Performance Institute Profit Maximization Strategy


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  • As everyone is aware, we have filed bankruptcy and there is a strategic imperative for us to find a way to drive financial performance—hence, the title. This presentation will provide an alternative, and hopefully a road map for how we can move forward as a company and become a high performing entity once again.
  • This is just a quick overview of what you should expect to get out of the presentation. As I mentioned, the objective of this report is to help us commence a new strategic project for maximizing profits and eliminating costs. I will begin with my hypothesis as to why we are performing at a poor level and will support my speculation with some data. Then I will walk you through what I have deduce from analyzing this data. You will then have a chance to look at my solution and how the logic behind it. Lastly, you will see a project scope and action plan for how this project will commence. All of you are mentioned within that latter part of the presentation as means for us to establish a culture of accountability as we move through the process.
  • The problem statement and storyboard is simply a way for you to see the orientation of my train of thought and validation for why I am approaching the problem in this way
  • We have pretty much gone over the problem statement, but I will read so that we can officially be on the same page READ PROBLEM STATEMENTSubsequently, my hypothesis is as follows Read hypothesisThe following five questions have provided me with direction as to what kind of information I intended to gather when assessing the validity of my hypothesis Read supporting questions
  • We are now looking at the supporting statements I am using to validate my developing argument Read supporting statementsWe will now review some validating data to graphically depict the dynamics of the problem
  • This graph is directly linked to my first supporting statement Read supporting statementThe graph shows that revenues have declined 35% in just 8 quarters— once again, this is just data in isolation. In a little bit, we will see the real impact and implications of this data.
  • This graph is directly linked to my second supporting statement Read supporting statementThis graph shows that avg. attendance per conference has declined by 42% over 12 quarters. This is pretty powerful in itself— hence, the power seeing how we have performed instead of simply looking at numbers
  • The third supporting statement is Read supporting statementNow, this may or may not seem significant to you right now—if it does not, then it will very shortly.Just think, the product offering has doubled, but our financial performance has continued to dwindle.
  • This is a powerful graphic in itself as you can see that our profit margins are a fraction of what they once were. Look at significant change over 8 quarters….
  • This speaks directly to our competitiveness – we price higher than our competitors by an avg., roughly, of $175. So, let’s think about this, we are not a price competitor, but we have 181 programs that we offer— not really a formula for succes.
  • I have come up with two conclusions that are explicitly supported by my findings via analysis of the data you just saw
  • My first conclusion is as followsRead conclusionAnd why is this my conclusion? Because my findings are as follow Read findingsNow it’s time to see why I am thinking this way
  • As I said before, the data from earlier becomes more powerful and has greater implications when analyzed beside one another.Disregard the revenue numbers on the left. Look at the lines and the trend they portray. As stated Read statement under “Findings” headingOur product offering seems to be diluting attendance and once we got past offering about 120 programs— I know this number because I put the graph together— we can see a sharp decline in revenuesThis graph has very direct implications for how we move forward from this state of performance
  • Another powerful graph that is directly related to the cost structure of our programs…..Somewhere along the lines we must have forgotten that we have a decent conference center in which to run programs….Venue and travel costs are eating us alive— there is still one contingence and I am sure that some of you have thought about this: If we stop traveling programs will we also hurt conference attendance? That is something we will have to analyze moving forward.
  • My first conclusion is as followsRead conclusionSubsequently, my findings are as follows Read findings
  • This is part of the double bottom line – listening to your customers because they will tell you what you’re doing wrongWe don’t have any brand awareness and because we have competitors in our immediate geographic space, it is imperative that we price competitively. Right? We really can’t control budgets and program inaccuracy can be mitigate by better research— and we have A LOT of power of the two biggest issues: brand awareness and pricing
  • We do not want to be an email marketing company— why? Because our marketing virals hit the same people over and over again and we haven’t had new lists in years. We do not want to be spammed out or blocked…. We must be more strategic with that type of messagingBut, as we see, there is some clear opportunity with cold calling— this is what sales is all about, getting on the phone…. Go get the customer, don’t wait for the customer to come to us. That cold calling conversion rate means that we need to redefine our sales process. That is an uncanny conversion rate for COLD CALLING. Imagine the opportunity we’re missing our on if our sales process is skewed towards sending out marketing messages.
  • So, I have come up with a fairly complex, but achievable solution
  • Read solutionHere is my argument for this solution— please keep in mind the data I just shared with you Read all boxes of deductive argumentDoes this make sense? This is a valid argument because I have provided you with the data and information that shows you the logic behind reaching such a solution.
  • Now we are going to look more at the action plan side of things… we have a strategy, what action do we take now?
  • Here is the project scope….It starts with the SMART objective— specific, measureable, agreed-to, realistic, time framedThen there is our 3 areas from which we derive our 6 issuesConference attendance is the last component because it is the foundation of everything we will do
  • Here is a work break down of how we will proceed with carrying out the strategy. As you look over it, you will see where you fit into the strategic framework.
  • This provides you some direct context of where your accountability is within this process. Most of you have performed these work elements to some extent— this is just formalizing the roles and letting everyone see what will be expected of them moving forward. Everyone is a contributed and an enabler of this strategy.
  • It is important to measure the things that will keep us on the shortest path to success. Of course we will measure other things, but these are the core measures and KPI’s that will keep us aligned with the ultimate goal. There is not an individual owner of any of these measure. Once we start to understand the activities going into the execution of this plan we will then designate sub-level measures for which there will be individual owners.
  • Lastly, we need to take a look at what could possibly inhibit us from moving forward with this strategy and what capabilities we can leverage to ensure successful deployment and execution. On the left side I have listed some things that we will have to consider moving forward Read the “worst scenarios” Most of you are familiar with the worst because we have obviously experienced the worst to get where we are today.On the right side I have listed the capabilities that will enable us to carry out this plan Read the “best scenarios”I think the biggest thing on this side will be minimizing the density of programs surrounding our marquee events to ensure that smaller events do not cannibalize those revenues – everything will have to be contingent on are greatest revenue generators. ConclusionLook, I know it has been rough over the past couple of years but we have a great opportunity to turn things around. It will take a concerted effort and lots of collaboration across divisions to make this happen. The key to success will be transparency, communication, and accountability. This is a very achievable project that will only increase in complexity because sustaining performance is much harder than improving performance. However, I am confident that everyone will buy-in to this plan and we can achieve our short-term and long-term goals.
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