Thomson Reuters is proposing changes to better link strategic planning with operational planning by aligning operating segments with market segments. This would allow market growth projections to be used as a leading indicator for business growth. It would also provide a more robust analysis by tying market share and revenue to business forecasts. The goal is to execute strategic planning by informing large investments, acquisitions, and capital expenditures based on consistent targets across market and operating segments. This approach provides increased visibility but reduces flexibility around targets.
Operational Planning: The Key to Building a Culture of Implementation and Focus4Good.org
Ever wonder why organizations lose focus as their strategic plans gather dust on the shelf?
Ever wonder how to keep everyone on the same page during implementation, and preserve the energy and excitement generated during the strategic planning process?
Want to build a culture of focus that can knit together key organizational processes (planning, communications, evaluation and organizational learning) for sustainable high performance?
Tired of that "flying by the seat of our pants feeling?"
Successful organizations make the shift from "what" (visioning) to "how" (implementation) by building the infrastructure of implementation.
Join me in a practical discussion of what you can do create a focused, effective organization.
Integrating Strategic Planning Targets with Operational Budgeting and Forecas...Alithya
This presentation flows through the strategic planning process to operational budgeting and forecasting. Mija demonstrates how the solution plugs right into the Oracle EPM framework allowing users to share reports, analysis and dashboards across the enterprise as well as integrate results with other business processes.
These PowerPoint slides are intended to be taught in business class and explain the SWOT Analysis process to the students in the class about their own and about the companies with real examples.
This slideset outlines a package of materials developed by NHS England to support commissioners to develop strong, robust and ambitious five year plans to secure the continuity of sustainable high quality care for all.
Operational Planning: The Key to Building a Culture of Implementation and Focus4Good.org
Ever wonder why organizations lose focus as their strategic plans gather dust on the shelf?
Ever wonder how to keep everyone on the same page during implementation, and preserve the energy and excitement generated during the strategic planning process?
Want to build a culture of focus that can knit together key organizational processes (planning, communications, evaluation and organizational learning) for sustainable high performance?
Tired of that "flying by the seat of our pants feeling?"
Successful organizations make the shift from "what" (visioning) to "how" (implementation) by building the infrastructure of implementation.
Join me in a practical discussion of what you can do create a focused, effective organization.
Integrating Strategic Planning Targets with Operational Budgeting and Forecas...Alithya
This presentation flows through the strategic planning process to operational budgeting and forecasting. Mija demonstrates how the solution plugs right into the Oracle EPM framework allowing users to share reports, analysis and dashboards across the enterprise as well as integrate results with other business processes.
These PowerPoint slides are intended to be taught in business class and explain the SWOT Analysis process to the students in the class about their own and about the companies with real examples.
This slideset outlines a package of materials developed by NHS England to support commissioners to develop strong, robust and ambitious five year plans to secure the continuity of sustainable high quality care for all.
Sm 11 part_03_03
Strategic Management course version 11
Strategic management in any organization is important as it provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans.
Videos on YouTube:
video 01
https://youtu.be/alh6O6Q_9sc
video 02
https://youtu.be/b2UwGeOTEX0
video 03
https://youtu.be/R7K0W3yinLo
Simple Small Business Strategic Planning ToolB2BPlanner Ltd.
This presentation was given by Art Helmstetter at a Dayton Chamber of Commerce sponsored workshop to help small businesses learn how to develop a strategic plan for their business. For information or assistance contact www.b2bplanner.com
Strategic management
Process of determining an organization’s basic mission and long-term objectives, and then implementing a plan of action for pursuing this mission and attaining these objectives
How to allocate finite resources to achieve long-term objectives
Strategic planning and management training furnishes you with the ideas and ways of thinking behind strategic planning, just as the strategies, procedures, and devices required to create and execute an effective strategic arrangement.
Strategic planning and management training shows you a mix of strategies and new dreams and methods of reasoning from different scope of existing strategic reasoning. You will get differing perspectives of management style, which encourages you build up your exceptional style of management.
Why Choose TONEX for Strategic Planning and Management Training?
Our teachers are knowledgeable about both scholarly world and industry
Our training is joined of talks and hands-on activities
Hands-on activities incorporate practical activities, singular/group activities, and hands-on workshops
Audience
Strategic planning and management training is a 3-day course intended for:
Chiefs and senior heads
Strategic pioneers
Individuals from sheets
Quality chiefs
Senior and mid-level chiefs
Program chiefs
Chiefs
Group pioneers
Budgetary officers
Head supervisors
Training Objectives
Upon the fulfillment of Strategic planning and management training, the participants can:
Decide strategic planning issues
Build up a serious strategic arrangement
Understand the commercial center
Recognize fundamental expository and hypothetical techniques related with strategic planning
Align their company with their planning objectives by joining system, objectives, measurements, and execution
Decide creating strategic models and produce thoughts on how they can be utilized to their company
Course Outline
Outline of Strategic Planning and Management
Strategic Planning
Standards of Strategic Planning
Breaking down the Environment
Strategic Concerns in Competitive Environment
Executing the Strategic Plan
Strategic Planning Association with Other Management Systems
Who is Involved In The Strategic Planning Process?
