SESSION TWO WORKBOOKTrek Enterprises Decisions and Notes for Modules 1 – 5

BSMARTer Business Simulation Management and Relationship Training

Organizational Structure and Compensation

MODULE 1

Service Team Structure

1

New Org Chart

Jim KerrCEO

TBDCOO

Core Operations

Client Service Admins

Leo CoyCIO

Investment Team

Monty CottCCO

Nyota HuraClient Exp. Lead

4 Client Teams

Service Team Structure

2

Draw a picture of your service team structure.

Lead Advisor

Service Advisor

Analyst

CSA

Service Team Structure

3

Our firm is focused on wealth planning. While there is specialized knowledge within niches we serve (i.e. Women in Transition, Small Business owners), the core functions of each group are similar.

Provide an explanation of your service team structure.

Compensation Benchmarking

4

Determine base compensation for three employees in your briefing book. Complete the task using the next two pages.

Position Salary Bonus Total

Your Lowest-Paid Employee

$86,957 $13,043 $100,000

Your Highest-Paid Employee

$218,182 $21,818 $240,000

Mid-range $152,569 $17,430 $170,000

Benchmark Median

$110,000 $18,000 $134,000

Benchmark Third Quartile

$133,143 $36,850 $197,500

See Appendix A for position compensation information Source: 2013 InvestmentNews/Moss Adams Comp Study

Non-partner lead advisor

Compensation Benchmarking

4

Determine base compensation for three employees in your briefing book. Complete the task using the next two pages.

Position Salary Bonus Total

Your Lowest-Paid Employee

$0 $0 $155,000

Your Highest-Paid Employee

$ $ $

Mid-range $152,569 $17,430 $170,000

Benchmark Median

$110,000 $18,000 $134,000

Benchmark Third Quartile

See Appendix A for position compensation information Source: 2013 InvestmentNews/Moss Adams Comp Study

Junior Partner/Lead Advisor

Compensation Benchmarking

4

Determine base compensation for three employees in your briefing book. Complete the task using the next two pages.

Position Salary Bonus Total

Your Lowest-Paid Employee

$86,957 $13,043 $100,000

Your Highest-Paid Employee

$218,182 $21,818 $240,000

Mid-range $152,569 $17,430 $170,000

Benchmark Median

$110,000 $18,000 $134,000

Benchmark Third Quartile

See Appendix A for position compensation information Source: 2013 InvestmentNews/Moss Adams Comp Study

Full Partner

Compensation Benchmarking

5

What changes, if any, will you make to compensation?

Staff Selection and Performance Management

MODULE 2

Performance Evaluation

7

Design a performance evaluation form. Follow the worksheet. (20 minutes)

Job Factor Explanation

1. New Client Acquisition

2. Deepen Client Relationships Profitability, SOW, retention

3. Client Satisfaction Retention, Surveys, Referrals,

4. Mentorship (Mgmt?) Development of firm talent

5. Skill Development Professional designations/Education

6. Team ParticipationEffective Communication, Displays teamwork, Builds internal partnerships

Describe how the forum will be used.

Notes

The Culture of Your Firm

MODULE 3

Organizational Culture

8

We have a successful strong culture. Built on a customer centric approach from both firms, there is clearly deep trust, focus on service, and deep client relationships. Decision making is done on consensus which can lead to inertial. Also, more work needs to be done to blend both organizations into a central and combined vision and mission. Our lack of clarity around leadership is causing challenges within the firm. Our compensation structure is also an issue. A culture of defined leadership is important for our firm.

We’re investing more in the people to make sure they are long term employees and our clients get the best service possible.

Describe the culture of your firm. What changes would you make? How?

Incentive Compensation

MODULE 4

Partner Compensation

9

Right now, we don’t pay bonus on new business. Set aside 20% to be paid to bonuses. Salary x Performance Evaluation Score = Point Score

Establish new baseline salaries for the jobs, create a process for evaluations,

Design Advisor Bonus Plan

Partner Compensation

MODULE 5

Partner Compensation

10

Main Partners

Jr Partner

Org chartRepurchase equity from Jr partnersComp Structure for Jr Partners/redo job descriptionsRealign jobs and performance

Set the base compensation for your partners.

Partner Incentive Compensation

11

Create, discuss and define incentive compensation for partners.

Other Initiatives

12

Describe any other initiatives you will undertake as a firm. These may be outside of the scope of compensation and people but may be important parts of your case.

Notes

Initiative Explanation

1.

2.

3.

4.

5.

6.