See You in the C-Suite

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  • This chart shows the role that strategy has in the Organization It is informed by our market environment Drives our business functions Determines our goals and measures In must operate successfully in our culture
  • Competitive advantage
  • Challenger Chief Executive John Challenger noted that the decline in departures could be a result of companies trying to maintain a stable upper management until the economy settles down and begins growing. “ If and when it appears that the expansion is finally underway, there could be a surge in leadership changes, with companies opting for growth-oriented risk-takers over the ‘just-keep-the-ship-afloat’ leaders they favored in the latter half of the recession,” he said.   Last month, 105 chief executives left their positions, up from the 94 who vacated in November but less than the 123 who left in December 2008. The 78 chief executives who left in May was the lowest monthly total since December 2004, when 56 departed. The healthcare industry recorded the highest turnover for the fifth consecutive year, with 203 departures, down from 285 in 2008, Challenger said. The government and nonprofit sector was next, with 163 departures, followed by the 123 in the financial industry. As for their reasons for leaving, 355 chief executives cited resignation, while 251 retired. Only 15 were fired by their companies, and seven were removed due to underperformance. And 231 chief executives, such as Morgan Stanley ’s John Mack, said they left their posts but stayed with the company as a member or chairman or in some other senior executive post. But 144 left after being enticed by new positions in other firms. The typical chief executive departing last month was 58 years old and had served for just over 8 years. Los Angeles Times May 2011
  • Growth is one of the most important objectives of most CEO’s.Not only a priority but a primary objective It is easy to understand why…. Profitable growth is directly connected to creating business value and usually is a primary contributor to stock price. Not to mention how it fuels employee enthusiasm, confidence and motivation. -------------------------------------------------------------------------------------------------------- Because it is hard to achieve, many companies have taken the necessary step of cost cutting to reach bottom line goals. While cost improvements can drive earnings and shareholder value in the near term, According to a McKinsey study, “ companies that raise their total returns to shareholders without achieving top line growth have the worst long term odds of survival” AND “large companies need to pay at least as much attention to top line growth as to increasing the bottom line” To do or die struggle for growth McKinsey Quarterly 2005
  • So how hard is it? In “Profit from the core” by Chris Zook, Director of Bain and Company, found that only 13% of companies are able to sustain growth in revenue and earnings 5.5% adjusted for inflation and earned their cost of capital over 10 years , on average. And only 25% of investments in growth initiatives added value In Blueprint to a Billion, David Thomson claims that the odds of becoming a billion-dollar business are one in 20,000! He expects the number of companies able to achieve that level of growth will be lower in the next five years. WHY SO HARD?
  • Trust - Is my problem your problem? Team work - Do we have the same agenda?
  • Tell TRI Story of Just say no
  • What limits us more than our own thinkging? Hotel check in time? Banks?
  • And if you don’t have a strategy never fear…you will get somewhere! But will you achieve profitable, sustained revenue growth? Have any of us ever felt we “walked long enough”?
