SCHWAB OPENVIEW WORKFLOW LIBRARY ™

PROVIDE CLIENT SERVICE WORKFLOW SERIES: CLIENT REVIEW MEETING PROCESS

Document ID: 012362 Document Date: June 12, 2012 Document Version: 12.06.A

Disclosures: The Schwab OpenView Workflow Library™ is a product of Schwab Intelligent Technologies™ (“SIT”) made available exclusively to advisors that custody client assets with Schwab Advisor Services™. Schwab Advisor Services includes the custody, trading and support services of Charles Schwab & Co., Inc. (“CS&Co”), a registered broker-dealer and member SIPC. SIT provides technology solutions to independent investment advisors, while CS&Co provides them and their clients with custody, trading and related support services. SIT and CS&Co are separate companies affiliated as subsidiaries of The Charles Schwab Corporation, but their products and services are independent from each other. Schwab Advisor Center® is a website of Schwab Advisor Services™, which includes the custody, trading and support services of Charles Schwab & Co., Inc. (“CS&Co”), a registered broker-dealer and member SIPC. SIT and CS&Co are separate companies affiliated as subsidiaries of The Charles Schwab Corporation, but their products and services are independent from each other. Independent investment advisors are not owned by, affiliated with or supervised by CS&Co. This document and the workflows and other information contained in it are provided for general information purposes only and are not tailored to the particular circumstances of your firm and its practices and processes. You may need to tailor the workflows and related information to your circumstances. You, and not SIT or any of its affiliates, are solely responsible for your practices and processes. See the Schwab OpenView Workflow Library Terms of Use available on the SIT website for additional information. For institutional use only. This material is meant for educational purposes and is not meant to provide investment planning, legal, tax, regulatory compliance advice. Consult professionals in these fields to address your specific circumstance. Screen shots are provided for illustrative purposes only and may be abridged. © 2012 Schwab Intelligent Technologies. All rights reserved. (0612-3670)

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TABLE OF CONTENTS

TIPS AND BEST PRACTICES FOR SUCCESSFUL IMPLEMENTATION OF WORKFLOWS ____________________________________ 1

REGARDING CUSTOMIZATION __________________________________________________________________________ 1

INTEGRATION WITH OTHER WORKFLOWS ___________________________________________________________________ 1

GETTING ADDITIONAL HELP ____________________________________________________________________________ 1

UNDERSTANDING THE CLIENT REVIEW MEETING WORKFLOW ____________________________________________________ 2

THE PROVIDE CLIENT SERVICE WORKFLOW SERIES ___________________________________________________________ 2

CLIENT REVIEW MEETING PROCESS OVERVIEW ______________________________________________________________ 3

PROCESS DIAGRAM _________________________________________________________________________________ 3

HIGH-LEVEL PROCESS CHECKLIST _______________________________________________________________________ 8

ADDITIONAL RESOURCES ____________________________________________________________________________ 10

TEMPLATES AND TOOLS TO HELP YOU SERVE CLIENTS ________________________________________________________ 11

RESOURCES TO BUILD CLIENT RELATIONSHIPS _____________________________________________________________ 12

Clent Review Meeting Process Workflow Package

Regarding Customization Page 1 of 12

TIPS AND BEST PRACTICES FOR SUCCESSFUL IMPLEMENTATION OF WORKFLOWS

Having a documented workflow can help you organize tasks used to support client-interaction so each event is repeated the same way and all clients and prospects receive a similar customer experience. This package provides a foundational understanding about the Client Review Meeting workflow so you can assess if the processes you are currently using can be more efficient and systematic.

While this document focuses on helping you prepare for and conduct regular client review meetings, it also references service, tools, documents, and templates located on the Schwab Advisor Center™ website for advisors working with Schwab Advisor Services.

REGARDING CUSTOMIZATION Preparation is the key to success. Because each firm is unique, take the time to analyze your current processes, compare them to the processes and resources in this package, and plan any customizations before implementing these workflow steps. The purpose of this workflow package is to help you understand best practices upon which you can build.

INTEGRATION WITH OTHER WORKFLOWS Some workflows in the Schwab OpenView Workflow Library have relationships to or dependences on other workflows. For this reason, we recommend you download and implement the Portfolio Rebalancing workflow along with the Client Review Meeting workflow to realize the fullest benefit.

GETTING ADDITIONAL HELP The information in this document supports the workflow itself, not how to enter the workflow details into any of your firm’s software or systems. For help entering this workflow into your firm’s software applications, contact the software provider(s).

