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Vbmc Practice Overview January 2009


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Overview of VBMC Practice

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Vbmc Practice Overview January 2009

  1. 1. Overview of Practice – January 2009 Introducing VBM Consulting
  2. 2. Background Established 1996 in London. Thought leaders in the field of Managing for Value/Value Based Management. Specialise in helping companies to develop and implement pragmatic business strategies and solutions designed to create and sustain maximum shareholder value. Our practice has developed a respected reputation amongst business leaders as result of the impact of our work in companies such as Barclays, Alliance Boots, Avon and others. A key theme that characterises VBMC’s work is a relentless focus on high quality commercial thinking – the key to survival in today’s challenging economic climate. Two books published in January 2001, The Value Mandate and Net Value (AMACOM 2001). Recommended reading on MBA programmes at a number of leading business schools. We have successfully adapted our approaches for Government/public sector organisations and have established a strategic partnership within the National School of Government in the UK. 2
  3. 3. Areas Of Practice Focus Value maximising growth strategies Sales, marketing and channel management strategy Value based cost reduction Finding and extracting ‘missing value’ from core operations Organisational/ process change aimed at achieving & sustaining maximum value Mobilising for value creation in the public sector Executive & manager MFV/VBM skill development programmes 3
  4. 4. We Work ALONGSIDE Clients To… Identify, understand and resolve major business issues. Develop high value impact but credible alternatives. Deliver measurable and sustainable improvements in business performance (i.e. increased short and long term cash flow/ economic profit). Enhance the internal capabilities of our clients to manage for value on an ongoing basis. 4
  5. 5. What Makes Us Different ? We believe that the following features of our client offer distinguish us from competitors: Our focus on both the ‘hard’ and the ‘soft’ drivers of an organisation’s success and our proven, systematic approach for identifying these and for helping the organisation to mobilise around them. All our clients, past and present are willing and available to confirm the powerful impact our work has had on their organisations. Our flexible “Associate-Based” business model allows us to draw on the best sector expertise available through our strategic partnerships with sector specialists and with leading UK and international business schools. VBMC at all times remains fully accountable for ultimate delivery. Our proven ability to rapidly understand key issues and themes within the organisation in which we are working and to develop breakthrough insights for our clients that will be beneficial to their business. Our policy of not submitting the final invoice until our clients are satisfied that they have received ‘value for money’ from our services. 5
  6. 6. © VBMC’s Five Delta Approach VBM Consulting’s proprietary methodology for maximizing value addresses all the major sources of corporate value. INVESTOR PERCEPTIONS THE VALUE ENGINE FINANCIAL STRUCTURE Optimal Revenue Operations/ Risk Managing financial capital Maintenance Production/ management community structure, & Growth Supply Chain perceptions re future financing Efficiencies cash flow strategy • Developing new, highest • Permanent reform of • Positive actions which enhance • Minimising • Reducing ongoing company’s cost base: market’s valuation premium even value internal growth company’s ongoing operational, market Eliminating value- before a company is publicly-traded re opportunities (organic) cost of capital and financial risk to destroying expenses, the company. - simplicity, transparency of • Growth through • Changes in partnership or acquisition processes reported performance, cash flow business portfolio, • Adoption of most in closely related fields both to simplify - effective communication of efficient/ most effective (non-organic) operation and Managing for Value program processes, approaches, increase return • Reform of marketing organisation processes, approaches • Value-optimal to maximise value capital investment practice © 2008/9 VBM Consulting Limited All Rights Reserved 6
  7. 7. Consulting Capacity & Flexibility We have an extensive pool of highly experienced and qualified people with specialist expertise on which to draw. This is made possible through: • our own international consulting team, • an extensive world-wide network of associate consultants and, • our relationships with leading international business schools. Our associate based business model enables us to: • create project teams with appropriate skills and experience, rapidly • be extremely responsive to client requirements, deadlines etc. All of our associates are experienced senior people with successful track records in business and/or consulting. VBMC assumes full responsibility and accountability for ensuring that projects are appropriately staffed and managed and that agreed deliverables are met to the satisfaction of our clients. 7
  8. 8. Examples of Some Client Projects Issue Approach Outcome We worked with management to ‘The impact of the channel strategy understand the key success drivers for initiatives on the success of the Nurofen An established leading brand with a long history in the UK the brand and identified channel brand in the UK market exceeded the market. strategy as a key lever. most optimistic expectations and created more value than most of the A range of alternative channels were How could the brand be rejuvenated to maximise its previous initiatives to grow the brand.’ identified and evaluated (e.g. garage value? forecourts) and a strategy to promote Sales director, Crookes Healthcare, UK the brand in new channels was adopted. We reviewed their existing brand The impact of the Dulcolax brand strategy and identified a category based initiatives were not only viewed as A well established brand in the competitive laxative approach for maximising the value of having made the brand more successful product market.How could the brand be positioned to grow the brand. but also transformed Boehringer its market share? Ingelheim’s approach to managing its This included specific strategic above entire Consumer Healthcare brand and below the line initiatives to position portfolio. and promote the brand in it’s most important retail channel (i.e. Boots). Working with senior management a It is now unanimously accepted by strategy to maximise coverage and management that the step change After having operated in the South African market for over brand awareness was developed and is growth strategy for the Avon brand that 10 years there was a need to turbo charge the acceptance currently being implemented. has been developed will be the key to and growth of the Avon brand in South Africa. Avon’s growth and success in the South African market in the next 5 years. 8
