Feedback or criticism from a colleague or client, can come as a bit of a shock, even if it is well intended. Here’s how a behavioural finance expert recommends coping with such feedback.
What is meant as constructive criticism can sometimes feel like a personal attack, and responding in a measured and professional way is often easier said than done.
According to Simon Russell, Director of Behavioural Finance Australia, studies on decision-making show that receiving and responding to feedback is one of the few effective ways to establish genuine expertise and guard against various decision-making biases.
“Decision-making research also shows that bad moods are not conducive to learning and creative thinking, so overcoming the negative emotion and defensiveness can be important to take on board and respond constructively to feedback,” he says. “Taking some time before you respond can help with this, as emotional responses are usually short-lived.”
It’s also important to handle your emotions offline. Russell references the well-known example of typing an angry email response, but not hitting send until you have had a chance to sleep on it and review your initial reaction the following day. By then, you are far more likely to delete the email or send a more considered and careful reply.
A strategy financial advisers can utilise is how to ‘reframe’ or improve the way they present scenarios to their clients, potentially changing the way clients respond. To some extent advisers can use these same tactics with themselves, especially if they can reframe feedback in a less personal way.
“This could be that it’s not about me it’s about my service, or the way I communicated, making it less personal can reduce the emotional sting,” Russell says. “People can therefore continue to maintain a positive view of themselves, while still taking on board the feedback.”
Another way to reframe criticism in a less personal way is to imagine that someone else received the same feedback.
“Similarly, some people recommend talking about yourself in the third person, for example ‘a client said that Simon’s presentation was too long’ rather than ‘a client said that my presentation was too long’. It feels a bit less personal,” Russell says.
The next step is to reframe the scope of the feedback. Does it relate to all clients and to all types of advice? Or only to some circumstances and some client types? For example, Russell says he was once told he spoke too quickly in his presentations.
“Rather than slowing down for all presentations, I decided to slow down when my audience comprised mostly of retirees.”
More broadly, Russell suggests three tips to developing a more resilient mindset so that an adviser is better equipped to know when to take on criticism.
Important: This article has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before acting on the information, you should consider its appropriateness to your circumstances and if necessary, seek appropriate professional advice. Any information used in this article is for illustrative purposes only. Simon Russell is external and not a member of the Commonwealth Bank of Australia Group of Companies (the Group) and the content or any view expressed by Russell does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. CBA, nor members of the Group accept any liability for losses or damage arising from any reliance on external parties, their products, services and materials. Past performance is no guarantee of future performance.
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