By: Ryan P. Dolan
“Continuous improvement is better than delayed perfection.”
Mark Twain
“When you improve a little each day, eventually big things occur. Not tomorrow, not the next day, but eventually a big gain is made. Don’t look for the big quick improvement. Seek the small improvement one day at a time. That’s the only way it happens-and when it happens-it lasts.”
John Wooden
When I first started working with financial planning clients, I was brimming with vim and vigor, eager to drive radical financial improvement in their lives-quickly. I deluged clients with 50 page reports full of reams of financial data and projections. I identified a dozen priorities and associated ambitious action items. I’d highlight, for example, that a client needed to dedicate more time to financial planning and strategy; needed far more life insurance; needed to untangle a spider web of unnecessary financial complexity; needed to have a better grasp of the priorities and transitions they were likely to face; needed to engage in estate planning; increase their saving rate; invest with more rigor and emotional control.
The response? As you might imagine, there was a lack of engagement, follow-through and accountability from many clients. What’s more, they felt overwhelmed, and often discouraged at coming face to face with both the scale of what needed to be done, and their lack of progress in doing it. Some said they felt they were letting me down. True, some clients liked the pace of change and were able to manage it, but the majority did not. I felt hamstrung and demoralized and uncertain how to turn it around.
It took me a discouragingly long time to realize that the problem was not my clients- it was my process. This blitzkrieg, siege-mentality approach simply was simply not the best way to get client buy-in. It was too much, too soon. Over time, and through much trial and error, I adapted my approach. At its core, my process comes down to melding the principles of kaizen with financial planning and portfolio management.
Kaizen, popularized in Japanese industry in the 1980s, is a philosophy of continuous improvement through small incremental steps. Most of us approach any plan for growth and improvement in a similar way: we set big, audacious goals on a short deadline which demand radical changes to have any hope of success. In short order, our willpower gives out and we abandon the process, feeling frustrated at our incapacity to change. This is an exceedingly common affliction with many of the clients I work with: driven, type-A, overachievers.
Kaizen is a philosophy that implicitly recognizes that all improvement takes time, demands patience and accountability, as well as an understanding of how our minds approach change. At the outset of using kaizen, it can often seem like the steps are laughably simple and easy. The mind wants to circumvent the process by asking how such laughably low expectations can produce anything worthwhile. This instinct needs to be ignored. By jumping over low initial hurdles, which do not trigger the fear and anxiety of unrealistic goals, we are encouraged and motivated to take on more. At the same time, blocks and flawed ways of thinking and acting start to dissolve, and our creativity in finding new areas of growth improves.
My process today, quite simply, is to simply meet clients where they are. It’s akin to learning to surf. You start on the biggest, fattest surfboard that you can stand up on. As soon as you can stand and ride a tiny wave, you immediately move to a slightly smaller board. You slowly, but continually keep moving to smaller and smaller boards right when the current one becomes comfortable. We all start from a different initial level. Some clients come to me fairly organized, focused and accountable, with only a handful of priorities and areas for improvement. They start on one board. Others, despite career success, a high income and good net worth, have largely ignored their finances or have made several large financial mistakes. No matter. Each starts on a board that’s comfortable for them.
The initial change and implementation of kaizen-based financial planning is the slowest. However over time, as accountability and growth start to occur, clients feel encouraged by the process and we can increase the rate of growth. All sound financial planning and investing comes down to plodding, but relentless improvements that can accrue, given a long enough timeline, to astounding things. All sustainable change takes time, but that time can be reduced with a dedicated coach continuously, but gently, pushing you to switch to a smaller financial surfboard.
About Dolan Partners:
Dolan Partners is a holistic financial life planning and investment management firm, working hand in hand with professionals and business owners. We dive deeply into clients' financial lives, working to align their money with their unique vision, values and goals.
We offer complimentary introductory calls with prospective clients, which are always completely confidential and judgment-free.
Learn more at www.dolanpartners.com
Dolan Partners LLC
100 School St.
Danville, CA 94526