Clent Review Meeting Process Workflow Package

The Provide Client Service Workflow Series Page 2 of 12

UNDERSTANDING THE CLIENT REVIEW MEETING WORKFLOW

The first step to understanding a workflow is to understand where it resides in the overall business process. This section shows how the Client Review Meeting workflow is organized, how it relates to other processes in the workflow series, and provides a view of the process in both graphical and checklist formats.

THE PROVIDE CLIENT SERVICE WORKFLOW SERIES Client service can set you apart from your competitors. It is important to streamline processes so you can focus on client relationships while providing the same level of service to all clients. The Provide Client Service workflow processes will help you organize these and related tasks into easy-to-follow workflows that you can implement in your office, helping you standardize client interactions and provide a consistent client experience.

The Provide Client Service series consists of four main workflow components:

• Planned Outreach – This process contains the activities and tasks you will need to track ongoing communications with your clients to ensure that established service levels are being met.

• Client Review Meetings – This process contains the activities and tasks you will need to prepare for ongoing client review meetings.

• Special Services – This process contains the activities and tasks you will need to prepare for and manage special services for the client that you or someone in your firm can perform.

• Interested Party Coordination – This process contains the activities and tasks you will need to coordinate and manage services provided by other professionals on behalf of a mutual client.

Important This workflow package discusses only the Client Review Meeting process. Packages for other workflows in this series are addressed in separate documents on SchwabIntelligentTechnologies.com:

• Planned Outreach

• Special Services Meeting

• Interested Party Coordination

Clent Review Meeting Process Workflow Package

Process Diagram Page 3 of 12

CLIENT REVIEW MEETING PROCESS OVERVIEW

PROCESS DIAGRAM For some, seeing the workflow as a diagram makes the process easier to understand. The diagram, or process map, provides a visual outline of the tasks organized by role and allows you to see the entire process end-to-end with interdependencies. This diagram serves as a best practice recommendation only. Adjustments may be needed to suit the needs of your firm.

High Level Client Review Process

Clent Review Meeting Process Workflow Package

CLIENT REVIEW MEETING PROCESS OVERVIEW

Process Diagram Page 4 of 12

Prepare for the Client Review Meeting

CLIENT REVIEW MEETING PROCESS OVERVIEW

Process Diagram Page 5 of 12

Conduct the Client Review Meeting

CLIENT REVIEW MEETING PROCESS OVERVIEW

Process Diagram Page 6 of 12

Conduct the Client Review Meeting Sub-Process

CLIENT REVIEW MEETING PROCESS OVERVIEW

Process Diagram Page 7 of 12

Follow Up Tasks After the Client Review Meeting

Clent Review Meeting Process Workflow Package

CLIENT REVIEW MEETING PROCESS OVERVIEW

High-Level Process Checklist Page 8 of 12

HIGH-LEVEL PROCESS CHECKLIST The Client Review Meeting process checklist displays the workflow tasks in a checklist format rather than a process map or diagram. The checklist helps you focus on gathering all the information required to complete the workflow effectively. This checklist serves as a best practice recommendation only. Adjustments may be needed to suit the needs of your firm.

STEP ROLE

Schedule the Client Review Meeting between the advisor and client Client Service Associate

Review the client’s file, investment plan, personal financial statements, and any open issues

Associate Advisor

Contact the client to check for any new information that the advisor should be aware of including:

• Any outside accounts

• Any major events like large purchases, new income sources, or family changes that might affect the investment plan

• Any additional services the client might need

Associate Advisor

Enter all client data into applicable systems including:

• Client budget

• Statements

• Outside accounts

• Performance information

• Allocation data

Associate Advisor

Determine if there are any changes needed to the plan

• If changes are needed, modify the plan to accommodate those changes

• If no changes are needed, proceed to the next step

Associate Advisor

Determine meeting type and create the Client Review Meeting packet which could include:

• Meeting agenda

• Investment Policy Statement

• Relevant financial analysis or investment review documents

• Any forms that will be needed during the Client Review Meeting

Associate Advisor

Review, revise, and approve the meeting packet Senior Advisor

Confirm the Client Review Meeting with the client and send the meeting agenda Client Service Associate

CLIENT REVIEW MEETING PROCESS OVERVIEW

High-Level Process Checklist Page 9 of 12

Prepare the meeting room

• Ensure room is organized and ready for the meeting

• If a virtual meeting, ensure systems are operating properly

• Have client’s favorite beverage ready

Client Service Associate

Conduct the Client Review Meeting

• Review meeting agenda, client goals, and any open issues

• If the meeting type includes investment review, conduct a review of each investment’s performance

• If the meeting type includes personal financial analysis, conduct a review of the client’s overall financial situation including potential topics like:

