialoguePoint BFutureState?PossibilitiesEmpowermentOwnershipStart With the End in View
  12. 12. • In coaching dialogue, the client speaks whilecoach attentively listens, giving the clientspace for expression and validating themeaning conveyed by the clientProfessional Coaching is Dialogue
  13. 13. The Four Dimensions of Coaching1. The Client’s Story• Coaches recognize the significance of the “story”to the client• The coach encourages the client to share their“story” which provides context that may rangefrom simple to complex issues and challenges• Coaches must never underestimate the value ofsimply exhaustive and non-judgmental listening
  14. 14. The Four Dimensions of Coaching1. The Client’s Story• Experienced coaches manage the client’sstory-telling, knowing that they need lessinformation than the client may think• Less experienced coaches may fall into thetrap of believing they must understand alldimensions of the story
  15. 15. The StoryCoach: “Perhaps we could spend some time onappreciating your current financialsituation?”……….“Tell me from your perspective what you seeas the major challenges you have with yourfinancial well-being”
  16. 16. The Four Dimensions of Coaching2. The Client’s Thinking (cognitive) process• This level enables the coach to get beyond theclient story to examine how and what theclient thinks• The coach may challenge the client tochallenge their thinking, when the coach hasidentified that the client’s thinking may beflawed, limited, or negative
  17. 17. The Four Dimensions of Coaching2. The Client’s Thinking (cognitive) process• The coach must not presume to be the arbiterof sound and unsound thinking• Coaches must be highly vigilant in notimposing their own world views, values andjudgments on their clients• The coach will encourage clients to retain theirprerogative on choice of action in dealing withtheir personal/business situations
  18. 18. ThinkingCoach “ So you think that one key challenge issaving for retirement with a fund that isprotected as much as possible from inflation?“What makes you think that?”
  19. 19. The Four Dimensions of Coaching3. The Client’s Feelings (affective/attitude response)• When the client identifies their key issues there will alwaysbe an emotional response• Coaches may miss this or are unsure how to react to thisreality• One aspect of this confusion is that “feelings work” mayappear more like “counseling”• Coaches may be unclear or uncomfortable as to boundariesand emotional expression, and may consciously orunconsciously try to shut it down
  20. 20. The Four Dimensions of Coaching3. The Client’s Feelings (affective response)• A key coaching skill is the ability to appropriatelyfacilitate “emotional expression”• Sometimes it is the very breakthrough that is urgentlyneeded for the client to get unstuck• Clients may often bring heightened feelings into theroom, whether the coach expects or appreciates it
  21. 21. FeelingsCoach: “ How do you feel about your currentfunding situation……….silence is golden incoachingPrinciple: You cannot problem-solve withoutemotional clarity
  22. 22. The Four Dimensions of Coaching4. The Coach’s Use of Self• The coach’s use of self is a “higher order” skillthat can define the difference between goodand great coaching• The coach’s use of self may be described asthe ability to put words around those intuitivemoments of discrete discernment where weidentify and synthesize the client’s “totalmessaging”
  23. 23. Use of SelfCoach: So what you are telling me is yourcurrent savings strategy may need a tune-up?Client: Well……..I am not quite sureCoach: I’d like to revisit the reasons you gaveme regarding your current fund selection. Ibelieve it’s very important that we have aclear understanding of the circumstances….Can we have a little more discussion on thisitem?
  24. 24. Client Level of MaturityLevelofCoachInvolvement
  25. 25. The Seven Powers of Questions• Questions demand answers• Questions stimulate thought• Questions give us information• Questions encourage people to talk• People believe what they say more than whatyou say• The questioner is in control• Questions show that you care
  26. 26. • Columbo’s “just one morething” questions were alwaysthe ones that would eventuallytrip up the suspect• Presented as almost an afterthought byColumbo, they almost always volunteered moreinformation• The Coach will not use “just one more thingquestions” to entrap the client, but rather toengage the client in reflection and cognitivereasoningThe “Columbo” Effect
  27. 27. Hearing and Listening• Hearing is an automatic, physiological processin which sound waves stimulate nerveimpulses to the brain.• Listening is a voluntary, psychological processthat is far more complex than reacting tosound waves.
  28. 28. Advanced Listening Skills• Listening without filters• Listening and observing• Presence to time• Rapport• Silence
  29. 29. Coach/Client Conversation DialogueNon-DirectiveDirectiveReflection ReflectionSelf-LimitingBeliefs, Blind Spots,FearsOptions Choices ActionsTheCoachTheCoachQuestioningListeningTiming
  30. 30. Coaching Means Congruence
  31. 31. Trust =Credibility + Reliability + IntimacySelf-interest*Mel Nelson
  32. 32. Coaching Behaviors That Build TrustTalk StraightRespectOpennessRightWrongsLoyaltyDeliver ResultsImproveConfrontRealityClarifyExpectationsAccountabilityListen FirstKeepPromisesExtendTrustConfidentialityAdmitMistakes
  33. 33. © 2012 Odyssey Consulting Institute TMPhysicalHandDoingUnconsciousIncompetenceGood SoldierLEARNINGRESPONSECONSULTANTAPPROACHHUMANIntellectualHeadThinkingConsciousIncompetenceCompetentWarriorEmotionalHeartFeelingConsciousCompetenceTrusted AdvisorSpiritualSoulBeingUnconsciousCompetenceMasterPractitionerThe Four Parallel Process Levels34CoachingTelling and SellingGet AttentionAsking and ListeningPay Attention
  34. 34. NOW OPEN QUESTION AND ANSWER TIMEFor More Information on the Certified Master Coach Online Coursedrtracy@behavioral-coaching-institute.comOdyssey: The Business of Consulting- www.odysseyconsultinginstitute.com1.416.737.0407