Professional Documents
Culture Documents
Case
McGraw-Hill/Irwin
Case 2-*
Stockbrokerages and
Stockbrokers/Financial Advisors
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Supernova
Case 2-*
Case 2-*
Case 2-*
Improved income
focus on profitable clients
growth through account management
less time wasted on pursuing unprofitable new accounts
Case 2-*
Case 2-*
Segmentation
segment clients to keep only the best:
each FA down to (ideally) 200 clients ($1 million in annuitized assets
at Merrill Lynch and $10,000 in fees/commissions)
process:
hard to determine at first:
one FA developed 11 sets of rankings to determine best clients based
on revenue, profitability, relationship value, etc
hand off less desirable clients to other FAs who need the
business or to the Financial Advising Center
often these clients were happier and stayed longer with Merrill Lynch
than they might have otherwise
Case 2-*
Organization
more delegation of routine calls and tasks to Client
Associates
hard for CAs initially, so FAs sometimes personally
offered them incentives to make the switch
Case 2-*
Acquisition
every year FAs still need to acquire new, high
quality clients (suit analogy), but fewer new clients
than in the past
2-4 hours per day available for acquisition
more than FAs needed
Case 2-*
Risks of Supernova
Supernova represents a major change in philosophy and
approach to clients
Does the approach match the personality of a typical FA?
What if they lose some of the best FAs?
Who will lead the effort and provide the organizational
leverage?
Case 2-*
Benefits of Supernova
Greater levels of client retention and client
profitability
Case 2-*
Acquisition
2-4 hours per day allocated to acquisition to ensure flow
of new, high-quality clients
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*
Case 2-*