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Transcript of Optimize Your Business
Optimize Your Business TM
How to Achieve
Better Results with Less Effort
Stephen A. Saenz
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OYB Business Optimization Defined
An optimized business is one that…
GROWS FASTER
with…
LESS EFFORT
which in turn, makes it…
MORE FUN
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OYB The Power of Business Optimization
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OYB
Business Optimization Process
OYB Process: 30,000 Foot View
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
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OYB OYB Process: 15,000 Foot View
STEP 1: REALIZE – We identify the performance barriers that are keeping your business from
achieving its full potential. We help you uncover the root causes of why certain things are
happening or not happening in your business. This critical step is missing from most consulting
processes and training programs.
STEP 2: MINIMIZE – We help you minimize the performance barriers. We help you to stop doing
counterproductive activities and start doing productive ones. This step clears the way for resuming
and/or accelerating the growth rate of your business. Think: "Preparing the runway for take-off."
STEP 3: ORGANIZE – One of the biggest performance barriers is NOT having the proper team
structure and/or the right people in place to operate your business at its full potential. In this step,
we assess your existing team and help you develop roles, responsibilities and accountabilities.
STEP 4: SYSTEMATIZE – Well designed systems and processes enable you and your team to
deliver predictable and consistent results in the key functions of your business. This includes
attracting new clients, delivering solutions and managing ongoing relationships. It also includes
the internal functions such as financial and team mgmt. This step is where most training begins.
STEP 5: OPTIMIZE – Your business is now working for you instead of the other way around. The
ultimate goal of business optimization is to get your business to grow faster with less resource
utilization. A significant by-product (dividend) of going through this process is that it increases the
value of your business and makes it more transferrable.
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OYB Food for Thought
“The significant problems we face
cannot be solved at the same level of
THINKING
we were at when we created them.”
Albert Einstein
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OYB In other words…
“It takes
BREAKTHROUGH
thinking to get
breakthrough results.”
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OYB Results vs. Effort*
Business Optimization (Effort vs. Results)
Red diamonds represent actual wealth advisors from major brokerage firm
* This should remind you of PORTFOLIO optimization (minimize risk / maximize return)
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OYB Step 1: REALIZE
WHAT IT MEANS…
To become aware of the
barriers that are preventing our
business from performing at its
full potential. To identify the
root causes.
WHY IT’S IMPORTANT…
Performance barriers are not
always apparent. We cannot
solve problems we are not
aware of. Step 1 leads to
breakthrough thinking.
KEEP IN MIND…
The OYB Process says we must identify and eliminate the
root causes before new solutions can take hold.
This may explain why previous training programs and other
initiatives have not had a lasting or meaningful impact on our
business.
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
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OYB What is there to REALIZE?
1. Performance Barriers are keeping our business from achieving its full
potential. There are two types of Performance Barriers:
EXTERNAL – things that happen TO our business
INTERNAL – things that happen IN our business
2. Our mission is to identify and prioritize the barriers that exist in our
business. You will eliminate them in Step 2.
3. As we work through the REALIZE Phase we should distinguish
between symptoms and root causes.
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“Change happens NOT by trying to make yourself change, but by becoming aware of what’s not working.” Shakti Gawain
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OYB Step 2: MINIMIZE
WHAT IT MEANS…
To reduce or eliminate the
barriers that are preventing our
business from performing at its
full potential. To pave the way
for faster & better growth.
WHY IT’S IMPORTANT…
Our business needs to be in
good shape if we want it to run
efficiently. We will be focusing
on the health of our business
in Step 2.
KEEP IN MIND…
There is more to minimizing than reassigning smaller clients.
The purpose of this step is to reduce or eliminate ALL of the
serious barriers that are holding us back.
Having too many clients is just one of many Performance
Barriers we will be dealing with in Step 2 of OYB.a
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OYB How do we MINIMIZE?
1. As noted in Step 1 of the OYB Process, Performance
Barriers can explain why certain (bad) things are happening
in our business. They can also explain why certain (good)
things are NOT happening. We must address both!
2. Our mission in Step 2 is to MINIMIZE the negative effects of
the Performance Barriers we identified in Step 1.
