JB&J 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 Our vision is to develop an integrated firm wide approach by leveraging our individual talents to collectively build a growing and sustainable business that creates value to our clients, partners and associates. 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 Our mission is to help you navigate all the complexities that come with Wealth. Our experience and dedication team of professionals will help you build a comprehensive wealth plan to grow and protect your assets over the generations. 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 1.Professionals and experienced partners 2. Unique knowledge (tax, accounting, executive benefits and compensation) 3. Full end-to-end servicing of UHNN clients (i.e. Wealth Transfers, Legacy Planning and Integration of all Services) 4. High touch servicing around all our relationships 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 30 plus years experience work in silos tax knowledge No succession plan objectivity no growth Uniquely crafted relationships age of clients solid client base age of partners technology no career path 1 acting referral network

SWOT Analysis 4 OpportunitiesThreats rebranding opportunity competition equity execution referrals career path/retention new hires equity/threat to leave next gen family opportunities content partners/ don’t want to [] prospects retirement needs salary needs [] strategy

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 and execute training for all employees Beth 2. Align compensationAlice 3. Develop referral networkDavid 4. Client satisfactionTico 5. Initiate a client Advisory BoardJohn

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. Develop and execute Sales TrainingBeth 2. Develop Referral NetworkAlice 3. CompensationTico 4. Client satisfaction surveyJohn 5. Advisory BoardRachel

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. Organization StructureRachel 2. Job descriptions definedBeth 3. Compensation for labor/equityJohn 4. Performance appraisals/metricsTico 5. Human Capital PlanningAlice Handouts in the Appendix Advisor HR Solutions Sample Compensation Profiles

Operations and Technology MODULE FOUR

Role of Operations Service and Deliverables Component-level Role Tax planning and preparation Financial Planning Investment Management Executive benefits and compensation analysis Wealth transfer and generation planning Financial PlanningInvestment Management money movement client reporting trade execution basic account maintenance RMDs Open accounts Research statement execution Reporting

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. Process and workflow standardizationBeth 2. CRMBeth 3. SegmentationRachel 4. Roles and ResponsibilitiesBeth 5. Portfolio Management SystemAlice Handouts in the Appendix Six Tell-Tale Signs That Your Business Processes May Need Attention

Financial Management Making the Numbers Work MODULE FIVE

Financial Management Use the Financial Worksheet* to calculate the following metrics: Gross Profit Margin 4,559,185 (95%) 4,731,068 (91%) Earnings before Owners' Compensation % 82%78% Operating Profit Margin 3,961,185 4,043,068 Pre-Tax Income per Owner 990,2961,010,767 Active Clients per Professional Active Clients per Staff (total headcount) Revenue per Professional 686,169739,724 Revenue per Staff (total headcount) 343,085345,205 AUM per Professional 8,367,9188,702,635 AUM per Staff (total headcount) 41,839,57140,612,296 Revenue per Active Client 26,68429,931 AUM per Active Client 3,254,1903,521,297 Direct Expense per Client 1,3562,584 Overhead per Client 3,3223,977 Operating Profit per Active Client 22,007 23,370 *The Financial Worksheet is a separate Excel file.

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. Partner compensationDavid 2. New equity partners/successionJohn 3. Investment in technology, marketing and staff Beth 4. Benchmark vs Ensemble firmsTico 5. Realign compensation based upon position and set metrics Alice Handouts in the Appendix Key Drivers of Firm Valuation