WMI - Core Affluent Convention 2006

Spirit, Pride and Joy

Welcome!
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Introduction
Core Affluent Spirit, Pride and Joy
Raoul Weil
Head Wealth Management International
CorA HNWI KC
54
101
155
You work in the most profitable segment in WMI
Segment comparison RoA (bps)
Distribution of IA in CHF
CorA HNWI KC
54
101
155
You work in the most profitable segment in WMI
We can grow and we will grow with the Core Affluent segment in WMI.
Segment comparison RoA (bps)
WMI World
12
30
42
50
46
20
773 bn 46'117 bn
+ =
up to
CHF 2.5 bn
revenue
potential
WMI Think client, grow commercially
Client focus
UBS Client Experience
Lead Offering per Segment
Client defection
management
Growth
Best shift
Prospecting
Share of wallet
Talent
Using Best Practice
Recruiting and Integration
CA Certification per
segment
Desk Head Training Program
Efficiency
Sales Management Process
Using Best Practice
Tool Usage
Profitability Quality
Client Experience drives growth!
The Spirit, Pride and Joy of WMI Core Affluent
Client Focus
Client Focus Think client
Jrg Zeltner
CEO Germany Domestic
Think client, grow commercially.
Raoul Weil
Client focus in our lead offering:
Our offering is always integrated into the UBS Client Experience
Mandate and Advisory Solutions
Liability Management
Life Cycle Management
Client Retention Index: help the CA
identify clients at risk of defecting.
Gary Wai Bong Chang, Tokyo
Client Focus
The special spirit of our segment:
The most profitable segment within WMI
The highest RoA in our segment
We generate substantial revenues
Our client base forms the major part of WMI clients
Spirit, Pride and Joy!
Client Focus
Client Focus Living the Value Proposition
Karl Schwarz
Segment Head Core Affluent BU BGC
Our job, a source of pride and joy!
Because we do not focus on
us, but on our clients.
The WMI Core Affluent Value Proposition
Bank Client Advisor Client
Bank's perspective
- ideal positioning of segment
- maximizes revenues
- information delivery streamlined
Bank Client Advisor Client
Client Advisor's perspective
- allow excellence at job,
- fulfill high ambitions, and
- deliver top quality solutions to their clients
The WMI Core Affluent Value Proposition
Bank Client Advisor Client
Client's perspective
- segment specific benefits of UBS Client
Experience
- image of strong and trustworthy partner
- providing security and peace of mind
The WMI Core Affluent Value Proposition
Client Advisor Work Bench
Products and Services
Prospect/Pipeline Management
Reporting
Communication
Training
The WMI Core Affluent Value Proposition
It's not only about tools,
processes and training...
...it's a new philosophy!
Double client time.
Make sure we will be there
at the right moment.
The Value Proposition is US ...
... WE are the Value Proposition!
Proud of working in the most successful,
most challenging segment.
Focus on clients, and watch the
revenues rise.
WMI - Core Affluent Convention 2006
Spirit, Pride and Joy
Coffee Break
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Growth
Growth Where are the millionaires?
Michel Guignard
RMM North America
If you are looking for small potatoes ...
... you will get small potatoes.
Vision and Ambitions Millionaires BU Americas
!
Team Millionaires LATAM
- Vision: Our goal is to rank among the top 3 banks for Millionaires in each
