Written by: Don Trone and Dr. Sean Hannah
Results of the 2018 Behavioral Governance Study
In 2018, were fiduciaries better at planning, or at implementing? Did fiduciaries demonstrate a greater capacity for character and accountability (driving procedural justice and moral and ethical decision-making), or for situational awareness and adaptability (driving social astuteness)?
To begin to ask such questions, this past year 3ethos released the industry’s first psychometric-based instrument to assess behavioral governance - the study of the interrelationships between leadership, stewardship and governance (fiduciary). Behavioral governance is based on the groundbreaking academic research in neuro-leadership that has identified key neurological and psychological capacities that impact the quality of an effective and inspiring decision-making process.
In 2018, 3ethos conducted a study using the self-assessment version of the behavioral governance instrument with 237 fiduciaries. The instrument measures five leadership behaviors, five stewardship behaviors, and five governance steps. The instrument captures a person’s level of skill, and the amount of effort they employ, associated with each behavior and decision-making dimension. A proprietary algorithm then calculates how impactful the individual is for each behavior and governance step.
The study results:
Highest scores for leadership and stewardship – scores can range from 0 (low) – 35 (high):
Lowest scores for leadership and stewardship – scores can range from 0 (low) – 35 (high):
Governance steps ranked high-to-low – scores can range from 0 (low) – 35 (high):
Initial interpretation of the study results:
Based on these results, financial advisors should be mindful of the following in 2019:
Lastly, rekindle the love you have for your clients, for the people you work with, and for the awesome responsibility and honor you have to serve as a fiduciary. In the words of the Righteous Brothers, there is evidence that you may be losin’ that lovin’ feelin’!
The Co-founders of 3ethos are Don Trone, L5; Dr. Sean Hannah, Mary Lou Wattman, L5: Rear Admiral Steve Branham; and Dr. John Sumanth.