NIRVANA TEAM WORKBOOK Decisions and Notes for Modules 1 – 5 BSMARTer Business Simulation Management and Relationship Training

Vision, Mission and Strategy The 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’ wealth 2. Employees: We will foster a culture where our employees are energized, engaged and empowered to grow personally and professionally 3. 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 StrengthsWeaknesses 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 Geographic proximity History

SWOT Analysis 4 OpportunitiesThreats 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

Initiatives and Notes 5 Initiatives for Improvement CIOs # 3 Define Goals – use marketing toolkit (FIWS) to accomplish VC Firm Incubators Law Firms CPAs Write down and agree on Strategy initiatives in your firm and elect a “champion” for each initiative. Notes InitiativeChampion 1. Expand Regional FootprintBarbara / Danielle Peters (Principle) 2. Establish COI strategyAnand / Pat Navarro 3. Re-org staff to align organization for growth and define goals Lou / Curtis Love (COO) 4.Client survey/Advisory BoardLou / Curtis Love (COO) 5. Segmentation / Service Model Eric and Kelly / Kurt Kobin (President) and Christine Novich (CEO)

Growth Building the Firm MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL Business You Would Like To 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 OF THE NOT-SO-GREAT COI COI Relationships You 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 OpportunityWho Will Complete 1. Expand Regional FootprintDanielle (Barbara) 2. Establish COI StrategyPat (Anand) 3. Align organization for growthCurtis (Lou) 4. 5.

Staffing and Compensation Attracting, 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 OpportunityWho Will Complete 1. Realignment of resources’ rolesCurtis (Lou) 2. Develop talentCurtis (Lou) 3. Career pathAll Partners (David Lead) 4. Path to ownershipAll Partners (David Lead) 5. 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 Financial PlanningInvestment 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 SOW For Client – Client Engagement Roadmap Budget People - $120, FTEs at 25% (3 Analysts, 3 Advisors) Technology - $7, CPA Total = $150K 3. NAVIPLAN Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable

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 OpportunityWho Will Complete 1. Technology EvaluationDave (Michael) 2. Define Segmentation and Service Model Curtis (Lou) Review Financial Planning ProcessDave (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 Management Making 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 OpportunityWho Will Complete Handouts in the Appendix Key Drivers of Firm Valuation