3. There are two basic ways to MINIMIZE:
STOP doing the things that are causing bad things to
happen in our business
START doing the things that will make good things
happen in our business
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OYB Step 3: ORGANIZE
WHAT IT MEANS…
To figure out what it takes to
run our business and align our
resources accordingly. To
define, quantify and document
our workload.
WHY IT’S IMPORTANT…
Lack of organization leads to
misallocation of resources,
which severely limits business
performance. Organizational
skills are critical for a well-run
business and team.
KEEP IN MIND…
In order to organize our business, we are going to have to roll
up our sleeves and do some very detailed work. Step 3 is not
for the faint of heart.
While it may not be fun, it will be extremely helpful to our
business and team. Pay close attention to the details!
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OYB How do we ORGANIZE?
HOW WE DO IT…
1. Select our business model
2. Identify the primary functions of our business
3. Define the work that takes place in each function
4. Quantify the work that takes place in each function
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OYB Evolution of the Advisor Business Model
Stock
Broker
Financial
Advisor
Investment
Consultant
The STRUCTURE of your business must change in order to
support your new business model. If not, you will experience
declining revenue growth, deteriorating client satisfaction
and/or increasing levels of stress on your team.
Idea
Driven
Advice
Driven
Advisor
Centered
Client
Centered
Financial
Planner
Wealth
Advisor
Family
Office
COMPLEXITY OF YOUR BUSINESS
PE
RC
EIV
ED
VA
LU
E O
F Y
OU
R O
FF
ER
ING
Your BUSINESS MODEL has been evolving over
the years. For a variety of reasons, including
industry commoditization and increased
competition, you have been adopting higher
value business models.
These high value business models place greater
demands on your firm and team. You now have
to solve complex wealth management problems
and build stronger relationships with your
clients, all of which requires significantly greater
resources.
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OYB Identify Your Primary Business Functions
Marketing Sales
Portfolio Design
Portfolio Mgmt
Financial Research
Financial Planning
Client Service
Portfolio Reviews
A D M I N I S T R A T I O N
a n d O P E R A T I O N S
P r a c t i c e M a n a g e m e n t
T e a m D e v e l o p m e n t
F I N D I N G
G R I N D I N G
M I N D I N G
Sales Relationship Management
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OYB Core Functions & the DISC Behavior Model
D Dominance
Problems
I Influence
People
C Compliance
Rules
S Steadiness
Pace
Co
ord
ina
tor P
ers
ua
de
r
Implementer
Relater
Sales
Marketing
Financial Planning
Portfolio Analysis & Design
Portfolio Management
Financial Research
Portfolio Reviews
Client Service
Relationship Management
Team Development
Practice Management
Administration
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OYB Define Your Work
WHAT IT MEANS…
To identify and document
every important task or activity
that takes place in each
function of our business.
WHY IT’S IMPORTANT…
The best way to understand
something is to commit it to
writing. This also keeps things
from falling through the cracks.
KEEP IN MIND…
Most people have a very incomplete understanding of how
much work it actually takes to run their business at its optimal
level.
This can result in a misallocation and/or shortfall in
resources, both of which can cripple our business.
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
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OYB Quantify Your Work
WHAT IT MEANS…
To figure out how long it takes
to perform every important task
or activity in our business. We
should do this for every
function of our business.
WHY IT’S IMPORTANT…
If we can’t measure we can’t
manage. Knowing how long it
takes to perform important
activities is critical to
managing our business.
KEEP IN MIND…
If I underestimate how long it takes to complete important
tasks or activities, I will have a tendency to over-commit my
and/or my team’s time.
At best this will make our team highly inefficient. At worst, it
will cause us to over-promise and under-deliver.
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OYB Step 4: SYSTEMATIZE
WHAT IT MEANS…
To adopt a standard way of
performing the important tasks
and activities in our business.
To make efficiency a serious
priority in our business.
WHY IT’S IMPORTANT…
Systems save time and enable
our people to do things the
right way on a consistent
basis. Lack of systems
creates inefficiency.
KEEP IN MIND…
Systems do not preclude or inhibit customization. To the
contrary, systems are the key to providing exceptional service
because they enable our people to exceed our clients’
expectations.
Systems will maximize the efficiency of our team.
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
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OYB What is a SYSTEM?
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A series of steps or activities that work together
to produce predictable and consistent results.
