Tag Archives: J.P. Morgan

The 5 Personal Persuasion Styles

Can you imagine a world where everyone was inspired to go to work? Do you inspire your team to greatness as a leader, or are you one of those leaders who are quite comfortable with your staff coming to work every day without any sense of purpose? The No. 1 problem facing many organizations today is leadership.

A Simon Sinek YouTube video titled “Why Good Leaders Make You Feel Safe” tells the story of a group of Marines that came under heavy fire from three sides in an ambush in Afghanistan, when one Capt. William D. Swenson repeatedly ran into the line of fire to bring injured men to safety and saved at least a dozen lives. A GoPro on one of the medics captured Swenson and a comrade carrying a wounded Marine to a helicopter for evacuation. After putting the man down, Swenson gave him a kiss on the forehead and then ran back into the kill zone.

I said to myself, wow, if a man is willing to give his life for me, I will follow him to the ends of the earth. (Swenson received the Medal of Honor.)

While a business environment is obviously not a war zone, even though we sometimes use war as an analogy, the sort of deep-seated love that Swenson showed needs to be present in a workplace, and it is missing in many organization today. People don’t feel safe, and they do not believe their leaders will have their backs when they are in the line of fire.

The greats of leadership have a persuasion style that allows them to sell their ideas and inspire people to follow their vision. One of the most critical skills in the repertoire of any leader is the power to inspire and influence people by their words and actions rather than coercion.

See also: How High-Performing Salespeople Persuade  

In a fascinating book, The Art of Woo, Using Strategic Persuasion to Sell Your Ideas, by G. Richard Shell and Mario Moussa, the authors discuss five different leadership personality approaches to persuasion: Driver, Commander, Promoter, Chess Player and Advocate. Some people are comfortable using three or four of these styles, while others prefer to play only one or two.

This book draws from many other brilliant authors and expertly highlights the value of authenticity and self-awareness in your ability to persuade and influence. The book says you need to make two basic choices: Are you other-oriented or self-oriented? (In other words, are you going to tailor your messages for your audience, or are you going to make unmodified announcements rather than spin them for each audience?) And, will you be loud or quiet?

The book then goes through five styles; one of the keys to great leadership is understanding your unique persuasion style. While you are reading, consider your present environment, your employees, values, etc. and ascertain which communication approach is best aligned to your natural persuasive leadership personality.

Driver (Higher Volume and Self-Oriented Perspective)

According to Shell and Moussa, when individuals are high-volume and prefer to announce their perspective without a lot of adjustment for their audience, other people are likely to experience them as demanding. They can be overly one-dimensional and prefer to persuade people by saying things like “Do this my way, the right way or you can hit the highway.”

I remember working as a plumber’s assistant in my younger days, and all the employees called the founder of the company Frank Sinatra — because he liked everything his way.

But if drivers are dedicated to the organization mission, they can be effective persuaders. The book mentions former Intel CEO Andy Groves, who personified a high-volume, self-oriented CEO and was hugely successful.

Grove kept a wooden bat near his chair. One day, just after a meeting had gotten started, several executives slipped into their seats. Grove fell silent at their arrival, then grabbed the bat, slammed it onto the table, and shouted, “I don’t ever, ever want to be in a meeting with this group that doesn’t start and end when it is scheduled!” Intel was subsequently famous for on-time meetings.

See also: Should You Use a Coach/Mentor?  

Grove wasn’t a nut; he was very aware about his communication style and the culture he wanted to create at Intel.

Commander (Low Volume and Self-Oriented)

A commander speaks from a position of quiet confidence and authority, using expertise combined with finesse to make a point in an understated way. The book highlighted J.P. Morgan as someone who conducted himself from a position of quiet confidence and credibility.

You don’t have to be an aggressive Driver when you want people to know exactly what you think. Indeed, a quiet, understated demeanor can often be much more efficient. People listen. The Commander keeps his counsel and puts a premium on maintaining as much control over decisions as possible.

