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Strategic PlanningStrategic Planning

Step One: Creating A VisionStep One: Creating A Vision

©David Lawrence and Associates 2006

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An evolution of business An evolution of business modelsmodels

Evolution:Evolution:

1.1. Product Centered Product Centered - - Capital RulesCapital Rules

2.2. Sales Centered Sales Centered - - Information RulesInformation Rules

3.3. Client Centered Client Centered - - Emotions RuleEmotions Rule

#1#2

#3

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A common business modelA common business model

Principal

Operations Technology Employee(s)

Client

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The Client-Centered Business The Client-Centered Business ModelModel

Recordkeeping

Office Environment

Technology

Operations

Employees

Mgmt

Client

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New Business ModelsNew Business Models

►The Concierge-Style of PracticeThe Concierge-Style of Practice►The Family Office ConceptThe Family Office Concept

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The Concierge Style of The Concierge Style of PracticePractice

►FeaturesFeatures Casual open environmentCasual open environment Client-centered (client-centric)Client-centered (client-centric) Provider of services (in-house or Provider of services (in-house or

outsourced)outsourced) Positioned to be first call for client needsPositioned to be first call for client needs

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The Family Office ConceptThe Family Office Concept

►FeaturesFeatures One-stop shop for wealthy familiesOne-stop shop for wealthy families Provider of financial services (mostly in-Provider of financial services (mostly in-

house)house) Embraces the Concierge-StyleEmbraces the Concierge-Style Family wealth centeredFamily wealth centered

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Can anyone guess where this Can anyone guess where this photo was taken?photo was taken?

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Efficiency planning processEfficiency planning process

► Begin with the end in mindBegin with the end in mind Strategic planning sessionStrategic planning session

► VisionVision► MissionMission► Value propositionValue proposition

Set goals and objectivesSet goals and objectives► Determine efficient elements of practice to addressDetermine efficient elements of practice to address

Set time framesSet time frames Set accountabilitiesSet accountabilities Determine periodic monitoringDetermine periodic monitoring

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Leadership and VisionLeadership and Vision

Consider the Consider the following following concepts and concepts and then answer the 3 then answer the 3 questions that questions that followfollow

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AttributesAttributes

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

your clients and employees your clients and employees

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SkillsSkills► Debate, clarify and enunciate values and beliefs Debate, clarify and enunciate values and beliefs ► Fuel, inspire and guard the shared vision Fuel, inspire and guard the shared vision ► Communicate the strategic plan at all levels Communicate the strategic plan at all levels ► Recognize the problems inherent to the planning process Recognize the problems inherent to the planning process ► Asks big picture questions and "what if" Asks big picture questions and "what if" ► Support the staff through the change process Support the staff through the change process ► Encourage dreaming and thinking the unthinkable Encourage dreaming and thinking the unthinkable ► Align the budget, planning, policies and instructional Align the budget, planning, policies and instructional

programs with the firm goals and vision programs with the firm goals and vision ► Engage in goal setting Engage in goal setting ► Develop and implement action plans Develop and implement action plans ► Practice and plan conscious abandonment Practice and plan conscious abandonment ► Transfer the strategic planning process to planning Transfer the strategic planning process to planning

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KnowledgeKnowledge

► Your role and responsibility in planning and Your role and responsibility in planning and implementing plans implementing plans

► The strategic planning process, short and long term The strategic planning process, short and long term planning tools planning tools

► The company vision, beliefs, and mission The company vision, beliefs, and mission ► The relationship of the budget to business planning The relationship of the budget to business planning ► The outside factors that affect results The outside factors that affect results ► The best practices and research on improving The best practices and research on improving

achievement of goalsachievement of goals► The process of change and paradigm shifts The process of change and paradigm shifts ► Strategies to involve and communicate with the Strategies to involve and communicate with the

community community

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Question #1Question #1

►What trait were you proud to say What trait were you proud to say describes you? Explain!describes you? Explain!

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Question #2Question #2

►Was there any trait you would not Was there any trait you would not consider desirable? If so, why?consider desirable? If so, why?

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Question #3Question #3

►What trait are you trying to make What trait are you trying to make more descriptive of you? Why?more descriptive of you? Why?

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Create a VisionCreate a Vision

When you begin the process of strategic planning, When you begin the process of strategic planning, visioning comes first. When visioning the change, visioning comes first. When visioning the change, ask yourself, "What is our preferred future?" and be ask yourself, "What is our preferred future?" and be sure to: sure to: Draw on the beliefs, mission, and environment of the Draw on the beliefs, mission, and environment of the

organization. organization. Describe what you want to see in the future. Describe what you want to see in the future. Be specific to each part of the organization. Be specific to each part of the organization. Be positive and inspiring. Be positive and inspiring. Do not assume that the system will have the same Do not assume that the system will have the same

framework as it does today. framework as it does today. Be open to dramatic modifications to current organization, Be open to dramatic modifications to current organization,

methodology, teaching techniques, facilities, management, methodology, teaching techniques, facilities, management, etc. etc.

