Topic 3 - The Discovery Process Flashcards
Range of means to develop an appropriate level of knowledge of client
Data and Risk Profile Questionnaire Interviews Copies of Documents Records of Meetings Discussions with clients accountants, lawters
Purpose of the Initial Meeting
To establish a relationship
Planner learns about client
Client learns about planner
Why is technical skills and knowledge not sufficient
Clients may
- have difficulty confiding information
- feel best interest not being looked after
- fail to understand and engage with strategies
WHen asking questions and discussing with client, to understand them you need to focus on
History - Where previous
Transition - Where now
Principles - How i get there
Goals - Where I want to go
A genuine and empathetic approach
Builds lasting relationships
Financial Monologue
Asking questions you already know the answer to as a lead to a sales pitch
Financial Dialogue
Asking questions which centre around the life of the client and financial implications of what was going on in life.
11 reasons to stop telling and start asking
A good question allows people to space their stage of life
Inquiry elevates their intellect and reason
Intelligent inquiries recognises individuals uniqueness
Questions reveal priorities and issues of importance
Raise personal awareness
Disarming effect
Reveals connection points
Turn conversations into a journey
Good Communication involves the following approaches
- Knowing the time to build, maintain and repair trust
- Listen more than talk
- Check and clarify assumptions
- Being empathetic and show understanding
- Knowing clients issues come first
Effective Question Types
Open Closed Probing Reflective Challenge Hypothetical
Open Questions
Invites the other person to talk
- ‘Why have you come to see me’
- ‘What do you picture when you think retirement’
Closed Questions
Invite a brief reponse Eg yes or no
‘ Do you mind if we move on to discuss’
‘ Would that be okay with you’
Probing Questions
Used to explore more, and gather more details on a topic
‘ Can you tell me more please’
Reflective Questions
Used to summarise a feeling or message
‘ Would it be fair to say that’
Challenge Questions
-Examine assumptions, conclusions, and interpretations
Hypothetical Questions
Scenario based questions used to probe and explore options and allow client to identify blind spots
‘ Have you thought about what you would do…’
Ineffective Questions
Multiple Questions Ambigious or Vague Questions Implied Questions Aggressive Questions Leading Questions Rhetorical Questions
Multiple Questions
Cover a number or issues at once
Ambigiouse or Vague Questions
Confuse
Implied Questions
Reflect values or opionions
Aggressive Questions
Attack or confront
Leading Questions
Get the answer you want
Rhetorical Questions
Do not need an anwser
Types of Listening
Active
Attending
Encouraging
Reflective
Active Listening
Cluster of attending encouraging and reflecting skills used together to pay attention to the content and feelings that comprise the whole message
Give full attention
Attending Listening
Body language and words to provide feedback Appropriate use of - Verbal responses -Eye contact -Posture -Body Movement -Personal Space - Environment - Avoid distractions
Encouraging Listening
Invites talking without pressuring
Demonstrate empathy and encourages speaker to continue
A pause or silence also works
Reflective Listening
Reinsates/mirrors feelings or content of the message
- Paraphrasing
- Reflective Statements
- Clarifying Statement
- Summarising
The Active Listening Method
Helps bypass filters that distort speakers message
Acknowledges or provides feedback
Enables speaker to reach own decisions
Confirms communication and facilitates understanding
Barriers to Listening
Intrusion of own values or attitudes Selective Listening Drawing Early Conclusions Prejudging Dislike of speaker Desire to change speaker Perception that speaker lacks creditability Boredom Preoccupation
Effective Client interview skills include
Discovery focused interviewing Communicating process clearly Avoiding jargon Listening well Managing yourself
How might a planner develop a comprehensive insight and level of knowledge about the client in order to be able to provide appropriate advice?
- Risk profile and client data questionnaire
- Interviews, which include both quantitative and qualitative forms of enquiry
- Records of all telephone, fax and email communication with the client
- Copies of the client’s financial documents such as tax returns, PAYG certificates, bank statements, share certificates etc.
- Discussions with other professionals serving the client, such as lawyers and accountants (providing client’s consent is obtained)
Discuss the difference between qualitative and quantitative client interview questions, and provide examples of each.
Quantitative questions typically include closed questions which focus on what and how much a client has. Qualitative questions attempt to identify the ideas, values, beliefs and experiences which shape the client’s current financial position, their financial priorities, as well as their ultimate goals and objectives.
What are the potential risks of placing too much emphasis on quantitative lines of enquiry only?
- have difficulty confiding personal information
- feel their best needs and best interests are not being looked after
- fail to understand and engage with the strategies and recommendations made
Briefly discuss the Internal and External benefits of effective questioning
Internal Benefits
• A good question allows people their space on the stage of life
• Inquiry elevates their intellect and reason
• Intelligent inquiry recognises an individual’s uniqueness
• Questions reveal priorities and issued of importance
• Good questions raise personal awareness and often help save clients from themselves
External Benefits
• Good questions have a disarming effect
• Biographical inquiry reveals possible connection points
• Good questions turn conversations into a fascinating journey instead of a “death march”
• Questions unlock the memory bank
• Questions allow the client to be the co-pilot instead of the passenger
• You may actually learn something
Briefly discuss the value of a good question, beyond simply eliciting information.
- get someone to think
- get someone to recognise the consequences of their actions
- encourage individuals to identify solutions themselves will often result in greater engagement with the solution
What is the value of open questions in the client discovery process?
By asking open questions the listener is able to encourage the other person to share his/her more personal knowledge, feelings and opinions about something, and the response is usually more qualitative than quantitative.
Describe the ‘Funnelling Approach’ to interviewing
Funnelling is a 3 stage process:
1. Open
The Funnelling process generally begins by asking an open question. These generally start with What, Why, When, Who, Where, How, or Tell, Explain, Describe. The Broad questions used to gather as much information as possible, and can be used to set the agenda of the conversation.
2. Probe
Use probing questions to explore further, by asking follow up questions based on what the speaker has already said to elicit more useful information
Probe to get the nuggets of detail from the interviewee to funnel the responses into useful information.
3. Close
Use closed questions to qualify, summarise and confirm what the client has said - i.e. summarise back what you understand from the client’s responses and confirm that you have got it right. This often allows the client to add further detail they have missed out and it checks the adviser’s listening skills.
Identify three types of ineffective questions and identify the problem(s) caused by each.
- Multiple questions that cover a number of issues
- Ambiguous vague questions that confuse
- Implied questions that reflect your values and opinions
- Aggressive questions that attack or confront the other person
- Leading questions to get the answer that you want
- Rhetorical questions that do not need an answer
Explain the cluster of active listening skills
Active listening comprises a cluster of attending, encouraging and reflecting skills used together in order to pay attention to the content and feelings that comprise the whole message
• Attending skills – to focus on the speaker,
• Encouraging skills – to invite the speaker to continue, and
• Reflecting skills – to mirror the content and feelings in the message
When is active listening most useful?
Active listening is useful in professional and personal situations to perceive or sense a situation from the point of view of the speaker, giving the listener the ability to see a situation simultaneously from multiple points of view.
List four benefits of using active listening skills.
- helps the listener to bypass filters, that can distort the speaker’s message;
- acknowledges and provides feedback to the speaker
- enables the person to reach own decisions and form his or her own insights; and
- confirms communication and facilities understanding
List four barriers to effective listening caused by the listener.
- boredom;
- dislike for personality or physical appearance of speaker;
- a desire to change the speaker; prejudging;
- intrusion of own values or attitudes;
- drawing early conclusions;
- selective listening;
- perception by the listener that the speaker lacks credibility; and
- preoccupation with other matters.
