We know it, although some would rather not acknowledge it. Jargon -
language that is specific to a profession, an industry or even a hobby – is one of the major barriers to effective communication.
Jargon can be useful as a shorthand or a more economical way of expressing yourself when you are with people who understand it. But because using jargon has become second nature to the people most involved in the specific activity, they often forget that outsiders may not “get it”.
As veteran marketing consultant Marcia Yudkin once put it, a user of specialists’ lingo has two options when communicating with general audiences: either abstain…or explain! Of course, that piece of advice is crucial for people in sales and the like communicating with potential consumers of their products or services.
Like any other, the financial services industry has its specialized terminology and verbal shortcuts that its professionals have developed over the years. Richard “Mac” Hisey, president of AARP Financial of Massachusetts, reported this week that his company had recently commissioned a USA-wide telephone survey to take a closer look at how investors are coping with financial double-speak.
“The research” , wrote Hisey, “generated fresh evidence of the debilitating lack of clarity and outright obscurity of the communications”. And such lack of clarity, of course, has critical consequences for “the client’s ability to make sound decisions that shape the foundation of lifelong financial well-being.”
How to achieve clarity
But all is not yet lost, according to Hisey, because there’s another side of the coin: he see in the findings “a considerable consulting opportunity for advisers – the opportunity to help investors cut through the thicket of words that all too often surrounds investment decisions.”
These are the tips he offers – really the basis of effective communication in any setting – to help consultants achieve that goal:
- Tune your delivery to your audience
You spend time among colleagues with a common vocabulary, so it’s easy to lapse into “Wall Street-speak.” Don’t. Be mindful of your client’s relative level of financial sophistication. - Listen and observe
How are your clients reacting to your explanations? What is their expression? Look for non-verbal cues as well. What message is their body language sending? Are they sitting upright and engaged, or are they fidgeting and tense? - Be proactive
Former New York City mayor Ed Koch famously interspersed his conversations with constituents with the question, “How am I doing?” He didn’t wait for a comment; he invited one. Don’t wait for the question that may never come; invite it. - Remember that a picture is always worth a thousand words
As any adviser who has ever used a chart knows, a picture or graph can be a powerful communications device. Create a library of effective visuals and use them often in your client communications. - Come up with analogies
Many of the principles you’re trying to explain have analogies in everyday endeavors, where your clients have greater experience, expertise and comfort. Find and use those analogies; they go a long way to help cut through the clutter. - Strive for transparency.
It’s an obvious point, but it can’t be overstressed: Investors are more sensitive than ever to fee issues, and you won’t go wrong by over-communicating on this front. Seek to understand and then exceed the client’s expectations about fee disclosure. You’ll go a long way toward dispelling any cynicism among your clients that our poor communications are all about obscuring fees.
Incidentally, if finance-speak is really getting you down, well worth a visit is AARP’s Jargonator, which “translates” many often misunderstood financial terms into simple English
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