market by the end of 2008
- We want to grow and develop our clients and build up a stable source of
money inflow by improving client satisfaction and increasing contact
intensity
!
Team Millionaires NAM
- Growth of invested assets of 1% p.a. (Mio NAM)
- Stabilize client base and increase efficiency in service and acquisition
- Foster innovation where the skills and diversity of our employees are fully
leveraged and where creative ideas are pursued
50
100
150
200
NNM RoA
168
33
168
15
NNM and RoA Ambition
50
100
150
200
NNM RoA
137
104
129
143
NAM US Intl. Millionaires LATAM Millionaires
Actual/Ambition
RoA: -6% NNM: +38%
Actual
Ambition
Actual/Ambition
RoA: 0% NNM: -54%
0.5
1.0
1.5
2.0
2.5
3.0
JAN 06 FEB 06 MAR 06 APR 06
0.9
0.7
1.3
1.1 0.5
1.0
1.5
2.0
2.5
3.0
JAN 06 FEB 06 MAR 06 APR 06
0.5
1.0
1.5
2.0
2.5
3.0
JAN 06 FEB 06 MAR 06 APR 06
2.7
1.1
0.8
1.1 0.5
1.0
1.5
2.0
2.5
3.0
JAN 06 FEB 06 MAR 06 APR 06
NNM/CA and RoA
NAM US Intl. Millionaires LATAM Millionaires
NNM/CA
RoA
180
140
100
60
20
180
140
100
60
20
65% of CA are NNM-positive 40% of CA are NNM-positive
500
1'000
1'500
2'000
2'500
3'000
3'500
JAN 06 FEB 06 MAR 06 APR 06
2'836 2'805
2'718 2'681
500
1'000
1'500
2'000
2'500
3'000
3'500
JAN 06 FEB 06 MAR 06 APR 06
2'995
2'882
2'690
2'622
Mandate Count
NAM US Intl. Millionaires LATAM Millionaires
Avg Monthly Growth Rate 06
absolute: +124 relative: +5%
Discretionary Share: 23%
Mandates
Avg Monthly Growth Rate 06
absolute: +52 relative: +2%
Discretionary Share: 58%
Initiatives and projects for growth
!
Referrals (Roland Eduah)
!
Segment-Mover Concept (Marcel Tschanz)
!
Potential Project (Michel Guignard)
!
Regionalization (MS MAP-point)
!
Telephone Campaigns (UBP)
!
Video Training (UBP, Role Play)
!
Multi-Channel Direct Marketing
Potential project
In search of the big potatoes
Potential project: the concept
search contact refer
KYC Center Team
- analyze
- assess
- assign
Client Relationship
Facilitator
- one call
- one chance
- one shot
WMI
SFA
WM US
Thorough organization and structured processes
US KYC Profiler
- 2-3 full time researchers
- high diversity background
Talented Profiler
Search Team
Structured Processes Access to internal and
external databases
KYC Center and Client Relationship Facilitator
KYC Center (Kick-off: April 2005)
Scope of activities to date:
- 21'725 name accounts to be reviewed
- 12'600 named accounts assessed:
- 210 high potential prospects
- 2'500 interesting potential prospects
Client Relationship Facilitator
(Kick-off: April 2005)
- 170 files transferred
- 115 successful client contacts (68% hit ratio)
- 73 appointments (61% hit ratio)
- 15% of contacts not interested to pursue
Recent success stories
!
Client Relationship Facilitator (one HC since 3 months)
CHF 5 m NNM (MFP)
Referral to WM US with potential of USD 5 m
RFP for CHF 5 m fixed income mandate (high probability)
!
12 accounts referred to KC-Advisor
!
37 accounts referred to HNW-Advisors
!
USD 500 m IPO with potential KC-business of Swiss based US oil
and gas bunkering company
Go for big potatoes!
We are dealing with millionaires!
Growth
Growth Team up with your partners
Marcel Tschanz
Segment Head Latin America
Partners to success
!
Client development and prospect allocation are not independent from each
other but based on the same understanding of a segmented value proposition
P
a
r
t
n
e
r
s

