The Surprising Traits that Inspire Trust
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At my request, Harriman House sent me a copy of The Trust Mandate, The behavioral science behind how asset managers really win and keep clients, by Herman Brodie and Klaus Harnack. I’m glad Harriman House sent it, because even the discounted version of the book on Amazon costs $71.70.
The co-authors are impressively credentialed. Brodie spent a decade in investment banking and has focused his efforts on finding “behavioral solutions to industry challenges.” Harnack has a Ph.D in social psychology and motivation. He “utilizes psychological insights and strategies to support professionals in their decision-making negotiation and conflict management.”
I thought that a book focused on how institutional asset managers build sufficient trust to attract and maintain assets should be helpful to advisors, albeit on a smaller scale.
I was correct. What I didn’t expect, though were the key traits that inspired trust.
The importance of trust
As portfolio management has become more of a commodity, the importance of personal relationships has taken center stage. Few would disagree with Rebecca Lake, who wrote a blog post entitled: Trust: An Advisor’s Most Important Asset.
Lake observed that, at the core of a personal relationship, is trust.
In The Trust Mandate, the authors conclude those who are trusted “are likely to have more satisfied clients, to have more positive interactions, and do high-value business with them.”
Clearly, earning the trust of your clients is a worthy goal.