Test Drive Resolutions Now Before Committing in 2026

As humans, we’re not very good at keeping promises to ourselves. Take New Year’s resolutions. Year after year we tell ourselves this lie: “After the Holidays I’ll get my fitness/finances/waistline/relationships back on track.” And what happens? Our resolutions stall out after a few weeks and the sting of regret hangs in the air like wet laundry over a long-ignored Peloton bike.

If this sounds like you, you’re not alone. Research shows four out of five New Year’s resolutions (81%) will be abandoned by mid-January. In fact, fitness app Strava found the majority of users had given up on their New Year’s resolutions by January 19 (aka national “Quitter’s Day”).

Here's something that may surprise you, however. Most resolutions don’t fail due to lack of willpower. They fail because we set goals that are way too ambitious. If you haven’t run a quarter mile since junior high school gym class, don’t resolve to run a marathon within six months. You might be able to pull that off in the movies, but in real life, you’re just setting yourself up for disappointment, injury and an unhealthy relapse.

However, if you start with 20 minutes of walking a day with a goal of completing a 5K run in six months, your odds of success go up exponentially. And from there, you can talk about completing a 10K or half-marathon before year-end with even more ambitious goals in 2027.

Whether we’re talking about fitness, finances, weight loss or relationships, behavior modification is hard. That’s why it’s so important to “test drive” your resolutions for a month or two before making a full commitment. This honeymoon period gives you time to see how much you can really handle and make course corrections along the way. If life is too hectic to start your test drive now, move the test drive to January with the goal of setting your 2026 resolutions in February.

Here are four tips for making the test-drive period even more effective:

1. Be SMART. New Year’s resolutions are a form of behavior modification. To make this changing mindset stick, you want to be SMART (Specific, Measurable, Actionable, Realistic and Time Specific).

Dan McMahon, managing partner of Integrated Growth Advisors, is a former football tight-end and no stranger to the ups and downs of weight change. A few weeks before Thanksgiving, Dan told me about his audacious goal to lose 40 pounds by May 1, 2026. Dropping 40 pounds may sound like a lot – especially when starting right before the Holidays -- but that works out to less than seven pounds per month or less than two pounds per week. Not a huge sacrifice and with the gradual approach, he’ll have plenty of time to make mid-course corrections.

In fact, without reducing his overall calories, Dan lost 18 pounds in the first two weeks of his journey. No pills or magic formulas here. He simply reduced the amount of carbs he was eating by about 90% and consumed more protein and fat to stay off hunger. He has also maintained his four-day-per-week exercise routine throughout the process.

While it might be tempting for Dan to get to his 40-pound weight loss goal way ahead of schedule, Dan’s sticking to the timetable, so he doesn’t peak too early and gain all the weight back. He told me the other day: “The easy pounds have been shed – mostly water weight and beer weight. Now the real work begins and I’m not going to rush it.”

2. Be consistent. As the old saying goes: “Missing once is an accident. Missing twice is the start of a new habit. Don’t make excuses. Find a way to do the work to the best of your ability and don’t beat yourself up when you have an off-day or a cheat day. Just keep making a little progress every day and move the ball down the field one yard at a time. My post Consistency Is Not Boring has more.

3. Turn resolutions into ingrained habits to make them more relatable. For example:

• Resolution: Quit smoking vs. Ingrained Habit: Stop smoking that one cigarette you have every morning after breakfast.
• Resolution: Eat healthy food vs. Ingrained Habit: Start substituting that one daily morning pastry for a banana.
• Resolution: Lose weight vs. Ingrained Habit: Every evening after work, go for a two to three-minute run or walk around the block.
• Resolution: Manage stress vs. Ingrained Habit: Meditate for two to three minutes every morning after you wake up.
• Resolution: Improve finances vs. Ingrained Habit: Save an extra 2 percent of each paycheck and put half into my 401(k)s low-cost index fund and the other half into a high-yield savings account at your bank.

*** For more on making resolutions habit forming, see Sahil Bloom’s 30 for 30 Challenge.

4.     Have an accountability partner. As the old saying goes, “it’s easier to let down yourself than it is to let down someone you trust.” Share your resolution with a person you can trust who won’t let you make excuses or talk you out of striving toward your goal.

Conclusion

Eating an entire elephant is impossible. But taking it one bite at a time makes a daunting challenge seem manageable. Tweak your resolutions all year long (See Step 4) and don’t beat yourself up for falling short. Instead of throwing in the towel, dust yourself, get back on the horse and set more realistic goals for the remainder of 2023.

As Napolean Hill famously said: “A goal is just a dream with a deadline.”  Take your goals for a test drive before diving in. Come MLK Day you’ll be glad you did.

How do you plan to stick to your resolutions in 2026? I’d love to hear from you.

#resolutions, #selfimprovement, #dedication, #goalsetting, #30for30

Why Write a Book?

Now is the time of year when financial professionals start planning and budgeting for 2026. Many of you have told me you’re “finally ready to buckle down” and write the book you’ve been contemplating for so many years. That’s great.

Contrary to what you might think, people are still reading plenty of books even in this limited attention-span YouTube, social media, TikTok age – especially non-fiction and business.

