MDMN TEAM WORKBOOKDecisions and Notes for Modules 1 – 5

BSMART Business Simulation Management and Relationship Training

Vision, Mission & StrategyThe Foundation of a Business

MODULE ONE

Your Vision

To be an enduring, trusted, partner and high-performing team providing market-leading wealth management. Our 5 year goal is to:-Double assets-Deep client relationships-Create viable succession plan-Increase enterprise value

A vision statement describes what you want your firm to look like in the future, typically three to five years out, or longer, and is both an internal and an external message. If you keep it front and center, it can help you stay focused on your goals. It can also help inspire and motivate your staff, and instill confidence in clients that you know where you want to be in the future.As you craft a vision statement for your firm, ask:• What do we aspire to become in three to five years?• What does success look like for our firm over this period?• What does our end-state look like?

A vision statement describes the future state you are looking to create – your desired end-game for the firm in 2020.

Your Mission

We manage the financial complexities of our clients’ lives so they do not have to.

A mission statement describes why you are in business, and is primarily used internally. It plays an important role in helping you assess your activities and determining if they are in line with your core purpose. It can be used to “sanity check” what you may be considering doing – if activities stray from your core purpose, you may decide not to do them or to reevaluate your mission.As you craft a mission statement for your firm, ask:• What is our purpose for being here? Why do we do what we do?• What needs do clients have when they come to us?• What are the most significant strengths of our business?• Why do clients choose our firm over other firms? What are our

differentiators?

A mission statement describes why the organization exists – its core purpose.

SWOT Analysis

4

Strengths Weaknesses• Experience • Pricing

• Media Presence • Process

• High-Touch Service • Lack of Trust

• Partnership Agreement • Organization Structure

• Specialization (Money Management) • Silo Approach

• Strong Network (Referrals) • No Target Client Profile

• No Client Segmentation

• No Marketing Plan

• • No Succession Plan

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SWOT Analysis

4

Opportunities Threats

• Expand marketing beyond referrals • Departure of Junior Advisors

• Leverage media exposure • Lack depth/resources (CFP, Attorney, etc)

• Developing profit COI network • Client concentration (Network dependent)

• All are relatively young • Competition to “CFO” model

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Initiatives and Notes

Initiatives for Improvement

-Organization: rom silo to functional state-Marketing plan: Consider leveraging our media presence-Marketing plan: Create target client profile-Succession plan: Want additional partners? What is ownership criteria?-Service model: Reporting, fees, process

Write down and agree on Strategy initiatives in your firm and elect a “champion” for each initiative.

Notes

Improvement Opportunity Who Will Complete

1.Address organization structure Roger/Don-Lane to assist

2.Marketing plan Mary

3.Succession Plan Roger/Don/Mary

4.Consider client service model revision Peggy/Pete to assist

5.Formalize investment committee All five

GrowthBuilding the Firm

MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT

CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL

Business YouWould LikeTo Win

Complex needs-C suite executives, lending, AI

Performance chasers

Delegators Rude people

Business owners Elderly, mass market clients

2Million+ minimum Doesn’t see value in paying for service

Engaging female investors

CHARACTERISTICS OF THE IDEAL COI

CHARACTERISTICS OFTHE NOT-SO-GREAT COI

COI RelationshipsYou Would Like To Have

Knows our client Refers anyone

Similar target client characteristics

One way street regarding referrals

Partnership/reciprocity Doesn’t see the value we provide

Ideal Profile

Initiatives and Notes

Initiatives for Improvement

Write down and agree on Growth initiatives in your firm and elect a “champion” for each initiative.

Notes

Improvement Opportunity Who Will Complete

1.Client satisfaction survey Peggy

2.Client advisory board All-Roger leads

3.Client segmentation All-Don leads

4.Define service model Peggy

5.Create marketing plan Mary

Staffing and CompensationAttracting, Retaining and Organizing Talent

MODULE THREE

Organizational Chart

Draw your firm’s organizational chart. Label the positions.

Compensation Philosophy

PLEASE COMPLETE

What is your compensation philosophy?

Initiatives and Notes

Initiatives for Improvement

Organization structure includes job description Organization structure-Silo versus functional

Write down and agree on Human Capital initiatives in your firm and elect a “champion” for each initiative.

Notes

Improvement Opportunity Who Will Complete

1.Benchmark Pete

2.Address organization structure Partners

3.Succession/partnership Partners

4.Define partnership compensation Partners

5.Define Staff compensation Peggy

Handouts in the Appendix

• Advisor HR Solutions• Sample Compensation Profiles

Operations and Technology

MODULE FOUR

Role of Operations

Service and Deliverables

Component-level Role

• Reporting –and delivery of information

• Financial planning-research, client meetings, review session with clients.

• Investment management-research trading and rebalancing

• Corporate executive services-10B5-1, STK plans and general administration

• Alternative investments

Financial Planning Investment Management

• Staff-performance reports • Staff

• Technology-quarterly reports • Technology

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List and Documents Services

Process

Purpose

Budget

Resources Evaluate how well resource components are satisfied.

Available Scalable

Attainable Sustainable

PLEASE COMPLETE

Initiatives and Notes

Initiatives for Improvement

Write down and agree on Operations initiatives in your firm and elect a “champion” for each initiative.

Notes

Improvement Opportunity Who Will Complete

1.

2.

3.

4.

5.

Handouts in the Appendix

• Six Tell-Tale Signs That Your Business Processes May Need Attention

PLEASE COMPLETE

Financial ManagementMaking the Numbers Work

MODULE FIVE

Initiatives and Notes

Initiatives for Improvement

-Revenue/client-light (Fee schedule)-Direct expense-high (opportunity to review)-Total overhead-low (opportunity to invest in technology)

Write down and agree on Financial initiatives in your firm and elect a “champion” for each initiative.

Notes

Improvement Opportunity Who Will Complete

1.Revenue to client is low

2.Direct expenses are high

3.Total overhead-low

4.

5.

Handouts in the Appendix

• Key Drivers of Firm Valuation