Building Business Value
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Building Business Value

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More often than not, the problem underlying valuation issues for small businesses is lack of strategic clarity. That’s not surprising, since one of the major challenges during Stage 2 is the need ...

More often than not, the problem underlying valuation issues for small businesses is lack of strategic clarity. That’s not surprising, since one of the major challenges during Stage 2 is the need for more defined strategy coupled with deliberate planning processes that engage the entire organization — a big change from what was needed during Stage 1.

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  • The ratio phishows up again and again in the natural worldPhi provides the structure that enables complex systemslike shells and solar systemsto sustain and growPhimation creates simple and adaptable structuresthat enable optimal performanceduring the complex and messy process of evolution
  • 45, 20, 15, 10, 10
  • Tactics -> Strategies; Activities -> Objectives/Results; Reactive -> Proactive
  • Talk about what marketing is – not stuff that looks good; Stevens story; you should be worried; 95% of firms; marketing is structuring the customer experience
  • Opportunity to manage to higher value with each customer by improving sales dialoguesOpportunity to increase value of “customer portfolio” by better allocating resourcesNeed to manage more, and more complex, customer relationships with improved systems and structure
  • At start of relationship, discussions are about need. 2 things can happen – transition to other sales people – don’t do need, or time passes and don’t align with new need
  • Engineers
  • Neuman
  • Measure, continue strategy/plan/research
  • Measure, continue strategy/plan/research
  • Increasingly targeted services, increasingly personal and personalized focusAll wrapped in the content represented in the S2OM

