1. Values Based Discovery – Part 2
Rick Katz
Director, Business Markets Development
AIG Advanced Markets
AIG
In the last module, we discussed how to drill down the 2nd step of the 4 step sales process – Discuss Discover Reveal and React. Discover is a comprehensive process of determining what the client has done about his or her goals up to this point. More specifically, we are discussing the art and not the science. Rather than facts and figures, these are values based questions to determine how the feelings, aspirations and goals can influence their outcome. The last module considered 3 of the 7 topics. We will now consider the remaining 4 of the 7 topics.
Module 2.7
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2. Disclosure
Advanced Markets is a marketing unit of American General Life Insurance Company (AGL), a member of American International Group, Inc. (AIG). No representation or warranty, express or implied, is made by AGL or its affiliates as to the completeness of the information provided. All companies mentioned, their employees, financial professionals and other representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are subject to change and individuals should consult an attorney, tax advisor or accountant. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Policies issued by American General Life Insurance Company (AGL) Houston, TX except in New York, where issued by The United States Life Insurance Company un the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are a member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. Products may not be available in all states and product features may vary by state.
AGLC © AIG All rights reserved.
As a reminder, AIG does not provide any legal or tax advice. A client should seek their own advice from a tax and/or legal professional.
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3. Opening
The culture of a workplace – an organization’s values, norms and practices – has a huge impact on our happiness and success
Adam Grant
Think little goals and expect little achievements. Think big goals and win big success
David Joseph Schwartz
What you get by achieving your goals is not as important as what you become by achieving your goals.
Zig Ziglar
Adam Grant is a Psychologist and professor at the Wharton school of business. He said, “The culture of a workplace – an organization’s values, norms and practices – has a huge impact on our happiness and success. The math part of problem solving is essential. But it is also essential to determine a business owner’s values, aspirations, obstacles and feelings as well – if you want to present a plan for the future that will allow life to unfold as they picture it. David Joseph Schwartz, the motivational speaker said, “Think little goals and expect little achievements. Think big goals and win big success.” Finally, Zig Ziglar said, “what you get by achieving your goals is not as important as what you become by achieving your goals.” This planning ahead process for business owners potentially touches many lives and influences multiple families and communities along with businesses and industries.
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4. Values Based Discovery
There is an art and a science to our planning
Data and analysis are required to solve the quantifiable aspect of planning ahead
Qualitative data is also necessary to be sure the plan, and life, unfold as the business owner pictures it.
This is step 2 in the DDRR client development process
Discuss, DISCOVER, Reveal, React
A comprehensive planning process explores the desires, goals and aspirations of a client first. The Discuss stage. Then, we consider all that the client has done to achieve these desires, goals and aspirations through Discovery. There is an art and science to our planning. Without the art, one cannot develop an elegant or personal plan for action to achieve their goals customized to the aspirations, abilities and skills of the client. Without the science, we may not consider the math and in what proportion or what timing may create the desired results. In other words, data and analysis are required to solve quantifiable aspects of planning and qualitative data and information is necessary to be sure the plan, and life, unfold as the business owner client pictures it. Let’s look at the second step – Discover – a bit closer.
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5. Creating a Buying Atmosphere – The D-D-R-R Planning Process
Discuss what the owner wants to happen
Discover what has been done about it
Reveal after analysis, what still needs to be done
React nothing changes until you change actions
Any one of these stages of the process are interesting and perhaps educational. Together, they provide the client a method of planning ahead that helps their life unfold as they picture it. Do you see a pattern emerging here? All four stages must be considered to result in the best plan. Discuss what the owner wants to happen. Discover what has been done about it. Reveal after analysis, what still needs to be done to get to where they want to go and finally… React! Nothing changes until you change what you are doing. Before we can consider the discovery, we have to be very clear on what the client wants to happen. What have we learned from step 1? What are his or her priorities?
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6. 7 Topics to be Considered
How to exit the business
Protection from losing key person
Estate & personal benefits
Getting money out
When the owner can’t work
Executive benefits
Employee benefits
In the last module, we assumed the business owner selected the first 3 of 7 topics as their priorities. For this module, let’s assume the business owner’s priorities included the remaining 4 of the 7 topics.
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7. Values Based Discovery For Topics 4 - 7
Getting MONEY out of the business
When the OWNER can’t work
EXECUTIVE Benefits
EMPLOYEE Benefits
Before we drill each of the down to more detail, let’s be reminded that only the business owner can establish the priority or level of importance of each of these topics. While they may not have a high priority today, they may have greater importance at some point in the future. We previously addressed the first three of seven priorities, Exit planning, Key Person protection and Estate and personal benefits. Now, let’s take a look at the next 4 topics for consideration. First, Getting money out of the business and into their pocket the most effective way possible. Next, When the owner cannot work. What are the possible effects of the 4 crises the company and employees may suffer? Then, Executive benefits. How do you attract and retain the highly talented or high impact employees other than just increasing their cash compensation? Finally, number 7, employee benefits. Financially fit employees are more productive than financially stressed employees. How can the business owner influence this culture? Now, let’s take a closer look at each of these topics and what they mean to the business owner.
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8. Values Based Discovery Money - Owner - Executive - Employee
How do you currently determine how you take money out of your business? - W2, K1, Expenses, Benefits
Are you aware of how the new tax law has effected you and your business?
Do you want to take more money out of your business? - How much and how do you plan on doing that?
Do you use a multiple entity strategy to maximize deductions, earnings and reduce taxes?