Global book sales project to grow at a CAGR of 4.2% according to Grandview Research. And non-fiction book sales (which include business, finance and management) are projected to grow even faster, at a CAGR of 4.9% from 2025 to 2030, according to Grandview. Perhaps people are finding solace in the ability to turn pages and skip around at their own pace -- and not have to download software, set a password and be bombarded with ads and chatbots.

That being said, if you decide to go forward, don’t go it alone. It’s easy to get discouraged, side-tracked or lost down a rabbit hole of research with no way to find your way out. Make sure you have an accountability partner to keep you on track, whether it’s a close friend, trusted colleague or professional editor.

You’re probably not going to get a six-figure advance or earn seven-figure royalties unless you get picked up by a major publishing house. Those fat advances tend to go to Hollywood celebrities, professional athletes and politicians with global reach. Most likely you’ll have to go the independent route. Just know that of the 3.5 million authors on Amazon, only about 1,000 will earn over $100,000 a year in royalties (.002%).

Book revenue beyond royalties

But there are still plenty of good reasons for accomplished financial professionals to write a book.
One of our CPA clients sells limited quantities of his three books ($100 cover price) but has earned over $100,000 in speaking fees and training sessions over the past two years. An estate planning client landed a $50 million case and a $100 million case thanks to his writing efforts. A family office principal has created a mastermind group for buyers of his book for which they earn continuing education credit. A wealth advisor confided that she had over half a dozen clients considering leaving her firm after their mid-year reviews. After her book was released in Q4 and shared with clients, not a single one left.

Writing a book builds authority, accelerates client trust, differentiates you from competitors, and generates new business. A published book serves as a powerful marketing tool that provides long-term, multi-purpose value beyond the initial effort. 

Here are 11 benefits of writing a book for busy financial professionals:

1. The "ultimate business card." A book instantly sets an advisor or accountant apart as an expert in their field in a way that standard credentials or a firm brochure cannot. It positions them as a thought leader with a deep understanding of their niche.

2. A tangible asset. Holding a physical book signals a significant investment of time and expertise, which builds consumer confidence. People are more likely to listen to someone who has literally "written the book" on a subject. 

3. Builds relationships before the first meeting. A book provides a way to establish a genuine, meaningful relationship with potential clients long before they step into an office. By sharing their philosophy and expertise through a book, advisors and accountants can connect with prospects on a deeper level.

4. Showcases personality and purpose. A book offers a unique opportunity to share personal stories and motivations, creating an emotional bond and empathetic connection with readers. This transparency helps potential clients feel they know and can trust the author. 

5. Specializes and targets niche clients. With a targeted book, an advisor can open doors to a specific, high-value audience. Writing a retirement planning book for tech-savvy professionals, for instance, makes the author stand out in a crowded market.

6. Signals a higher tier of service. A high-quality book, particularly a branded one from a hybrid publisher, can create a premium perception that allows an advisor to command higher fees. For clients weighing multiple options, a published book can be the deciding factor. 

7. Generates high-quality leads. A book can be used to generate warm leads by giving copies to prospects, clients (for referrals), and centers of influence, such as attorneys and real estate agents. A potential client who has read your book is already pre-qualified and familiar with your value proposition.

8. Creates content for ongoing marketing. A book is a content goldmine. Its chapters can be repurposed into blog posts, social media updates, webinars, and email campaigns, giving an advisor a coherent and strategic content plan for years.

9. Attracts PR and speaking opportunities. Journalists, podcasters, and event planners are more likely to book an interview with a published author. A book provides an attention-grabbing angle that can lead to valuable media exposure. 

10. Forces clarity and focus. The process of writing a book requires an advisor or accountant to crystallize their unique methodology, philosophy, and value proposition. This focus can help improve internal processes and offer more valuable services.

11. Improves communication skills. The act of articulating complex financial or accounting concepts in an accessible way sharpens an author's communication skills, which translates to more impactful client meetings. 

Conclusion

Becoming a published author puts you in rarefied company and helps you stand out in a crowd of purported “experts” and “thought leaders.” It takes courage to put your name and reputation on the line and codify a lifetime of experiences and knowledge into just a few hundred pages. It may not be an easy journey, but I don’t know a single author who regrets taking it.

I’d love to hear more about what you’re doing to stand out from the crowd.
#thoughtleadership, #practicemanagement, #businesscommunication, #bookauthor

You Can Never Be Too Clear

Early in my career I worked in business development. I once asked my boss if I was following up too often with a prospect. Her answer: “If I was being too aggressive the prospect would let me know.” I feel the same way when it comes to clarity in your writing and communication. You can never be too clear. People rarely if ever complain about that.

Take the abuse (or ignorance) of pronouns, which seems to be running rampant in business communication. For instance, which of the following sentences is correct?

1. David’s manager said that he will attend the meeting. 

2. I spoke to the client, shipper and packager. They don’t know if it will work. She voiced some concerns about cost again. 

3. The new report indicates a serious problem, but it is unclear.

4. When the medic prepared a flu shot for the officer, he winced.

If you said none of the above, then you’re correct. Let’s take a closer look at the issues.

 

Sentence 1: David’s manager said that he will attend the meeting. [Who will attend, David, or his manager?]
Better: David’s manager said that David will attend the meeting.

Sentence 2: I spoke to the client, shipper and packager. They don’t know if it will work. She voiced some concerns about cost again. [Who voiced concerns?]
Better: The client voiced some concerns about cost again.