In a financial panic in 1895, Morgan played the Commander with finesse, saving both America and his financial empire from a fiscal catastrophe.

The Promoter (Higher Volume and Other-Oriented Perspective)

Promoters are outgoing, optimistic and assertive. They are friendly. When played well, this role features a gift for gaining and maintaining a wide circle of relationships. The CEO of SAP, Bill McDermott, immediately comes to mind.

During his 17 years at Xerox, where he became the youngest divisional president, he was assigned to turn around the Puerto Rican unit, which was ranked 64th out of 64 divisions in the world. The following year, that same division was No. 1 in the world.

When asked about the spectacular turnaround, Bill McDermott said that he listened to the people, because they know why things aren’t working. McDermott said people told him two things:

  1. They wanted a vision, so they could be inspired when they came to work.
  2. The staff wanted their holiday party back.

When the division went from 64th to 1st in the world, they got their holiday party back, at the Old San Juan Hotel.

The Chess Player (Lower Volume and Other-Oriented Perspective)

The Chess Player style involved plotting a set of moves that brings about the desired outcome. Leaders with this type of personality prefer to operate in more intimate settings, quietly managing strategic encounters behind the scenes. A Chess Player is an effective strategist who is less extroverted than the Promoter but shares with the Promoter a keen interest in what makes other people tick.

Shell and Moussa point to John D. Rockefeller. In 1865, Rockefeller wanted to end a partnership with four men, but the firm could be dissolved only if all the partners consented.

Rockefeller went to work behind the scenes, lining up support from some banks. When he got the support required, Rockefeller provoked a quarrel over an oil industry investment and quietly extracted himself from the unsavory business partnership. If Rockefeller was more prone to a driver personality, he may have engaged his partners in a shouting match or threatened litigation, demanding they release him so he could follow his dreams. However, Rockefeller took the path of the Chess Player by carefully plotting a set of moves behind the scenes.

The Advocate – Moderate Volume and a Balance Between Self-Oriented and Other-Oriented Perspectives.

The Advocate uses a full range of tools to get her points across. The Advocate strives for balance — persistence without shouting, being mindful of the audience without losing perspective. A classic example used in the book is the founder of Wal-Mart, Sam Walton.

Walton visited one of his stores and noticed someone at the front greeting customers. Walton was fascinated with the idea and told his team that all the stores should have greeters. Now, Walton could have simply ordered people to do what he wanted. But he was seldom the Driver that Andy Grove was and instead relied on a more moderate combination of vision, persistence, relationships and reason to get people to see things his way.

There was a lot of conflict over this new initiative, and Walton went to lengths to explain why this greeters program would be good for the company. He let the debate go on in an attempt to fully explore all the ideas. After 18 months of discussion and experiment, Wal-Mart finally adopted the practice company-wide.

Walton did not dictate or say things to his executives such as “Don’t you trust my judgment?” or “Don’t you think I know a thing or two about what is good for Wal-Mart?” Instead, Walton sold his vision, and his team eventually brought into the concept.

As a leader, you need to be aware of your strengths and weaknesses in persuasion. You need to understand your preferred communication channels, and likewise, you must take into consideration the dynamics of your environment, your organizational values, culture, people, etc.

Some companies are fierce guardians of their business values, and if there is a misalignment it can cause havoc within the company. For example, you cannot be an Andy Grove in a culture that promotes family values, teamwork, collaboration, etc. The culture is completely different.

See also: Systematic Approach to Digital Strategy  

Woo-based persuasion is all about aligning interest, values and relationship as people find it easier to say yes rather than no. Regardless of your personality, when your team trusts you, when you figure out which channels of communication your counterparts are best attuned to, your will gain tremendous credibility within your company.

My personal persuasion style is more of a Chess Player. I prefer to quietly managing strategic encounters behind the scene. What is your personal persuasion style?

