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 Merrills Client
Relationship Group, part of Merrills 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 Lynchs 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