Herb McFaull believes financial advisors can learn a lot about leadership from Sir Winston Churchill.

In particular, McFaull refers to the radio address in which Britain’s wartime prime minister famously declared, “We shall fight on the beaches.”

At a time when London was the target of nightly air raids, Churchill spoke calmly, with clarity and conviction, laying out a plan to defend the empire and defeat the enemy.

“We can learn from the way Churchill handled the situation and the leadership he displayed,” says McFaull, senior partner and certified financial planner with Saskatoon-based McFaull Consulting, an affiliate of Manulife Securities Investment Services Inc. While McFaull admits the severity of today’s financial crisis is nowhere near that of the Second World War, he believes Churchill’s lessons are relevant today.

“Our clients are looking to us for leadership,” he says, “in a time of confusion, a time of losing faith.”

At the 2009 Top Advisor Summit held last month in Toronto, McFaull outlined a number of strategies advisors can use to demonstrate leadership:

> Trust. A senior partner in a family business his father founded in 1955, McFaull has learned the importance of earning client trust.

“Trust is everything,” he says. “We must always think about what it’s like to be in the client’s shoes.”

McFaull emphasizes one of the most important — and simplest — trust-building techniques: do what you promise. “That encompasses so many important standards of service and ethics,” he says.

Even minor promises, such as telling a client you’ll email him or her the next day, are important. “If you don’t do that,” McFaull says, “it just puts everything into question for the client.”

If you can’t meet a commitment, call the client before the deadline and explain.

> Listen To The Client. Advisors often go into meetings with predetermined agendas and fail to offer clients the opportunity to express their concerns. McFaull suggests beginning a meeting by asking the client if there’s anything he or she would like to discuss. After the advisor has responded to these concerns, clients are more likely to listen to what the advisor has to say.

“Deal with clients’ concerns first,” he says. “Then they’re more likely to listen to you.”

> Acknowledge Clients’ Fears. Instead of simply telling clients not to worry about market volatility, let them know you understand their concerns and assure them it’s normal to be anxious.

“If we don’t take that time to acknowledge clients’ fears,” McFaull says, “they figure you don’t get it.”

> Provide Perspective. An important strategy in tempering clients’ fears, McFaull says, is to put the current downturn into historical perspective. He suggests using charts and graphs (which are available from most fund companies) to remind clients that recessions and heavy market downturns have occurred before, and each slump has been followed by a recovery.

“Quantify the downturn,” McFaull says, “and talk it through in a logical, calm manner.”

> Focus On The Plan. Once you have instilled a rational perspective on the downturn, McFaull says, “Take charge of the plan.”

By shifting the focus to the long-term financial plan, you can work with the client to determine what adjustments are necessary to keep the plan on track. Thinking long term takes the focus away from the immediate turmoil.

> Instil A Sense Of Control. Identifying a specific plan of action can eliminate any feelings of helplessness and show clients that there are things they can control.

“I cannot personally change the stock market,” McFaull says, “and neither can the client.’

But there are things the client can control, such as RRSP deposits, insurance and retirement plans.

> Communicate. McFaull’s final strategy is to maintain open lines of communication.

“The key is: don’t hide,” he says.

Whether you communicate through email, newsletters, phone calls or regular face-to-face meetings, he says, it is crucial to remind clients you’re there for them. And remember: it’s the quality of the communication that counts, not the frequency.

McFaull sees the current crisis as a chance to strengthen relationships with clients: “Be there for them now at this challenging time, when they need you the most. That’s your great chance to build trust.”

McFaull, 47, has been learning about client loyalty since he began working summers at McFaull Consulting, originally his father’s firm, 26 years ago. At that time, the son was pursuing his bachelor of commerce degree at the University of Saskatchewan. Back then, the focus of the firm was life insurance. McFaull Jr. took over the business and its clients about six years later and, in the 1990s, he became more interested in areas other than insurance. He has expanded the scope of the business to include investments and financial planning.

@page_break@Today, McFaull Consulting has 10 employees, including six financial planners. It serves 1,500 client families, with roughly $250 million in assets under management.

McFaull enjoys sharing his knowledge with other advisors. “I enjoy teaching and mentoring,” he says. “I’m a teacher at heart.”

Listening skills come first when rebuilding client trust



Part 3 of a series shot on location at the 2009 Top Advisor Summit. Herb McFaull, an advisor with McFaull consulting, discusses several key points for rebuilding trust with clients shaken by the recession and the global market turbulence. He spoke at the Top Advisor Summit at the International Centre in Mississauga, Ont., in April. McFaull is affiliated with Manulife Securities Investment Services Inc.

IE