LOBUE ASSOCIATES INTRODUCES NEW REVENUE BUILDING MODEL FOR CAPTURING GROWTH OF WEALTH MARKET CHICAGO, IL, February 17, 2000 - LoBue Associates, a leading international consulting firm, has developed a powerful new revenue building model for banks and other organizations serving the wealth market. The model, named Total Business Performance, is designed to focus an organization's resources on fast-track development of client and market share in the wealth management business. LoBue presented the model to the American Bankers Association on February 8th at their Trust, Asset Management and Marketing Conference in New York. "Most banks are seeing ninety percent of their wealthy and affluent customers giving virtually all of their financial services business to competitors", said Allan Morehead, director of LoBue's Wealth Management Practice. "Yet this segment of their customer base has the potential to produce revenues well in excess of the general retail segment, and at gross pre-tax profit margins of 40-plus percent." Morehead added, "And despite years of acknowledging the lost opportunity, most banks are still grappling with how to effectively reverse the trend." The LoBue revenue building model is an integrated methodology that helps senior decision-makers focus on clear action steps to stop the downturn and start capturing the millions of dollars of highly profitable revenues being generated by their own high net worth customers with their competitors. The model is comprised of the following fundamental components: Breakthrough Revenue Planning - Most revenue goals for 2000 will not even assure market share preservation. Revenue growth goals must be based on the full magnitude of internal opportunity rather than incremental increases over the prior year's performance. Macro/Micro Client Productivity - On the macro side, banks have huge retail customer bases that are full of untapped prospects for the private bank. On the micro side, existing wealth management clients typically do only a fraction of their business with a bank. Thus, there is a need to motivate and manage identification and referral of internal prospects, and to become the lead advisor/provider to clients, in order to capture more business from competitors. Life Cycle Relationship Management - Wealth management clients pass through life cycle phases characterized by transitioning objectives and priorities. Relationship managers must anticipate and proactively manage their clients through these phases or they risk losing clients as their priorities begin to transition. User-Driven Information Delivery - There is a fundamental need to redesign information delivery based on user-oriented objectives and technology characteristics rather than producing "high tech" versions of legacy statement designs (a typical symptom of which is a client who is frustrated with his/her "statement", and to some perceived degree, by extension, with a portfolio's management). Integrated Sales, Service and Operations - Designing organization-wide sales management, with service delivery and operations processes that are integrated "end-to-end" from client contact points to back office support. The result is an organization that is competitively fit and focused on developing its wealth management potential. Implementation - Even aggressive plans and sound designs fail or fall short due to ineffective implementation. Unlike new ventures, change management of entrenched cultures requires as much "change-from" implementation as "change-to". And, identifying and implementing early "quick wins" will not only sustain support, but also provide funding for future growth. "Leadership must come from the very top on this," concludes Morehead, "because succeeding in the wealth management market will demand true cooperation among banking divisions with a history of internal 'turf' competitiveness. Banks without that level of commitment will forfeit the game." Founded in 1981, LoBue Associates, Inc. is a member of the LoBue Group of companies. Specializing in the financial services industry, LoBue has extensive experience in corporate banking, international banking, mortgage banking, retail banking, wealth management, finance companies, insurance and technology. The firm has conducted more than 400 consulting projects in 38 countries, working with companies to develop and implement strategies that improve business performance. LoBue's Wealth Management Practice provides specific expertise in private client strategy and revenue building to wealth management, private banking, and trust companies. The firm has offices in Northbrook, Ill., New York and Las Vegas. return
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