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OYB Intangible Systems
WHAT THEY ARE…
Intangible, or “soft” systems,
are ones we cannot see or
touch. Used by world-class
organizations to deliver
exceptional client experiences.
WHY THEY’RE IMPORTANT
Little things can make a BIG
difference when it comes to
client satisfaction. They also
tend to be the biggest source of
client dissatisfaction.
KEEP IN MIND…
Lasting impressions are made on every person who comes in
contact with our business. Intangible systems ensure that
these are positive impressions.
Our clients and prospects don’t care how much we know until
they know how much we care.
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OYB Step 5: OPTIMIZE
WHAT IT MEANS…
To have a business that grows
faster with less effort. To create
real and sustainable value in our
business. To maximize the value
of our business for succession
planning.
WHY IT’S IMPORTANT…
Value comes from leveraging our
core assets, which includes time,
knowledge and relationships. We
will do this in Step 5 of OYB
Process.
KEEP IN MIND…
We reap what we sow. The more value we deliver, the more
we derive. The first four steps of the OYB Process have set
us up to leverage the Law of the Harvest.
The Performance Barriers we identified and eliminated in
Steps 1 and 2 can rear their ugly heads at any time…
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OYB How do we OPTIMIZE our business?
HOW WE DO IT…
1. Choose a Value Creation Strategy
2. Leverage Our Core Assets
3. Leverage Our Revenue Stream
4. Focus on Lifetime Value
5. Build A High Performance Team
6. Be A Stronger Advocate for Our Clients
7. Keep Optimizing Our Business
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OYB Choose A Value Creation Strategy
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There are three core value disciplines…
1. Operational Excellence
2. Technical Superiority
3. Customer Intimacy
Which one is best for your business model?
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OYB DNA of Value
INSIGHT
EXPERTISE LOYALTY
VALUE
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OYB Leverage Your Revenue Stream
$10,000
$12,500
$15,000
$17,500
$20,000
$22,500
$25,000
$27,500
$30,000
$32,500
$35,000
$37,500
$40,000
1 2 3 4 5 6 7 8 9 10
An
nu
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ee
Pa
id b
y C
lien
t
Revenue A
CLIENT A
$500,000
2% fee
8% growth
CLIENT B
$2,000,000
1% fee
8% growth
Time
Revenue B
For illustrative purposes only. Individual results may vary.
Tim
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sh
ip A
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ua
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OYB Lifetime Value of A Loyal Client
$10,000
$12,500
$15,000
$17,500
$20,000
$22,500
$25,000
$27,500
$30,000
$32,500
$35,000
$37,500
$40,000
1 2 3 4 5 6 7 8 9 10
An
nu
al F
ee
Pa
id b
y C
lien
t
Revenue A
CLIENT A
$500,000
2% fee
8% growth
CLIENT B
$2,000,000
1% fee
8% growth
Time
Revenue B
Tim
e R
eq
uire
d to
Se
rvic
e R
ela
tion
sh
ip A
nn
ua
l R
eve
nu
e R
ece
ive
d fro
m C
lien
t
$289,731
$144,866
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OYB Build A High Performance Team
WHAT IT MEANS…
The right people doing the right
things the right way for the
right clients at the right time for
the right reasons.
WHY IT’S IMPORTANT…
If we want extraordinary clients,
our business must offer an
extraordinary value proposition.
Only a HPT can deliver such an
offering.
KEEP IN MIND…
It is one thing to have the right number of people (capacity)
doing the work. It is quite another to have the right people
doing the right things the right way for the right clients, etc.
We will learn how to create this type of team in our next
program, Building & Leading High Performance Teams.
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OYB Be A Stronger Advocate for Clients
WHAT IT MEANS…
Becoming a stronger advocate
for our clients means always
looking out for their interests
and solving more problems for
them, even non-financial ones.
WHY IT’S IMPORTANT…
It is no longer enough to simply
satisfy our clients. We must
exceed their expectations. We
do this by becoming a stronger
advocate for them.
KEEP IN MIND…
Before we can expect a client to become a stronger advocate
for us, we first have to become stronger advocates for them.
We will learn how to do this in our third program, Turning
Clients Into Advocates.
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OYB Keep Optimizing Your Business
Business Optimization Process
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REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE
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