Interviewing Techniques

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Interviewing Techniques
2010 NASAA Investment Adviser Training Dallas,
TX ________________________________________ Presen
ted by Darren Kearns CFP
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The Introduction

• Show identification
• Provide business card
• Provide letter of introduction
• Provide books records request list
• Explain the exam process and estimated time
  period. Put the Interviewee at ease help
  create their expectations

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Initial Interview

• Interview the owner or principal officer
• What is the purpose?
• To gather information about the IA such as type
  of business, services offered, personnel,
  investments, size, fees, operations, conflicts,
  affiliations, advertising, and solicitor
  relationships

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Initial Interview

• Techniques
• Use more open-end questions vs closed-end
• Closed end Do you advertise?  
• Open end What kind of advertising are you
  doing? or Tell me about your advertising
• Continue to put interviewee at ease. The more
  relaxed you are, the more relaxed they are (can
  help create a more cooperative exam)
• Paraphrase answers to ensure understanding and
  avoid miscommunications
• So you have the client sign a receipt
  documenting that they have received the Form ADV
• Listen VERY carefully take VERY good notes

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Initial Interview

• Techniques
• Never assume
• Dont overwhelm
• Watch for nonverbal communications
• Actions speak louder than words
• Allow IA to ask questions
• Dont lead interviewee in questions
• You do offer the ADV annually, dont you
• Document conversation

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Keys to Success

• Always remain calm even when interviewee is upset
• Always be professional and polite
• Dont be intimidating or talk down to the
  interviewee. This can result in a more guarded
  response
• Dont get into a yelling contest or argument

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Its an Interview NOT an Interrogation
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Cornerstones of Effective Communication

• Listening Be empathetic, active and prepared to
  really listen
• Suspension of judgment Try to see others point
  of view to achieve their frame of reference
• Feedback Do not assume everything you say and
  they say are understood
• Understanding Accurate reception and
  interpretation of a message
• Openness Candid disclosure of findings, bad
  news and important facts. Let them know your
  going to find issues (no one is perfect)

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After Initial Interview

• Ask for a tour of the office
• Introductions to key contact personnel
  (operations, financial, etc.)
• Location of books and records
• Copier and workspace location
• Restrooms
• Continue the examination

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Characteristics of a Good Interviewer

• Understanding the interviewer is attempting to
  obtain only the relevant facts and is not out to
  get someone
• Does not appear to be a threat
• A people person and talented at human interaction
• Does not interrupt the interviewee
• Displays an interest in interviewee and what is
  being said

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Body Language

• The evaluation of an interviewees body language
  can provide the examiner with insight of the
  interviewee
• Eyes can provide important nonverbal signs
• Closing eyes, covering eyes, break in eye contact
  may suggest deceit
• Touching of face (touching nose, rubbing chin) is
  often a nervous reaction
• Blushing Indicates increased blood pressure,
  indicating pressure or stress

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Body Language

• Crossing of arms may indicate a defensive
  reaction
• Hands or fingers over the mouth may indicate
  deception
• Excessive perspiration, shallow or labored
  breathing is a typical reaction of dishonest
  persons
• Honest persons may lean forward when questions
  are serious

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Verbal Clues

• Deceptive people often speed up or slow down
  their speech, or speak louder. Have tendency to
  cough or clear their throats
• Liars frequently will repeat the interviewers
  question to gain more time to think of what to
  say. What was that again?
• Dishonest people may add what they believe
  credibility to their lies, such as I swear,
  Honestly, to tell you the truth, or frankly
• Generally honest people just say yes or no

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Interviewee Attitudes
Truthful Untruthful
Calm Impatient
Relaxed Tense
Cooperative Defensive
Sincere Overly friendly, polite
Inflexible Defeated
Cordial Surly
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Common Mistakes in Interviewing

• Most common is made by novice interviewers in
  trying to impress the interviewee with their
  knowledge. This can make the interviewee feel
  threatened and result in guarded responses
• Not paying attention to verbal and non-verbal
  clues
• Failure to take good notes
• Failing to put the interviewee at ease

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Interviewing Tips

• Create Rapport
• Shake hands in introduction This helps breaks
  down psychological barriers
• A little small talk before proceeding into
  interview
• Gesture openly with arms, lean forward in a
  manner to indicate interest
• Make eye contact Personalizes communication and
  creates a more comfortable environment

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Interviewing Tips

• Take your time do not rush
• Rushing will result in more questions than
  answers back at the office
• Practice, Practice, Practice
• Methodical
• Think about ways to get answers and uncover
  information
• Develop your own process that works for you
• Document answers clearly with as many notes as
  you need

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Questions???
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Armadillo Financial, Inc.
Dont let the market run you over
__________________________________________________
____________________________ Randy Mullikin as
Examiner Darren Kearns as William B. Travis