A
b
r
o
a
d
B
o
o
k
i
n
g

C
e
n
t
e
r
Affluent Core Affluent HNW KC
Acquisition
Prospect Allocation
Client Development
!
Clear rules and guidelines
!
Consistent target setting
Client potential development
!
Growth by identification and development of client potential
in a true partnership approach
CorA CA
Service Intensity
Identification Development
Development Take Over HNWI
up to 6 months 12 months
Distinct
Service Level
teaming up between CorA and HNWI CA
The Desk Head moulds the way
!
One identical message from all levels of management
!
The segment mover approach as a clear and measurable part of the PMM
!
Complete the segment specific sales set-up with platforms to exchange
across segments
!
Important: establish plans and continuously coach and manage the
personal development of all client advisors and assistants
!
and foremost: Walk the Talk
team up and frequently exchange with DHs of the other segments
foster the built-up of teams amongst the client advisors
Pro-actively manage the segment mover approach
Growth
Growth Living the referral culture
Roland Eduah
Segment Head US
Referral culture needs team approach
Microsoft Corporation 1978
Would you have invested in this team?
The prerequisite
CorA HNWI 1 & 2 - Key Clients - FIM
83%
17%
Percentage of WMI assets
53%
47%
Percentage of WMI clients
73%
27%
Percentage of WMI revenues
Leveraging the client base: types of referrall
!
86% of clients would have referred
relatives would they have been asked
!
Question requires diplomacy and sen-
sitivity (selling the whole organization)
!
Find the right partner to refer
the client to
!
Referral agreements
The external referral The internal referral
Think about the way you contribute to growth...
!
The external referral
- Do I know how to identify which client I could ask for a referral ?
- Do I know how to ask for it ?
- Do I know where and whom a prospect can be referred to ?
!
The internal referral
- Do I know where and whom in the organization a client can be referred to ?
- What's in for me if I play as a team player ?
- Do I know what needs to be ensured for me to be allowed to refer a client
across organizational boundaries ?
- Do I ensure a smooth transition whenever the client grows over my head ?
The dynamics of CorA
Service
Excellence
Happy
Client
Referral
New Client
Service
Excellence
Happy
Client
Referral New Client
Service
Excellence
Happy
Client
Referral New Client
Service
Excellence
Happy
Client
Service
Excellence
Happy
Client
Referral New Client
Happy
Client
Service
Excellence
Referral New Client
Service
Excellence
Referral New Client
Happy
Client
Referral
New Client
Growth
Workshop on
Growth in Assets
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Establishing a platform of constant exchange of UBPs
!
Set up:
- One prominent moderator per group
- Eight to nine participants
- Group members come from same location/ region
- Symbol on the Badge shows ones group
!
Time Line:
- 45 minutes workshop
- 15 minutes presentation of results (3 presenting groups chosen at random)
!
Ambition:
- Identify Key Success Factors
- Set clear actions/ action plans within each group
Exchange of best practices and think tank for fresh ideas across BUs
Groups stay together and meet on a regular basis in their locations
WMI - Core Affluent Convention 2006
Spirit, Pride and Joy
Lunch Break
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Efficiency
Efficiency You & Us
Dieter Kiefer
BU Head Western Europe
Improve Client Focus
Trigger Growth
Efficiency
Double Client Time
Spend more time with clients
Focus beyond current client book: Pipeline management
Efficiency generates growth
UBS Client Experience: understand better what clients really want
Lead Offering: Strong offering that can be easily adapted
Efficiency:
Achieve individual growth ambitions
Achieve bank's target to grow
Improve individual work-life balance
More time spent on and with clients:
increase the joy felt in our work.
Challenged to continuosly look for
ways to improve.
Efficiency is a process, an evolution, in
which your input is absolutely necessary!
Our vision: relationships on muliple levels:
Over the phone
Over the internet
Through meetings, both in our offices and on location
From CorA Line to UBS Access Line
Serve whole Core Affluent client base by the end of 2007
To become a Client Book Management Centre
Take care of standardised tasks to free CA time for personalised contacts
Three future developments
Centre for incoming and outbound calls on your behalf
Access Line as a training ground for Client Advisors
High-end connection from CAWB to clients: e-mail, video, voice over IP
