Measuring your TQ (Transition IQ)
DEAR ADVISORS,
One of the things I LOVE about financial planning and succession planning is that it’s based on facts. We gather data and analyze it to make optimal decisions for our clients. One of the things I HATE about our industry is that it’s so data-oriented! People are emotional, who make irrational decisions. As much as we like to deny it, we advisors are no different! We could become better advisors, better business owners, and happier human beings by leveraging our EQ and TQ. While IQ is based on standardized tests to establish your intelligence level, EQ and TQ are different.
Emotional Intelligence Quotient (EQ) - EQ stands for your Emotional Quotient, or your Emotional Intelligence. It’s your capability to recognize emotions in yourself and in others, and use that information to guide thinking and behavior. This is a hugely valuable skill to have as a financial advisor and business owner! The existence of behavioral finance as a field signifies how much our choices in life and money are based on how we feel in the moment. However, I hypothesize that advisors avoid learning how to leverage their EQ because it’s a “squishy” topic, meaning it’s uncomfortable and unmeasurably vague. But taking time to recognize how we are feeling in the moment helps us make better decisions for ourselves and others. It also fosters open communication about the reality we’re experiencing, and appreciating when others see it differently.
Transition Intelligence Quotient - TQ stands for your Transition Quotient, or your Transition Intelligence. I like to describe it as applying EQ to a Transition. First, you have to understand the difference between change and transition. Change is part of life, whereas transition happens in your mind. For example, the pandemic forced us to change our habits by wearing masks and social distancing, but we had to mentally transition how we interact with our clients and family over technology, to continue finding the same value in those relationships. A transition reshapes who you are into who you want to become.
Tips to Improving Your TQ - When we think about succession planning in our advisory firms, I consider that a huge life change. Instead of fighting that change, we must mentally transition to embrace what’s next with a sense of curiosity and a growth mindset. Use your values as your guiding light throughout the transition. You are still yourself. It’s very common to feel alone in the midst of change. Now, more than ever, we need each other. Don’t hesitate to share this experience with your spouse, a mentor, or a transition specialist like me, to help adapt to the change and become a better version of yourself through it all. Lastly, a succession plan can take 10 years or longer. Be patient with yourself and with the transition. Look for joy in the journey.
I first heard about TQ from Jeremi Karnell with Truelytics. We’ve partnered with Truelytics to provide advisory firm valuations for our clients. Jeremi recently went on sabbatical with some close friends and they invented the phrase TQ to describe something that I have been struggling to describe for advisors since we launched Ellevate! You can read more about his definition of TQ in his article on the Truelytics blog here. I hope it inspires you to approach your succession plan with a more open mind. It will definitely make you happier in life, and one step closer to securing the future of your family and your financial advisory firm!
Warm regards,
Brooklyn
P.S.
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