Sentence 3: The new report indicates a serious problem, but it is unclear. [Is it the report or is it the problem?]
Better: The new report indicates a serious problem, but the report is not clear about the problem.

Sentence 4: When the medic prepared a flu shot for the officer, he winced. (Who winced—the pharmacist or the officer?)
Better: When the medic prepared a flu shot for the officer, the officer winced.

Watch your antecedents

Not to sound like your high school English teacher here, but an unclear pronoun reference occurs when the reader is unsure about which word the pronoun refers to (it's antecedent). To fix a pronoun reference error, substitute the correct noun for the pronoun or simply reword the sentence.

Trap #1 Missing antecedents

Avoid pronouns that don't refer back to any part of the sentence.

Unclear: The buyer called the mortgage office, but they didn't pick up. (Who is they?)
Better: The buyer called the mortgage office, but no brokers picked up.

Trap #2 Who, which, or that clauses divorced from their antecedents

A relative pronoun connects a dependent clause to the main clause. Like other pronouns, who, which, and that must refer to a specific noun or noun phrase. To create clarity, always place the relative pronoun immediately following the word it refers to.

Unclear: Return your surveys by Friday, which will complete the review process. (Which is unclear—it doesn’t refer to a specific noun.)
Better: By Friday, return your surveys, which will complete the review process.

Trap #3 It, this, that, or they used in reference to a whole sentence

These pronouns should refer to a specific noun, not an entire sentence.

Unclear: The building plan includes a co-working space, a gym, and a food court. This adheres to zoning code.
Better: The building plan includes a co-working space, a gym and a food court.. The multiple-use plan adheres to zoning codes.
OK, simple enough. But let's look closely at pronoun confusion when the stakes get a lot higher for legal compliance and investment decisions. We found it often occurs when a second (supporting) sentence is used to modify or enhance the previous sentence.

EXAMPLE #1: The Inflation Reduction Act (IRA) of 2022 introduced new tax incentives (and enhanced existing programs) for producing and investing in electricity by using non-fossil-fuel means.  The current Administration had clearly signaled that dismantling parts of this legislation was one of its priorities. While the decision has led to Congressional dissent from both sides, the OBBB takes a significant swipe at the incentives currently in place. 

PROBLEM: What does “this” refer to?

Better: The Inflation Reduction Act (IRA) of 2022 introduced new tax incentives (and enhanced existing programs) for producing and investing in electricity by using non-fossil-fuel means.  The current Administration had clearly signaled that dismantling parts of the IRA was one of its priorities. While the decision has led to Congressional dissent from both sides, the OBBB takes a significant swipe at the incentives currently in place. 

EXAMPLE #2: Common examples of undivided real estate interests are inherited homes passed down to multiple heirs, rental properties jointly owned by siblings or business partners, and family land that’s held for generational stewardship. This arrangement is also referred to as “tenancy in common” and the two terms may be used interchangeably.

PROBLEM: Does “this arrangement” refer to family land only or all type of undivided real estate?
Better: Common examples of undivided real estate interests are inherited homes passed down to multiple heirs, rental properties jointly owned by siblings or business partners, and family land that’s held for generational stewardship. Family land is also referred to as “tenancy in common” and the two terms may be used interchangeably.

Conclusion

Clear communication isn't just about good grammar—it's about protecting your business from costly misunderstandings. Whether you're drafting a contract, writing investment guidance, or simply updating your team, ambiguous pronouns can create confusion that leads to delays, disputes, and damaged relationships. Don’t rely exclusively on AI and grammar apps. When in doubt, repeat the noun and read back your work aloud.

How is your firm improving communication? I’d love to hear more.

#thoughtleadership, #practicemanagement, #businesscommunication

Are Your Forgetting 'For Example' When Writing or Presenting?

One of the great things about our business is that we get to work with some of the smartest minds in accounting, wealth management and estate planning. But all too often the “curse of knowledge” trips them up when they’re writing, presenting or being interviewed. Having encyclopedic knowledge of your subject area has many benefits – but sometimes briefer is better, and you don’t have to overwhelm your audience with every single thing you know about the tax code or investing or estate planning.

I’m not suggesting you dumb things down or distill everything into 140 characters. But sometimes it’s better just to give your audience a small sampling of what you know, rather than overwhelming them with a firehose of information.

Many of you work in highly technical areas. One of the best ways I’ve found to get your point across quickly without dumbing it down is to use two of the most powerful word in credibility marketing: “For example.”

"For example" is a powerful communication tool because it acts as a bridge between abstract ideas and real-world experiences your audience can relate to.

Early in high school, I remember a young math teacher who seemed hell-bent on putting a room full of freshman smart alecs in their place. When it came to Pythagorean theorem, he went into a lengthy discourse about Euclidian geometry, the evolution of the hypotenuse, with all kinds of convoluted lines and squiggles on the blackboard. Like most of my classmates, I was baffled and bombed the first quiz.

Fortunately, I took advantage of an after-school tutor. Within five minutes she explained, Pythagorean theorem explains the relationship of the two shorter sides of a right triangle, to the longer hypotenuse (a² + b² = c²). For example, in a right triangle, she said if the two shorter perpendicular sides are 3 feet and 4 feet, then the longer hypotenuse must be the square root of 3 feet and 4 feet. [3^{2 =} (9 feet) + 4^{2 =} (16 feet) ⁼ 25 feet]. So, the square root of 25 feet is 5 feet. I could visualize the triangle’s shape and could certainly relate to measurements in feet.

