Strategic Planning Step One Creating A Vision David

Strategic Planning Step One: Creating A Vision ©David Lawrence and Associates 2006 1

An evolution of business models #3 #1 #2 Evolution: 1. Product Centered Sales Centered 3. Client Centered 2. - Capital Rules - Information Rules - Emotions Rule 2

A common business model Principal Operations Technology Employee(s) Client 3

The Client-Centered Business Model Mgmt Record keeping Employees Client Office Environment Operations Technology 4

New Business Models ► The Concierge-Style of Practice ► The Family Office Concept 5

The Concierge Style of Practice ► Features § Casual open environment § Client-centered (client-centric) § Provider of services (in-house or outsourced) § Positioned to be first call for client needs 6

The Family Office Concept ► Features § One-stop shop for wealthy families § Provider of financial services (mostly in-house) § Embraces the Concierge-Style § Family wealth centered 7

Can anyone guess where this photo was taken? 8

Efficiency planning process ► Begin with the end in mind § Strategic planning session ► Vision ► Mission ► Value proposition § Set goals and objectives ► Determine § § § efficient elements of practice to address Set time frames Set accountabilities Determine periodic monitoring 9

Leadership and Vision Consider the following concepts and then answer the 3 questions that follow 10

Attributes ► Views problems as opportunities ► Priority setting ► Client focused ► Courageous ► Critical and creative thinker ► Tolerance for ambiguity ► Positive attitude towards change ► Committed to innovations that are best for your clients and employees 11

Skills ► ► ► Debate, clarify and enunciate values and beliefs Fuel, inspire and guard the shared vision Communicate the strategic plan at all levels Recognize the problems inherent to the planning process Asks big picture questions and "what if" Support the staff through the change process Encourage dreaming and thinking the unthinkable Align the budget, planning, policies and instructional programs with the firm goals and vision Engage in goal setting Develop and implement action plans Practice and plan conscious abandonment Transfer the strategic planning process to planning 12

Knowledge Your role and responsibility in planning and implementing plans ► The strategic planning process, short and long term planning tools ► The company vision, beliefs, and mission ► The relationship of the budget to business planning ► The outside factors that affect results ► The best practices and research on improving achievement of goals ► The process of change and paradigm shifts ► Strategies to involve and communicate with the community ► 13

Question #1 ► What trait were you proud to say describes you? Explain! 14

Question #2 ► Was there any trait you would not consider desirable? If so, why? 15

Question #3 ► What trait are you trying to make more descriptive of you? Why? 16

Create a Vision When you begin the process of strategic planning, visioning comes first. When visioning the change, ask yourself, "What is our preferred future? " and be sure to: Draw on the beliefs, mission, and environment of the organization. Describe what you want to see in the future. Be specific to each part of the organization. Be positive and inspiring. Do not assume that the system will have the same framework as it does today. § Be open to dramatic modifications to current organization, methodology, teaching techniques, facilities, management, etc. § § § 17

Key Components for Your Vision Incorporate Your Beliefs Your vision must be encompassed by your beliefs. § Your beliefs must meet your organizational goals as well as community goals. § Your beliefs are a statement of your values. § Your beliefs are a public/visible declaration of your expected outcomes. § Your beliefs must be precise and practical. § Your beliefs will guide the actions of all involved. § Your beliefs reflect the knowledge, philosophy, and actions of all. § Your beliefs are a key component of strategic planning. 18

Create a Vision Statement Once you have clarified your beliefs, build on them to define your mission statement which is a statement of purpose and function. Your vision statement draws on your belief statements. Your vision statement must be future oriented and portray your organization as it will be, as if it already exists. § Your vision statement must focus on one common purpose. § Your vision statement must be specific to the organization, not generic. § Your vision statement must be a short statement, not more than one or two sentences. § § 19

Sample Vision Statements ► "By providing quality financial planning, we empower clients to become financially independent and fiscally responsible. “ ► By positioning ourselves as the leading fiduciary firm in the S. F. Bay area, we will build a world-class wealth management firm. 20

Benefits of Visioning The process and outcomes of visioning may seem vague and superfluous. The long-term benefits are substantial, however. Visioning: § § § § § Breaks you out of boundary thinking. Provides continuity and avoids the stutter effect of planning fits and starts. Identifies direction and purpose. Alerts stakeholders to needed change. Promotes interest and commitment. Promotes laser-like focus. Encourages openness to unique and creative solutions. Encourages and builds confidence. Builds loyalty through involvement (ownership). Results in efficiency and productivity. 21

Vision Killers As you engage in the visioning process, be alert to the following vision killers: § Tradition § Fear of ridicule § Stereotypes of people, conditions, and roles § Complacency of some stakeholders § Fatigued leaders § Short-term thinking § "Naysayers" 22

Exercise in Creating a Vision ► Take the time to assimilate this information, use the following example to exercise your planning techniques: It is five years from today’s date and you have, marvelously enough, created your most desirable company. Now it is your job to describe it - as if you were able to see it, realistically around you. 23

Exercise in Creating a Vision Respond to the following questions: § How has the economy changed? § How has the culture of the company changed? § What have you done to prepare for these changes? § What do you spend most of your time doing? § How are your meetings structured? 24

Create Your Vision 25

Company Revenue Projections Year AUM Target 50 BPS Inc 70 BPS Inc 2006 $ 0 $ - 2007 $ 50, 000 $ 250, 000 $ 350, 000 2008 $100, 000 $ 500, 000 $ 700, 000 2009 $150, 000 $ 750, 000 $ 1, 050, 000 2010 $200, 000 $ 1, 400, 000 2011 $250, 000 $ 1, 750, 000 2012 $300, 000 $ 1, 500, 000 $ 2, 100, 000 2013 $350, 000 $ 1, 750, 000 $ 2, 450, 000 2014 $400, 000 $ 2, 800, 000 2015 $450, 000 $ 2, 250, 000 $ 3, 150, 000 2016 $500, 000 $ 2, 500, 000 $ 3, 500, 000 26

Company Growth Chart 27