Ron Johnson, CFA Litman/Gregory Asset Management

Who is Litman/Gregory? Asset Management for High-Net-Worth Clients Publisher of AdvisorIntelligence Web Site Advisor to Masters’ Select Funds Publisher of the No-Load Fund Analyst

Who is Ron Johnson? Investment and financial planning since 1982 Joined Litman/Gregory in 1991 CFA in 1995 Partner at Litman/Gregory since 1996 Oversee Technology Group Manage Client Portfolios

Overview Technology Framework How do we organize our company’s resources? Adapting Tech Solutions How do we use technology to help deliver excellent client service?

Technology Framework Productivity Tools (Software) Operating Systems Data Servers Hardware

Implementation , CRM, Office Tools, etc. Buy Accounting, Reconciliation, Reporting Outsource Tools to sync purchased software Build

Resource Allocation Hardware, Security, OS Software Applications Consultant

Hardware Success Annual budget for equipment PC life cycle is between 3 and 5 years Buy 1/5 of your needs each year Buy good equipment Better equipment will last longer, run better Workers will be happier and more productive Budget for consultant Cheaper than employee Knowledge tested at other companies

OS and Security Privacy/ID Theft/ Viruses/Hackers Client Access/ Private Web Pages Disaster Recovery External Access for Employees/Laptop Security Security

Resource Allocation Hardware, Security, OS Software Applications Consultant

Productivity Tools Software General Office Tools CRM Accounting/ Reporting Doc Management

Drivers of Technology Decisions Core Software Portfolio Management SWCRM Matching Priorities with Needs ReportingPersonal Contact Business Policy Client Service Priorities

Legacy Issues Portfolios Research Data Accounting Data Client Data

Software Evaluation Checklist 1.Long-term outlook for provider 2.Meets needs 3.Rapid mastery 4.Support and training 5.Integration (use of standards) 6.Import/export capabilities 7.Scalability 8.Cost: initial and on-going

Technology Framework Summary You or Employee Find software that will enhance specific business-driven needs Learn capabilities of software Create processes Enforce procedures Consultant Relationship Hardware selection and maintenance Security Back-up and recovery Network VPN

Adapting Technology Solutions

Keys to Better Client Service People Processes Procedures

People: A Values Framework Respect Integrity Excellence Client focus Commitment Teamwork Ownership Passion Positive influence

Processes

Managing Processes We rely heavily on a centralized management of all ongoing processes. Our client services team is responsible for initiating and tracking processes that involve clients. Processes can be brought into play through  External triggering event (client request)  Internal triggering event (portfolio manager request)  One-time request  Recurring task (quarterly distribution) »Daily, weekly, quarterly, as requested, etc.

Maximizing Use of a Common Tool We use Microsoft Outlook TM as our primary tool for managing our processes. Key features used:  Public folders  Tasks  Customized views  Customized forms

Sample Flow of Task from Creation to Completion PM sends task request to “client services” group (several people that can interchangeably manage the client services team tasks) “On-deck” client services manager (CSM) accepts task, others delete task CSM drags task to public task folder enabling all team members to view task CSM fills out appropriate fields and assigns task to team member Assigned team member manages, updates the status and % complete, and adds notes as progress is made When complete, a copy of the task is sent to the PM as an FYI

Benefits of Centralized Process Management Improves efficiency of communication among multiple people and locations Avoids action items from falling through the cracks Provides transparency – everyone can view status on all tasks Provides documentation for actions concerning clients Aids with measuring workflow among team members

Procedures Open new task Request trades from PM Check that cash is available Distribute check Confirm that client received $

Benefits of Written Procedures

Problems with Written Procedures

Living Procedure Documents Editable by allTrack changes turned onReview changes during meetingCentrally located with metadata

Adapting Tech Solutions Summary Find and hire good people  Set the bar high  Involve them in defining your company values Manage your processes  Processes will define themselves  Centralize and make tasks public  Own tasks and avoid “passing the ball” Create written procedures  Allow responsible person update authority  Insist that they be followed  Group review periodically

Using Technology to Deliver Excellent Client Service Maximize Your Resources  External consultants are best used for typical solutions that affect all companies (hardware, network, security)  Business policies and practices will drive the decisions about specific software solutions Focus on Managing Processes  Use centralized, publically managed tasks  Adapt written, dynamic procedures