LeaderMetrics Presentation: NAIFA-NYS 2015

1. Don Trone, GFS® Founder & CEO

2. Three Objectives 1. Update on the fiduciary movement 2. Introduction to LeaderMetrics® 3. Introduction to the Best Practices Standard for Life Insurance Stewardship

3. Leadership and stewardship evoke a higher sense of purpose, than fiduciary; and, do so with principles that are not subject to the overview of regulators.

4. Copyright © 2008-2015. 3ethos First book to integrate the three subjects – leadership, stewardship and governance

5. Who manages your money? “Raymond James. I'm [at] Raymond James, Birmingham, Ala. My guy's name is Glenn Guthrie. I've been with him for 27 years and I trust him with my life."

6. Copyright © 2008-2014. 3ethos

7. Two Faces of a Fiduciary Standard: Positive and Punitive

8. DOL’s Reproposed Fiduciary Definition What’s included? What’s missing?

9. Fiduciary Evolution – We’re at the front of the 3rd Wave1st Wave (1985 – 1999) – What’s a prudent process? 2nd Wave (2000 - 2012) – What are the best practices? 3rd Wave (2013 – Present) – What’s our leadership role?

10. Fiduciary is a floor, not a ceiling – you should never be satisfied by being merely compliant with a fiduciarystandard Leadershipand stewardshipevoke an even higher sense of purpose than fiduciary

11. Clients love leadership, they flake out with fiduciary Leadershipis exhilarating – Fiduciaryis exhausting!

12. Leadership is exhilarating – Fiduciary is exhausting! Copyright © 2008-2015. 3ethos Oxytocin Serotonin Dopamine Cortisol Fiduciarysection of the brain Leadershipsection of the brain

13. Ethos

14. 96% of respondents indicated that there is a lack of trust in the financial services industry. 63% of respondents see deficit in ethical culture as lead cause.

15. Trust and a well-defined ethos are inextricably linked with leadership. Ethotic leadership™ Is the ability to inspire and the capacity to serve others by having a well-defined framework that integrates leadership, stewardship and governance. Copyright © 2008-2015. 3ethos

16. Fiduciary Standard Pentagonal Hierarchy™ Leadership Stewardship Governance 1. Purpose 2. Philosophy 3. Practice 4. Process 5. Product

17. Fiduciary or Suitability Standard Leadership Stewardship Governance 1. Purpose 2. Philosophy 3. Practice 4. Process 5. Product To build trust, spend more time above the line Pentagonal Hierarchy™

18. Universal Approach One framework to satisfy multiple standards: Suitability’ Fiduciary Governance Project Management Global Wealth Management Life Insurance Stewardship

19. 2 Leadership Tenets

20. Copyright © 2008-2015. 3ethos Attributes of ethotic leadership™

21. Copyright © 2008-2015. 3ethos We need leaders of character, competence and courage. Who are passionate and disciplined about protecting the long-term interests of others. Aligned

22. Copyright © 2008-2015. 3ethos Attentive We need leaders who are active listeners and observant. Who can promote inclusiveness and gather information about a particular situation and use it to engage others, and to foster shared reflections.

23. Copyright © 2008-2015. 3ethos Agile We need leaders who are not afraid to be vulnerable, and recognize that they don’t have to win every argument to be in control. Who are able to absorb more risk and be more resilient.

24. Copyright © 2008-2015. 3ethosCopyright © 2008-2015. 3ethos Adaptive We need leaders who have the capacity to evolve. Who are able to pivot as new ideas and challenges are presented.

25. Copyright © 2008-2015. 3ethos We need leaders who can breakdown stereotypes, be inclusive of others, and be more transparent about their feelings. Who can accept uncertainty with fortitude and calm. Accepting

26. Copyright © 2008-2015. 3ethos Articulate We need leaders who are genuine in both their written and spoken word, and who are able to adapt and customize their communications to their audience. Who can be inclusive of contentious points, yet also be affable and capable of demonstrating a sense of humor.

27. Copyright © 2008-2015. 3ethos We need leaders who are able to keep a sense of perspective in the face of adversity. Who are able to see optimistic outcomes despite known risks. Ardent

28. Copyright © 2008-2015. 3ethos Action-oriented We need leaders who are comfortable being a champion of others’ initiatives. Who may be the smartest person in the room, but won’t have to prove it. Who have a sense of vision, and feel confident to move forward when others want to gather more facts.

29. Copyright © 2008-2015. 3ethos We need leaders who can generate a greater ROI because they are able to do more with less, and collaborate with team members who have diverse talents and ideas. Who will focus on issues that can be controlled, and won’t get hung up on missed opportunities. Accountable

30. Copyright © 2008-2015. 3ethos Authentic Perhaps the most important of the ten attributes – we need leaders who are connected with their sense of purpose, who are passionate about their life’s work, and who have a well-defined process for managing key decisions.

31. Copyright © 2008-2015. 3ethos 17 Dimensions Legally Substantiated