I recently attended a convention in Arizona with many of America’s leading financial advisors. One of the featured speakers was Alan Mulally, the former Chief Executive Officer of Ford Motor Company.
As you would expect, he discussed his past leadership positions with both Boeing and Ford. After listening to him speak, I believe the reason he succeeded at both corporations was his ability to really listen.
He made it a point to get a firm grasp of the issues and discuss the facts with both his management team and union leaders. Only then did he make decisions that he thought were best for each company. Clearly, his approach was successful.
Over the years I’ve crossed paths with a lot of successful business managers. Without exception, they were well educated, and in most instances, had great knowledge of their industry.
But that wasn’t the case with Mr. Mulally. His background wasn’t automotive at all; it was in aerospace. During his presentation, it occurred to me that the common thread among the successful people in attendance wasn’t just their knowledge. It was also their ability to listen to others and reflect on their perspectives.
Too often, I believe, people listen with the intent of determining how they will respond. They listen without hearing, concentrating more on providing a rationale for their own opinion or viewpoint. I feel this lack of real listening is very evident in today’s politics. It’s not surprising we’re so divided as a nation.
When it comes to managing your money, listening and gathering information is also imperative. A lot of bad money decisions are made because people don’t fully analyze the data they’ve gathered. Or perhaps they only hear what they want to hear.
Who among us hasn’t been bombarded with advertisements on radio, television and on-line streaming? We’ve all heard car ads telling us we can drive a beautiful new car for just $199 per month. But maybe we don’t hear that the price only applies if you limit your driving to 10,000 miles per year. That’s a problem if your daily commute is 50 miles round trip. To effectively manage your money, you can’t just hear; you have to analyze and understand.
Similarly, successful financial advisors need to have broad knowledge in a world where tax laws continually change; where financial issues across the globe can impact financial outcomes right here at home; and where many financial transactions utilize plastic instead of cash.
The fact is that the financial world is far more complex today than it was just a few years ago. And in addition to being on top of the constantly changing financial milieu, financial advisors also need to listen and understand the complexities of each individual and his or her family history.
Are there health issues? Is there a family member with special needs? Is it a blended family? What are their retirement dreams?
In other words, a good financial advisor not only has to grasp the intricacies and emotions of each household, but also the complexities of the financial world.
Successful advisors know how to listen and lead their clients through the onslaught of advertisements, politics and daily events. Mr. Mulally is a great example of how real listening can help lead us through these turbulent times.
E-mail your questions to kenmorris@lifetimeplanning.com. Ken is a Registered Representative of LPL Financial. Ken is Vice-President of the Society for Lifetime Planning. All opinions expressed are those of Ken Morris. LPL and Society for Lifetime Planning are independent companies. Securities offered through LPL Financial, Member FINRA/SIPC. Investing involves risk including loss of principal. No strategy assures success or protects against loss.