How To Become A Trusted Advisor

How to Become a Trusted Advisor
DR. JAGDISH N. SHETH

Charles H. Kellstadt Professor of Marketing Emory University jagdish_sheth@bus.emory.edu
Why Become a Trusted Advisor?

COMMODIZATION OF PROFESSIONAL SERVICES COMPETITION THROUGH CONSOLIDATION
Why Become a Trusted Advisor?
DIFFERENTIAL ADVANTAGE
2003 Dr. Jagdish N. Sheth. All rights reserved. Division 13/How to Become a Trusted Advisor 2-1-3
POTENTIAL FOR LEVERAGE

2
The Emerging Bipolarity of Client Relationship
VENDOR
EXPERT FOR HIRE
TRUSTED ADVISOR
Just as what has happened to customer support and sales organizations, it is likely to happen to professional services organizations.
The Strategic Advantage of Client Centric Philosophy

NONTRADITIONAL COMPETITION CLIENT RELATIONSHIP MANAGEMENT CLIENT TRANSACTION MANAGEMENT
PRACTICE REVENUE
CLIENT OUTSOURCING MANAGEMENT
COST
REVENUES
BIGGEST
CLIENTS
SMALLEST
Client Value Zone

COLLABORATION TRUSTED ADVISOR
EXPERTISE
STEADY SUPPLIER
INSIGHT
EXPERT FOR HIRE TASK

Experts vs. Advisors

EXPERTS ADVISORS Depth and Breadth of Knowledge Listen Ask Great Questions Develop Professional and Personal Trust Collaborate Provide Insights Synthesize
6
Depth of Knowledge Tell Provide Good Answers Develop Professional Trust Control Provide Expertise Analyze
Who Sees Excellent Value in Their Consultant?

% Excellent Value
Total 48
Trusted Advisor Expert for Hire Vendor

77
46 11
7
Segmenting Clients by Loyalty

Clients
Loyalists 31% At Risk 47%
Contented 22%
Loyalists are both Completely Satisfied and believe they are Getting Excellent Value Contented believe one or the other At Risk believe neither
Why 47% of Clients are At Risk
Seven Issues Best Reveal Why 47% of Clients Are At Risk

% Completely Satisfied
Issues Has the best interest of the client in mind Does everything possible to make us successful Makes me look good Is a leader in his field Adapts his experience to our circumstances Is open to feedback to improve performance Doesnt work with our competitors Clients Who Are Loyalists 92% 87 85 82 79 76 71 Clients Who Are At Risk 51% 42 38 41 43 38 42
Relationship Between Type of Consultant and Client Loyalty
Trusted Advisor Loyalist Contented At Risk 54% 23% 12%
Respected Professional/ Expert for Hire/ Steady Supplier 26% 28% 46%
Vendor 11% 89%
Table is read: 54% of clients who view their consultant as a Trusted Advisor are Loyalists - = less than .5%
10
The Clients Perception of Trusted Advisor
The really good professionals ask great questions. Often, they enable solutions rather than supply them. The best business advisors have a good understanding of my industry, but also breadth. Some of the best insights I have gotten have come from professionals who bring analogies from other fields. Good professionals are great listeners. They hear what you mean, not necessarily what you say. It is very tough finding honest brokers who are unbiased and not pushing their own agenda with you. Everyone walks in here wanting something. Our consultants always end the session with a half-hour presentation on next steps, the execution of which cannot, of course, be accomplished without the consultants. What I really value instead are working sessions, which advance our thinking.
11
Value Added Activities of Trusted Advisors

r jo a M s ie t vi i ct A
Mentor Offer Breadth Synthesize & Use Frameworks Codify Analyze Access Collect Aggregate Supply Information EXPERTS FOR HIRE Provide Knowledge Offer Insight Educate Structure Apply Judgment Assess Progress Exercise Client Selectivity
HIGH
Value Added Activities
LOW
TRUSED ADVISOR 12
How to Become a Trusted Advisor

Detached Commitment (Selfless Independence)
7
Listening (Empathy)
1
Powers of 6 Conviction (Values) Eye for Winners (Judgment)
Clients Best 2 Interests In Mind

5 4 3
Trust (Integrity)
Big Picture Thinking (Framework)
Deep Generalists (Keen Observation)
13
How Empathetic Are You?

You know what issues and concerns keep your clients awake at night. You do twice as much listening as talking. You and your clients enjoy spending time with each other, and they routinely confide in you.
14
Improving Your Empathy
Put yourself in unfamiliar and physical intellectual situations where you have neither mastery nor control New sports (physical) New industry (intellectual) Travel New sites, smells, tastes, points of view and sufferings Learn from failures and setbacks Abraham Lincoln, successful entrepreneurs Learn to distinguish between observations and judgments Stereotyping Recognize and eliminate your own personal filters Ask guiding questions that help clients find their own answers
15
Have You Developed Trust With Your Clients?
Clients trust in you extends beyond their belief that you will do good work; it is a deeper, broader trust based on both professional competence and personal integrity. There is a quality of openness to your client relationships. Both you and your clients feel free to bring up touchy or awkward subjects with each other. If on a rare occasion you slip up and miss a commitment, your clients are forgiving.
16
How Do You Build Trust?
Face Time With Clients There is simply no substitute for meeting with a client and allowing time so that both parties come to know each other personally Setting and Reviewing Expectations Agree on a commitment and periodically review it Carefully Making Promises Dont be cavalier with your promises If necessary, make conditional agreements If you cannot keep a promise, let the other person know as early as possible Learn to say NO Demonstrating Loyalty Loyalty means having an allegiance to your client and putting his/her agenda before your own
17
How Do You Build Trust? (cont.)