Here are some other reasons why “for example” is so effective in getting your points across quickly and effectively:

1. Clarifies Complex Ideas. When introducing abstract concepts, using “for example” breaks down the thought process into easily digestible chunks. The example acts as a mental shortcut for processing complex ideas.

Example: Explaining "opportunity cost" in economics might be abstract for some, but if you explain it with an example like choosing between buying a new car or going on vacation, it’s much easier for people to grasp.

2. Engages the Audience. Instead of simply stating "Effective leadership requires trust," showing how a successful leader (for example, Oprah or Steve Jobs) gained the trust of their teams makes the idea more compelling.

3. Builds Credibility. Using examples shows that you have a deep understanding of a complex topic, say tariffs, can apply your knowledge in practical situations. It lends authenticity to your message.

Example: Citing a historical example, like how the U.S. handled tariffs in the past (1930 Smoot-Hawley Act; 1980s US-Japan Steel Wars) helps reinforce the validity of your argument and shows that your ideas are grounded in reality.

4. Makes Arguments More Persuasive. Why it's powerful: By demonstrating a point with a specific example, you provide evidence that backs up your argument. This can make your claims more persuasive and difficult to dismiss.

Example: If you're arguing that a remote work policy boosts productivity, you could use an example of a company like Microsoft that has reported increased productivity from remote work initiatives.

5. Fosters Better Understanding. Why it's powerful: People remember and understand concrete examples much better than abstract theories.

Example: Instead of saying "Investing early is crucial," showing how someone who starts investing at age 22 versus age 42 has a significantly larger return due to compounding interest can make the idea more impactful.

6. Encourages Action or Reflection. When your reader/listener/client sees how an idea applies to a real-world scenario, they’re more likely to think about how they can apply it in their own lives or work.

Example: If you’re discussing the importance of time management, providing an example of a successful person’s time-blocking routine might inspire someone to adopt similar habits.

*** Here are more tips for using “For example” effectively

Real world example

As investors and their accountants were grinding through tax season earlier this year, a well-known financial services company published an investor brief touting the benefits of tax-loss harvesting.

Here's an excerpt:

“Tax-loss harvesting is a tried-and-true strategy for lowering taxes and potentially helping increase after-tax returns. When you tax-loss harvest, you'll pay taxes on your realized capital gains for the year, meaning you'll only consider your net gains—the amount you gained minus any investment losses you realized. Learning how to harvest tax losses is key to helping put your money to work. If you have realized capital gains, you can offset them by selling securities from one of your taxable accounts at a loss and reinvesting the money in a similar investment or rebalancing, if needed. When reinvesting the funds, it's important to be aware of the IRS wash-sale rule.”

Yawn!

Finally, about 14 paragraphs into the guide, the had the courtesy to give us the first “For example”:

For example: Let’s say you sell Investment A at a loss of $30,000, but later in the year you sell Investment B for a $25,000 gain. Your losses from Investment A would offset your entire gain from Investment B. That means you won't pay capital gains taxes on the $25K gain from Investment B —and you'll have $5,000 in losses left over. Under current tax rules, you can use up to $3,000 of that loss to offset your ordinary income, and you'd be able to use the remaining $2,000 to offset gains or income in future tax years.

Great example, but I bet most clients didn’t make it that far. Introduce “for example” early and often into your client meetings, presentations, blog posts and collateral materials. Your readers, stakeholders, staff and followers will thank you and share you.

Conclusion

As humanitarian Albert Schweitzer famously said: "Example is not the main thing in influencing others, it is the only thing." Tell me how your firm is simplifying complex topics for your staff, clients and followers. I’d love to hear more.

 #businesscommunication, #practicemanagement, #professionaldevelopment

What the Final Four Can Teach the Big Four About a Winning Culture

Last week’s post (March Madness, April Sadness Biases for Investors and Hoopsters Alike) generated more feedback than usual, so I thought we’d do a follow-up post. With the annual NCAA Men’s Basketball tournament (aka “March Madness”) behind us, have we learned anything new about what separates  the elite teams from all the other contending teams?

Yes, but there’s more to it than meets the eye.

As mentioned last time, the 2025 tourney was only the second time in history that all four top-seeded teams (Auburn, Florida, Duke and Houston) made it to the Final Four. That being said, we expect fewer “Cinderella” upsets in the future because it’s easier than ever for elite players to transfer to top contenders. And it’s easier than ever to compensate college athletes directly through Name Image & Likeness (NIL) deals.

But what if there’s something more going on? Could that explain why Florida and Houston advanced to the national championship game and why Duke and Auburn – the two highest ranked teams coming into the tournament – had to watch the finals on TV?

Could those same attributes explain why some professional service firms sail through busy season and year-end crunch time, and others implode and point fingers when the pressure is on?

Dan McMahon, CPA, Founder and Managing Partner of Integrated Growth Advisors says, yes. He believes that team culture, whether in the office or the hardwood, has as much to do with it as raw talent, coaching and mentorship.

