WORKSHOP ROADMAP Strategic planning

WORKSHOP ROADMAPStrategic planning Supported by

Objective To produce a long term (3-year) strategic plan which will provide clear direction and actions to enable the business to achieve its ambitions

Strategic planning roadmap OPPORTUNITY ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS KEY ISSUES DIRECTION PRACTICAL BUSINESS VISION ACTION IMPLEMENTATION PLAN

The purpose of each section

Strengths and weaknessesDebating points: 1

Strengths and weaknessesDebating points: 2

Strengths and weaknesses What is really important? HIGH Exploit leading position for market advantage Build capability as top priority Importance for success Maintain and enhance if necessity increases Maintain at minimum standard LOW HIGH Business effectiveness

External environment Opportunities and threats: generic drivers Economic trends Political pressures Government policy Social trends Legal framework Stockmarkets Consumerism (Green) Environment E-commerce

Opportunities and threats: Generic drivers: advice market More people aged 45+ + Awareness of need to plan People are time pressured Inheritance monies Govt. trying to expand the market TCF Retail Distribution Review ` - Pensions proposals Consolidation Price-capped products Consumer confidence

Framework to summarise changes and how they affect the business

Questions to identify and scale opportunities and threats • What are the big changes in the external environment for the next 3–5 years? • How will they affect your business? • Which ones worry you most and which are secondary? • How certain are you that these changes will happen? • Are there any show stoppers that could prevent you from trading? • Which parts of government policy will influence what you do or what you advise upon? • Where are the greatest opportunities? • How well placed are you to respond to these changes? • Are there any actions you need to take now or within 6 months? • If the picture is unclear, what is your working assumption?

Opportunities and threats What is really important? HIGH Develop and implement action plan Maintain watching brief Scale and likelihood of change Prepare contingency plan Ignore LOW HIGH Impact on business

Five key issues Key issues have these characteristics: • What is really important? • What can we influence? • What is essential for this plan to deal with? Key issues can: • Exploitspecific strengths and opportunities • Dealwith specific threats and weaknesses

Typical key issues • Ensure financial strength/increase recurring income • Define pricing strategy and associated service levels • Identify/shift to profitable markets • Sourcing and retention of the right clients • Increase client and adviser productivity • Exploit electronic commerce and technology • Develop and enhance database • People – recruitment, retention and training • Further develop management infra-structure • Consider/review acquisition policy

Practical vision: 3 years out • Turnover and profitability • Clients – numbers and types • Advisers – numbers, types and productivity • Administration and other staff – skills, job types, numbers • Organisation structure • Service and charges – different levels for different clients • Sources of business • Business mix – by product or area of financial planning • Processes and technology • Premises • Acquisition policy Scale Resource Business Infrastructure Growth TO PROVIDE DIRECTION

Market position What do we do? Who do we do it for? How do we do it? Where do we do it?

Market positioning: examples GOLD FINANCIAL CONSULTANTS What do we do? Expert financial and tax planning to enable the long term management of investments through a detailed plan that is regularly reviewed Who do we do it for? Private clients with over £500,000 How do we do it? Working with other professional advisers from a consultancy perspective to use our in-house technical skills and expert software to pro-actively manage clients’ affairs Where do we do it? In traditional style offices in the “professional quarter” • BRONZE INSURANCE ADVISERS • What do we do? • Streamlined advice in one meeting to make sure people have the right policies for their needs • Who do we do it for? • Families and working people between the ages of 30 and 50 • How do we do it? • Straightforward fact find and product/fund selection software – automated reports and other documents • Where do we do it? • In our high street “shop front” office or in people’s homes

Implementation: issues to consider How do we get from now to the future? • What are the priorities? • What needs to change? • Where should we concentrate our effort? • Who will undertake the work? • When will we complete it? Projects normally come direct from the key issues list

Implementation plan: individual projects • Project name • Reasons for project • Project objective • Specific actions • Responsibility • Timescale • Resources

Project planning example:investment management Actions: • Confirm internal requirements • Identify possible suppliers • Research their methods • Develop short list • Invite candidates to tender • Review against our criteria • Consult across the business • Contact and appointment Confirm objectives Plan the work Responsibility, timescale and resources • Objective: • To outsource investment management, to begin March 2010 • Resource: • Who • When • Additional resource

The final stage Risk Internal: • Loss of key people • Failure to monitor and manage the plan • Poor implementation project management • Major compliance failure External: • Major stock market or economic disruption • Unforeseen distraction from regulator • Unexpected distraction from possible amalgamation Monitoring • Frequency • Reporting procedures

THANK YOU! • Next steps are: • Plan will be drafted. • Second meeting (in around 2 weeks time) will review and finalise the plan. • Senior team and/or board will formally approve the plan. • The plan (or appropriate parts of it) communicated to all the others in the business.

WORKSHOP ROADMAPStrategic planning Supported by

WORKSHOP ROADMAP Strategic planning