Bright talk constructive disagreement 2016 nov 2

How to Avoid Boring Panel Discussions:

Nine Guidelines for Constructive Disagreement

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November 2, 2016

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Brooke Southall, Principal, RIABiz.com

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“Boring panel discussions are one of my pet peeves. You go to a conference hoping to learn something new and you get polite babble and marketing nonsense.

There is not enough disagreement.”

2-Minutes About Each Speaker


• Robert J. Martorana, CFAPortfolio ManagerRight Blend Investing, LLC

• Brian Gilmartin, CFAPortfolio ManagerTrinity Asset Management, Inc.

• Jeff BriskinDirector of Marketing Advisor Perspectives & APViewpoint

Methodology


• I interviewed ten of my peers to find out how to make panel discussions more insightful.

• We found that constructive disagreement is a key part of an interesting discussion.

• Here is the recipe for an effective panel discussion…

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Why Do We Need Constructive Disagreement?


Avoiding cognitive biases:• Anchoring: We estimate an initial value

and we are slow to adjust. • Availability: We remember things that are

vivid, like plane crashes.• Representativeness: We rely on

stereotypes and fail to ask “What am I missing?”

What Makes a Group Effective?


Charles Duhigg described successful teams in Smarter, Better, Faster. Two key elements:1. Interesting task: The group feels that the

work is meaningful.2. Psychological safety: “Teams succeed

when everyone feels they can speak up and when members show they are sensitive to how one another feels.”

Brian Gilmartin, CFA, founder of Trinity Asset Management Inc.


“When you have highly intelligent, highly motivated people, how do you handle conflict? It is not enough to have analytical rigor—do you have integrity and a process for handling disagreement?”

Preparation and Execution


The nine guidelines are separated into:• Four steps of preparation • Five principles for execution


Tadas Viskanta, Founder and Editor of Abnormal Returns


“Disagreement is constructive when you’re on the same topic and you’re working toward the same goal. Online, people have their own agendas. They are often speaking past you to some perceived audience” [so their analysis and conclusions are suspect].

Brooke Southall, RIAbiz


“You need to define terms so you can get to the core of the disagreement. You may still disagree, but at least you know where your assumptions differ. It represents progress if you disagree coherently, instead of just talking past each other."


Nicholas ColasChief Strategist at Convergex


“Think about the one or two things that will change their world. Don’t go in front of a group unless you have great ideas. Something memorable.

If I don’t have it, I don’t do the panel.”

Jeff Briskin, Marketing Director, Advisor Perspectives


The moderator has to be the advocate of the audience. The moderator has to make sure that high-‐level talk applies to an advisor’s daily practice with clients. You don’t want a philosophical debate that the audience can’t apply.

The panelists are not there to impress, but to inform. It’s not about ‘I’m smarter than you;’ it’s about who gives the best actionable information.

Michael Kitces, Partner at Pinnacle Advisory Group; publisher of the Nerd’s Eye View blog


Many people just aren't wired for constructive debate. You need panelists who are naturally good at engaging in respectful disagreement. In fact, I find for the panels where you actually have really good people in the first place, very little preparation is needed, and ‘over-‐preparing’ the panel can stifle its ability to have constructive discourse (since people worry about staying on script, instead of staying on subject).

Shifting Gears


• Now we turn from preparation to execution.

• The following page offers guidelines, not hard and fast rules.

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Nicholas Colas, Convergex


“I always tell panelists: Put the ad for your firm at the top. You have two-‐minutes at the top to give a commercial. Then it’s over and it’s open season."

Jeff Miller, President of NewArc Investments; blogs at Dash of Insight


“There are people who are bond guys, and that’s a vested interest. They are not biased per se, but they tend to hire people with an approach that will work with their clientele. The person will have a conservative view on risk. This leads to groupthink.”

