[NAME] 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 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 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 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

SWOT Analysis 4 OpportunitiesThreats

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

Growth Building the Firm MODULE TWO

Referrals Who are you referring? Who is the professional and what is the occupation you are referring to? Why did you refer this particular professional? How did you describe the professional? What reason did you use for making the referral? How do you expect the other person to react to the referral?

CPA Firm Potential Have you referred clients to them? Have they referred you to an advisor? Have you discussed your investments with them? Have you talked to them about financial planning? Why or why not? Think of your own personal CPA:

CHARACTERISTICS OF THE IDEAL REFERRAL 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

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

Staffing and Compensation Attracting, Retaining and Organizing Talent MODULE THREE

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

Compensation Philosophy 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 Handouts in the Appendix Advisor HR Solutions Sample Compensation Profiles

Operations and Technology MODULE FOUR

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

List and Documents Services Process Purpose Budget 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 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 Earnings before Owners' Compensation % Operating Profit Margin Pre-Tax Income per Owner Active Clients per Professional Active Clients per Staff (total headcount) Revenue per Professional Revenue per Staff (total headcount) AUM per Professional AUM per Staff (total headcount) Revenue per Active Client AUM per Active Client Direct Expense per Client Overhead per Client Operating Profit per Active Client *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 Handouts in the Appendix Key Drivers of Firm Valuation

Initiatives & Accountability

Initiatives and Implementation Use the Accountability Spreadsheet* to compile all of your initiatives. *The Accountability Spreadsheet is a separate Excel file. 1.Review the initiatives you identified as a priority for your practice in each section. Capture those improvement opportunities in the Accountability Spreadsheet. a)Vision, Mission & Strategy b)Growth c)Staffing and Compensation d)Operations and Technology e)Financial Management 2.Next, determine if there are any gaps. Are there improvement opportunities your practice would like to address that should be added? If so, then capture these improvement opportunities in the Accountability Spreadsheet. 3.Identify the action items you will need to complete in order to address your firm’s unique opportunities. 4.Mark each opportunity with a number in order of priority. What should you focus on first in order to drive growth and results for your practice? Mark which you will address first, second, third, etc. 5.Identify a target completion date for each opportunity. Mark who will complete the associated action items and the budget considerations for each opportunity.

Spreadsheets and Handouts APPENDIX