Blockchain Technology and Insurance

What if there was a technological advancement so powerful that it transforms the very way the insurance industry operates?

What if there was a technology that could fundamentally alter the way that the economics, the governance systems and the business functions operate in insurance and could change the way the entire industry postulates in terms of trade, ownership and trust?

This technology is here, and it’s called the blockchain, best known as the force that drives Bitcoin.

Bitcoin has gotten a pretty bad rap over the years for good reason. From the collapse of Mt. Gox and the loss of millions –  to being the de facto currency for pedophilia peddlers, drug dealers and gun sellers on Silk Road and the darling of the anarcho-capitalist community – Bitcoin is not doing well in the public eye. Its price has also fluctuated wildly, allowing for insane speculation, and, with the majority of Bitcoins being owned by the small group that started promoting it, it ‘s sometimes been compared to a Ponzi scheme.

Vivek Wadhwa writes in the Washington Post that Chinese Bitcoin miners control more than 50% of the currency-creation capacity and are connected to the rest of the Bitcoin ecosystem through the Great Firewall of China, which slows down the entire system because it is the equivalent of a bad hotel Wi-Fi connection. And the control gives the People’s Army a strategic vantage point over a global currency.

Consequently, the Bitcoin brand has been decimated and is thought by too many to be a kind of dodgy currency on the Internet for dodgy people.

The blockchain, a core technology behind what drives Bitcoin, has been slow to enter the Zeitgeist because of this attachment to Bitcoin, the bête noire of the establishment.

But that is changing fast. Blockchain as a tool for disintermediation is simply too powerful to ignore.

People are now beginning to really look at the blockchain as an infrastructure for more than monetary transactions and what it has done for Bitcoin. Just as Bitcoin makes certain financial intermediaries unnecessary, innovations on the blockchain remove the need for gatekeepers from a number of processes, which can really grease the wheels of any business, including insurance companies.

How blockchain works and can work for the insurance industry

Because of the way it distributes consensus, the blockchain routes around many of the challenges that typically arise with distributed forms of organization and issues such as how to cooperate, scale and collectively invest in shared resources and infrastructures.

In the blockchain, all transactions are logged, including information on the date, time and participants, as well as the amount of every single transaction in an immutable record.

Each trust agent in the network owns a full copy of the blockchain, and, in the case of a private consortium blockchain (more relevant to the insurance industry), the transactions are verified using advanced cryptographic algorithms, and the “Genesis Block” sits within the control of the consortium.

The mathematical principles also ensure that these trust agents automatically and continuously agree about the current state of the blockchain and every transaction in it. If anyone attempts to corrupt a transaction, the trust agents will not arrive at a consensus and therefore will refuse to incorporate the transaction in the blockchain.

Imagine there’s a notary present at each transaction. This way, everyone has access to a shared, single source of truth. This is why we can always trust the blockchain.

Imagine a healthcare insurance policy that can only be used to pay for healthcare at certified parties. In this case, whether someone actually follows the rules is no longer verified in the bureaucratic process afterward. You simply program these rules into the blockchain.

Compliance in advance.

Automation through the use of smart contracts also leads to a considerable decrease in bureaucracy, which can save accountants, controllers and insurance organizations in general an incredible amount of time.

While the global bankers are far out of the blocks when it comes to learning, understanding and now embracing blockchain technology, the insurance industry is lagging. Between 2010 and 2015, a mere 13% of innovation investments by insurers were actually in insurance technology companies.

There are some efforts to tap innovation, as the Financial Times in the UK recently wrote. European insurers such as Axa, Aviva and Allianz, along with MassMutual and American Family in the U.S. and Ping An in Asia are setting up specialist venture capital funds dedicated to investing in start-ups that may be relevant for their core businesses.

Aviva recently announced a “digital garage’ in Singapore, a dedicated space where technical specialists, creative designers and commercial teams explore, develop and test new insurance ideas and services that make financial services more tailored and accessible for customers.