Daily deposit in the emotional bank account by actions that reinforce trust
Nurturing Trust on a Daily Basis There are no Minor Commitments

There is no difference between major and minor surgery
Knowing What You Stand For

Integrity is a wholeness bounded by a set of beliefs and values. What are your principles? What guides your professional and personal life?
Reducing Your Clients Risk

You can either explicitly or implicitly guarantee your work
18
Do You Practice Selfless Independence?
You dont hold back your opinions. If you have a point of view on an issue of importance to your clients, you find a way to communicate it. You know where to draw the line with clients. You are clear about the things you just wont do or put up with. You have, on occasion, turned down assignments or terminated a client relationship.
19
Selfless Independence (Detached Commitment)

DEFINITION: Maintaining a balance between dedication to the clients and at the same time detachment from them Example: Thomas More, Peter Drucker
A. Three Types of Independence (Detachment) 1. Intellectual Independence Provide independent objective perspective 2. Emotional Independence Calm and level headed through self confidence and self esteem 3. Financial Independence Cultivate a mindset of independent wealth
20
Selfless Independence (Detached Commitment)
B. Importance of Saying No C. Selflessness (Commitment) Focus on clients agenda and not your own agenda Your responsibility is to ask the right questions; client needs to provide answers Respect the client Never steal clients glory. The less public glory you take, the more private credit your client will give you
21
Are You a Deep Generalist?

You find something interesting about everyone you meet and every situation you encounter. Clients ask for your advice and respect your judgment about issues that extend beyond your core professional expertise. You often notice things other people dont details in a landscape, a particular fact from a presentation, a nuance of behavior.
22
Deep Generalists (Depth & Breadth)

Examples: Aristotle, Peter Drucker
DEFINITION: Someone who has a core expertise on which he/she layers knowledge of related fields through continuous learning LEARNING: When the student is ready, the teacher will appear
The student great professionals think of themselves as perpetual students Readiness unlearning old precepts or concepts (NIH Syndrome) The teacher teachers come in every shape and size and often they are disguised (clients, competitors, family, strangers) Appearance constantly on the lookout for people and experiences from which they can learn
23
The Learning Habits of Great Professionals

Modeling
HOW YOU LEARN
Observation & Study
On the Job
Experts Focus Core Expertise Personal Interest
Ecosystem
The best way to learn is to teach Learning is a daily routine
WHAT YOU LEARN
24
Are You a Big Picture Thinker?
You like to collect facts and analyze them, but what really motivates you is asking WHY and trying to understand what they mean. You are drawn to summarize and crystallize the key issues inherent in any given client situation. Often, you get comments from your clients such as Now I see, A ha!, That puts it in perspective, I see the relationship, or Thats a good way of putting it. They will often repeat what you have said and even use your language as they explain it to others.
25
The Big Picture (Synthesis)
DEFINITION: To put things together into a whole (Greek word). It is the ability to identify overarching patterns and themes, in essence, to see the big picture.
Examples: Machiavelli, Alvin Toffler, Nesbitt
26
Cultivating Powers of Synthesis

Dirty Hands Reflection and Concentration Use of Humor
Ha its b
The Big Picture (Synthesis)
Overarching Purpose The Whole Picture

Fo un da tio ns
d in fM o
Cultivating Powers of Synthesis
Identify Critical Issues Simplifying Frameworks
is th e s yn Suspension for S s of Initial Tool Multiple Judgment Perspectives Pattern Recognition Analogs
27
Do You Have Good Judgment?

When your clients face tough choices, they often use you as a sounding board. They share their dilemmas with you. You are right more than 50 percent of the time. You have the confidence to make judgments relatively quickly. You identify and marshal your experiences and perspectives rather than get paralyzed by analysis.
28
Eye for Winners (Great Judgment)
DEFINITION: The ability to arrive at opinions about issues; good sense

Example: J.P. Morgan, C.K. Prahalad
Judgment = (facts) x (experience) x (personal values)
29
Eye for Winners (Great Judgment)
Five Steps to Good Judgment

FRAME THE PROBLEM ENGAGE IN CREATIVE FACT GATHERING USE INTUITION TO LEVERAGE FACTS INCORPORATE YOUR PERSONAL VALUES & STANDARDS DONT BE MISLED BY YOUR EXPERIENCES
30
Techniques to Develop Better Judgment