Brooke Southall, RIAbiz


“The problem isn’t hidden agendas; it’s the agenda that’s hiding in plain sight. Too many people just stick with a marketing message and can’t, or won’t, go off the script.The financial industry is unwilling to engage in open dialogue. They avoid unpleasantness and accountability. They have trouble even defining accountability.”

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Intellectual Integrity


When I host investment discussions, I have found that two traits are essential to promoting constructive disagreement:• Intellectual Humility: Aware of our limits• Intellectual Courage: Willing to confront irrational beliefs

Constructive Disagreement


• Focus on Solutions: There is no point in getting together to complain.

• Be Practical: As Jeff Briskin noted, you’re there to give insight, and not to impress. (Discussion is not debate.)

• Entertainment ≠ Effectiveness: “There is a big difference between what gets discussed and what is effective.” (Anon.)

Nicholas Colas:Brevity


“An hour is an outside limit for a panel discussion, and 20 minutes for a single speaker. Attention spans are shrinking, so get right to the point.”

Jeff Miller:Accountability


“It’s not the knowledge level. It’s the accountability. [This is what’s missing in the media.] There isn’t a market-‐driven process that is fast enough to detect nonsense and hold people accountable for bad forecasts and a bad process.”

Accountability


• Listen to your peers• Acknowledge their points and your limits• Apologize if you cross the line.

Remember, you give respect and you get respect.

For more information please contact:


• Robert J. Martorana, CFA: Portfolio Manager, Right Blend Investing, LLC, [email protected]‐919-‐2395

• Brian Gilmartin, CFA, Portfolio Manager, Trinity Asset Management, Inc., [email protected]‐810-‐3480

• Jeff Briskin: Director of Marketing, Advisor Perspectives & APViewpoint, [email protected]‐934-‐6252

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Resources 1


• Valuable Intellectual Traits, Foundation for Critical Thinking. Describes intellectual humility, intellectual courage, etc.

http://www.criticalthinking.org/pages/valuable-‐intellectual-‐traits/528

• Thinking Fast and Slow, Daniel Kahneman, 2013. A simple guide to behavioral finance and a tale well told. https://www.amazon.com/Thinking-‐Fast-‐Slow-‐Daniel-‐Kahneman/dp/0374533555

Resources 2


• Smarter, Better, Faster, Charles Duhigg. Discusses the Aristotle Project at Google in 2015. Quotation taken from page 67.https://www.amazon.com/Smarter-‐Faster-‐Better-‐Productive-‐Business-‐ebook/dp/B00Z3FRYB0#nav-‐subnav

• The Aristotle Project was also described in How to Build a Better Team, in NY Times Magazine: http://www.nytimes.com/2016/02/28/magazine/what-‐google-‐learned-‐from-‐its-‐quest-‐to-‐build-‐the-‐perfect-‐team.html

Resources 3


• Principles by Ray Dalio. Dalio based the practices at Bridgewater on “radical truthfulness.” These principles are designed for the investment process. https://www.principles.com/#Principles

• How Meditators Can Overcome Behavioral Finance Biases, Jason A. Voss, CFA. Identifying a bias does not eliminate it. https://blogs.cfainstitute.org/investor/2014/09/16/how-‐meditators-‐can-‐overcome-‐behavioral-‐finance-‐biases/

DisclaimerAll written content is for information purposes only. Opinions expressed herein are solelythose of Right Blend Investing and our editorial staff. Material presented is believed to befrom reliable sources, however, we make no representations as to its accuracy orcompleteness. All information and ideas should be discussed in detail with your individualadviser prior to implementation. The presence of this article shall in no way be construedor interpreted as a solicitation to sell or offer to sell investment advisory services to anyresidents of any State other than the State of New Jersey or where otherwise legallypermitted. This is not a complete discussion of the information needed to make a decisionto open an account with Right Blend Investing, LLC. There are always risks in makinginvestments, including the investment strategies described.

Right Blend Investing, LLC is a registered investment advisor in the state of New Jersey. There are always risks in making investments, including the possibility of

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