"The Alternative to Saying No" Linking Strategy to Investments

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"The Alternative to Saying No" Linking Strategy to Investments

  1. 1. The Alternative to “Just Saying No” David Mann Constant Contact September 9, 2010 dmann@ConstantContact.com CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. 1
  2. 2. 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 2 Contact
  3. 3. The Finance Role   Partnership and team   Bean counter oriented   Reporter   Accountability   Dislike Sales and Marketing   Sales and Marketing tied to   Decisions in a black box metrics   Passive role in strategic   Focus on critical information planning   Value creator   Sharing information 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. 3 3
  4. 4. Agenda   Constant Contact Challenges   Linking Investments to Strategy   Keys to Success 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 4 4 Contact
  5. 5. Constant Contact Reality Revenue ($Ms) Product Line $200 50+% Email Event Nutshell Marketing Survey $160 (Sole Product Marketing Mail $129 Product Acquired Product) $120 $87 $80 $50 $40 2007 2008 2009 2010 $0 IPO 2007 2008 2009 2010E Headcount Offices 800 700 625 600 456 Waltham 500 , 400 318 Loveland Bedford San Fran 300 200 100 0 2007 2008 2009 2010E Boca CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. 5
  6. 6. Challenges of High Growth Companies   Many new people   Challenge to stay ahead of the curve   Tendency to add resources rather than focus on operational efficiency   Decision making by exec team not scalable   Increased complexity and emerging lack of alignment   Insufficient clarity for making resource tradeoffs 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 6 6 Contact
  7. 7. Agenda   Constant Contact Challenges   Linking Investments to Strategy   Keys to Success 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 7 7 Contact
  8. 8. An Alternative Approach Common framework for investment decisions & budgets linked to strategy   Resource tradeoffs and budgets are defined by company strategy   Establish guardrails for resource tradeoffs   Drive empowerment and accountability deeper into organization   Enable faster and more effective decision making   Encourages smart investment decisions Finance is an invaluable partner helping the organization to make smart investment decisions 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 8 8 Contact
  9. 9. The Framework 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 9 9 Contact
  10. 10. Where Are You Going?   10 Years   5 Years   Future state of org   Roadmap to achieve vision   Aspire to achieve   Consider marketplace   Energize employees   Account for competitive   Consider company differentiation assets   Address ‘mission’ to achieve vision Can’t go somewhere unless you know your final destination… 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. 10 10
  11. 11. Translate into Tangible Goals   1-3 years   Metrics and KPIs   Foundation for near   Make it tangible term investments Forces organization alignment 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 11 11 Contact
  12. 12. Establish Operating Plans   Roadmap to achieve   Key objectives corporate objectives   Implementation plans   Addresses   Resources required   Where are we now?   Where do we want to go?   Progress measurement   How will we get there? guidelines   How will we measure progress?   Common organization framework Establishes accountability 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 12 12 Contact
  13. 13. Leads into the Budget Process   Output of operating plan   Balance investments to account for operational efficiency, scaling and growth   Provide forum for tradeoff discussion 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 13 13 Contact
  14. 14. Accountability & Re-planning   Establish designated check-ins   Review budgets and operating plan   Change, adapt plans and reforecast 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 14 14 Contact
  15. 15. Implementation Requirements   Executive “Buy In”   Constant communication to organization   Transparency   Common framework   Forum for tradeoff discussion   Finance team structured to lead and support implementation 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 15 15 Contact
  16. 16. Agenda   Constant Contact Challenges   Linking Investments to Strategy   Keys to Success 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 16 16 Contact
  17. 17. Keys to Success   Flexibility   Consider cultural norms   Phased in approach   Process for accountability 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 17 17 Contact
  18. 18. Takeaways   Investments align with strategy   Decisions are faster and more flexible   Finance becomes key business partner 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 18 18 Contact
  19. 19. Feel free to email me at dmann@ConstantContact.com 9/10/10 CONFIDENTIAL Copyright © 2010 Constant Contact, Inc. David Mann – Constant 19 19 Contact

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