– Budgeting

– Retirement analysis

– Beneficiary review

– Tax analysis

– Insurance review

– Education planning

– Estate planning

– Personal financial statement review

• If any changes to the plan are required as a result of the meeting, document the changes and process any forms or paperwork needed to complete the changes

• After changes have been documented or if there were no changes required, discuss next steps with the client and their satisfaction level with the firm

Senior Advisor / Associate Advisor / Client

Conduct follow up meeting with the rest of the team to inform them of the meeting outcome and any outstanding items that came up during the meeting

Senior Advisor

Document the outcome of the meeting including any agreements made, forms signed, or changes needed

Client Service Associate

If there are any outstanding action items from the meeting, follow up with the client to finalize and close the items

Associate Advisor

Send a summary letter of the meeting and outcomes to the client Client Service Associate

If needed, follow the Portfolio Rebalancing Process to incorporate any investment plan changes that were identified

Associate Advisor

Update any critical data points in all applicable systems Associate Advisor

Create a reminder to schedule the next Client Review Meeting with the client Client Service Associate

Clent Review Meeting Process Workflow Package

Additional Resources Page 10 of 12

ADDITIONAL RESOURCES

For guidance on providing client service, visit the Schwab Advisor Center website. The Marketing and Business Development section contains a rich selection of tools, resources, and articles to help you maintain effective communication with your clients. Click on the Practice Management tab and the Marketing and Business Development section to find helpful resources, including:

• Tools, talking points and additional resources to help you streamline the account servicing process

• Guides to help you better understand how to use the various tools and products available to help you service your clients more efficiently

Click on the Resources tab, then the Tools & Templates tab to find helpful resources, including:

• Tips and best practices to help you create an effective communication strategy to use with your clients

• Communication tools to help you create websites, newsletters, thank you notes, and surveys

• Case Studies to help you better understand business-building techniques and decide the ones that work best for your firm.

Find all these resources along with many other tools and ideas in the Practice Management and Marketing and Business Development sections on the Schwab Advisor Center website. To find these resources, log in to the website and navigate to the Grow Relationships tab or the Resources tab in the Marketing and Business Development section.

In this package, a few tools and templates are highlighted that you might find helpful for the workflow documented in this packet, including:

• Templates and Tools to Help You Serve Clients

• starting on page 11 – Understand the different ways to segment your clients and determine their appropriate communication levels based on that segmentation.

• Resources To Build Client Relationships

• starting on page 12 – Understand how having an effective communication strategy can impact client satisfaction within your firm.

Clent Review Meeting Process Workflow Package

ADDITIONAL RESOURCES

Templates and Tools to Help You Serve Clients Page 11 of 12

TEMPLATES AND TOOLS TO HELP YOU SERVE CLIENTS In the section below, the supporting documentation referenced is located on the Schwab Advisor Center website.

Client review meetings are an important part of a client relationship. They provide a venue for you to review the client’s goals and expectations as well as an opportunity to gauge client satisfaction. Use the tools and templates on Schwab Advisor Center to help you in defining your client service plan. Among the many helpful resources you’ll find are:

• The Business of Serving Clients – Productivity in a High-Touch Business – this document discusses methods and best practices that can improve efficiency and help you serve your clients.

• Client Segmentation Strategies - Optimizing Client Experience and Firm Performance –this document discusses the benefits of client segmentation for overall strategy. Using client segmentation allows you to set different service levels across your clients.

• Understanding Client Needs – use this resource to help you evaluate and gather feedback from your clients so that you can tailor your service and communication levels to meet their needs.

• Uncovering Opportunities with Client Surveys – this document provides you with tips to create and conduct client surveys so that you are more aware of what drives your client’s satisfaction with your services.

Clent Review Meeting Process Workflow Package

ADDITIONAL RESOURCES

Resources to Build Client Relationships Page 12 of 12

RESOURCES TO BUILD CLIENT RELATIONSHIPS In the section below, the supporting documentation referenced is located on the Schwab Advisor Center website.

Building relationships with your clients is an important aspect of providing client service. Each meeting you have with a client is an opportunity to deepen your relationship and improve client satisfaction. The following resources discuss several ways you can build your client relationships:

• Building Client Relationships Through Effective Communications – this document discusses the importance of choosing the right types of communications that have minimal impact on your time and resources, and the various ways to schedule your communications to meet your client’s needs.

• Communicate Effectively – this resource walks you through the steps of evaluating your current communications process and then taking these findings and establishing a more effective communications strategy.

• Key Strategies for Building Optimal Client Relationships – discusses several ways to get to know your clients as well as deepen your relationship with them through all of your services.