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Servicing & Retaining Clients with a Robust Process

We have a unique business of serving clients' money needs, solving problems, and being a sounding board in their financial and life decisions. This industry is very people-centric and our biggest asset is our time and experience in interacting with clients. Further, our business should be either wholly or semi-automated depending on the business model, organization structure, and business size.  Kaizen is a technique for ongoing improvement. One needs to improve existing services, or processes by implementing relatively smaller than significant changes. If we catch the problem and nip it in the bud, won't it help by not escalating the problem to a white elephant proportion and then becoming a challenge? It is crucial for us as individuals or a business to measure the work done and activities in the day. That becomes the starting point of creating processes that are unique to your requirements and business model. Ask questions to understand the problems and challenges people a
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Don’t do the favour of running your organization!

Long ago, in my early employment career, my employer had hired an experienced consultant to improve the efficiency of the organization. I used to indirectly report to him. He was a retired professional who worked in top managements of India’s few big Auto OEMs. I was in my 20’s and he was in his 60’s. He was kind & generous enough to let me grow closer to him, so that I could learn few gems of wisdom. In one of our conversations, he illustrated an experience of his. He was head of operations reporting to the CEO. He reported to his boss about something great he did, mostly expecting that his boss would appreciate him. To his shock rather, boss said “Please don’t do the favour of running this organization. Please help putting in place the processes to run it.” It was a great learning for my boss as well as for me. Then there is one of my favourite stories. It goes like this: A family used to an annual ‘pooja’ ritual. They had a strange custom of tying a cat to the pillar at home

Use of Monte Carlo Simulation in Financial Planning

Monte Carlo Simulation: What is it? It is a technique used to understand the impact of risk on the  outcome of any project, wherein the impact of the risks can't be forecasted using traditional techniques. The source of risk is mainly the uncertainties related to the various inputs. The uncertainties of input would generally follow a probability distribution. For example, the market returns tend to follow the normal distribution and inflation tends to follow the lognormal distribution. The Monte Carlo Simulation (MCS) converts the uncertainties of the inputs into probability distributions, chooses values randomly from the distributions of each of the inputs, feeds them into the model of the project, and generates the output. MCS repeats this process thousands of times to produce a range of possible outcomes with the probability of their occurrences. MCS: Use in Financial Planning We take a simple example to illustrate the use of MCS in financial planning. Suppose a client needs to

Seven lessons for an adviser from the Bhagavad Geeta

We know that Lord Krishna recited the Bhagavad Geeta as a message to his friend and disciple, the warrior prince Arjuna. However, Lord Krishna does not utter a single word in the first chapter. He speaks for the first time only in the 2nd shloka of Chapter 2. That too was just a casual question as a friend. The real advice starts only from the 11th Shloka of the 2nd Chapter. Till then, he listens to Arjuna. You see, even the God does not jump to answer without allowing the disciple to speak his mind and without understanding Arjuna's point of view. Understand the importance of listening before you offer any advice or solution.In the first two shlokas of the 3rd Chapter, Arjuna asks the Lord, “Please tell me what is right for me.” It was equivalent to a client asking you, which is the best fund. The God could have told him – do this; instead, he explained the theory of karma. Bhagavan Krishna does not recommend anything, but only shows Arjuna the consequences of various actions and