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TRANSCRIPT
10/17/2016
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Different Strokes for Different Folks – Practice Designs for Your
Business Model
Karen Smith
JJ McKinney
Greg Fowler
10/17/2016
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Learning Objectives
• Identify various business models
• Recognize factors that contribute to determining the best fitting business model
• Differentiate between business model and service model
Introduction
• Karen Smith
• JJ McKinney
• Greg Fowler
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Karen Smith Firm
• 97 employees spread across 5 offices with 41 working remotely full-time
• Services Offered
– 401(k) administration (no daily recordkeeping)
– Defined benefit actuarial services
– Consulting
Karen Smith Firm
• Account manager is primary contact
• Departments that support account manager and with whom the client may interact
– Implementation
– Plan document
– Special projects
– Loans/distributions
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Karen Smith Firm
• Current focuses
– Relevant communication with client
– Automation to free up more time for account managers to interact with clients
– Growth
JJ McKinney Firm
• 44 employees – 36 onsite (2 offices), 8 full/part remote
• Services Offered
– Defined Contribution and similar Administration
– Defined Benefit Administration
– ERISA Consulting / Corrections
– 3(16) Plan Administrator Services
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JJ McKinney Firm
• Business Model
– Dedicated Plan Consultant
– Administration Team
– Participant Service Center
– Workflow Tracking
JJ McKinney Firm
• Current
– Consultants lead
– PSC silo
• Future
– Product oriented teams
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Greg Fowler Firm
• 230 employees – 160 onsite, 70 completely remote
• Services Offered– 401(k) Administration
– Non-ERISA Retirement plan administration
– Welfare Plan Administration (HSA, HRA, FSA)
– COBRA Administration
– Other outsourced benefit solutions (custom designed)
Greg Fowler Firm
• Business Model– Dedicated Relationship Manager - primary
contact
– Compliance Team – behind the scenes compliance work
– Transactions Team – all transactions and contribution processing
• Currently – each department works independently, even if common clients exist across retirement and welfare
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Greg Fowler Firm
• Future model
– One Relationship Manager for all services for a client
– One team to handle all contribution processing across the company
– One transactions team to handle all participant calls / claims / distributions / loans across the company
Business Model• “a design for the successful operation of a
business, identifying revenue sources, customer base, products, and details of financing”
• “A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy.”
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Business Model Approaches
• Soup to nuts Account Manager
• Consultative
• Departmentalize
• Hybrid
Products
Pure AdministrationConsulting
Recordkeeping
Defined Benefit
Documents / Corrections
Multiple ER Plans
Welfare Benefits
Investment AdviceFiduciary
Other Specialties?
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Revenue Sources
• Sponsor
• Plan
• Revenue Sharing
• Commissions
• Referral Fees
• Other
Customer Base / Ideal
• Small employers
• Larger employers
• Specific segments
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Service Model• “a design for the successful servicing of
clients, identifying methods, frequency and technologies used in communicating with clients and delivering services”
• “A service model describes how an organization communicates and interacts with service clients. The process of service model construction is part of business strategy.”
Service Model Spectrum
Tailored to Client Needs & Wants
Tools for Do-It-Yourself Sponsor
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Service ModelIs the focus of your service?
• Highly customized to each client
• Off the rack with tailor services as needed
• One size fits all
Service ModelFrequency of proactive communication with client
• Annual
• Quarterly
• As needed
• Never
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Service ModelPrimary communication method with clients
• Paper mail
• Phone
• In person
• Social media
• Other?
Self Service
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Key Factors
• Size of company
• Remote / onsite workforce
• Employees strengths and weaknesses
• Technology
• Market place
• Alignment of service and business model
Selecting Your Model
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