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 for 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 clients in the Seattle area ; Focusing on entrepreneurs and technology executives. Capacity issue at partner level Investment and Tax expertise Lack of growth due to narrow geographic focus (added only 3 net new households in 2013) Depth and breadth of skillset: CPAs, CFAs, Tax Specialists Lack of engagement amongst employees due to unidentified career path and no equity opportunities Healthy balance sheet with the ability to reinvest. Successful firm with a 20 year history Organizational structure; Expand leadership beyond partners; need reorg; top heavy; partners need leverage; potentially too many employees Geographically aligned with our niche and client base 3 relationships ($600m) is 40% of our total AUM Seattle not tech center it used to be.

SWOT Analysis 4 OpportunitiesThreats Geographic expansion Client/Prospect concentration : 2 employers – Microsoft and Amazon Strong relationships with current clients. Leverage current (775 clients) relationships for referrals Employee Talent at Risk : Competition offering more lucrative equity compensation/compensation packages Pursuing small business owners with proven successful track record Nirvana Asset Concentration Concentration 3 relations = $600M Repurpose large staff- refine roles and responsibilities to drive new business Lack of tech spend; lose competitive edge; become outdated; business becomes inefficient and unscalable Clearly define compensation package to align with long term growth strategy

Initiatives and Notes 5 Initiatives for Improvement # 3 Define Goals – use marketing toolkit (FIWS) to accomplish Write down and agree on Strategy initiatives in your firm and elect a “champion” for each initiative. Notes InitiativeChampion 1. Re-org staff to align organization for growth. Define employees goals and align goals with compensation Lou / Curtis Love (COO) 2 Expand growth opportunitiesAll 3. 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 investable assetsLess than $500K Technology executives w/ concentrated stock positions Challenging/demanding client Successful entrepreneurs nearing liquidity event No appreciation for tax sensitive / financial planning, etc. West Coast CHARACTERISTICS OF THE IDEAL COI CHARACTERISTICS OF THE NOT-SO-GREAT COI COI Relationships You Would Like To Have AttorneysReferrals only go one way 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 Other areas of opportunity: VC Firm Incubators Law Firms CPAs Sales process management - review existing prospect queue as a starting point 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 FootprintBarbara / Danielle Peters (Principal) 2. Establish Center Of Influence StrategyAnand / Pat Navarro (Tax Manager) 3. Develop a standard for monitoring sales process, including funnel review and management Eric/Kelly/Barbara Kurt Kobin (President), Christine Novich (CEO) and Danielle Peters (Principal) 4. Add focus to opportunity in the retirement plan market to complement services provided to entrepreneurs

Staffing and Compensation Attracting, Retaining and Organizing Talent MODULE THREE

Organizational Chart 10 Current Draw your firm’s organizational chart TODAY. Label the positions.

Kurt Kobin, Pres. Pat Navarro, MD – Tax CPA Wealth Management Team 1 Wealth Manager 3 Advisors Team 2 Wealth Manager 3 Advisors Team 3 Wealth Manager 3 Advisors Team 4 Wealth Manager 3 Advisors Team 5 Wealth Manager 2 Advisors CCO/HR 1 Admin. Admin. Asst. Christine Novich, CEO Dave Goal, CIO – Partner Team 1 CFA Team 2 CFA Team 3 CFA Team 4 CFA Team 5 CFA Curtis Love, COO Team 1 4 Ops 1 Admin Team 2 4 Ops 1 Admin Team 3 4 Ops 1 Admin Team 4 4 Ops 1 Admin Team 5 3 Ops 1 Admin Director of Information Technology, New Role Danielle Peters – Partner Business Owner Team Admin. Asst. DRAFT – Future State Org Chart for Review

Compensation Philosophy 11 Current compensation philosophy is “get the donuts out the door and pay employees to stay motivated”. Our compensation philosophy is one which aligns compensation with the goals and objectives of the firm allowing employees to participate in the firm’s overall success. We evaluate our employee performance through standards based on the goals of our organization and offer incentives for participation in bonus pool accompanying a very competitive base salary. In addition, together with our employees, we develop clear career paths to ownership with specific credentials, and performance metrics based on years of experience in industry, at the firm, designations and training. 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 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 A thorough review of cash flow, asset and portfolio review/allocation with a tax sensitive focus. Purpose For Firm – Diversify Revenue & Higher SOW For Client – Client Engagement Roadmap and long-term planning 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  Newly appointed head of planning to coordinate services  Segmentation of clients to determine level of planning services  Purchase a new software package to enable scalability and a repeatable process

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)/Christine (kelly) 3. Review Financial Planning ProcessDave (Mike) 4.. Evaluate Compliance and Regulatory Process (Identify Risks) Kurt & Christine (Eric and Kelly) 5 Execute Client survey and establish Client Advisory Board 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 Finan c ial initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1.Evaluate costs associated with existing and new technology platform All Partners, Curtis as lead (Lou) 2.Gain understanding of revenue by client segment Kelly/Kurt 3.Review client concentration riskDanielle (Barbara) 4.Conduct staff review and realignment to include compensation considerations All Partners, Curtis as lead (Lou) 5. Handouts in the Appendix Key Drivers of Firm Valuation