“Houston is a culture-first program,” noted McMahon. “Under head coach Kelvin Sampson, their identity is built on grit, relentless defense, and a next-play mentality. Their players embrace tough games and physical play—and they rarely get rattled,” McMahon noted. Against Duke, he said that Houston’s consistency and mental toughness showed through against the exceptionally talented, but relatively inexperienced Blue Devils.

“While Duke has a legacy culture from the Coach K era, sustaining that under new leadership takes time,” said McMahon. “Duke usually brings in the most talented freshmen in the country, but they’re still evolving [under third-year head coach Jon Scheyer] in terms of forging a new identity. Culture takes root over years—not just seasons,” asserted McMahon.

Florida, the eventual champion, “played like a team on a mission,” related McMahon. “Their chemistry, unselfishness, and execution were clear against Auburn in the semi-finals.” He said Auburn head coach, Bruce Pearl, had done an “incredible job instilling intensity and passion,” but Florida seemed more poised and more connected in high-pressure moments. “Auburn had energy—but Florida had balance. In March, the more emotionally steady, values-aligned team seems to win the big games,” explained McMahon.

Here’s the thing: culture doesn’t guarantee victory—but it raises your floor, and in March and April, that matters. “Strong cultures create clarity under pressure,” said McMahon. “And that’s often the difference between closing out big games or watching them slip away.” Every March he said, we witness elite college basketball teams rise—or fall—based on how well they execute under pressure. “The difference rarely comes down to raw talent. It’s about culture, clarity, and leadership,” he said.

According to McMahon, players at Houston and Florida don’t have to guess what to do in the final seconds of a game—they know instinctively what to do, having run through each scenario countless times in practice. The players inbound the ball with confidence, not confusion. They know exactly where to be on the court at the start of the play and where to move as the play develop. They trust their roles. They operate within a system that’s been built and reinforced day after day.

Now shift the lens to the world of accounting firms and other professional services firms.

Over the course of his career, McMahon says he’s found that the highest-performing firms share many of the same traits as the top tier college sports programs:

1. Defined roles and responsibilities.
2. Strong tone at the top.
3. Clear mission, vision, and values understood by all.
4. Proven systems in place that replicate success.
5. Team members don’t need to be spoon-fed by coaches/superiors. They anticipate, adapt, and execute.
   
   

As a result, McMahon said the highest-performing firms don’t fall apart during tax season or year-end planning season —they rise to the challenge. “They’ve put in the reps,” asserted McMahon. “They’ve invested in leadership development, cross-functional communication, and process accountability. Their team members know what’s expected of them—and why.”

By contrast, McMahon said lower-performing firms resemble teams without a playbook. “They have lots of individual talent, but no shared system. They have unclear roles. Leaders haven’t built trust or communicated expectations. Every crisis feels like the first time. The firm survives tax season, but just barely – and excuses and finger-pointing prevail rather than accountability.”

On whose team would you rather be?

Conclusion

How is your firm managing through crunch time? I’d love to hear from you.

#marchmadness, #firmculture, #governance, #accountability

March Madness, April Sadness Biases for Investors and Hoopsters Alike

Maybe because the rest of the world is in such turmoil, the basketball gods gave us an eerily predictable and uneventful NCAA Men’s Basketball Tournament. As we head into the final weekend of “March Madness,” the Final Four remaining teams (Auburn, Duke, Florida and Houston) are each heavily favored No.1 seeds for only the second time in the history of the tournament. It’s like having the four largest cap companies in the S&P 500 outperforming the other 496 names by a large margin all at the same time. It doesn’t happen often.

The annual single-elimination national tournament of college basketball’s 68 best teams is usually filled with wild upsets, heart-wrenching losses and game after game going down to the final seconds in which your favorite team either wins or goes home (season over). No best of seven. No consolation bracket. No do-overs. If you’re a bettor, you need a balanced portfolio of heavy favorites, mid-major standouts and unlikely upstarts to come out ahead. Like the stock market, you just never know which name or sector will get hot at just the right time.

March Madness is the ultimate reality show in which on any given night unheralded Fairleigh Dickinson can end top-ranked Purdue’s season in the first round (2023). University of Maryland Baltimore County (UMBC) can end top-ranked Virginia’s season in the first round (2018). St. Peter’s, a tiny commuter school from Jersey City, NJ can send mighty Kentucky packing in the first round (2022) and then end Purdue’s season in the third round, or Florida Gulf Coast can knock out mighty Georgetown in the first round (2013).

This year’s tournament started out predictably unpredictable in the first round as little- known McNeese State knocked out Clemson; No.12 Colorado State beat No. 5 Memphis; and No. 10 Arkansas beat No. 7 Kansas and then No. 2 St. John’s. But, then the upset gods fell asleep at the wheel and went on vacation early. By the time we got to the Elite Eight teams, we had four No.1 seeds, three No. 2 seeds and one No. 3. Great teams all, but pretty “chalky” as the betting community would say. And not very exciting.

What March Madness teaches us about investing

Despite a more predictable than usual tournament, none of the 34 million brackets filled out on the ESPN and CBS platforms remained perfect after the first two rounds of the six-round tournament.

I bring this up because our collective inability to pick March Madness brackets successfully, despite all the data and analysis available to us free of charge and in real time, highlights many of the behavioral biases that so often derail our investment decisions.