  9. 9. Client Feedback ‘VBMC’s work has exceeded all our expectations and punches well above its weight in terms of positive impact on our business transformation programme.’ ‘Unlike many other consultants, VBM Consulting have a passionate commitment to helping their clients develop the knowledge and skills required to manage for maximum corporate value. Their approach emphasises the importance of understanding and managing key value drivers (KVDs) and is characterised by a solid understanding of the clients’ business, logical and rigorous analysis and the development of creative yet workable alternatives.’ 'Working with both senior and mid-level managers, VBM Consulting offer objective and challenging insights and contribute to the development of creative, value enhancing alternatives. They have made a significant contribution to the development of management thinking at WH Smith.' ‘VBM Consulting’s competitive advantage comes from the emphasis which they place on working alongside managers to help them deliver superior value solutions to key business issues. By so doing they enable their clients to develop into better value managers. I have no hesitation in recommending them as a pragmatic, action focused, high impact consulting team.’ ‘VBMC’s input has been crucial to the development of a successful growth strategy for Avon’s South African business. Their work is characterised by excellent commercial thinking supported by thorough analysis. They are committed to delivering excellence and have built a strong track record in our business.’ 9
  10. 10. Biography Stephen Neill – Managing Partner VBM Consulting (VBMC) was established in 1996 by Stephen Neill. He has built up a successful track record in helping companies to develop and apply growth-side and expense-side Managing for Value (MFV) programs. Stephen has worked with a range of leading companies in various sectors across Europe, North America, Asia and South Africa, including Coca Cola, Cadbury Schweppes, British Telecom Adidas-Solomon, Pearson Group, Boehringer- Ingelheim, Alliance Boots, Barclays Bank, Barclaycard, WH Smith, and Avon Cosmetics. Stephen is passionate about working with clients to deliver challenging value creation goals. He has developed a unique and powerful set of methodologies to help senior managers better understand the company’s key value drivers in a systematic way, and then to mobilise the business around these. He strongly believes that an understanding of a businesses’ key value drivers and top management consensus about these is an essential basis for the development of successful business strategies and for value maximising commercial decision making and performance management. Stephen is co-author (with VBMC Peter Clark), of The Value Mandate, the leading shareholder value development guide for top management. Stephen is also co-author of a book on Internet companies, their valuation, and efficiency implications for Net-responsive companies, Net Value (2001). Prior to VBMC, Stephen was a senior associate at Marakon, a leading international Managing for Value consultancy and was Chief UK economist at the Henley Centre. He completed a B Com (Honours) degree (first class) in Economics at the University of Cape Town and an MPhil degree at Cambridge University. 10
  11. 11. Biography Juliana Bacon - Partner Prior to joining VBM Consulting Juliana worked for Dresdner Kleinwort Benson and Andersen where she advised clients particularly from the banking and finance sector on the restructuring of international groups, the financing of new operations and the structuring of proposed transactions. Her clients included Endsleigh, Alcatel, Marconi and GE Capital as well as numerous European and US banks including Merrill Lynch, Argentaria and Den norske Bank. Since working with VBM Consulting, Juliana has been involved in projects with a variety of clients including Alliance Boots, WH Smith, Boehringer Ingelheim, Barclays Bank and Barclaycard. She has worked with client teams to embed MfV methodologies and mindsets within their organisations and she has also developed a variety of sophisticated valuation tools and techniques which assist the decision making process. She has also been extensively involved in assisting clients to identify their KVDs and to develop insights based on these as well as to implement KVD based actions and initiatives. Juliana has also been involved in a number of learning programmes including developing and delivering workshop content and working alongside business schools to support application based learning. Juliana graduated from Oxford University in 1996 with a BA (Hons) degree in Mathematics. She is also a member of the Institute of Chartered Accountants. 11
  12. 12. Biography Peter Clark - Partner Peter Clark is a world-wide consulting thought and practice leader in the shareholder value, marketing and strategy consulting fields, supporting major companies in the UK, US, Japan and Europe. The Value Mandate (2001), written by Peter and fellow VBMC partner Stephen Neill, has been praised by the Financial Executives Institute (FEI), The Corporate Library and others as one of the leading books in the value-based marketing and strategy field. His 1991 book Beyond the Deal is today one of the leading management guides to creating through acquisitions and post-merger integration of operations and strategy. Peter’s previous financial sector clients include Barclays Bank, HSBC, SocGen, Citigroup, Merrill Lynch, KKR, Blackstone, Invesco, Primark, FHLBB (US’s Federal Home Loan Bank Board). Peter’s consulting work in the financial institutions sector has included: strategy, financial product marketing (both to corporate clients and retail), new programme development, sales force performance improvement and acquisitions. Peter’s observations are regularly cited in international business press on issues of marketing, strategy and company value improvement. Recent interviews and coverage include CNN-TV, Reuters, Dow-Jones, CNBC, Forbes, Shareholder Value Magazine and Peter received the Financial Executives Institute’s award for outstanding achievement in corporate finance. He is a Beta Gamma Sigma graduate of Southern Methodist University (MBA, BBA). 12