Writing Business Plans in Private Banking and Wealth Management Geneva, 19. April 2007

Overall Objectives to Introduce Systematic Business Plans in Private Banking and Wealth Management A structured process of approaching markets in private banking quick understanding of possible incomes, costs and returns of developing new markets Compare business plans across a bank’s markets need to align regions and identify what works where An aggregated overview of all business plans a standard format allows to quickly draw the big picture [photo by greenboxhouse.wordpress.com]

A structured process of approaching markets in private banking

quick understanding of possible incomes, costs and returns of developing new markets

Compare business plans across a bank’s markets

need to align regions and identify what works where

An aggregated overview of all business plans

a standard format allows to quickly draw the big picture

Objectives of a Systematic Business Plan for Tackling and Identified Market Elaborate how a private bank can grow in an identified market Estimate the revenue potential for this market Calculate the cost structure of the identified market approach Evaluate the possible risks of the project … Produce a structured business plan containing all of the above. Succeed.

Elaborate how a private bank can grow in an identified market

Estimate the revenue potential for this market

Calculate the cost structure of the identified market approach

Evaluate the possible risks of the project

… Produce a structured business plan containing all of the above. Succeed.

A Business Plan Approach in 4 Phases Preparation and Planning Elaboration of the Market Approach Identification of Necessary Resources Writing of Business Plan 1 2 3 4 approximately 3 weeks ~ 1 Session Calendar Coordination Market research ~ 2 Workshops Identify market segments describe value proposition outline client acquisition strategy and specify client relationships describe revenue streams and pricing ~ 1 Workshop Identify projects estimate man/days determine necessary resources ~ 1 Session Description of market approach Expenses/Income Return estimates Risk estimates Implementation recommendations approximately 4 weeks approximately 2 weeks approximately 3 weeks

~ 1 Session

Calendar

Coordination

Market research

~ 2 Workshops

Identify market segments

describe value proposition

outline client acquisition strategy and specify client relationships

describe revenue streams and pricing

~ 1 Workshop

Identify projects

estimate man/days

determine necessary resources

~ 1 Session

Description of market approach

Expenses/Income

Return estimates

Risk estimates

Implementation recommendations

Project Planning Leadership Interview Kick-off & Workshop Second Workshop Third Workshop Review „Plan Marketing“ 1 hour personal interviews Explanation of method Market research Identify objectives Identify participants Planning Material collection 2x3 hours group sessions Client Segments? Offer? Change Agenda Segmentation Client Radar Strategy Canvas 2x3 hours group sessions Client Acquisition? Relationships? Revenues? Change Agenda Multi-channel Design Revenue Model 2x3 hours group sessions Projects? Man/days? Resources? Change Agenda Market Approach 3 hours group sessions Final Presentation Review Next Steps examples / toolset preparation market opinion analysis synthesis synthesis writing checkpoint checkpoint checkpoint approval business plan

Phase 1: Preparation and Planning Calendar list the participants of the business plan process identify windows of availability for all participants Coordination mobilize participants and explain their roles Market Research „ Desk Research“: collect reports and information on the targeted market Actively research the addressed market if necessary 1 2 3 4

Calendar

list the participants of the business plan process

identify windows of availability for all participants

Coordination

mobilize participants and explain their roles

Market Research

„ Desk Research“: collect reports and information on the targeted market

Actively research the addressed market if necessary

Phase 2: Elaboration of the Market Approach Client Segments Client Acquisition & Relationship Revenue Streams Today Future 1 2 3 4 Offer / Value Proposition Market Approach 2 Today Future Today Future Today Future

Phase 3: Identification of Necessary Resources Projects man/days Resources Today Future 1 2 3 4 Necessary Resources 3 Client Segments Client Acquisition & Relationship Revenue Streams Offer / Value Proposition Market Approach 2 Projects man/days Resources Today Future Projects man/days Resources Today Future Projects man/days Resources Today Future Today Future Today Future Today Future Today Future

Phase 4: Write the Business Plan Targeted market segments The value proposition for each segment Client acquisition, client relationships and resulting revenue streams Differentiate and market positioning Necessary resources to realize the business plan Risks and their management Estimated ROI Implementation plan 1 2 3 4 Client Segments Client Acquisition & Relationship Revenue Streams Offer / Value Proposition Necessary Resources Market Approach

Targeted market segments

The value proposition for each segment

Client acquisition, client relationships and resulting revenue streams

Differentiate and market positioning

Necessary resources to realize the business plan

Risks and their management

Estimated ROI

Implementation plan

For detailed information on systematic business plan development in private banking and wealth management contact [email_address]