Rory Henry, CFP®, BFA™, Director of Arrowroot Family Office and author of the new book              Holistic Guide to Wealth Management, told me if you're looking at your bracket and wondering why you got your hopes up that a “Cinderella” run would bring back the madness, it's not your fault—"you likely fell victim to one (or many) of the psychological and emotional biases” such as those listed below:

1. Narrative Bias. “We crave stories,” said Henry. “The Cinderellas gave us drama, hope, and belief in the improbable. Without them, we’re left with stats and seedings—logical but less exciting. We’re wired to favor the emotionally compelling over the rational,” he lamented.
   
   
2. Recency Bias. Last year’s upsets? “We expect more of the same,” asserted Henry. “But just because it happened recently doesn’t mean it will repeat. Our memories are short, and our expectations are often misaligned with changing realities,” Henry added. Sound familiar investors?
   
   
3. Boredom Aversion is perhaps the most overlooked bias according to Henry. “When things play out as expected, we feel let down. We miss the chaos. We crave the underdog even as we fill out our brackets with safe picks. Predictability feels less human—and less fun.”

I might also add “Loss Aversion” in which the pain of a loss is felt at least twice as acutely as the joy of the gain. It doesn’t matter if you’re filling out brackets or balancing your portfolio. Losses hurt….bad.

For more behavioral bias that derail or investing and bracket-picking plans, see

What March Madness Teaches About Our Biases.

“March Madness has always been about the irrational exuberance of college basketball fans,” noted Henry. “This year, it’s teaching us a different lesson: that our love of drama, our reliance on the past, and our resistance to predictability—and yes, our delight in making irrational picks—are what made March Madness so fun in the first place. And maybe, just maybe, we’re learning that true madness isn’t in the upsets—but in how we process what happens when they don’t occur.”

From where I sit, this year’s lack of drama is likely to become the norm rather than the exception, thanks to the Transfer Portal and the new NIL deals that allow players to make money – in the seven figures for top players -- from the commercial use of their name, image, and likeness.

“Talent,” said Henry, “is now clustering at big-name programs with deep pockets and brand visibility.” I agree with Henry’s assessment that if you need a skilled point guard, you no longer have to take a chance on 17-year-old high school recruits and wait several years for them to develop in your program. You just go to the transfer portal, search on experienced points guards, and reach out to a proven fourth- or fifth-year player who’s looking for a bigger paycheck at your school. They must no longer sit out a year in order to transfer and wonder if boosters will make good on their under-the-table promises. It’s all out in the open.

And that’s a shame. March Madness has long been the platform for the Weber States, Valparaisos, Gonzagas, Texas Westerns, Butlers, UMBC’s and St. Peters’ to gain national recognition and substantially boost donations and applications. It’s also a chance for the Yales and Princetons of the world to show they can hit the hardwood as hard as they hit the library. Auburn and Arizona learned that the hard way in recent years. Not so this year.

Conclusion

We need those scrapy startups to put the Mega Caps in their place from time to time. Otherwise, we’re just mailing it in and not innovating or getting better. What are you and your colleagues doing to stay hungry and innovative? I’d love to hear from you.

#marchmadness, #innovation, #behavioralfinance

This Word Literally Cramps Your Credibility

Standing in the coffee shop line the other day, I couldn’t help overhearing these cringeworthy conversations around me:

·        "OMG. I literally died laughing!" (No, you’re very much alive, I thought to myself. That’s unfortunate for those of us around you).

·        "I'm literally freezing." (You're probably just cold and under-dressed I thought).

"The dude’s business literally exploded!" (Call the bomb squad? Nope, just hyperbole, I thought.)

“There are literally like a million people in this line!” (Ughhh. Listening to you sure makes it feel that way.)

What do all these anecdotes have in common? Misuse of the word “literally.” Originally, "literally" was a straightforward term with a clear purpose. It meant "in a literal sense" or "exactly" – a way to emphasize that you were describing something precisely, without metaphor or exaggeration.

For instance, if the temperature on the outside patio was 30 degrees, you could say it was literally freezing. Or if a novel was translated from Russian to English, you could say it was literally translated from the original.

Today, "literally" has become the linguistic equivalent of a verbal exclamation point, used to add dramatic emphasis with zero regard for its actual meaning. People now use “literally” to mean “figuratively” or “metaphorically,” which are the opposite of literal. Why? Because in this social media age in which everyone’s clamoring for attention, we feel compelled to make everything sound more dramatic than it really is.

You’ve seen this linguistic laziness in social situations, but it’s especially problematic in business situations where you must be concise and precise.

·       “They literally devoured the competition.” (Had they adopted cannibalism as a business practice?)
 

·       “It literally took them forever to get to cash flow positive.” (No, it did not, because if that were the case you would never stop until you died).

Why you should care

When we strip words of their precise meanings, we reduce our capacity for clear communication. "Literally" used to be a powerful tool for emphasizing truth; now it's become a meaningless filler word used for more drama. Linguists call these words “intensifiers,” but I suggest you avoid using them altogether.

For instance, instead of saying “I literally don’t care,” just say: “I don’t care.”
Instead of saying “I literally know the solution,” just say: “I know the solution.”

How to use "literally" correctly

Use "literally" only when something is actually true in the most precise sense: "After running a marathon, I was literally exhausted and could barely move my legs."

Use "literally" when you're referring to a specific number or fact: “I almost missed the online deadline. I was literally two minutes away from being assessed a late filing penalty."

