Christopher Tan, Chief Executive Officer and Founder of Providend Limited, an independent private wealth and investment management firm in SIngapore, presented on "Using Purpose As Corporate Strategy" at Warwick Business School 16/02/2009

1. Using Purpose As Corporate Strategy
By Christopher Tan, CEO Providend Ltd, Singapore

2. my objectives
How we use Providend’s purpose to permeate the
entire organization
How failure in adhering to our purpose almost killed us
in 2009
How adhering to our purpose ultimately saved us

3. who is providend?

4. We officially started on
September 11th 2001…

5. 11 September 2001, 8.46 am. 1st 767 Jetliner hit North
Tower
11 September 2001, 9.03 am. 2nd 767 Jetliner hit
South Tower

8. 9.59 a.m. : South Tower
Collapsed

9. Our Plans Collapsed Too!
10.28 a.m. : North Tower Collapsed

10. The Situation: 2001 -2003

11. Macro environment 2001-
2003
No license governing financial planning
Financial Advisers Act to be passed in September
An ageing population that lacked planning
Mis-selling and poor image of “financial planners”

12. Microenvironment 2001-
2003
Insurance companies & banks
All commissions based
Individual advisers of low competence

13. Providend’s Purpose Statement

14. Making wise financial decisions affect so many aspects of a family life
Having money provides possibilities for a better quality of life. On other hand,
the lack of it create limitations that can sometimes break families
In an environment where products are being sold everyday, and many times,
through poor financial advice, families make poor financial decisions
As a family of people driven by passion
We exist to serve our clients to fulfill their dreams and achieve their family
goals by providing them with the most honest, independent and competent
financial advice. We believe the best way to do it is through time-tested,
prudent and holistic financial solutions, even if it means to be different.
We strive to be the light of the financial world
This is what drives us
This is why we exist
This is our purpose

15. Providend’s Tagline
“A Family Serving Families”

16. How our Purpose Permeated The
Entire Organization
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17. How our Purpose Permeated The
Entire Organization
Compensation Model
“Honest & Independent” Advice: Fee –only
Fee-only determined our target market
Advisory
“Independent, Competent & Holistic” Advice:
No restrictions to product range
Comprehensive & integrated financial planning advice
Team-approach

18. Advisory Model
Initial Presenting Discovery Present Present Implement 45-day Quarterly to
Value Meeting Solutions Yearly
Contact Findings Meeting
Proposition Review
CFP™ CLU CPA CFA TEP
Coherence of Risk Tax‐Efficient Well‐ Legal Aspects
Financial Management & Financial Researched of Financial
Strategies Insurance Strategies Investment Strategies
Strategies

19. How our Purpose Permeated The
Entire Organization
Investments
“Competent” Advice: Experienced investment
committee
“Time-tested & prudent solutions”: Asset allocation, no
market-timing, staying invested, keep investing, simple
easy to understand and low-cost instruments
Finance & Operations
“Honest & advice” - Commissions rebate and zero-
commissions product manufacturers and platforms

20. How our Purpose Permeated The
Entire Organization
Human Resources
“A family of people driven by passion”
“Honest, independent & competent advice”
“Even if it means to be different”
“Be the light of the financial world”
Academically and professionally
qualified consultants
Character of integrity
Prepared to be different
Passionate about our purpose more than compensation

21. How our Purpose Permeated The
Entire Organization
Providend Centre of Financial Education
“Being the light of the financial world”
Books
Financial literacy classes
Work with MAS on financial education

23. How our Purpose Permeated The
Entire Organization
Marketing & Client Relationship Management
“Light of the financial world”: Articles
“Honest & independent advice”: Asking clients
permission for sponsors for client events
Staff alignment: Orientation training on Purpose
Yearly retreat case studies
“A family serving families”

24. The Providend Home

25. Christmas 2006

28. Coffee at
Home

29. Revamp Website

34. The Financial Crisis –
September 2008/2009

38. We almost died in 2009
Breaking the “prudent rule”
Went into MENA sector
Using a newly set up global bond fund
Breaking the “time-tested” rule
Holding off investments early 2009
Breaking the “holistic financial solutions” rule
We were overly focused on investments

39. Everything started to
collapse
31st December 2008: $160 million AUM
Cash flow difficulties
10% of clients left
Unhappy clients
1 legal suit
Staff low morale and blame
Almost 1/3 of staff resigned

40. How our purpose saved us
All these years of passionately pursuing our purpose
kept us alive
We kept our key people
We apologized
We reminded ourselves of our purpose
We rededicated and persevered
We recruited new evangelist

41. How our purpose saved us
All these years of passionately pursuing our purpose
kept us alive
We kept 90% of our clients
We met up with clients more during the last 12 months
We sent more updates and I wrote personal letters
We organize more client sessions
We went back to each clients and realigned their
financial plans
Recent annual client conference: We admitted our loss of
focus and shared what we are doing to improve process
and re-committed to clients

42. How our purpose saved us
All these years of passionately pursuing our purpose kept
us alive
We attracted 2 new shareholders
A very senior and prominent person in Singapore
A senior MD from an international financial institution search
us out from UK
All because they like our firm and believe in our purpose and
story
Injected capital
Advice
Mentored me
Gave us hope

43. Conclusion
Who is the guardian of the
organization’s purpose?
The Chief Executive Officer!

44. Thank You!