An early morning run on the beach led Dennis Jones to reinvent how he engaged with his clients. Simon Hoyle reports.
Dennis Jones had a “Eureka!” moment about two-and-a-half years ago as he was jogging along the beach of Port Phillip Bay, near his Port Melbourne office.
But rather than running through the streets naked, as Archimedes is said to have done, Jones set out to create a financial planning and client relationship management tool that now underpins all of the advice provided by his business, Beacon Wealth.
“Most mornings I go for a run on the beach, and have a jog and a walk, and I thought there has to be a better way of engaging our clients,” Jones says.
“So I stopped on the beach and I drew these, I think, 10 circles on the beach and that became the initial design.
“I remember coming back into the office that morning and I sat down with Lisa, my PA, and we basically designed this program. I thought, we simply have to find a better way to engage clients, not just clients engaging with us but clients engaging in their own planning.
“And not just their financial issues, but their values and goals, and to find a way to pull all of that together that’s really client-centric – really client-centric – and so starting with the client, getting them involved, maybe a husband and wife, more involved in their planning; and that starts with basic stuff, like doing a budget.
“A lot of people will do a budget, but it’s a separate issue and then it’s never referred [to] again. What we’ve done is build a software program that brings everything together.”
Jones says he was converted to the idea of values-based planning some years ago when he heard US consultant Bill Bachrach speak.
“Bill is passionate about values-based advice,” Jones says.
“I love Bill Bachrach’s work, I love his whole approach to really helping clients understand their core values, and then aligning that with their goals. And the strategy should align with their values and goals.”
Planners talk a lot about “core values”, “beliefs” and “goals”, but that’s not language that necessarily comes naturally to a client. In some respects the client has to be trained to think in terms that can be converted into an effective plan of action.
“That’s a really good question, because it’s all very well having these concepts, but if you can’t communicate them to a client then there’s no point. It’s just a piece of theory. And some clients will be turned off by that. I think sometimes we use a lot of jargon, and acronyms, that are painful for clients.
“What we created over a two-year period was a piece of software which we’ve called MyLife GPS, and the concept there is, where am I now, where am I going and how am I going to get there? I love GPS – especially if you’re travelling in Europe. You’re travelling through France and you’re getting guidance with a French accent.
“[We also have] a business planning tool [called G2], because we do have a lot of small business clients; you can build your business plan online. A number of clients have a number of facets to their business. You can build a business plan online, in real time, for the client.
“Then there’s [a module called] C3, which is the personal planning side.”
Jones says he strives to achieve relationships with his clients “as human beings, not just with them as clients”.
“Bill Bachrach has, I think, completely changed the landscape of financial planning for people who really want to connect with their clients’ real core values,” Jones says.
“Your core values are what motivate you. It’s the ‘why’. You have kids? I reckon for most of us with kids, the kids are the ‘why’, the kids and their future.”
Jones turns the tables on the interviewer, and begins asking questions about core values and beliefs.
“What’s important about money to you?” he asks. “Why is not worrying about money really important to you? What are the things you really enjoy? What’s important to you about spending time with your kids and your family? When you are spending time with your family, how does that make you feel? How old are your kids? What do you really want for them in their future?
“If you look back in 10 years’ time, or 20 years’ time, and the kids have had a great education, they’ve got really good personal values, good morals, and they’re successful in life, not just around money and career but they’re successful as human beings, how would that make you feel?”
Before long, Jones has mapped out a basic set of core values and beliefs and can move onto the process of defining goals and aspirations. It puts the subject of financial security into a broader context.
“Once we’ve captured that, not just around your kids but about other things about money that are important to you, it’s [clear that it’s] not what’s important to you about money that’s important; the question should be: ‘What’s important to you?’
“But the reason it starts with what’s important about money is because that’s the baseline; that’s where you can connect with people and then evolve up to what’s most important, which is really family, feeling content with life, making a positive contribution to society.”
