NIRVANA TEAM WORKBOOKDecisions and Notes for Modules 1 – 5

BSMARTer Business Simulation Management and Relationship Training

Vision, Mission and StrategyThe Foundation of a Business

MODULE ONE

Your Vision

1

We aspire to be a $5B firm and premier west coast destination for successful technology entrepreneurs nearing liquidity events and technology executives with highly concentrated stock positions.We will provide a world class culture for our employees to advance their careers by contributing towards, and participating in, the long-term success of the firm.

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 endgame for the firm in 2020.

Your Mission

2

Our mission incorporates the following core values:1. Clients: We are mindful stewards of the preservation of our clients’ wealth2. Employees: We will foster a culture where our employees are energized, engaged and empowered to grow personally and professionally3. Community: We are committed to good citizenship through involvement in the communities where we live and serve.

We will provide our clients with customized solutions for complex situations with a focus on wealth preservation, tax efficiency and philanthropy.

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 determine 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

• Unique knowledge of consumer • Capacity issue at partner level

• Tax expertise • Lack of growth – asset concentration (client)

• Depth and breadth of skillset (employees)

• Lack of engagement amongst employees/ownership structure

• Healthy balance sheet – ability to reinvest – 20 year • Organizational structure

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• Geographic proximity •

• History •

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SWOT Analysis

4

Opportunities Threats

• Geographic expansion• Asset concentration – 3 relations =

$600M client concentration with 2 employers – Microsoft and Amazon

• Leverage 775 HH relationships for referrals

• Competition soliciting employee base

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Initiatives and Notes

5

Initiatives for Improvement

CIOs # 3 Define Goals – use marketing toolkit (FIWS) to accomplishVC FirmIncubatorsLaw FirmsCPAs

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

Notes

Initiative Champion

1. Expand Regional Footprint Barbara / Danielle Peters (Principle)

2. Establish COI strategy Anand / Pat Navarro

3. Re-org staff to align organization for growth and define goals Lou / Curtis Love (COO)

4.Client survey/Advisory Board Lou / Curtis Love (COO)

5. Segmentation / Service Model Eric and Kelly / Kurt Kobin (President) and Christine Novich (CEO)

GrowthBuilding the Firm

MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT

CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL

Business YouWould LikeTo Win

$1-5 M invest assets Less than $500K

Technology executives w/ concentrated stock positions

challenging/demanding client

successful technology – entrepreneurs nearing liquidity event

no appreciation for tax, financial planning, etc

West Coast

CHARACTERISTICS OF THE IDEAL COI

CHARACTERISTICS OFTHE NOT-SO-GREAT COI

COI RelationshipsYou Would Like To Have

Attorneys No value in reciprocity

CPAs

Natural Connections to tech sector (i.e. VC firms, incubators, etc)

Entities that focus on entrepreneurs (i.e. benefits consultants, leaders, SBA, societies, payroll, etc)

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. Expand Regional Footprint Danielle (Barbara)

2. Establish COI Strategy Pat (Anand)

3. Align organization for growth Curtis (Lou)

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5.

Staffing and CompensationAttracting, Retaining and Organizing Talent

MODULE THREE

Organizational Chart

10

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

Compensation Philosophy

11

PLEASE COMPLETE

What is your compensation philosophy?

Initiatives and Notes

Initiatives for Improvement

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. Realignment of resources’ roles Curtis (Lou)

2. Develop talent Curtis (Lou)

3. Career path All Partners (David Lead)

4. Path to ownership All Partners (David Lead)

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Handouts in the Appendix

• Advisor HR Solutions• Sample Compensation Profiles

Operations and Technology

MODULE FOUR

Role of Operations

13

Service and Deliverables

Component-level Role

• Financial Planning

• Tax Planning

• Investment Management

• MFO Segment/Servicing

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Financial Planning Investment Management

• Personal Balance Sheet • Asset Allocation

• Cash Flow analysis • Risk Management

• Philanthropy • Concentrated Stock

• Estate Planning • Options

• Retirement ED/ Planning • Performance Reporting

List and Documents Services

14

Process FINANCIAL PLANNING

Purpose

For Firm – Diversify Revenue & Higher SOWFor Client – Client Engagement Roadmap

BudgetPeople - $120,000 + 1. 6 FTEs at 25% (3 Analysts, 3 Advisors)Technology - $7,500 + 2. CPATotal = $150K 3. NAVIPLAN

Resources Evaluate how well resource components are satisfied.

Available Scalable

Attainable Sustainable

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. Technology Evaluation Dave (Michael)

2. Define Segmentation and Service Model Curtis (Lou)

3.

4. Review Financial Planning Process Dave (Mike)

5. Evaluate Compliance and Regulatory Process (Identify Risks) Kurt & Chrisitine (Eric and Kelly)

Handouts in the Appendix

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

Financial ManagementMaking the Numbers Work

MODULE FIVE

Initiatives and Notes

Initiatives for Improvement PLEASE COMPLETE

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

Notes

Improvement Opportunity Who Will Complete

1.

2.

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Handouts in the Appendix

• Key Drivers of Firm Valuation