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

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

3. Your Vision To be an enduring, trusted, partner and high-performing team providing market-leading wealth management. Our 5 year goal is to: -Double assets -Deep client relationships -Create viable succession plan -Increase enterprise value 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.

4. Your Mission We manage the financial complexities of our clients’ lives so they do not have to. 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.

5. SWOT Analysis 4 StrengthsWeaknesses Experience Pricing Media Presence Process High-Touch Service Lack of Trust Partnership Agreement Organization Structure Specialization (Money Management) Silo Approach Strong Network (Referrals) No Target Client Profile No Client Segmentation No Marketing Plan No Succession Plan

6. SWOT Analysis 4 OpportunitiesThreats Expand marketing beyond referrals Departure of Junior Advisors Leverage media exposure Lack depth/resources (CFP, Attorney, etc) Developing profit COI network Client concentration (Network dependent) All are relatively young Competition to “CFO” model

7. Initiatives and Notes Initiatives for Improvement -Organization: rom silo to functional state -Marketing plan: Consider leveraging our media presence -Marketing plan: Create target client profile -Succession plan: Want additional partners? What is ownership criteria? -Service model: Reporting, fees, process Write down and agree on Strategy initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1.Address organization structureRoger/Don-Lane to assist 2.Marketing planMary 3.Succession PlanRoger/Don/Mary 4.Consider client service model revisionPeggy/Pete to assist 5.Formalize investment committeeAll five

8. Growth Building the Firm MODULE TWO

9. CHARACTERISTICS OF THE IDEAL CLIENT CHARACTERISTICS OF THE NOT-SO-GREAT REFERRAL Business You Would Like To Win Complex needs-C suite executives, lending, AI Performance chasers DelegatorsRude people Business ownersElderly, mass market clients 2Million+ minimum Doesn’t see value in paying for service Engaging female investors CHARACTERISTICS OF THE IDEAL COI CHARACTERISTICS OF THE NOT-SO-GREAT COI COI Relationships You Would Like To Have Knows our client Refers anyone Similar target client characteristics One way street regarding referrals Partnership/reciprocity Doesn’t see the value we provide Ideal Profile

10. 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.Client satisfaction surveyPeggy 2.Client advisory boardAll-Roger leads 3.Client segmentationAll-Don leads 4.Define service modelPeggy 5.Create marketing planMary

11. Staffing and Compensation Attracting, Retaining and Organizing Talent MODULE THREE

12. Organizational Chart Draw your firm’s organizational chart. Label the positions.

13. Compensation Philosophy PLEASE COMPLETE What is your compensation philosophy?

14. Initiatives and Notes Initiatives for Improvement Organization structure includes job description Organization structure-Silo versus functional Write down and agree on Human Capital initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1.BenchmarkPete 2.Address organization structurePartners 3.Succession/partnershipPartners 4.Define partnership compensationPartners 5.Define Staff compensationPeggy Handouts in the Appendix Advisor HR Solutions Sample Compensation Profiles

15. Operations and Technology MODULE FOUR

16. Role of Operations Service and Deliverables Component-level Role Reporting –and delivery of information Financial planning-research, client meetings, review session with clients. Investment management-research trading and rebalancing Corporate executive services-10B5-1, STK plans and general administration Alternative investments Financial PlanningInvestment Management Staff-performance reports Staff Technology-quarterly reports Technology

17. List and Documents Services Process Purpose Budget Resources Evaluate how well resource components are satisfied. AvailableScalable AttainableSustainable PLEASE COMPLETE

18. 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. 2. 3. 4. 5. Handouts in the Appendix Six Tell-Tale Signs That Your Business Processes May Need Attention PLEASE COMPLETE

19. Financial Management Making the Numbers Work MODULE FIVE

20. Initiatives and Notes Initiatives for Improvement -Revenue/client-light (Fee schedule) -Direct expense-high (opportunity to review) -Total overhead-low (opportunity to invest in technology) Write down and agree on Financial initiatives in your firm and elect a “champion” for each initiative. Notes Improvement OpportunityWho Will Complete 1.Revenue to client is low 2.Direct expenses are high 3.Total overhead-low 4. 5. Handouts in the Appendix Key Drivers of Firm Valuation