Featured Speaker - The Adaptive Change Model for Financial Planning

There are two very different approaches to managing change, the technical change model and the adaptive change model. Traditional financial planning is an excellent example of a successful technical change model that serves planners and clients well when life is smooth, predictable and goals are identifiable. When a client’s life is disrupted by a major change event, even the kind most planners work to prepare for, traditional planning models fall short.

The adaptive change model for financial planning is built to address uncertainty and the human side of experiencing change. Based on the theory of adaptive leadership developed at Harvard Kennedy School, we apply the main principals to create a financial planning model for clients facing life changing events.

These events are when the human side of the client becomes dominant, the way they process information, make decisions, focus of short versus long term objective all begins to shift. Their communication needs tend to change as their attention span shortens and cognitive capability diminish. Yet these are times when critical decisions and commitments need to be made, the kind that will determine their long-term well-being.

There is more to it than understanding behavioral finance, cognitive biases and the stages of transition. In adaptive change there are no easy answers or a list of questions to ask. It is a skill set acquired through direct experience and a commitment to continuous training, not unlike the commitment to excellence on the technical side.

This session presents the adaptive change management model for financial planning and tips for making the shift from technical to adaptive as client’s needs change. One model does not replace the other, one without the other is incomplete and puts clients a risk of not achieving their highest potential for living their best life.