And others are sure to follow in the insurance industry, particularly because both the banking industry and capital markets are bullish on investing in innovation for their own sectors – and particularly because they are doing a lot of investment in and around blockchain.

Still, the bankers and capital markets are currently miles ahead of the insurance industry when it comes to investing in blockchain research and startups.

Competitors in the capital markets and banking industries in terms of blockchain solutions include: the Open Ledger Project, backed by Accenture, ANZ Bank, Cisco, CLS, Credits, Deutsche Börse, Digital Asset Holdings, DTCC, Fujitsu Limited, IC3, IBM, Intel, J.P. Morgan, London Stock Exchange Group, Mitsubishi UFJ Financial Group (MUFG), R3, State Street, SWIFT, VMware and Wells Fargo; and the R3 Blockchain Group, whose members include the likes of Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, Goldman Sachs, J.P. Morgan, Royal Bank of Scotland, State Street and UBS.

Then there are start-ups like Ripple and Digital Asset Holdings, led by ex-JPMorgan exec Blythe Masters, who turned down a job as head of Barclays’ investment bank to build her blockchain solution for banking.

There are others in the start-up world moving even faster in the same direction, some actually operating in the market, such as Billoncash in Poland, which is the world’s first blockchain cryptocash backed by fiat currency and which passed through the harsh EU and national regulatory systems with flying colors. Tunisia is replacing its current digital currency eDinar with a blockchain solution via a Swiss startup called Monetas.

There are both threats and opportunities for the bankers… so what about the global insurance industry?

Every insurance company’s core computer system is, at heart, a big, fat centralized transaction ledger, and if the insurance industry does not begin to learn about, evaluate, build with and eventually embrace blockchain technology, the industry will leave itself naked and open to the next Uber, Netflix,  AirBnB or wanna-be unicorn that comes along and disrupts the space completely.

Blockchain more than deserves to be evaluated by insurers as a potential replacement for today’s central database model.

Where should the insurance industry start?

Companies need to start to experiment, like the bankers and stock markets, by not only working with existing blockchain technologies out there but by beginning to experiment within their own organizations. They need to work with blockchain-focused accelerators and incubators like outlierventures.io in the UK or Digital Currency Group in the U.S. and tap into the latest start-ups and technologies. They need to think about running hackathons and start to build developer communities – to start thinking about crowdsourcing innovation rather than trying to do everything in-house.

Apple, Google, Facebook and Twitter have hundreds of thousands of innovators creating products on spec via their massive developer communities. Insurance companies that don’t start lowering their walls might very well find themselves unable to innovate as quickly as emerging companies that embrace more open models in the future and therefore find themselves moot. Kodak meet Instagram.

The first step for insurance companies with blockchain technology will likely be to look at smart contracts, followed by looking for identity validation and building new structural mechanisms where parties no longer need to know or trust each other to participate in exchanges of value.

Blockchain technology, for instance, can also allow for accident or health records to be stored and recorded in a decentralized way, which can open the door for insurance companies to reduce friction in the current systems in which they operate.

Currently, the industry is highly centralized, and the introduction of new blockchain-fueled structures such as mutual insurance and peer-to-peer models based on the blockchain could fundamentally affect the status quo.

As comedian and writer Dominic Frisby once penned, “The revolution will not be televised. It will be cryptographically time stamped on the blockchain.”

Some of the many questions that the industry should explore:

  • What kind of effect will blockchain technology adoption in markets have on the the public’s perception of risk?
  • Today, the insurance industry is centralized, but what could it look like if it were decentralized?
  • How could that affect how insurance companies mutualize?
  • Can the blockchain improve customer relations and confidence?
  • Can smart contracts built on the blockchain automate parts of the process in how business is done in the insurance industry?

If you want to explore further, sign up to express interest here about our coming event in London: Chain Summit Blockchain Event for Insurance.