Conclusion

Abuse and disregard of "literally" isn't just a minor grammatical quirk – it's a symptom of our culture's love for hyperbole and emotional inflation. Next time you're tempted to say "literally," just ask yourself: Did I really? If not and you’re over 16 years old, leave “literally” out of your vocabulary and make better word choices.

What are you and your colleagues doing to be more concise with your language? I’d love to hear from you.

#businesswriting,#thoughtleadership, #productivity

Long Live the Whiteboard

My last post (The Power of Writing Things Down) generated more comments than usual. Many of you were intrigued by research showing how writing things down by hand improves retention, clarity and commitment and also reduces stress.

There’s also the accountability factor. If we take the time to write down our goals or obligations rather than keep them in our head (or phones) we’re more likely to complete them. Taking it a step further, if we write those goals or obligations on a publicly viewable whiteboard, research shows we are up to 1.4 times more likely to achieve them.

The whiteboard (aka marker board, dry-erase board, dry-wipe board, or pen-board) has long been associated with corporate conference rooms. It’s sometimes maligned as an outdated tool in this digital age – like the fax machine and typewriter. But I’ve found whiteboards to be even more useful than ever in this era of 24/7 distraction.

Everyone uses whiteboards differently

I keep an oversize whiteboard in my office even though I rarely hold team meetings there. I like having a large, non-permanent white canvas to organize my thoughts, ideas and obligations. It’s posted right next to the front door and is always in direct line of my sight. I can’t avoid looking at my whiteboard and it has all of my immediate must-do items as well as my longer-term projects that can’t be completed in one sitting. Unlike apps and project management software, I can’t turn it off or swipe left. Those obligations are always staring at me and can’t be avoided.

I’m not big on to-do lists, task lists and punch lists, because they’re so binary. Either you got it done and checked off the list, or you didn’t. That doesn’t leave room for incremental progress, which is so crucial for knowledge workers like us. When you have a complex presentation due two months from now, or a book chapter due in six weeks, or a new client who wants to sign on next quarter, it can be extremely debilitating to see an empty box left unchecked day after day, month after month. It’s far more inspiring to see that you’ve made incremental progress on those long-term initiatives. If I’m roughly 50% complete, I like to shade in half the box next to the project. If I’m just getting started, I shade in a small amount, rather than leaving it blank. And if almost to the finish line, I shade in most of the box, but not all of it.

I use various colors for certain kinds of projects, but my favorite tactic is using directional arrows. As knowledge workers, so much of our day is spent either waiting for someone to make a decision about something we’ve sent them, or they’re waiting for us to act on something they’ve sent us. It’s kind of like a mental tennis match. So, I use left-facing arrows next to items for which the ball is in my court and I use right facing arrows to designate items for which the ball is in a client’s or colleague’s court. Even on days when nothing gets checked off the list, if I leave my office with more right-facing arrows than left-facing ones, I go home in a good frame of mind. By contrast, most notetaking and to-do list apps are linear. They don’t seem to accommodate the unique, free-form way that humans process thoughts, ideas, and workflow.

But a whiteboard isn’t just for brainstorming or keeping track of tasks. It can save you from cranial overload because it gives you a convenient place to dump all the stuff that clutters up your brain. Your tasks, initiatives and projects are captured in a convenient location where you don’t have to think about them until you are ready to address them. That frees up lots of bandwidth for higher and more productive thinking. Even better, you don’t have to set up an account, a log-in, or download an app to use your whiteboard. And you don’t have to sift through endless paper files or cabinet drawers to find an idea or project outline you tucked away for safekeeping many months ago.

 

*** Our free resources section has more about this topic.

But here’s the other benefit of a physical, tactile whiteboard. It’s a finite space. When you start to run out of room, you can’t keep adding expansion slots or writing in a smaller font. You have to start prioritizing and deleting.

I probably re-sort the items on my whiteboard three or four times a day. When something has to be erased from the board because it’s not a high enough priority, I find it tremendously liberating not to have to keep thinking about it.

As Winston Churchill liked to say: “Don’t let perfection be the enemy of progress.”

Conclusion

What are you and your colleagues doing to capture tasks and make incremental progress? I’d love to hear from you.

#businesswriting,#thoughtleadership, #productivity

The Power of Writing Things Down

When I’m rushing out the door late for an appointment, my wife inevitably asks me to pick up some skim milk, real butter and jumbo eggs on the way home. “Three items. Nothing unusual. I’ve got this,” I tell myself and commit the task to memory.

But then comes the pesky addendums to the list about 30 seconds later. “Honey, if you see the picante salsa, not too spicy, in the jar not the can, that would be great,” she adds with full confidence that I’ll remember. “They’re right by the low-salt gluten-free taco chips, you know, with the corn meal and the sea salt not the regular salt. So, pick up an extra-large bag, not the normal large,” she adds. “We have people coming over this weekend.”

 

Uh oh.

 

I tell myself I better write this list down. I won’t have time to hit the store until after work and there’s too much time to forget. In the old days I would have whipped out a pen and Post-It note and stuck it to the dash of my car. And here’s the funny thing. The Post-It note would often go missing by the time I got to the store. But since I took the time to written down each item on the list, it was locked into my short-term memory, and I usually brought home everything my lovely wife requested.

