Why is Credibility Important?

On Friday morning (Jan 16), Pam and I delivered a three-hour teleconference presentation to the Society of Financial Services Professionals. It wasn't supposed to be a tele-event, but frozen fog closed down the Spokane airport and I literally could not get to Tucson, where the conference was being held.

The point I kept driving home during the program was WHY. Why should you take your credibility seriously? And, the reasons is represented by two words: Bernie Madoff.

Madoff represents all the other financial people who have disgraced themselves and deeply hurt their clients. Consumers see this connection immediately: one bad apple embarrasses the entire industry. Dozens of bad apples destroys the industry's credibility. So, in the mind of the consumer world, financial advisors, portfolio managers, insurance agents, bankers - anyone connected to the money industry is a potential crook. Period.

That's a huge hurdle to overcome if you're in the industry. In order to step forward and work through that mess, you absolutely MUST remain vigilant of the consumer attitude and let that be your guide. You must take a proactive position and work to prove your value. But, again, it's a hurdle. The values you need to be conscious of are not your own. They are those of your clients and target markets.

Right now, the world does not care about you or your values. They don't believe what you say and are skeptical about your intentions. And they're justified in their skepticism because of the long list of negative headlines about the many different financial people who have bilked their clients out of their life savings. Bernie Madoff is just the most recent.

So, in your efforts to rebuild your reputation from the ashes, you need to learn what your prospect's values are. Then ask which of those values are also your values. It is the values you share that will be your most powerful connection with that person. That connection will buy you a moment in time, and in that moment you can begin to activate the process of developing credibility.

-- Michael Lovas