JB&JTEAM 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

Our vision is to develop an integrated firm wide approach by leveraging our individual talents to collectively build a growing and sustainable business that creates value to our clients, partners and associates.

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

Our mission is to help you navigate all the complexities that come with Wealth. Our experience and dedication team of professionals will help you build a comprehensive wealth plan to grow and protect your assets over the generations.

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.

Your Strategy

1. Professionals and experienced partners2. Unique knowledge (tax, accounting, executive benefits and

compensation)3. Full end-to-end servicing of UHNN clients (i.e. Wealth Transfers,

Legacy Planning and Integration of all Services)4. High touch servicing around all our relationships

Questions that may help:

• What makes us better than the competition?

• Why do customers choose us?

• What makes us unique?

• What do we have that others do not?

• What do we do that cannot be replicated?

• Why are we successful?

• What created our success to date?

Our competitive advantage is…

SWOT Analysis

4

Strengths Weaknesses

• 30 plus years experience • work in silos

• tax knowledge • No succession plan

• objectivity • no growth

• Uniquely crafted relationships • age of clients

• solid client base • age of partners

• technology • no career path

• • 1 acting referral network

• •

• •

• •

SWOT Analysis

4

Opportunities Threats

• rebranding opportunity • competition

• equity • execution

• referrals • career path/retention

• new hires • equity/threat to leave

• next gen family opportunities • content partners/ don’t want to [] prospects

• retirement needs •

• salary needs [] strategy •

• •

• •

• •

Initiatives and Notes

Initiatives for Improvement

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

Notes

Improvement Opportunity Who Will Complete

1. Develop and execute training for all employees Beth

2. Align compensation Alice

3. Develop referral network David

4. Client satisfaction Tico

5. Initiate a client Advisory Board John

GrowthBuilding the Firm

MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT

CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL

Business YouWould LikeTo Win

CHARACTERISTICS OF THE IDEAL COI

CHARACTERISTICS OFTHE NOT-SO-GREAT COI

COI RelationshipsYou Would Like To Have

Ideal Profile

PLEASE COMPLETE

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. Develop and execute Sales Training Beth

2. Develop Referral Network Alice

3. Compensation Tico

4. Client satisfaction survey John

5. Advisory Board Rachel

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

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. Organization Structure Rachel

2. Job descriptions defined Beth

3. Compensation for labor/equity John

4. Performance appraisals/metrics Tico

5. Human Capital Planning Alice

Handouts in the Appendix

• Advisor HR Solutions• Sample Compensation Profiles

Operations and Technology

MODULE FOUR

Role of Operations

Service and Deliverables

Component-level Role

• Tax planning and preparation

• Financial Planning

• Investment Management

• Executive benefits and compensation analysis

• Wealth transfer and generation planning

Financial Planning Investment Management

• money movement • money movement

• client reporting • trade execution

• basic account maintenance • RMDs

• Open accounts • Research

• statement execution • Reporting

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. Process and workflow standardization Beth

2. CRM Beth

3. Segmentation Rachel

4. Roles and Responsibilities Beth

5. Portfolio Management System Alice

Handouts in the Appendix

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

Financial ManagementMaking the Numbers Work

MODULE FIVE

Financial Management

Use the Financial Worksheet* to calculate the following metrics:

2012 2013

Gross Profit Margin 4,559,185

(95%)4,731,068

(91%) 

Earnings before Owners' Compensation %  82% 78% 

Operating Profit Margin  3,961,185  4,043,068

Pre-Tax Income per Owner  990,296 1,010,767      

Active Clients per Professional  25.7 24.7 

Active Clients per Staff (total headcount)  12.9 11.5      

Revenue per Professional  686,169 739,724 

Revenue per Staff (total headcount)  343,085 345,205      

AUM per Professional  8,367,918 8,702,635 

AUM per Staff (total headcount)  41,839,571 40,612,296      

Revenue per Active Client  26,684 29,931 

AUM per Active Client  3,254,190 3,521,297      

Direct Expense per Client  1,356 2,584 

Overhead per Client  3,322 3,977 

Operating Profit per Active Client  22,007  23,370

*The Financial Worksheet is a separate Excel file.

Initiatives and Notes

Initiatives for Improvement

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

Notes

Improvement Opportunity Who Will Complete

1. Partner compensation David

2. New equity partners/succession John

3. Investment in technology, marketing and staff Beth

4. Benchmark vs Ensemble firms Tico

5. Realign compensation based upon position and set metrics Alice

Handouts in the Appendix

• Key Drivers of Firm Valuation