 

But now everyone makes fun of my system, so I try dictating a voice memo to myself and add the request to my task-remind app. And, more often than not, my grocery run goes sideways and there’s hell to pay when I get home.

What’s going on?

In this fast-paced world of AI, digital transcription services and note-taking apps, it seems like we’d be getting better at remembering things and organizing our thoughts. But all of this technology may be is making us even more distracted, less organized and increasingly stressed. Research shows that writing things down by hand improves retention, clarity and commitment and can also reduce stress.

Here’s why.

Writing engages different cognitive processes than typing or mental notetaking alone. When we write something down, we process information more deeply and retain it better. A frequently cited study by Dr. Gail Matthews at Dominican University found that people who wrote down their goals are 42% more likely to achieve them compared to those who didn't.

The research found that the act of writing things down in a notebook or a journal involves more cognitive activity than typing it out on a keyboard or on a screen. This means that more areas of the brain are activated, and they are activated more intensely as we write compared to when we type.

There’s also the accountability factor. If we take the time to write down our goals on paper or on a publicly viewable whiteboard, we are 1.2 to 1.4 times more likely to achieve them.

Then there’s the act of handwriting itself. a new study in Frontiers in Psychology suggests that handwriting may be irreplaceable when it comes to learning. Researchers found that writing by hand activates far more extensive and interconnected brain networks compared to typing, particularly in regions linked to memory and sensory processing.

Neuroscientists say that when we write our goals or intentions down, encoding takes place in our brains. Scientists say encoding affects the choices we make and how we act in extremely profound ways, even if we’re not conscious of it.

“As a card-carrying boomer, I keep a paper diary in addition to my electronic calendar,” admits Cecil Nazareth, CPA, senior partner of a thriving international tax firm, adjunct professor at Fordham University’s Gabelli School of Business and part-time field hockey couch. Nazareth is one busy guy. But as he describes in his latest book, Making A Difference, “Some of my staff laugh at me, but the paper diary really helps prevent me from missing client tax deadlines, teaching assignments and family obligations. If you write everything down, it won’t slip through the cracks,” he adds. “There’s just something about writing down an important assignment or appointment on paper that makes it seem more real and less likely to be overlooked.”

Minimize distraction and procrastination. Personally, I’ve found that writing things down by hand won’t tempt you with other distraction like digital devices do. Swipe into your phone to take a note in your note-taking app and you’ll find your finger wandering over to the Instagram app. And the Twitter app. Soon enough, even though you finished typing your note 10 minutes ago, you’re still idling the hours away on your phone.

Clarity. The human brain has on average 6,000 thoughts per day. Putting our thoughts on paper is a powerful form of decluttering. When we declutter our lives, whether it's our brains, our desk or our garage, we become more productive. When you write your thoughts by hand, you can only write one word at a time. Your thoughts slow down to match your writing speed and you’ll find that it’s easier to slip out of your overthinking mindset. You’re also forcing yourself to decide what’s most important. But, if you’re taking notes or writing out to-dos on a screen, there’s literally endless space to do so; it’s actually pretty easy to mindlessly type out highlights from a lecture or make a list of every single thing that you’re thinking about in the moment.

Better attention span. The act of writing by hand requires our full attention. Because we are fully engaged, our thoughts are less likely to wander off into tangents. That’s quite rare in this day and age where attention spans are markedly shorter. Developing the habit of writing by hand will strengthen your sustained focus and attention muscles. This will help your complete tasks and become more detail oriented.

 

Improved productivity. A study published in The Journal of Cognitive Neuroscience showed that writing by hand improves neural activity in certain parts of the brain, particularly those associated with focus and attention. In contrast, the ease of typing can make it tempting to multitask, reducing overall productivity.

Frees up working memory. Our working memory, also referred to as our short-term memory, is the RAM of our brain. Our brains are incredible machines, but our RAMs are sadly limited. Unlike our long-term memory, which is vast, our working memory cannot hold too much information at a time without freezing up or encountering performance issues. An overburdened working memory degrades our cognitive function, causing us to make careless mistakes.

Enhances creativity and problem solving. There’s a reason why many creative thinkers—writers, artists, and innovators—still prefer pen and paper for brainstorming and problem-solving. Writing by hand engages different neural pathways, often leading to more creative thinking and better solutions.

Stress relief. One of the best ways to quiet a busy and racing mind is to write things out longhand. Getting our thoughts and feelings on paper can offer a sense of relief. It can turn our minds from chaotic to calm in an instant. That is what the concept of writing therapy is all about and it’s extremely beneficial for our mental health. If you don’t have the time for long-form writing, you can still engage in some writing therapy by doing periodic brain dumps. This is one of the things the bullet journal is good for. This is the process of externalizing our scattered thoughts by writing them down. At a later time, these brain dumps may be organized into lists or reflections.

 

In my next post I’ll discuss why writing on whiteboards is so effective for organizing your thoughts, staying on track and preserving your sanity.

 

Conclusion

From enhancing your career, to reducing stress, to improving your relationships, taking the time to write things down strengthens your cognitive muscles and makes you more present. Sometimes going slow is the perfect antidote to this fast-paced world.

Our free resources have more.

What are you and your colleagues doing to improve your notetaking and recall? I’d love to hear from you.

 

#businesswriting, #thoughtleadership, #businesscommunication

#businesswriting, #thoughtleadership, #businesscommunication