The first of this set of topics is Money. Specifically, How do you currently determine how you take money out of your business? - Increase or decrease W2 income? How about K1 flow through income? Perhaps the business owner should increase or decrease deductible Expenses. What about other Benefits. Are you aware of how the new tax law has effected you and your business? Are you eligible for the 199(A) tax deduction on your flow through income? Have you had a conversation with your tax adviser? Have you thought about taking more money out of your business? - How much and how do you plan on doing that? Finally, do you use a multiple entity strategy to maximize deductions, earnings and reduce taxes? Have the rules governing this changed with the net tax act?
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9. Values Based Discovery Money - Owner - Executive - Employee
What financial impact would your absence have on your business if you died or became disabled prior to retirement or a planned transition?
How are you protecting the company and its people from the emotional crisis of losing you?
Have you contemplated, let alone assessed the readiness of your successor and the willingness of the survivors to accept him/her?
What action have you taken to minimize the logistical crisis and financial crisis the company may suffer in your absence?
That was about how to take money out of your business and into your pocket. Now, let’s take a closer look at the Owner and what it might mean to the business if the owner didn’t show up for work. What financial impact would the owner’s absence have on the business if he or she died or became disabled prior to retirement or a planned transition? How is the owner protecting the company and its people from the emotional crisis of losing the boss? Have you contemplated, let alone assessed the readiness of your successor and the willingness of the survivors to accept him/her? Have you conducted a successor readiness assessment? What action have you taken to minimize the logistical crisis and financial crisis the company may suffer in your absence?
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10. Values Based Discovery Money - Owner - Executive - Employee
Who are the key people in your organization that you would miss most and what is their unique contribution?
Who are the other highly compensated employees (owners included) that were not included on that list?
From both of these lists, what is their priority: 1. Retirement Income, 2. Survivor Benefits, 3. Reducing Taxes, 4. Late Career Cash Bonus?
What extraordinary new talent are you planning to add to your team in the next two years?
Now, we have addressed how to get money out of the company and into your pocket, along with what happens to the company in the owner’s absence. Now, let’s consider Executive benefits. Is it important to you to attract and retain the best special talent in your organization? There are actions you can take other than just raising their cash compensation. Who are the key people in your organization that you would miss most and what is their unique contribution? Who are the other highly compensated employees (owners included) that were not included on that list? From both of these lists, what is their priority: 1. Retirement Income, 2. Survivor Benefits, 3. Reducing Taxes, 4. Late Career Cash Bonus? What extraordinary new talent are you planning to recruit to your team in the next two years?
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11. Values Based Discovery Money - Owner - Executive - Employee
What kind of voluntary, payroll deduction employee benefits do you offer to your team? What has been your experience with that?
If your employees were financially fit, would they be easier to manage and more productive? Which employees could use the most help?
Which of the following would have a positive impact for your company?
Greater employee engagement - Enhanced customer service
Fewer financial stress issues - Protection from crises
Retirement income relief Extended tenure of employees
Taking money out, effects on the business when the owner is lost and executive benefits. Finally, let explore employee benefits. Of course, we are not referring to traditional benefits like health insurance. Rather, we are referring to the financial fitness and stability of all your employees. Financially fit employees are typically more productive. What kind of voluntary, payroll deduction employee benefits do you offer to your team? What has been your experience with that? If your employees were financially fit, would they be easier to manage and more productive? Which employees could use the most help? Do a few names come to mind? Which of the following would have a positive impact for your company? Greater employee engagement - Enhanced customer service - Fewer financial stress issues - Protection from crises - Retirement income relief and Extended tenure of employees.
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12. Values Based Discovery For Topics 5 - 7
Getting MONEY out of the business
Reduce taxes and maximize benefits for owner and family
When the OWNER can’t work
Avoid 4 crises and make them into opportunities
EXECUTIVE Benefits
Attract and retain the best talent while reducing your costs
EMPLOYEE Benefits
Financially fit employees are more productive employees
So, why are these topics important for a business owner to consider? Let’s take a look: Getting MONEY out of the business. This is important because it could Reduce taxes and maximize benefits for owner and family. When the OWNER can’t work. This is important because the company could Avoid 4 crises and make them into opportunities. How about EXECUTIVE Benefits? This is important because it will help you Attract and retain the best talent while reducing your costs. Finally, how about Employee benefits? It is important because typically, financially fit employees are more productive employees.
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13. Next Steps
Identify 3 business owners you already know and with whom you have already gained their trust and confidence
Ask to meet with them and follow this process by asking the specific questions for topics demonstrated in this module.
Provide feedback of your experience with our Advanced Sales team so we can benefit other agents as well
Time for action. Practice is the best way to become comfortable with this discovery process. Select 3 business owners you already know well, perhaps an existing client. Ask to meet with them – then, get feedback on an approach you developed. Remind them you are not selling anything – just helping them plan ahead. You want to see if the questions and topics resonate with them. Show them the list of 7 topics and you select these three priorities. Then, follow this process by asking the specific questions for that topic demonstrated in this module. Wait for their answers! Solicit their feedback at the conclusion of the meeting.
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14. Questions or Comments? AIG Advanced Markets Business Development Institute BDI@aig.com 855-323-6923
If you have any comments, questions or feedback about this module or anything else regarding the AIG Business Development Institute, please contact us by at Or, you can call our AIG Advanced Sales team at This is Rick Katz for AIG’s Business Development Institute. Remember, the more small business owners you help, the more successful you will be.
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