  • Not all unmet needs are opportunities---need to do your homework Accurate information about your market and your customer Trends: what is changing? Does that play to your stengths? Share shifts: where is the growth? Are you strong in that segment? Get specific: segment level analysis—the more granular the more definitive and the more specific you can get --think about growth options—stimulate natural market growth (portfolio momentum), MandA, share growth vs others (need advantage founded on distinctive trait—Dell and distribution, Toyata—lean manufacturing to enter new segments and countries) Technology: Banking –Check 21; remote deposit Package delivery; order tracking
  • See You in the C-Suite

    1. 1. See you in the C-suite The challenge of strategic partnership for marketing agencies June 2, 2011
    2. 2. THE DOMAIN OF THE C-SUITE 2. Culture and Leadership 1. The Market Environment The Enterprise Model (Proprietary) 3. Strategy Business Capabilities 4. Goals and Measures Business Processes Human Capital Knowledge/ Information Management Organizational Structure
    3. 3. The New Business Environment <ul><li>Value is being redefined </li></ul><ul><ul><li>Slower to invest </li></ul></ul><ul><ul><li>Demand more </li></ul></ul><ul><ul><li>ROI is everything </li></ul></ul>Value
    4. 4. The New Business Environment <ul><li>Technology is critical </li></ul><ul><ul><li>Scalability matters </li></ul></ul><ul><ul><li>Data transformation into information </li></ul></ul><ul><ul><li>Granular detail, not totals or averages </li></ul></ul>Competitive advantage
    5. 5. The New Business Environment <ul><li>More pressure on CEO/company performance </li></ul><ul><ul><li>CEO average tenure is 8 years </li></ul></ul><ul><ul><ul><li>77% are making more decisions </li></ul></ul></ul><ul><ul><ul><li>43% have even less time available </li></ul></ul></ul><ul><ul><li>Opting for growth-oriented risk-takers over the ‘just-keep-the-ship-afloat’ leaders </li></ul></ul>
    6. 6. The New Business Environment <ul><li>Short term profit trumping long term profitable growth </li></ul><ul><ul><li>Growing fears place focus on survival; </li></ul></ul><ul><ul><li>Profits up 10%; revenues down 6% </li></ul></ul><ul><ul><li>Strategy replaced by cost cutting </li></ul></ul>200% increase in bankruptcies since 2006
    7. 7. 80% of CEO’s surveyed internationally cite growth as their primary objective. IBM survey
    8. 8. But growth is hard to achieve…. especially hard to sustain <ul><li>Only 13% of companies are achieving modest levels of sustainable and profitable growth </li></ul><ul><li>25% of investments in growth initiatives actually result in creating value </li></ul>
    9. 9. C-suite issues <ul><li>Trust: Who is on my side? </li></ul><ul><li>Team work: Who will work together? </li></ul><ul><li>Focus: Is there vision for where we are going? </li></ul><ul><li>Confidence: Do we believe in what we are doing; is it the right thing to do? </li></ul><ul><li>Passion: Do we enjoy what we do and therefore invest emotionally in it? </li></ul>
    10. 10. C-suite Partners <ul><li>You must earn the right to be at the table </li></ul><ul><li>You must be able to demonstrate a value add </li></ul><ul><li>You must deliver results </li></ul>
    11. 11. Do we do what we say? <ul><li>Do the cobbler’s children have no shoes? </li></ul>
    12. 12. Why should they let you in? <ul><li>Outside-In vs. Inside-Out </li></ul><ul><li>Whac-a-mole </li></ul><ul><li>Your value add </li></ul><ul><li>Just say no </li></ul>
    13. 13. Recent client survey results <ul><li>The number one business issue this year? </li></ul><ul><ul><li>Growth 47% followed by profit 40% </li></ul></ul><ul><li>80% think they can figure it out on their own </li></ul><ul><li>Hire someone when they don’t have internal expertise or have failed </li></ul><ul><li>#1 motivation to have a plan? </li></ul><ul><ul><li>Grow the business </li></ul></ul><ul><ul><li>Clear priorities to increase accountability </li></ul></ul><ul><li>Most important criteria in outside resource? </li></ul><ul><ul><li>Results followed by experience </li></ul></ul><ul><ul><li>Professionalism, Process and Price least important </li></ul></ul>
    14. 14. C-suite Partners: Trust <ul><li>Why do you want to be there? </li></ul><ul><ul><li>Authentic and humble desire to make a difference </li></ul></ul><ul><li>What skin are you willing to put into the process? </li></ul><ul><ul><li>Fees for service or fees for results </li></ul></ul><ul><li>What can you bring to the party? </li></ul><ul><ul><li>Capabilities? </li></ul></ul><ul><ul><li>Relationships? </li></ul></ul><ul><ul><li>Results? </li></ul></ul>
    15. 15. How do you define success?
