Speaking broadly, there is nothing wrong with being dumb or doing stupid things. You actually have my full blessing for either of those. The only negative to doing dumb or stupid things is that you have to clean them up later. The reason for doing dumb or stupid things usually boils down to stress. The equation is simple: Stress and intelligence are inversely proportionate. The greater your stress (whether self-imposed or not), the dumber you become.
There are four standard responses to stress. 1) Run away! 2) Fight! 3) Freeze (like a rabbit or deer in headlights) and 4) Posture (puffing yourself up). The increase in stress increases our vulnerability to doing stupid stuff. Let’s dive into the top reasons advisors go dumb.
1) Not understanding the phase of the business you’re in. This means you are not acting appropriately, and when you’re not acting appropriately you create friction. Friction creates stress. Again, the greater the stress, the dumber the advisor.
2) You begin to compare and contrast yourself (or your business) to another advisor. The danger is in asking why. For example, if you’re doing a million in production and you look to the advisor doing twice as much, you tend to ask, “Why can’t I do that?” As soon as you pose the question, your mind starts to kick out reasons to answer that question. “Because you’re lazy; you’re unmotivated; you live in a small town….” You get the picture. An interesting aspect of comparing and contrasting is that we never compare downward. You don’t look at the guy doing half as much as you and boast. Comparing and contrasting always raises your stress level. Each person is unique with unique strengths and weaknesses. Understanding this is what make our program successful. There’s no single formula of do this, this, and this to achieve that.
3) Working someone else’s design. You cannot bring someone else’s business into existence. For example, following the advice to join a country club. Maybe it will work… if you like to golf. Or the suggestion that you need to specialize and work with certain professionals (e.g., dentists or doctors). Ideally you must build a business that is in alignment with you. When your business is aligned, there’s less friction. Less friction means less stress. More friction, more stress, dumber decisions.
4) Overwhelm. Too much to do and never enough time to do it. Phone’s ringin’, email’s bingin’, clients pounding on your door. Everyone wants your time and attention, and there’s no time to think. When you’re busy, busy, busy, you do not have time to discern. As we always say, “What you give attention to, you get more of.” If you give attention to busyness, guess what you’ll get more of? More busy, less discernment. Busyness equals stress. Stress makes advisors dumb. Busyness is the illusion that everything and everyone is important. Take time to step away, discern, and prioritize. Ensure that you are working your own agenda, not someone else’s.
5) Not understanding your fundamental business model. In very simple terms, business falls into one of two categories or models: quality (high touch, high service) and quantity (serving high numbers, winning by logistics). Think boutique versus Walmart. Violate the model and pay the price. Some advisors think they can combine these models. It really isn’t possible, and the result is friction. Be very aware that you cannot and should not give everyone the same level of service… if they are not paying you the same amount. One model is not better than the other. You simply have to be clear about and respect the model you’re working. The game of business cannot be won; it can only be played, so ensure you are playing the game you want to play. If you aren’t clear about it, you’re going to make dumb decisions.
6) You keep acting like an F-150. The F-150 can go anywhere, anytime, and can take a beating. It’s made for the mass market. Stop and consider your income. You’re likely a 1%-er… a high-performance machine—a Ferrari, not an F-150. High performance requires high maintenance. However, ego gets in the way, and you may think, “I’m not a prima donna needing a lot of maintenance.” Here’s the reality: you are an outlier, and yes, you require maintenance. What that maintenance entails is different for each of us. You cannot have high performance without high maintenance. Are you taking care of yourself? If not, you’re creating friction and then stress, followed by dumb decisions.
7) Misalignment with your priority tree. Any time you are out of alignment or lack clarity about your priority tree, you create friction. Consider your priority tree. The most important person in your business is you. Are you in alignment with you and doing the things that are necessary for you? It can be really simple stuff, like eating properly, exercising, and getting enough sleep. Are you working your calendar in a way that works for you? Without you, there is no business. To be rich but dead is dumb. Put yourself first. On your priority tree, after you, comes your spouse. Work on that relationship. Your spouse is your most important client. Friction with spouse pours over everything else. After spouse, comes kids. If kids go sideways, it affects your business. Next is your staff. Take care of staff, and they’ll take care of clients. Clients come next on your priority tree, and corporate stuff is always last.
8) Don’t do things solely for the money. If money is your only motivator, be very mindful. Be a person who cannot be bought. Embrace integrity. Choose not to have a price. There is always a cascade effect, and it can go either up or down. The more dumb things you do, the more dumb things you will do. Turn that around and create an upward spiral instead. Do the right thing always. Reduce friction, and the further and faster you’ll go with less fuel.
I’m sure you clearly see now that friction always leads to stress which, in turn, always leads to dumb decisions. Always separate yourself from friction and get out of reactive mode. Take time to discern your design. Build think time into your calendar. Be proactive. Once again, as we always say,business is a game that can never be won; it can only be played. However, when you enhance the player, the game itself improves. Think time enhances the player.
