Using Purpose As Corporate Strategy

Using Purpose As Corporate StrategyBy Christopher Tan, CEO Providend Ltd, Singapore

my objectives

How we use Providend’s purpose to permeate the entire organization

How failure in adhering to our purpose almost killed us in 2009

How adhering to our purpose ultimately saved us

who is providend?

We officially started on September 11th 2001…

11 September 2001, 8.46 am. 1st 767 Jetliner hit North Tower11 September 2001, 9.03 am. 2nd 767 Jetliner hit South Tower

9.59 a.m. : South Tower Collapsed

10.28 a.m. : North Tower Collapsed

Our Plans Collapsed Too!

The Situation: 2001 -2003

Macro environment 2001-2003

No license governing financial planning

Financial Advisers Act to be passed in September

An ageing population that lacked planning

Mis-selling and poor image of “financial planners”

Microenvironment 2001-2003

Insurance companies & banks

All commissions based

Individual advisers of low competence

Providend’s Purpose Statement

Making wise financial decisions affect so many aspects of a family life

Having money provides possibilities for a better quality of life. On other hand, the lack of it create limitations that can sometimes break families

In an environment where products are being sold everyday, and many times, through poor financial advice, families make poor financial decisions

As a family of people driven by passion

We exist to serve our clients to fulfill their dreams and achieve their family goals by providing them with the most honest, independent and competent financial advice. We believe the best way to do it is through time-tested, prudent and holistic financial solutions, even if it means to be different.

We strive to be the light of the financial world

This is what drives us

This is why we exist

This is our purpose

Providend’s Tagline

“A Family Serving Families”

How our Purpose Permeated The Entire Organization

PurposeH.R.

Finance

Ops

Marketin

g &

CRMAdvisoryInvestment

Compensatio

n Model

PCFE

Compensation Model

“Honest & Independent” Advice: Fee –only

Fee-only determined our target market

Advisory

“Independent, Competent & Holistic” Advice:No restrictions to product range

Comprehensive & integrated financial planning advice

Team-approach


Advisory Model

Initial Contact

Quarterly to Yearly Review

45-day Meeting

ImplementPresent Solutions

Presenting Value Proposition

Present Findings

Discovery Meeting

CFP™Coherence of Financial Strategies

CLURisk

Management & Insurance

CFAWell‐

Researched Investment Strategies

CPATax‐Efficient Financial Strategies

TEPLegal Aspects of Financial Strategies

Investments

“Competent” Advice: Experienced investment committee“Time-tested & prudent solutions”: Asset allocation, no market-timing, staying invested, keep investing, simple easy to understand and low-cost instruments

Finance & Operations

“Honest & advice” - Commissions rebate and zero-commissions product manufacturers and platforms


Human Resources

“A family of people driven by passion”“Honest, independent & competent advice”“Even if it means to be different”“Be the light of the financial world”

Academically and professionally qualified consultantsCharacter of integrity Prepared to be differentPassionate about our purpose more than compensation


Providend Centre of Financial Education

“Being the light of the financial world”Books

Financial literacy classes

Work with MAS on financial education


Marketing & Client Relationship Management

“Light of the financial world”: Articles“Honest & independent advice”: Asking clients permission for sponsors for client events Staff alignment: Orientation training on PurposeYearly retreat case studies“A family serving families”


The Providend Home

Christmas 2006

Coffee at Home

Revamp Website

The Financial Crisis –September 2008/2009

We almost died in 2009

Breaking the “prudent rule”

Went into MENA sectorUsing a newly set up global bond fund

Breaking the “time-tested” rule

Holding off investments early 2009

Breaking the “holistic financial solutions” rule

We were overly focused on investments

Everything started to collapse

31st December 2008: $160 million AUM

Cash flow difficulties

10% of clients left

Unhappy clients

1 legal suit

Staff low morale and blame

Almost 1/3 of staff resigned

How our purpose saved us

All these years of passionately pursuing our purpose kept us alive

We kept our key peopleWe apologized

We reminded ourselves of our purpose

We rededicated and persevered

We recruited new evangelist



We kept 90% of our clientsWe met up with clients more during the last 12 monthsWe sent more updates and I wrote personal lettersWe organize more client sessionsWe went back to each clients and realigned their financial plansRecent annual client conference: We admitted our loss of focus and shared what we are doing to improve process and re-committed to clients



We attracted 2 new shareholdersA very senior and prominent person in SingaporeA senior MD from an international financial institution search us out from UK

All because they like our firm and believe in our purpose and storyInjected capitalAdviceMentored meGave us hope

Conclusion

Who is the guardian of the organization’s purpose?

The Chief Executive Officer!

Thank You!

Business

Using Purpose As Corporate Strategy