We are looking at a future in which
spending less time on administrative work
and more on our clients will be a reality.
Efficiency
Efficiency You & Us
Daniel Lipp
Segment Head Western Europe
Initiatives of our CorA segment:
ACT
CRI
CorA Line/UBS Access Line
UBS Access Line WMI
!
Pilot start April 2005
!
Main objective when pilot started
- facilitate client contact with bank through an alternative channel
- relieve CA of non-productive inbound calls
- provide top quality telephone service
!
Main results
- positive impact on client time x 2
- better KPIs (NNM, DMS, AMS, client retention)
- client satisfaction
Efficiency
UBS Access Line WMI
!
Where we are going from here:
- CorA Line becoming UBS Access Line WMI
- from pilot to business entity
- from 17 to 60 CAs hooked up
- from 7000 to > 20'000 clients
- from 5 to 15 call agents
- rollout: Starting 2006
UBS Access Line WMI
!
Consequences
Major implications in terms of:
- security
- logistics
- HR & Education
- service
!
UBS Access Line: front runner for new technology
Efficiency
Efficiency Triple Jump 2006
CorA Competition Q3/Q4 2006
Overall Objective
Introduce new CorA philosophy Spirit, Pride & Joy and boost
Growth in Revenues & Growth in Assets
! Foster segment specific community spirit
! Entrepreneurial spirit and teamwork will characterize
the best teams
! An exclusive CorA competition creates pride
! Live this new dynamic philosophy
! Prizes for the whole desk " Team Spirit and Joy at work
Spirit
Pride
Joy
Growth
- in revenues
- in assets
Structure and its objective
Be growth oriented and keep everybody on board until the end
3 July 2006: Kick-off
!
One common Kick-off, three different endings
Jump 1
Jump 2
Jump 3
Investment Funds and A&Q
Mandate Solutions
Net New Money (market adjusted)
July August September October November December January
Prizes - CorA Triple Jump
Be growth oriented and keep everybody on board until the end
Jump 1 Investment Funds and A&Q
Aim Increase activity in the quiet summer months
Focus Lead Offering Funds and A&Q
Why IF Best Shift, Introduction of the WMI Investment
Fund Lead Offering and new NTAC Offering
Duration 2 months (July and August)
Reward 3 days Alinghi Sailing Academy in Valencia for the winning team IF
and 3 top-performers A&Q
Prizes - CorA Triple Jump
Be growth oriented and keep everybody on board until the end
Aim Best shift, higher RoA and increased efficiency in CorA
Why Focus on the most important CorA products
Duration 4 months (July to October)
Reward will be announced in September
Jump 2 Mandate Solutions (Mandates, AAF & ARF)
Prizes - CorA Triple Jump
Be growth oriented and keep everybody on board until the end
Aim Effective client book management and reduction of client defections
Why medium and long term goal of UBS
Duration 6 months (July to December)
Reward will be announced in November
Jump 3 Net New Money (market adjusted)
Measurement Investment Funds
Team performance brings the whole desk to Valencia
!
For investment funds campaign Funds ex AAF & ARF % MMF will be measured
!
The current penetration plus increase in penetration will be measured
Measurement A&Q
Individual top-performance will also be rewarded
Three A&Q top sellers
(Syros subscriptions)
Ticket to Valencia
!
The three CAs with the highest A&Q volume until 1 September 2006 win
Measurement Mandate Solutions
Fair, transparent, on a monthly basis
! Tracking tool: White Spot Analysis
!
For mandate solutions campaign Total Mandates and AAF & ARF will be measured
!
Teams can follow their own performance based on White Spot
Fairness
! Based on the successful Triathlon competition (BC Germany) we grant:
10 points for every 1% of existing penetration
+ 100 points for every 1% increase in penetration
! The team with the most points at the end of each Jump wins!
Measurement investment funds and mandate solutions
Fairness and transparency, the core of the competition
Transparency
! Ranking is updated monthly together with the White Spot Report
! 15 Top teams displayed on the CorA page (monthly)
! Rankings and results of the remaining teams will be given on the request of the DH
Measurement NNM
Fair, transparent, on a monthly basis
! NNM figures will be adjusted regarding to market clusters:
" Established, Growth (Europe), Growth (rest of the world), Start-up
Cluster multiplier
NNM
figures
team
Adjusted
points for
NNM
WMI - Core Affluent Convention 2006
Spirit, Pride and Joy
Coffee Break
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Talent
Talent The Italian Experience
Francesco Morra
BU Head Italy
CorA Italy: large, growing market of 1.7 m HHs, ! 460 bn assets

