Impressionist TEAM WORKBOOK Decisions and Notes for Modules 1 – 5 BSMART Business Simulation Management and Relationship Training

Vision, Mission & Strategy The Foundation of a Business MODULE ONE

Your Vision *$4B firm, 50% on WM $2B AUM & $2B AUM in IM businesses *Broad based ownership, clear understanding of partnership requirements, well developed career paths for all employees. *Geographic expansion on WM side into second tier cities (Denver, Tucson, Albuquerque, Kansas City, Omaha..) *Employer of choice in 2 nd tier markets in which we operate. 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 Empower individuals (clients, employees & advisors) to achieve financial freedom in pursuit of their goals and dreams. We will support local communities through community outreach (charitable activities, community involvement). 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 *We house wealth management and investment management capabilities under one roof. *WM in Sante Fe –Dominant competitor with size and scale advantages. *IM-We have 3 year track record 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 StrengthsWeaknesses PLEASE COMPLETE

SWOT Analysis 4 OpportunitiesThreats PLEASE COMPLETE

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 OpportunityWho Will Complete 1.Develop career tracksEdgar Degas 2.Define partnerships tracks/requirements Claude Monet 3.Geographic expansion on WM sideEddie Monet 4.Redeploy WM resources to IMMary Cassatt/Fred & Paul 5.Product/geographic distribution expansion Mary Cassatt/Edgar Degas 6.Explore succession solutions/IM clients –can impressionist provide succession plan solutions to choose firms? Can we incorporate this into # 3 above?

Growth Building the Firm MODULE TWO

CHARACTERISTICS OF THE IDEAL CLIENT CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL Business You Would Like To Win CHARACTERISTICS OF THE IDEAL COI CHARACTERISTICS OF THE NOT-SO-GREAT COI COI Relationships You 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 OpportunityWho Will Complete 1.Geographic expansion WM sideEddie Monet 2.Product line IM side (40 act funds, new strategies) Mary, Edgar 3.Expand COI networkFred 4.Establish BD role on IM side (review internal candidates) Mary 5.Review comp plans-make sure it incentivizes business development capabilities. Claude Monet

Staffing and Compensation Attracting, 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 OpportunityWho Will Complete 1.Develop career path, track roles and responsibilities Edgar Degas 2.Deine partnerships track/requirements and voting rights of shareholders. Claude Monet 3.Review compensation plan (ensure it incents business development) Claude Monet 4.Redeploy resources WM-IM sideMary Cassatt/Fred & Paul 5. Handouts in the Appendix Advisor HR Solutions Sample Compensation Profiles

Operations and Technology MODULE FOUR

Role of Operations Service and Deliverables PLEASE COMPLETE Component-level Role Financial PlanningInvestment Management

List and Documents Services Process Purpose Budget Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable 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 OpportunityWho Will Complete 1.Automate workflow process (Salesforce) Edgar Degas 2.Improve trade order efficiencies & risk controls Edgar Degas 3.Crosstrain WM associates on IM business (excess capacity currently in WM business) Edgar Degas 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 Write down and agree on Financial initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1.Review WM pricingEddie Monet 2.Attempt to re-negotiate referral feesMary Casset 3.Increase revenue per professional of WM side Claude Monet/Fred & Paul 4.Evaluate ownership alignment (Ex: Edgar Degas owns 20% of IM but 0% of WM) Claude Monet 5.Too many professionals on WM side 6.Install $7500 minimum fee on WM side Handouts in the Appendix Key Drivers of Firm Valuation