Helping clients become more financially successful is a multi-faceted process, but much of it ultimately comes down to implementation. The challenge is that for clients (and advisors themselves!), “implementation” is more than ‘just’ point-and-go, where a direction is determined, then everyone executes perfectly. Instead, motivating clients towards action requires multiple steps of goal-setting, then dissecting why those goals are those goals, adjusting accordingly, then creating clear steps… and even then, the client may not act. Yet for some clients, is the feeling of progress enough?
In this 193rd episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the difference between feeling productive, being perceived as productive, and actually being productive – and the place that each of the three states plays in motivation. Whether a client (or advisor) is focused on productivity, creativity, fitness, or financial success, it is easier to feel that they are being creative than it is to actually go forth and create (let alone publish something for public consumption). Self-help books and the like proliferate in part because they provide helpful frameworks and thought leadership… and in part because they can create a sense of process without requiring sustained effort.
Similarly, clients may enjoy the feeling of being financially responsible – they have an advisor and a financial plan! – yet may not implement the goals they appear to agree with. Some of this, undoubtedly, is due to the fact that many of the actions associated with financial planning are tedious at best – even if the advisor tries to make them clear and pleasant, and even if the client likes the financial advisor. Some of this may be because the client gets ‘enough’ from feeling responsible. And some inaction may come due to an unspoken unwillingness to act due to ‘something else’. Advisors may be able to diagnose and address some of these tactics by using scaling questions (“On a scale of 1–10, how ready are you to implement this? If you’re a 6, what would it take for you to reach a 7?”) and other communication strategies.
Ultimately, the key point is that effective financial advice is as much about client behavior as it is about actions and solutions. Sometimes the most valuable contribution an advisor can make is helping clients feel understood, supported, and capable of making progress, even if that progress initially appears small. By recognizing that the desire to feel successful often precedes the willingness to become successful, advisors can approach advice adherence with greater patience and compassion. In doing so, they create an environment where clients can gradually build confidence, readiness, and momentum… allowing meaningful financial change to emerge over time!