~7.5%
Segment
Clients (Households)

CorA

~1'700'000

Ultra-HNW

HNW

Mass Affluent/Retail
Onshore assets (! bn)

~460
~50% of
relevant wealth
Growth (05-08 CAGR)

~7.5%
Solid growth
Lead Offering
Talent development key for successful business in Italy
Savings
Financing
Wealth Accumulation
and Preservation
Wealth Protection
and Transfer
Required Skills Set
Talent development key for successful business in Italy
Client Screening Capability
- Existing Clients
Direct Calling Capability
- Prospects
Cooperation Capability
with Multipliers
- Prospects
Talent development key for successful business in Italy
Planned locations
Current locations
Planned locations
Current locations
Jump to attractive new areas
Expand around big centers
and current locations
(1) 2 additional locations to be added in 2011 to reach the 20 branches target
Contribution of CorA business always positive
2005 2010 2005-10
Number of branches 9 18 2x
IA 2.6 7.4 2.8x
Number of CAs (average) 53 162 3.1x
NNM per CA (! mio.)
5.4 9.3 1.7x
RoA (bps) 113 146 1.3x
Net revenues (! mio.)
24.4 103.4 4.2x
1
Guiding principles
!CorA a natural entry point
!CorA CA career path attractive
!Support and professional
development of CorA CAs
- Teaming
- Training
!Certifications
- WM Diploma
- TSR
CorA leadership culture
Teaming
Model
Training
Compen-
sation
Development path
CorA CA career model
Entry
Selection
UBS CorA CA career and talent model
CorA CAs with clear development path at UBS
Prerequisite
skills
- HNW HNW / Market
Mgmt. / Functions
(1)

HNW / KC /
Functions
(1)

HNW / KC
Career options:
Change to
! Ready to team
with and coach
junior CAs
! Experience
! Large client
book
! Lead a team/desk ! None/
very limited
! Ability to
acquire clients
autonomously
CA WM 1
('Junior CA')
Senior CA WM 1
DH
For 1 - 2 yrs
After 6 8 yrs
After 6 8 yrs
For 2 4 yrs
For 2 4 yrs
CA WM 2
CA WM 3
UBS CorA
development
plan
(1) e.g. P&S, Operations, Sales Management
Teaming Model: Objectives and planned approach
CA teaming within desk
Experienced Junior
Coach
Supports junior CA for success
New CA
Learns from experienced CA's, but
is not his/her assistant
CA training program aligned with career step first outline
Mandatory training Need based ad-hoc training
Banking
skills
Leadership
skills
Training element Training offering per career step
New joiners
program
Individualized training (ad-hoc)
New product introduction / IT tool training
CA WM 1
('Junior CA')
Senior CA WM 1 DH CA WM 2 CA WM 3
New DH
program
Coach/mentor program
Personal
develop-
ment
Seniority
Financial
Intermediary
Preparation
Client
service and
acquisition
proficiency
Client service/
acquisition skills
Certifications
UBS views all its employees as its talent.
We want to grow as an organisation and
to do this we need to have the best talent.
Raoul Weil
Attract, develop and retain the best and
brightest people for CorA.
Attract
Develop
Retain
Talent
Talent You & Us
Nicla Pedrazzetti
Segment Head Italy
It all begins with my own people, my
colleagues - with us.
We have to be convinced of what we do
and why we are doing it.
The basis of CorA from my point of view:
Efficiency
Openness to new ideas
Innovation
Empowerment
It all begins with YOU.
Carry the pride you feel to your people.
Not every CA is an entrepreneur, but it's
our job to coach them to become one!
How can we make our CAs live Spirit,
Pride and Joy in their daily work, in front
of their clients and in their private lives?
Workshop
on Talent
Italy CorA: No Performing CAs (evolution)
-200'000
-100'000
0
100'000
200'000
300'000
400'000
500'000
2004
2005
N
N
M

c
u
m
u
l
a
t
e
d
CAs
10 20 30 40 50 60 70 80 90
Talent Attraction: Workshop Template
Main Issues Key Success Factors Actions
How can we improve our
entrepreneurial spirit
How can we bring pride to
our CorA sales force?
What can we do to have
our sales force
having joy in daily business?
Topic
Spirit
Pride
Joy
Conclusion
Conclusions
Raoul Weil
Head Wealth Management International
WMI - Core Affluent Convention 2006
Spirit, Pride and Joy
Good Bye!
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