Get Out in Front to Shape the Story
By Martin R. Baird

I sat down to write this column after watching Jim Cramer of CNBC’s “Mad Money” appear on Comedy Central’s “The Daily Show” with host Jon Stewart. Several days earlier, Saturday Night Live aired a parody of Treasury Secretary Tim Geithner in which Geithner said he had a $430 budget that would end the mess in the financial markets. He said he would give the money to anyone with a plan.
 
These two events should be a huge, pulsating sign that every financial professional must notice and act upon. When comedy or satire catches up with reality, you as a professional must get ahead of the curve. When poking fun at the recession becomes mainstream news, you need to shape and share your own story.
 
“The Daily Show” mixes comedy with news. But on this particular episode, Stewart asked real questions about why Cramer and CNBC did not report what was happening to the economy before the implosion. He wanted to know that if Cramer and CNBC consider themselves good stewards of business news, didn’t they owe it to people with 401(k)s to do the research and ask tough, uncomfortable questions?
 
My simple understanding of the trickle-down effect tells me that your clients and prospects will be asking the same things. Here are some sample questions: “I paid you to manage my money and to know what was happening in the financial markets. Why didn’t you do that?” “Why didn’t you know that 35-to-1 leverage was a bad thing?” “Why didn’t you know that consistent 20 percent returns had to eventually end?”
 
I realize many of you have preached diversification for years and have told people they need a balanced approach. But did you offer this advice with real conviction before everything fell apart? Did they know what could happen to their hard-earned money? (I could have said portfolio, but your clients view their investments as cash that they earned and gave to you.)
 
Get ahead of this problem right now. Please take time today to create a communications/marketing plan for your clients and prospects for the next 12 to18 months. This plan must draw upon what is happening today in the financial markets and in the media. You must get ahead of the curve and start sharing key points so your clients don’t get all wrapped up in what is yet to come.
 
What is yet to come? The media is going to turn on the financial-services industry. This is my best guess, but I believe I’m right. If an entertainer like Jon Stewart is asking serious, tough questions of people like stock market guru Jim Cramer, then the rest of the media can’t be far behind. Media outlets from local newspapers to start-up Web sites will smell blood in the water, and they will want a piece of the action. When situations such as our country’s financial meltdown occur, the media look for someone to blame. The blame for our current crisis will often be directed at financial professionals like you. Some of these attacks will be serious and some will happen just for the fun of joining the fight. I also believe the attacks will move from satire entertainment and mainstream journalism right into the halls of Congress. Not exactly the path I would want it to take, but that is just me.
 
You need to have answers to possible media questions. You should have responses to the comments media personalities make. This is also a great time to help shape and lead the discussions. You can actually drive where the story goes in your local community in many ways. I’ve always been a proponent of not waiting until they knock on your door with a camera in your face. Shape your story and ideas on what could have been done in the past and what should be done in the future. Get those messages out NOW. This cannot wait. If the local media will not cover the economy, at least share your views in your newsletter and online. You can also use local civic organizations as a place to share your side of the story. Please note that when you share your story, you must be honest and forthright. Explain where you made mistakes and what you have done to avoid them in the future.
 
Financial advisors must be out in front. If they aren’t, the media will make up the story they like the best. Sure, there will be hard facts, but the focus will be on selling more newspapers or attracting more viewers, not on what will help people the most.
 
A couple of weeks ago, a friend e-mailed me an editorial cartoon that showed an executive testifying before a congressional committee. The conversation in the cartoon went something like this:
 
Congressman: “Sir, does your company own a private jet?”
Executive: “Yes.”
Congressman: “Did you use that jet to come to this meeting?”
Executive: “Yes.”
(The executive pauses as people in the room murmur.)
Executive: “That’s the same jet we used to take you golfing and to fly your family somewhere on spring break.”
Congressman: “I have no further questions.”

I share this because you need to shape the story and not let it become about corporate jets or other non-issues. Craft your story and get the word out!

Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a consulting company that helps financial professionals measure and manage the quality of client service and improvements to their internal operations to enhance business performance and increase revenues. He is a highly regarded speaker in the areas of marketing and client retention and development. Baird is author of “The 7 Deadly Sins of Advisor Marketing,” a book that offers easy-to-implement marketing ideas for financial professionals. He may be reached at 206-774-8856 or mbaird@raresults.com.