Optimize Your Business

Optimize Your Business TM

How to Achieve
Better Results with Less Effort

Stephen A. Saenz

OYB Business Optimization Defined
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An optimized business is one that…

GROWS FASTER

with…

LESS EFFORT

which in turn, makes it…

MORE FUN

OYB The Power of Business Optimization
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OYB OYB Process: 30,000 Foot View
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REALIZE MINIMIZE ORGANIZE SYSTEMATIZE OPTIMIZE

Business Optimization Process






OYB OYB Process: 15,000 Foot View
STEP 1: REALIZE – We identify the performance barriers that are keeping your business from
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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.

OYB Food for Thought
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“The significant problems we face
cannot be solved at the same level of

THINKING
we were at when we created them.”

Albert Einstein

OYB In other words…
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“It takes

BREAKTHROUGH
thinking to get
breakthrough results.”

OYB Results vs. Effort*

Business Optimization (Effort vs. Results)
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Red diamonds represent actual wealth advisors from major brokerage firm

* This should remind you of PORTFOLIO optimization (minimize risk / maximize return)

OYB Step 1: REALIZE
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WHAT IT MEANS… WHY IT’S IMPORTANT…
To become aware of the Performance barriers are not
barriers that are preventing our always apparent. We cannot
business from performing at its solve problems we are not
full potential. To identify the aware of. Step 1 leads to
root causes. 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.

OYB What is there to REALIZE?
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“Change happens NOT by trying to make yourself change,
but by becoming aware of what’s not working.” Shakti Gawain

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.

OYB Step 2: MINIMIZE
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To reduce or eliminate the Our business needs to be in
barriers that are preventing our good shape if we want it to run
business from performing at its efficiently. We will be focusing
full potential. To pave the way on the health of our business
for faster & better growth.
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

OYB How do we MINIMIZE?
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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

OYB Step 3: ORGANIZE
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To figure out what it takes to Lack of organization leads to
run our business and align our misallocation of resources,
resources accordingly. To which severely limits business
define, quantify and document performance. Organizational
our workload. 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!

OYB How do we ORGANIZE?
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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

OYB Evolution of the Advisor Business Model
Your BUSINESS MODEL has been evolving over
Advice
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the years. For a variety of reasons, including
industry commoditization and increased
competition, you have been adopting higher
Driven
value business models.
Family
These high value business models place greater Office
demands on your firm and team. You now have
PERCEIVED VALUE OF YOUR OFFERING

to solve complex wealth management problems
and build stronger relationships with your
clients, all of which requires significantly greater Wealth
resources. Advisor Client
Centered
Financial
Planner

Investment
Consultant
Idea
Driven
Financial
Advisor

Stock The STRUCTURE of your business must change in order to
support your new business model. If not, you will experience
Broker Advisor declining revenue growth, deteriorating client satisfaction
and/or increasing levels of stress on your team.
Centered
COMPLEXITY OF YOUR BUSINESS

OYB Identify Your Primary Business Functions
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Practice Management

F I N D I N G
AD M I N I STRATI O N
Marketing Sales
a n d O PE RAT I O N S

G R I N D I N G
Financial Portfolio Portfolio Financial Portfolio
Planning Design Mgmt Research Reviews

M I N D I N G
Client Relationship
Service Management Sales

Team Developmen t

OYB Core Functions & the DISC Behavior Model

Implementer
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Compliance Dominance

C
Practice Management
D
Rules Portfolio Analysis & Design Problems

Financial Research
Coordinator

Portfolio Management

Persuader
Financial Planning Sales

Administration

Portfolio Reviews
Marketing
Team Development
Steadiness Influence
I
Relationship Management

S Client Service
Pace People
Relater

OYB Define Your Work
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To identify and document The best way to understand
every important task or activity something is to commit it to
that takes place in each writing. This also keeps things
function of our business. 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.

OYB Quantify Your Work
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To figure out how long it takes If we can’t measure we can’t
to perform every important task manage. Knowing how long it
or activity in our business. We takes to perform important
should do this for every activities is critical to
function of our business. 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.

OYB Step 4: SYSTEMATIZE
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To adopt a standard way of Systems save time and enable
performing the important tasks our people to do things the
and activities in our business. right way on a consistent
To make efficiency a serious basis. Lack of systems
priority in our business.
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.

OYB What is a SYSTEM?
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A series of steps or activities that work together
to produce predictable and consistent results.






OYB Intangible Systems
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WHAT THEY ARE… WHY THEY’RE IMPORTANT
Intangible, or “soft” systems, Little things can make a BIG
are ones we cannot see or difference when it comes to
touch. Used by world-class client satisfaction. They also
organizations to deliver tend to be the biggest source of
exceptional client experiences.
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.

OYB Step 5: OPTIMIZE
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To have a business that grows Value comes from leveraging our
faster with less effort. To create core assets, which includes time,
real and sustainable value in our knowledge and relationships. We
business. To maximize the value will do this in Step 5 of OYB
of our business for succession Process.
planning.

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…

OYB How do we OPTIMIZE our business?
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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

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?

OYB DNA of Value
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EXPERTISE LOYALTY

VALUE

INSIGHT

OYB Leverage Your Revenue Stream
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CLIENT A CLIENT B
$40,000 $500,000 $2,000,000
$37,500 2% fee 1% fee
8% growth 8% growth
$35,000
Annual Annual Fee Paid by from Client

Time Required to Service Relationship
$32,500
Revenue Received Client

$30,000

$27,500

$25,000 Revenue B
$22,500

$20,000

$17,500
Time
$15,000

$12,500

$10,000
1
Revenue A2 3 4 5 6 7 8 9 10

For illustrative purposes only. Individual results may vary.

OYB Lifetime Value of A Loyal Client
CLIENT A CLIENT B
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$500,000 $2,000,000
2% fee 1% fee
$40,000
8% growth 8% growth
$37,500 $289,731
$35,000
Annual Annual Fee Paid by from Client

Time Required to Service Relationship
$32,500
Revenue Received Client

$30,000
Revenue B
$27,500

$25,000

$22,500

$20,000
$144,866
$17,500
Revenue A
Time
$15,000

$12,500

$10,000
1 2 3 4 5 6 7 8 9 10

OYB Build A High Performance Team
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The right people doing the right If we want extraordinary clients,
things the right way for the our business must offer an
right clients at the right time for extraordinary value proposition.
the right reasons. 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.

OYB Be A Stronger Advocate for Clients
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Becoming a stronger advocate It is no longer enough to simply
for our clients means always satisfy our clients. We must
looking out for their interests exceed their expectations. We
and solving more problems for do this by becoming a stronger
them, even non-financial ones.
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.

OYB Keep Optimizing Your Business
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Business Optimization Process






Optimize Your Business

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