WEALTH MANAGEMENT FOR LONGEVITY
Chan and Dr. Christopher Goh
Financial and Wealth
Management is the final installment of the 5 Building Blocks for Success (5BBS). It is the roof of the
House for 5BBS.
The foundation is
Driven and Crisis Turnaround
Leadership. Leadership is the process of influencing an organiz ed group towards accomplishing its
goals. Hence, leadership becomes everyone’s business to prevent crisis from happening and when crisis does
happen, to turn crisis into opportunity.
The three columns of the
5BBS are held up by Execution Capability and Process Management to enable strategy to be translated into
projects for successful execution to be faster, cheaper and better than the competition. Brand Leadership and
Customer Experience Management take advantage of the five Senses of Marketing, i.e. Sight, Sound, Smell, Taste,
Touch, to create a unique holistic customer experience. Brand Leadership and Customer Experience Management needs
the right Human Capital and Talent Management for consistency in service quality which results in customer
delight. Talent Management
is about putting the
right people in the right place,
and keeping them over the
There is a need to identify the
key players who have critical relationships with customers and
suppliers, and then to nurture and keep those players. Part of this critical capability is the
awareness of keeping only the best performers, getting rid of the bottom
10 percent of people who
are not performing up to standard, and going through this weeding-out process on a regular
and by doing so, upgrade the
talent and performance pool.
Evolution In Financial and
Prior to 1980s, wealth management was cash deposit, either from surplus of profits or
inheritance and/ or income, into a bank offering the highest interest
In the 1980s, wealth management was about acquiring financial products such as life insurance or mortgage
insurance where it could be purchased on a “needs basis”, often initiated by the end-user or investor. There
was hardly any professional advice from anyone.
In the 1990s, wealth management evolved into financial management where proper
financial advisory was rendered, usually by a Financial Advisor/ Planner, to an individual and/ or to their
family, with formulation of financial plan, including the purchase of desired
In 2000s, wealth management is about proper segmentation of clients with differentiated products/services
catering to their specific needs, offering wider range of financial products such as hedge funds, private
equity and structured products, and providing financial advisory, resulting in formulating financial plan for
the individual, his family as a whole, and the company as well.
In 2010s and beyond, professional family wealth management and their longevity is the focus. Hence
the establishment of Family Enterprise Office, with proper segregation of family governance and
business management, the setting up of Charitable Trusts for the purpose of creating philanthropic
activities, and/ or investing into socially responsible investments such as green project through the
formation of Non-Government Organizations (NGOs) to promote social entrepreneurship.
On hindsight, wealth management works. But, it
does require a paradigm shift to professional wealth management as a
Strategy to attain Longevity by addressing the People issue
through Human Capital and Talent Management for Achievable Success; Process issue through Execution
Capability and Process Management for Sustainable Success; Tools issue through Brand Leadership and Customer
Experience Management for Scalable Success.
Achievable Success, Sustainable Success, and Scalable Success are only doable if every management
inculcated Results-Driven and Crisis Turnaround
towards a culture of performance.
To be sure, the 5 Building Blocks of Success is developed based on the analogy of constructing
a house. Every component is essential and
vital to weather the storms and tsunamis in the business lifecycle.