Ephor July 4th eNewsletter: Strategies and Principals for Execution

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Ephor July 4th eNewsletter: Strategies and Principals for Execution

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Ephor July 4th eNewsletter: Strategies and Principals for Execution

  1. 1. `  2014 July eNewsletter Happy American Independence Day! Happy July 4th! As we complete the first half of another year and look at the needs for the second half of 2014, it’s always appropriate to evaluate the strategy and its execution elements. Peter Drucker, the famed consultant, astutely directed many companies to challenge themselves: “What is my business today versus what should it be in the future?” If indeed you are in the very small minority where the strategy has been successful far, then the question becomes: How can the business model and its execution components improve? At Ephor our many client successes have been fundamentally a result of "Unit of One Economics” execution elements coupled with an effective, differentiated strategy. Being more productive on a per transaction basis, such as profit-per-sale, or on a gross margin per project basis or simply the result of an effective channel distribution program, is the result of a focus on "Unit of One Economics."  Does our brand contribute to lower customer acquisition cost and retention vs. competitors?  Does our portfolio of products/services contribute to higher margins than competitors?  What investments have we made, sacrificing short term earnings, to be the long-term market leader? As the economy migrates to a more "Technology Enabled Economy”, the application of technology with processes coupled with a talented team, will be the critical success factor for business. At Ephor we profess that your investment to become a technology enabled business will dictate whether you are a marketplace winner or loser. Due to the accelerating pace of marketplace demand and change, an effective strategy only creates as much value as the effectiveness of the execution of the business (Unit of One Economics). For example:  For healthcare service providers, the rising cost of compliance and reporting is eroding the middle market point solutions creating small boutiques and large enterprises with a portfolio of services. Large entities can then bundle or unbundle their capabilities based on the customer needs.
  2. 2. `   The Business Process Outsourcing (BPO) value proposition, once labor arbitrage-centric, coupled with shared services economies of scale is evolving drastically.  Meanwhile, service providers today are investing in new operational solutions and processes - ones that are mapped to meet the communication needs of the independent, autonomous self- starters of Generation Y.  The software development cycle, once stated in terms of years is now spoken of in terms of months and weeks. The application of technology to improve workflow for core processes translates itself into superior value for customers. However, due to the cost and pace of required investments, only the best and most effective business models will be able to generate a return on those investments. Since early 2009 the "middle class of businesses" is a smaller % of the GDP in the economy as well as the wealth created from small businesses is “shrinking” at a much more aggressive rate. The good news is that those that have effective strategies and efficient “Unit of One Economics” will create the majority of wealth to be created in this “New Economy”. If your company would benefit from a pragmatic, no obligation comparison of your "Unit of One Economics" compared to others in your sector, please contact us at Ephor[at]EphorGroup.com. Unit of One Economics Executive Summary: 1. How do you compare to your sector competitors in terms of strategy and differentiation attributes? 2. How does your financial performance in terms of the key sector measurements & metrics compare to your peer groups? 3. What assets/liabilities ensure your company is worth more or less than the industry standard valuation? 4. How does your leadership effectiveness “stack up” to your peer group? In closing: I very vividly recall what Peter Drucker once said to me in January 1986: “declare war on mediocrity and all of its attributes, as one wins the war on mediocrity; any economic, regulatory and all exogenous factors become opportunities not barriers to success!” Again Happy Holiday and We Wish You & Yours Only The Best! Read more from Ephor Group online at www.ephorgroup.com/SolvingtheValueEquation.asp
  3. 3. `  How do your Unit Economics compare? Get down to a unit-based economic systems — such as gross profit per person per hour. Key Metric: Gross Profit Margin as a Percentage of Labor Costs, needs to be a real focus area. Don’t hire resumes first… create a more efficient and productive process… then the resumes. THE EPHOR APPROACH The sum of all your hard work is the culmination of your firm's valuation. We ensure entrepreneurs realize the value of their creation.  Competitive Intelligence  Financial Engineering  Growth Capital Engineering  Human Capital Supply Chain  Strategic Planning  Wealth Modeling and Planning THE EPHOR ADVANTAGE We judge success based on wealth creation of the company. Key Metrics: Unit Based Economics, Scalable Assets, Customer Revenue Waterfall. Key Performance Indicator: Company Valuation. Results: Growth. Market Share Positioning. Enhanced Valuation. COMPETENCIES Creating Value thru Acquisition Growth Capital Financing, Recapitalization Financing M&A Corporate Development Merger and Acquisition Documentation Market & Geographic Expansion, Portfolio Expansion Middle Market M&A Deals Proprietary Deal Flow (Deal Sourcing) Strategic Alliances, Joint Ventures Strategic Intelligence Workforce Management Planning Whether you are exploring acquisition or expansion; we will help to find, evaluate, and integrate multiple opportunities to solve the value equation of your wealth plan.

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