    16. 16. Build Trust: <ul><li>Paradigm Shift: Put agency skin in the game </li></ul>
    17. 17. C-suite Partners: Teamwork <ul><li>The relationship is everything </li></ul><ul><ul><li>Whose rules do you play by? </li></ul></ul><ul><ul><li>Is it for the good of the group or the good of the agency? </li></ul></ul><ul><ul><li>How important is the award vs. the result? </li></ul></ul><ul><ul><li>How important is recognition vs. making others look good? </li></ul></ul>
    18. 18. Asking the right questions: The story of the Square Watermelon <ul><li>“ How can we provide a </li></ul><ul><li>space-efficient watermelon?” </li></ul><ul><li>– Japanese farmer </li></ul>
    19. 19. Build Teamwork: <ul><li>Paradigm shift: Improve their business not just their marketing </li></ul>
    20. 20. C-suite Partners: Focus <ul><li>Is there a clear strategy? </li></ul><ul><li>Do you have the capability to contribute to it and understand it? </li></ul><ul><li>Do you link your work back to overall strategy? </li></ul><ul><li>Do you support things that are off-strategy? </li></ul>
    21. 21. Strategy Is Your Road Map <ul><li>“ Would you tell me, please, which way I ought to go from here?” </li></ul><ul><li>“ That depends a good deal on where you want to get to,” said the Cat. </li></ul>“ I don’t much care where---” said Alice. “ Then it doesn’t matter which way you go,” said the cat. “— so long as I get somewhere,” added Alice. “ Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.” --from Lewis Carroll’s Alice’s Adventures in Wonderland Image: Sir John Tenniel - 1865
    22. 22. Demonstrate passion Paradigm Shift: Go the extra mile
    23. 23. C-suite Partners: Confidence <ul><li>Once you win the business, earn the business Perform, not promise </li></ul><ul><li>Track metrics on key items </li></ul><ul><li>ROI matters </li></ul><ul><li>Think small to think big </li></ul>
    24. 24. Be accountable for making a difference <ul><li>Market trends and growth rates </li></ul><ul><li>Share shifts </li></ul><ul><li>Segment-level analysis </li></ul><ul><li>Technology-driven changes </li></ul>
    25. 25. Build Confidence: Paradigm shift: Insist on objective approach; granular data, tracking outcomes and using ROI to make decisions
    26. 26. C-suite Partners: Passion <ul><li>Do you care about the business as much as they do? </li></ul><ul><li>How do you show it? </li></ul>
    27. 27. What you can be best at What drives your economic engine What you are passionate about Strategic Excellence Hedgehog Concept, Good to Great by Jim Collins
    28. 28. Insist on Focus Paradigm Shift: Be willing to say no
    29. 29. Solution? <ul><li>Redefine the value equation </li></ul><ul><li>Redesign the relationship </li></ul><ul><li>Rework and align the metrics of success </li></ul>
    30. 30. Paradigm Shifts <ul><li>Trust : Put agency skin in the game </li></ul><ul><li>Teamwork: Improve business, not just marketing </li></ul><ul><li>Focus: Be willing to say no </li></ul><ul><li>Confidence : Insist on data driven objectives </li></ul><ul><li>Passion: Go the extra mile </li></ul>
    31. 31. How can we make that happen? Approach Actions Redefine the value equation Redesign the relationship Rework and align the metrics of success
    32. 32. What is YOUR action plan? <ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul><ul><li>4. </li></ul><ul><li>5. </li></ul>
    33. 33. Thank you! <ul><li>Questions? </li></ul><ul><li>Contact: [email_address] </li></ul><ul><ul><ul><li>Blogs </li></ul></ul></ul><ul><ul><ul><li>Webinars & Membership Program </li></ul></ul></ul><ul><ul><ul><li>Speaking </li></ul></ul></ul><ul><ul><ul><li>Workshops </li></ul></ul></ul><ul><ul><ul><li>Engagements </li></ul></ul></ul>

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