CASE STUDY

SUBMITTED TO: SUBMITTED BY:

Dr Ram JYOTI SINGH

Introduction

•Merrill Lynch founded in 1907 .•In 1970s firm became a powerful force in

investment banking.•By 2000,Merrill described itself as the

preeminent financial management and advisory company.

•In 2003,Merrill Lynch was one of the leading financial-services firms in the world.

•Jim Walker , member of Merrill’s Client Relationship Group, part of Merrill’s Private Client Group, responsible for financial advisory services for individuals.

Financial Advisors

•FA would bring clients to the firm through his/her relationships,networking,professional alliances.

•Merrill Lynch’s FAs were thought to be among the best on Wall Street.

•FAs enjoyed the autonomy their jobs provided

•FAs compensation based on the quantity of business they brought to the firm.

Supernova

•Rob Knapp was the father Supernova.•12-4-2 was the Supernova description of

what clients’ minimum annual contact with their FA should be.

•12-4-2 was a breakthrough from the clients’ perspective

•Posed a dilemma for the Fas who wanted to implement it.

Segmentation

•The decision to keep or forgo a client was complex.

•FA developed the model recognised that in order to deliver the high level of service he would have to reduce the number

•Decided to keep top 100 clients.•Ultimately ,kept only 33 clients who

generated 89% of his income during the previous year

Organisation

•Supernova client associates prepared FAs daily folders .

•The meetings were placed on the FAs calendar

•Each morning FA would be given the folders for clients.

•They induced “folder guilt”.•Client associates getting their FAs fully

segmented received $1000 from the FAs

Acquisition

•Each year Supernova FA would acquire some new , high-quality clients,least promising clients displaced by the new clients.

•Time dedicated to 12-4-2 left between two and four hours each day for client acquisition

•Many FAs found referrals were their best source of new business.

Process of Adopting Supernova

•Supernova had been spread through road-show presentations.

•First step in Supernova adoption was called ”FA buy- in”.

•The second step in Supernova adoption was segmentation.

•Merrill Lynch assigned one employee to devote herself exclusively to the program.

Challenges to Implementation

•Economic Backdrop•Politics and Recognition•Organisational Leverage Points•Follow Up/Support•Client Expectations•Changing Role of Some FAs•Misinterpretation•Metrics

•FA Nature•Inclusion of Client Associates

THANK YOU