Ethical persuasion applies to more than selling products in the financial services industry. Wikipedia defines ethical persuasion as “a human being's internal ability to treat others with respect, understanding, caring, and fairness in order to understand themselves and others.” What I like most about this entry in Wikipedia is that it explains a simple 3 step process for ethical persuasion.
- Explore the other person’s viewpoint.
- Explain your viewpoint.
- Create resolutions.
This is exactly what I teach in my Communication Awareness and Persuasion Skills (CAPSTM) class. The other party must feel that their concerns have been explored and heard before you will have a chance to share what you have to offer.
The Fundamentals of Ethical Persuasion
The Univeristy of Oregon’s School of Journalism has a PDF document that discusses some of the fundamentals of ethical persuasion as it applies to journalism. What I like most about this article is the very last list of bullet points that provide a no nonsense list of what the author believes to be persuasion techniques that pass the test of ethics.
The TARES Test
Drs. Baker and Martinson show us an easy-to-use 5 point test for determining the degree to which our behaviors fit within generally accepted practices of ethical persuasion. The TARES test allows us to evaluate our actions based upon 5 principles.
- Truthfulness of the message
- Authenticity of the persuader
- Respect for the persuadee
- Equity of the persuasive appeal
- Social responsibility for the common good
While the article that I referenced above is quite academic, it illustrates many of the facets that are in line with the ethics and credo held by those of you who hold your CFP designation -- do the right thing for the client.
Three Steps to Ethical Persuasion
Earlier I mentioned the Wikipedia article on ethical persuasion. Tom Rusk, M.D. and Patrick Miller provide us with more details on the three steps to ethical persuasion. I especially like number 4 listed in Phase 1
Repeat their position in your own words to show you understand.
We in sales know this as mirroring or reflecting. I have found this to be one of the most powerful techniques that an advisor can use to let the client know that you are listening and that you care about their concerns.
Ethical Persuasion vs. Advertising
This next article gets a little heady, but I included it because it addresses some of the differences between ethical persuasion and advertising. I believe the difference between advertising and ethical persuasion is the act of dialogue. Advertising tends to be a one-way push of information from a seller to a buyer. One of the ways that social media is turning advertising on its head is that it creates an environment where a company can interact with its customers. Advertising copy now becomes a two-way interaction -- yes, a dialogue. When we as advisors interact with our clients we are in dialogue, and we have to understand that we should be doing less than half the talking. If we talk too much, we lose the client. We become nothing more than walking newspaper ads devoid of life-giving two-way exchange.