Building Business Value Building Business Value Presentation Transcript

  • Building Business ValueStage 2 Education Series WorkshopSponsored by Fifth Third Bank November 9, 2010
    Dave Haviland
    dave@phimation.com
    734 717-4955
    Randy Albert
    randy@phimation.com
    734 255-2747
  • Phimation – The Natural Force of Evolution
    2
    phi
    is the ratio of spirals
    Phimation
    is the force that
    organizes systems for
    function and creativity
  • Phimation Strategy Group
    Strategy development and strategic execution
    • Business
    • Marketing
    • Operations
    • Innovation
    • Funding
    Experience
    • Operating leadership experience with Stage 0/1/2 businesses
    • Worked with about 4 dozen companies since 2001
    • On the Boards of 4 companies
    • Raised $30MM in private and public capital
    • Managed radical-improvement initiatives for dozens of companies
    © Phimation Strategy Group
    3
  • Table Introductions
    Your name and what business you’re in
    What caught your eye about this workshop and made you decide to come?
    If you had a magic wand and could change any one thing about your company, what would it be and why?
    What do you need out of this workshop to make it worthwhile for you?
    4
  • A Primer on Stage 2 management
  • Stage 3
    Stage 2
    Stage 1
    Stage 0
    Organizational Growth
    © Phimation Strategy Group
    5/3 S2ES Workshop
    6
  • Complexity Grows Significantly
    Interdependencies
    # of components
    (staff, customers, suppliers)
    © Phimation Strategy Group
    5/3 S2ES Workshop
    7
  • The Stage 2 Leadership Playbook
    8
    Stage 2 Leadership
    Direction
    Management
    Ownership
    Focus Attention
    Provide the Right Frame
    Define & Ensure Decision-Making
    Lead Creation of Vision
    Manage Owners
    Define & Ensure Culture
    Define & Ensure Governance
    Ensure Performance
  • Stage 1 Stage 2 Transition
    © Phimation Strategy Group
    5/3 S2ES Workshop
    9
  • Stage 1 Stage 2 Transition
    © Phimation Strategy Group
    5/3 S2ES Workshop
    10
  • =
    =
    Stage 1 Stage 2 Transition
    © Phimation Strategy Group
    5/3 S2ES Workshop
    11
  • Stage 1 Stage 2 Transition
    © Phimation Strategy Group
    5/3 S2ES Workshop
    12
  • Stage 1 Stage 2 Transition
    1.
    2.
    3.
    1.
    2.
    3.
    © Phimation Strategy Group
    5/3 S2ES Workshop
    13
  • Stage 1 Stage 2 Transition
    © Phimation Strategy Group
    5/3 S2ES Workshop
    14
  • Stage 1 Stage 2 Transition
    AaAbbbBCccDdDd
    AB
    CD
    bbb
    aaa
    ddd
    ccc
    © Phimation Strategy Group
    5/3 S2ES Workshop
    15
  • Key Takeaways
    Things are more complicated
    Your job as a leader is to frame and focus
    ROI is more important than cost
    Reacting in the moment is not good enough
    There are several things you should do:
    Lead your staff in creating a vision for the company
    Manage your investments
    Get better at serving customers
    Clarify your priorities
    16
  • Table Discussion
    What did we hear?
    What are our reactions?
    What questions do we have?
    17
  • Driving revenue
    18
  • The Revenue Generation Funnel
    19
    1:Many
    Education
    1:1
    Listening & Responding
    Marketing
    Sales
  • The Customer Experience
    20
    Services
    Product
    Intangibles
    20% of customer focus
    80% of company focus
    80% of customer focus
    20% of company focus
  • Improving your sales
    21
  • Improved Sales Management Drives Results in Stage 2
    22
    More value with each customer
    Improved customer dialogue
    More value with all customers
    Improved resource allocation
    More productivity in sales team
    Improved structure & systems
  • Value
    that your customer
    creates (or avoids)
    using your solution
    Focusing on Value
    23
    How much of this
    do you help to create?
    Cost
    of your solution
    How much of this
    do you keep?
  • The Buyer’s Process
    24
    Challenge
    Need
    Solution
    Assessment
  • Playing in the Value Game
    25
    Challenge
    Need
    Solution
    Assessment
    When Value Is Determined
    When Many Sales Discussions Begin
  • Communicating with Customers
    26
    How does it work?
    What does it do?
    Why is this competitively better?
    Who will benefit from this?
    Where can this take us?
    Courtesy Jim Pancero Inc.
    www.pancero.com
  • Communicating with Customers
    27
    How does it work?
    What does it do?
    X
    Why is this competitively better?
    Who will benefit from this?
    Where can this take us?
    Courtesy Jim Pancero Inc. www.pancero.com
  • Better Customers Yield Better Profits
    28
    Great
    Customer
    Profitability
    Customer
    Quality / Fit
    Poor
  • Better Customers Yield Better Profits
    29
  • Better Customers Yield Better Profits
    30
  • Finding the Right Buyers
    31
    Challenge
    Need
    Solution
    Assessment
    “I know the problem well”
    Customer
    Perception
    of
    Complexity
    &
    Value
    “I had no idea that was the problem”
    “Oh, that’s all there is to the problem?”
  • Scope and Complexity of Responsibility
    32
    75
    5
    20
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
    5
  • Segmenting Your Customer Base
    33
    Top 20%
    Middle 40%
    Profit
    Bottom 40%
  • Segmenting Your Customer Base
    34
    Key Account Management
    1:1 Programs
    Top 20%
    Middle 40%
    Profit
    Account Management
    1:Many Programs
    Bottom 40%
    Account Service
  • Stage 1 Sales Ecosystem
    35
    Your Company
  • Stage 2 Sales Ecosystem
    36
    Your Company
    Sales
  • Manage the complexity with a plan
    37
    Sales Plan
    What to Do
    How to Do It
    Situation
    Objectives
    Tactics
    Channels / Staffing
    Budget
    Timing
    Campaigns & Initiatives
    Customer Segments
    Sales Process
  • Key Takeaways
    Think value, not cost
    Talk about need, not solution
    Start where your customers’ hearts and minds are
    Focus on great customers
    Segment your customer base
    Be proactive with your best customers
    Plan your sales activities
    38
  • Table Discussion
    How does this fit with how you’re managing sales now?
    What are 1-2 things you could begin doing differently this afternoon to improve the way you manage sales?
    What do you need to do to follow up on this session?
    39
  • Improving your marketing
    40
  • Your Marketing Activities
    41
    Brochures
    Trade Shows
    Advertising
    Web site
    SEO/SEM
    Social Media
  • The Stages of a Decision
    42
    Unaware
    Aware
    Interest
    Desire
    Commitment
    Purchase
    Marketing
    1:Many
    Sales
    1:1
  • The Marketing Plan
    43
    Marketing Plan
    What to Do
    How to Do It
    Objectives
    Tactics
    Staffing
    Budget
    Timing
    Campaigns & Initiatives
  • Marketing Strategy
    44
    Business
    Strategy
    Marketing
    Strategy
    Marketing
    Plan
  • The Basic Strategy Components
    45
    Vision & Goals
    Business
    Strategy
    Resources
    Value
    Marketing
    Strategy
    Marketing
    Plan
    Targets
    Offerings
    Positioning
  • 46
    Marketing Strategy
    What to Offer
    How to Engage
    How to Do It
    Value
    Communication
    Sales
    Management
    Offerings
    Marketing Plan
    What to Do
    How to Do It
    Objectives
    Tactics
    Staffing
    Budget
    Timing
    Campaigns & Initiatives
  • Your Value – Engaging The Hedgehog Principle
    The fox does many things, but the hedgehog does one important thing.
    47
    Passionate
    about
    Best
    at
    HH
    Economic
    engine
  • Key Takeaways
    Handle the top of your funnel with 1:many activities
    Plan your activities
    Only do activities that serve a clearly-defined objective
    Clarify what you offer, how you engage prospects and customers, and how you handle marketing – before you start planning your activities
    Use the hedgehog principle to clarify your value
    For marketing to really be effective, you need to clarify your business strategy
    48
  • Case Study
    Walk through marketing challenges with volunteer(s)
    49
  • Wrap up
    50
  • Additional Stage 2 Resources
    Phimation
    Products & Services
    Stage 2 Owner’s Manual
    Stage 2 Education Series
    Stage 2 Coaching Program
    Stage 2 Consulting
    51
  • Stage 2 Owner’s Manual - Uses
    52
    • Leadership Guide
    • Management Training Course
    • Business Improvement Tool
  • Stage 2 Owner’s Manual - Topics
    53
    • Stage 2 Mindset
    • Managing Change
    • Leadership
    • Strategic Planning
    • Marketing
    • Sales
    • Talent Management
    • Hiring
    • Compensation
    • Innovation
    • Productivity
    • Trends
  • Stage 2 Owner’s Manual - Contents
    ~ 20 minute discussion of every topic totaling about 4 hours of DVD video
    54
    Over 200 pages of cheat sheets, key concept articles, annotated slides, assessment tools, and templates
    Flash drive pen with ready-to-use electronic copies of allcheat sheets, slides, assessment tools and templates
  • 55