What's the top skill a financial advisor can possess?
In an interview with ThinkAdvisor, Charles Duhigg, a Pulitzer Prize-winning journalist, argues that it's being a masterful communicator.
"Anyone can be a 'supercommunicator.' It's just a matter of learning a couple of habits and tools," says Duhigg, author of the new book, "Supercommunicators: How to Unlock the Secret Language of Conversation."
First, show the other person that you want to connect. Asking meaningful questions, especially those that will reveal a client's values, is also key, he stresses.
This will "establish a sense of trust and rapport," says Duhigg, a former senior editor with The New York Times now writing for The New Yorker.
In the interview with Duhigg, the bestselling author of "The Power of Habit," he discusses why recognizing the specific type of conversation you're having and then "matching" it leads to connection. He also points out that sharing a laugh is a proven way to establish that connection.
Here are highlights of our conversation:
THINKADVISOR: Why is it so important for advisors to have meaningful conversations with clients?
CHARLES DUHIGG: For financial advisors, being a good communicator is the No. 1 skill.
Talking about money is one of the most meaningful conversations we can have. It brings up emotions — anxiety, hopefulness, pride and concerns about the future.
An advisor's job is not only to give good advice but to make people feel that they're in control of their finances. To do that, we have to be able to communicate and have hard conversations.
Your book is titled "Supercommunicators." What's a supercommunicator?
Someone who can connect with almost anyone. They can figure out how to have a meaningful conversation in any setting.
Anyone can become a supercommunicator. It's just about learning a couple of habits and tools.
Supercommunicators aren't charismatic or necessarily outgoing. They just know a couple of skills, which many of us know but don't recognize as skills.
If you learn to use them a little more deliberately, you can connect with anyone.
Every conversation is a negotiation, you write. Please explain.
The beginning of a conversation often involves a "quiet negotiation." The goal is to figure out what each person wants from the conversation.
It's not to defeat the other person. It's simply to determine what you want and need.
It's common that when people see a financial advisor, they don't know how to explain what they want. They may say, "I'm worried about the future. I've got this 401(k) and am trying to figure out what to do. I'm looking for advice on how to make sure I can retire OK."
It's clear that there are a couple of different motivations going on.
So you need to ask the person questions in order to figure out what they actually want.
Highly skilled communicators ask lots of questions, you point out. Please elaborate.