The Power of Effective Communication

Transcription

1 The Power of Effective Aaron Alley, CFP Regional Director August 16 th, 2018 For projection only. Not for distribution. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Equity Investing Is Easy Model 1: R i,t RF t = α i + β i (RM t RF t ) + e i,t Model 2: R i,t RF t = α i + β i (RM t RF t ) + k i (HEMLE t ) + e i,t Model 3: R i,t RF t = α i + β i (RM t RF t ) +s i (SMB t ) + h i (HML t ) + e i,t Model 4: R i,t RF t = α i + β i (RM t RF t ) +s i (SMB t ) + k i (HEMLE t ) + e i,t Model 5: R i,t RF t = α i + β i (RM t RF t ) +s i (SMB t ) + h i (HML t ) + k i (HEMLE t ) + e i,t 1

2 Effective Is Challenging Complicated Subject Matter 2

3 Frequency of Interaction 4 hours spent with average client 8,760 hours in a year # Frequency of Interaction % hours spent with average client 8,760 hours in a year #

4 Effective Is Challenging Complicated Subject Matter Limited Time Effective Is Challenging Complicated Subject Matter Limited Time Identifying What to Communicate 4

5 Shortening Attention Spans 8.5 seconds Average Attention Span of a Human Source: Statistic Brain. Shortening Attention Spans Average Attention Span of a Goldfish 8.5 seconds 9.0 seconds Average Attention Span of a Human Source: Statistic Brain. 5

6 Effective Is Challenging Complicated Subject Matter Limited Time Identifying What to Communicate You re Dealing with Humans Effective Communicators Keep it simple and intuitive Make it personal and personalized Embrace all of the learning styles Choose their words carefully Coach distracting discussions Listen! 6

7 Successful Successful 7

8 The Power of Scripts Scripts: Preparing for Success Important client conversations Important client questions 8

9 Source: CNBC Source: CNBC 9

10 Oops Successful 10

11 Successful Stories: Bringing Your Message to Life The evolution of human communication through stories 11

12 Stories: Bringing Your Message to Life The Information Age is over. The next age is about the storytellers. The more universal your story is, the more people can relate to it and to you. Bo Eason Successful 12

13 Successful Sketches: The Art of Simplicity El Castillo Cave Cantabria, Spain c. 42,000 years old Temple of Philae Aswan Cataract Egypt c. 2,500 years old The evolution of human communication through sketches 13

14 The Art of Simplicity The evolution of human communication through sketches London and Suburbs Railways and Postal Districts Map John Bartholomew & Son (1929) The Art of Simplicity The evolution of human communication through sketches London Tube Map (circa 1936) Originally by Harry Beck (1931) 14

15 The Art of Simplicity The evolution of human communication through sketches London Tube Map (2014) The Art of Simplicity The evolution of human communication through sketches Tokyo Subway Map 15

16 Sketches: The Art of Simplicity Sketches: Training for Effective 16

17 Successful Successful 17

18 Supplements: Step 1 Identify the Theme or Topic The crisis of the day Stock market conditions (all time highs) Why this investment strategy? Underperformance of the size, value, or profitability dimensions Fees: Investment manager fee, advisor fee, value proposition Interest rates: Low/negative rates, rising rates, inflation New tax plan or other regulatory changes A globally diversified portfolio vs. The Market Supplements: Step 2 Determine the Depth of Message Key Points All Investors Should Understand Mid Level Summary with Increased Detail In depth Explanation of the Information 18

19 Supplements: Step 3 Consider Different Forms V W S O Video Written (Column or Paper) Slides or Presentation Other (Podcast or Webinar) Supplements: A Framework for Content Management Global Diversification Key Points All Investors Should Understand Mid Level Summary with Increased Detail In depth Review of the Information V S V S V S W O W O W O V W S O Video Written (Column or Paper) Slides or Presentation Other (Podcast or Webinar) V Video S Slides, Presentation W Written (Column or Paper) O Other (Podcast or Webinar) 19

20 Supplements: A Framework for Content Management Key Points All Investors Should Understand Mid Level Summary with Increased Detail In depth Review of the Information Global Diversification Investment Process Interest Rates and Inflation The Crisis of the Day Stock Market Conditions V W V W V W V W V W S O S O S O S O S O V W V W V W V W V W S O S O S O S O S O V W V W V W V W V W S O S O S O S O S O V Video S Slides, Presentation W Written (Column or Paper) O Other (Podcast or Webinar) Successful 20

21 The money I have entrusted with you represents years of hard work and sacrifice. Your actions will impact this family for generations. It not only will be long term business for you but the opportunity for my children, and their children s education and well being, are in your control. Please don't let us down. 21