Directions Alliance Conference Call:  September 2, 2010

We had over 140 advisors join in the discussion of our challenges and opportunities in reaching women clients.  Participants had a lot to contribute, so much so that the hour allotted to the call did not allow everyone to have a chance to speak.  We invite those who did not get a chance to share to join the Directions Alliance group on LinkedIn , and to sign up for our next conference call on Friday, September 17th at noon.  We also have  a Facebook page for the Directions Alliance, as well as a Women’s Worth page.  Please plant your ideas wherever and in whatever way works for you!

Here are the issues and ideas that brought advisors to our second call:

  • Frustration with women clients who refuse to address the fact that they are spending too much, and therefore sabotage the work of the advisor to help them reach their goals.  Is there a way to screen out such clients before we as advisors invest considerable time and effort trying to assist them?

While “denial” is certainly not exclusive to women, it may be that women are more often affected by this than men.  As part of Directions’ mission to educate women, we should consider ways to educate them how to be better financial planning clients.

  • Circles are a great way to create “safe space” for women to start talking about their money issues.  How, specifically, can we deal with the shame that often prevents women from fully engaging?  So often, they are embarrassed and unwilling to admit the mistakes they have made.

We will be reporting back from our Atlanta prototype consumer circle to discuss ideas for getting “women into the room.”  Scripts for conducting these circles, ways of creating inviting invitations to circle, and techniques for disarming the shame that so often constrains women will be developed.  One participant remembered her experience of consciousness-raising groups during the feminist days of the 70s, and how these groups were successful in getting women to share all sorts of information about themselves.  What can we learn from the format and purpose of these groups to help us in our “Empowerment” mission?  Another participant mentioned her success in holding financial planning groups in a library, as a women-friendly place, and one that has the advantage of cutting across all economic strata.

Related to the issue of safety in circles are issues of compliance, specifically confidentiality and privacy.  What measures can be taken to assure participants that their information remains private?  From a compliance point of view, it would seem that the same rules that apply to seminars or other public gatherings would be relevant. However,  callers were invited to share any specific compliance constraints that they are dealing with.  It is suggested that ground rules be established for any circle conversation, as well as using first names only on name tags or in introductions.

  • Why have the numbers of women advisors (specifically CFP®s) stayed so stubbornly low, at approximately 1 in 4?  Some very preliminary data indicates that almost as many women as men are enrolled in financial planning programs at colleges and universities.  What, then, explains the gap which exists at the practice level?

There has been some expressed interest in pursuing this question as a research project undertaken or sponsored by the Directions Alliance.

One participant, a financial advisor who is African-American, is interested in taking this research on the demographics of the advisory community one step further, and exploring the issues faced by advisors (as well as clients) who are members of racial or ethnic minorities.  Another participant commented that the FPA is taking the issue of diversity very seriously, and she is now reviewing 19 applications for a diversity scholarship that her local chapter is awarding.

  • Some advisors have seminars that are prepared and approved by their RIA firms or broker-dealers.  Can these seminars be used to engage women, or are circles the better way to go?

One of the principles of circles is the willingness to let participants determine their own agenda and outcomes, with the circle facilitator maintaining certain rules to keep it open and safe.  In this respect, circles are indeed a different way to engage women, and have a purpose and a “feel” that is very different than a seminar.  As advisors, we may be most helpful by first becoming good listeners, before we attempt to teach or educate.

  • There were several comments on the topic of whether it makes sense to target a particular age group or demographic for a circle.  One caller mentioned an educational session she ran for a company, in which it was the 20-somethings who were most willing to talk, while older women (50s-60s) were generally silent.

Certainly these cohort differences are important as we invite women into circle conversations; at the same time, one of the philosophical principles of circle hosting is that whoever shows up is exactly the right person to take part in the conversation.

  • “WHAT ABOUT ME?”  A comment was made about a national TV and print advisor who has immense following, but leaves many women feeling that she is not talking to them or about their particular circumstances.

When advice is delivered unilaterally from expert to consumer, this  feeling of being unseen and unheard often results.  This is why an invitation to share stories and thoughts in a conversational setting can work so powerfully.  When women are invited to speak whatever is on their minds, they also feel heard.

Time ran out, long before the ideas did.  Please keep the conversation going online and  as we meet at national conferences.

Our commitment at the Directions Alliance is to take action together on these great ideas and to help advisors improve their outreach to women.  We will be holding a final conference call, to continue our exploration of the important issues on advisors’ minds, on September 17th at noon EDT.  If you have not yet reserved your place, and wish to do so, please send an email to directionsforwomen@me.com.

The next phase of our important work lies ahead:  creating the agenda for our work together, and developing the tools, materials, strategies, and coaching for advisors passionate about changing the personal finance conversation for women.

Stay tuned!