LEARN FROM MORE SEASONED PEERS OVERINVEST IN PROBLEM IDENTIFICATION
UNDERSTAND CLIENTS TOLERANCE FOR RISK ENGAGE IN PROSPECTIVE HINDSIGHT
ASK DISCONFIRMING QUESTIONS DEVELOP BOTH STANDARD AND OUT OF THE BOX ALTERNATIVES
31
Judgment Traps to Avoid
GROUP THINK
WEAK PREMISES
PRIOR COMMITMENTS
SEEING WHAT YOU WANT TO SEE
OVERCONFIDENCE
32
Do You Have Conviction?
You feel a sense of mission as you pursue your career, which is a passion rather than an obligation. Your financial compensation is important to you, but it doesnt drive your choice of work. If a client asks whats important to you as an individual and as a professional, your answers are immediate and clear. You know what your core beliefs and values are. You communicate strongly and forcefully. You feel and project passion and energy when you talk.
33
Powers of Conviction
DEFINITION: Personal conviction means a belief based on something that is proven or demonstrated to yourself
TEST AND CHALLENGE YOUR CONVICTION FOCUS ON YOUR PASSION HAVE A CLEAR MESSAGE
GET IN TOUCH WITH YOUR CORE VALUES AND BELIEFS USE YOUR INTEGRITY TO SCREEN YOUR CONVICTION
Example: George Marshall, Mahatma Gandhi

Developing Your Own Conviction
EMPLOY LOGIC AS WELL AS FACTS

34
The Trinity Principle of Global Client Leadership

TRUSTED ADVISOR
GLOBAL CLIENT LEADERSHIP

GLOBAL PERSPECTIVE INTERNAL MARKETING
35
How to Achieve Global Perspective

PARTICIPATE IN GLOBAL CAUSES LEARN THE SILENT LANGUAGES RECRUIT GLOBAL TALENT
FOLLOW THE DIPLOMATIC CAREER
EXPERIENCE THE GLOBAL VILLAGE IN AMERICA
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How to Succeed in Internal Marketing

Leadership is all about shaping expectations while managing is all about delivering expectations
Personal Leadership
PERSONAL LEADERSHIP
PASSION
COMPETENCE
EMPATHY
Become an Educator
Educator model of Internal Marketing Increase awareness of global clients Develop in-house global Client Leadership Academy
Reverse the Bow Tie

E&Y GLOBAL CLIENT E&Y
GEOGRAPHY FUNCTION EXPERTISE
GLOBAL CLIENT
Global Client Leadership
GEOGRAPHY FUNCTION EXPERTISE
37

How To Become A Trusted Advisor

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How to Become a Trusted Advisor

DR. JAGDISH N. SHETH

Why Become a Trusted Advisor?

Why Become a Trusted Advisor?

POTENTIAL FOR LEVERAGE

The Emerging Bipolarity of Client Relationship

EXPERT FOR HIRE

The Strategic Advantage of Client Centric Philosophy

CLIENT OUTSOURCING MANAGEMENT

Client Value Zone

EXPERT FOR HIRE TASK

Experts vs. Advisors

Who Sees Excellent Value in Their Consultant?

Trusted Advisor Expert for Hire Vendor

Segmenting Clients by Loyalty

Why 47% of Clients are At Risk

Seven Issues Best Reveal Why 47% of Clients Are At Risk

Relationship Between Type of Consultant and Client Loyalty

Trusted Advisor Loyalist Contented At Risk 54% 23% 12%

Vendor 11% 89%

The Clients Perception of Trusted Advisor

Value Added Activities of Trusted Advisors

Value Added Activities

How to Become a Trusted Advisor

Powers of 6 Conviction (Values) Eye for Winners (Judgment)

Clients Best 2 Interests In Mind

Big Picture Thinking (Framework)

Deep Generalists (Keen Observation)

How Empathetic Are You?

Improving Your Empathy

Have You Developed Trust With Your Clients?

How Do You Build Trust?

How Do You Build Trust? (cont.)

Nurturing Trust on a Daily Basis There are no Minor Commitments

Knowing What You Stand For

Reducing Your Clients Risk

Do You Practice Selfless Independence?

Selfless Independence (Detached Commitment)

Selfless Independence (Detached Commitment)

Are You a Deep Generalist?

Deep Generalists (Depth & Breadth)

The Learning Habits of Great Professionals

HOW YOU LEARN

Observation & Study

Experts Focus Core Expertise Personal Interest

The best way to learn is to teach Learning is a daily routine

WHAT YOU LEARN

Are You a Big Picture Thinker?

The Big Picture (Synthesis)

Cultivating Powers of Synthesis

The Big Picture (Synthesis)

Overarching Purpose The Whole Picture

Cultivating Powers of Synthesis

Identify Critical Issues Simplifying Frameworks

Do You Have Good Judgment?

Eye for Winners (Great Judgment)

DEFINITION: The ability to arrive at opinions about issues; good sense

Judgment = (facts) x (experience) x (personal values)

Eye for Winners (Great Judgment)

Five Steps to Good Judgment

Techniques to Develop Better Judgment

UNDERSTAND CLIENTS TOLERANCE FOR RISK ENGAGE IN PROSPECTIVE HINDSIGHT

Judgment Traps to Avoid