Systemizing Your Business:

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Systemizing Your Business Getting HNW Ready
Pierre McLean, Vice President National Sales
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Getting HNW Ready

• The HNW Opportunity
• Strong Benefits of Being Client-Centered
• 5 Strategies / 3 Building Blocks
• for Business Success
• Systemizing Your Business
• How To Get Started

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The HNW Opportunity A Growing Segment
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HNW A Growing Market in Canada
Number of HNW Individuals (Investable Assets
Greater than 1 M Canadian)
Households
Source Cap Gemini Ernst Young, 2002
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The HNW Opportunity
Over half the millionaires have less than 2 M
Canadian of investment-ready assets (excludes
primary home)
65
Affluent Canada
Canada (C)
Source Forresters Consumer Technographics 2002
North America Affluent Mail Study
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Are You Already There?
Managing Assets
11.2 Million
of Canadian Adults with Stock Ownership (Direct
or Through Funds)
Growth by Assets and Clients
Team Process Structure
Talking to Clients
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Five Strategies for Success

• Focus on affluent private clients
• Use the investment consulting process to
  differentiate yourself from competition
• Manage your practice as a business
• Partner effectively with institutions and other
  professionals
• Commit to ongoing learning and execution

Source CEG Worldwide
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Everyday Advisor vs. HNW Advisor
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The Client Everyday Advisor vs. HNW Advisor
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Building Blocks to Success
Franchise Value
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Building Block Articulate
Creating distinct valueseparates you from the
crowd
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Value Diffusion Factor
Price-Performance of all transactions for a major
CDN brokerage firm
High Revenue Productivity
Value creation
Transactional
Recurring
Wrong direction - Right into the Trap
Low Revenue Productivity
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Systemizing Your Business
Delivering on the promises articulated in your
DVP.
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Engineering Your Practicefor Growth
Team Alignment
Segmentation
Client Service Scheduler
Client Service Process Planner
Client Service Matrix
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Engineering Your Practicefor Growth
BY WHOM
WHO
WHEN
HOW
WHAT
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Segmentation is the Start of Systemizing Your
Practice
Delivering on the promises articulated in your
DVP.
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Segmentation Guidelines

• AUM
• Commission or revenue
• Future potential (e.g. Income, inheritance, cross
  selling)
• Referrals provided in last 12 months
• Time required to service
• Personality (e.g. Difficult or easy to deal with)
• Part of a Key Target Group
• Centre of influence
• Candidate for fee based-business
• Related to a top client

Limit of 5 client relationship dimensions
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Segmentation Guidelines
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Practice Capacity Worksheet
45
40
19
21
945
19
50
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The Impact of Focusing on the Top End
Target Production Goal 2004
Current Production 2003
Difference
500,000
300,000
200,000
Revenue From Best Client
of new Clients Needed
15,000
13-14
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Revenue-Asset Diagnostic
Total
D
C
B
A
A
Segment
5 24 14 60 63 166
of Households
Assets (expressed as a of total assets)
High Recurring Revenue
Low Transactional Revenue
Total
Revenue (expressed as a of total revenue)
Total
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Developing Your Core Systems
Delivering on the promises articulated in your
DVP.
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The ICP Building the experience
Source Financial Advisor at the Epoch
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Client Service Matrix
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Client Service Matrix
? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ? ?
? ? ?
22 19 12 8 8 5
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Building Your Entrepreneurial Team
Delivering on the promises articulated in your
DVP.
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Service Process Planner
Client Advisory Council 4x year
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Service Process Planner
Client Advisory Council 4x year
Book high-end location Private room Pat Invite/
Confirm 6 clients Team CA/COI Pat Send Agenda
and Materials to review (1 wk)
Cindy Facilitate Topics/ reviews
Pierre Follow-up letter on ideas raised
plans to execute Pierre/Cindy
-Forum for Top Clients to offer feedback -Gets
them involved -Improves our Services -Creates
Advocates
Pat admin/greeter Cindy Service Update Me -
presenter/ primary relationship
Reinforces beliefs in our process and in our Team
Thank You Gift Bottle of Ice Wine

• Metrics
• Progress Report

Focus group around business or market expertise
Show up - all prep looked after More strategic
relationship w CAs I want to evolve to Board of
Directors
Prep work
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Entrepreneurial Team Snapshot
Source Financial Advisor at the Epoch
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The Extended Team
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Value of Systemization

• Systemizing your business promotes your value as
  a HNW advisor!
• Focus on the HNW Opportunity
• Frees up your time
• Take control - dont be controlled
• Allows you to become more proactive

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How do I get started?
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Executable Tools to Help Your Practice
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Continuum of Investment Management Solutions
1,000,000
500,000
FRANKLIN TEMPLETON INVESTMENTS PRIVATE CLIENT
GROUP
250,000
100,000
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Questions

Answers
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Your Roadmap to Building A High Net Worth
Business
Pierre McLean, Vice President National Sales