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Key Components for Your Key Components for Your VisionVision

Incorporate Your BeliefsIncorporate Your BeliefsYour vision must be encompassed by your Your vision must be encompassed by your

beliefs.beliefs. Your beliefs must meet your organizational goals as well as Your beliefs must meet your organizational goals as well as

community goals. community goals. Your beliefs are a statement of your values. Your beliefs are a statement of your values. Your beliefs are a public/visible declaration of your Your beliefs are a public/visible declaration of your

expected outcomes. expected outcomes. Your beliefs must be precise and practical. Your beliefs must be precise and practical. Your beliefs will guide the actions of all involved. Your beliefs will guide the actions of all involved. Your beliefs reflect the knowledge, philosophy, and actions Your beliefs reflect the knowledge, philosophy, and actions

of all. of all. Your beliefs are a key component of strategic planning. Your beliefs are a key component of strategic planning.

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Create a Vision StatementCreate a Vision Statement

Once you have clarified your beliefs, build on Once you have clarified your beliefs, build on them to define your mission statement which them to define your mission statement which is a statement of purpose and function. is a statement of purpose and function. Your vision statement draws on your belief Your vision statement draws on your belief

statements. statements. Your vision statement must be future oriented and Your vision statement must be future oriented and

portray your organization as it will be, as if it portray your organization as it will be, as if it already exists. already exists.

Your vision statement must focus on one common Your vision statement must focus on one common purpose. purpose.

Your vision statement must be specific to the Your vision statement must be specific to the organization, not generic. organization, not generic.

Your vision statement must be a short statement, Your vision statement must be a short statement, not more than one or two sentences. not more than one or two sentences.

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Sample Vision StatementsSample Vision Statements

►"By providing quality financial "By providing quality financial planning, we empower clients to planning, we empower clients to become financially independent and become financially independent and fiscally responsible.“fiscally responsible.“

►By positioning ourselves as the leading By positioning ourselves as the leading fiduciary firm in the S.F. Bay area, we fiduciary firm in the S.F. Bay area, we will build a world-class wealth will build a world-class wealth management firm.management firm.

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Benefits of VisioningBenefits of Visioning

The process and outcomes of visioning may seem The process and outcomes of visioning may seem vague and superfluous. The long-term benefits are vague and superfluous. The long-term benefits are substantial, however. Visioning:substantial, however. Visioning: Breaks you out of boundary thinking. Breaks you out of boundary thinking. Provides continuity and avoids the stutter effect of Provides continuity and avoids the stutter effect of

planning fits and starts. planning fits and starts. Identifies direction and purpose. Identifies direction and purpose. Alerts stakeholders to needed change. Alerts stakeholders to needed change. Promotes interest and commitment. Promotes interest and commitment. Promotes laser-like focus. Promotes laser-like focus. Encourages openness to unique and creative solutions. Encourages openness to unique and creative solutions. Encourages and builds confidence. Encourages and builds confidence. Builds loyalty through involvement (ownership). Builds loyalty through involvement (ownership). Results in efficiency and productivity. Results in efficiency and productivity.

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Vision KillersVision Killers

As you engage in the visioning process, As you engage in the visioning process, be alert to the following vision killers:be alert to the following vision killers: Tradition Tradition Fear of ridicule Fear of ridicule Stereotypes of people, conditions, and Stereotypes of people, conditions, and

roles roles Complacency of some stakeholders Complacency of some stakeholders Fatigued leaders Fatigued leaders Short-term thinking Short-term thinking "Naysayers" "Naysayers"

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Exercise in Creating a Exercise in Creating a VisionVision

► Take the time to assimilate this Take the time to assimilate this information, use the following example to information, use the following example to exercise your planning techniques: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.

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Exercise in Creating a Exercise in Creating a VisionVision

Respond to the following questions:Respond to the following questions: How has the economy changed? How has the economy changed? How has the culture of the company How has the culture of the company

changed?changed? What have you done to prepare for these What have you done to prepare for these

changes? changes? What do you spend most of your time What do you spend most of your time

doing? doing? How are your meetings structured? How are your meetings structured?

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Create Your VisionCreate Your Vision

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Company Revenue Company Revenue ProjectionsProjections

Year AUM Target 50 BPS Inc 70 BPS Inc

2006 $ 0 $ - $ -

2007 $ 50,000,000 $ 250,000 $ 350,000

2008 $100,000,000 $ 500,000 $ 700,000

2009 $150,000,000 $ 750,000 $ 1,050,000

2010 $200,000,000 $ 1,000,000 $ 1,400,000

2011 $250,000,000 $ 1,250,000 $ 1,750,000

2012 $300,000,000 $ 1,500,000 $ 2,100,000

2013 $350,000,000 $ 1,750,000 $ 2,450,000

2014 $400,000,000 $ 2,000,000 $ 2,800,000

2015 $450,000,000 $ 2,250,000 $ 3,150,000

2016 $500,000,000 $ 2,500,000 $ 3,500,000

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Company Growth ChartCompany Growth Chart