Strategic Plan Elements
Timetabling
TONEX Group Activities Sample: Act of 1993 Submission
Learn more.
Strategic Planning and Management Training
https://www.tonex.com/training-courses/strategic-planning-management-training/
This Powerpoint presentation describes the fundamental elements of the management tool known as the Balanced Scorecard. It covers the fundamental building blocks of Balanced Scorecard, It's important, it's relation to strategy, a case study using this approach and how BSC can be used in improving quality, time and throughput of a company.
Strategic Management: The Ultimate Goal of Strategic Planning Kathy Brandt
Developing a strategic plan is the first step in leading a strategic organization. The efficacy of the plan is judged not by how many goals you achieve, but in how well you utilize the plan to strategically lead your organization. According to the Balanced Scorecard Institute, strategic organizations implement processes to “systematically coordinate and align resources and actions with mission, vision and strategy.”
Sm 11 part_03_03
Strategic Management course version 11
Strategic management in any organization is important as it provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans.
Videos on YouTube:
video 01
https://youtu.be/alh6O6Q_9sc
video 02
https://youtu.be/b2UwGeOTEX0
video 03
https://youtu.be/R7K0W3yinLo
Simple Small Business Strategic Planning ToolB2BPlanner Ltd.
This presentation was given by Art Helmstetter at a Dayton Chamber of Commerce sponsored workshop to help small businesses learn how to develop a strategic plan for their business. For information or assistance contact www.b2bplanner.com
Strategic management
Process of determining an organization’s basic mission and long-term objectives, and then implementing a plan of action for pursuing this mission and attaining these objectives
How to allocate finite resources to achieve long-term objectives
Strategic planning and management training furnishes you with the ideas and ways of thinking behind strategic planning, just as the strategies, procedures, and devices required to create and execute an effective strategic arrangement.
Strategic planning and management training shows you a mix of strategies and new dreams and methods of reasoning from different scope of existing strategic reasoning. You will get differing perspectives of management style, which encourages you build up your exceptional style of management.
Why Choose TONEX for Strategic Planning and Management Training?
Our teachers are knowledgeable about both scholarly world and industry
Our training is joined of talks and hands-on activities
Hands-on activities incorporate practical activities, singular/group activities, and hands-on workshops
Audience
Strategic planning and management training is a 3-day course intended for:
Chiefs and senior heads
Strategic pioneers
Individuals from sheets
Quality chiefs
Senior and mid-level chiefs
Program chiefs
Chiefs
Group pioneers
Budgetary officers
Head supervisors
Training Objectives
Upon the fulfillment of Strategic planning and management training, the participants can:
Decide strategic planning issues
Build up a serious strategic arrangement
Understand the commercial center
Recognize fundamental expository and hypothetical techniques related with strategic planning
Align their company with their planning objectives by joining system, objectives, measurements, and execution
Decide creating strategic models and produce thoughts on how they can be utilized to their company
Course Outline
Outline of Strategic Planning and Management
Strategic Planning
Standards of Strategic Planning
Breaking down the Environment
Strategic Concerns in Competitive Environment
Executing the Strategic Plan
Strategic Planning Association with Other Management Systems
Who is Involved In The Strategic Planning Process?
Strategic Plan Elements
Timetabling
TONEX Group Activities Sample: Act of 1993 Submission
Learn more.
Strategic Planning and Management Training
https://www.tonex.com/training-courses/strategic-planning-management-training/
This Powerpoint presentation describes the fundamental elements of the management tool known as the Balanced Scorecard. It covers the fundamental building blocks of Balanced Scorecard, It's important, it's relation to strategy, a case study using this approach and how BSC can be used in improving quality, time and throughput of a company.
Strategic Management: The Ultimate Goal of Strategic Planning Kathy Brandt
Developing a strategic plan is the first step in leading a strategic organization. The efficacy of the plan is judged not by how many goals you achieve, but in how well you utilize the plan to strategically lead your organization. According to the Balanced Scorecard Institute, strategic organizations implement processes to “systematically coordinate and align resources and actions with mission, vision and strategy.”
The CTA industry has faced prolonged periods of negative returns, ongoing redemptions, declining revenues and mounting expenses. Is the tide ever going to shift? What if it doesn't?
This presentation provides an overview of the Managed Futures sector past and present and explores several ways to unlock value in 2014.
Highlights:
• Larger firms continue to gather assets, yet smaller firms are seeing record outflows
• Do investors really understand the strategy?
• Do investors understand your capabilities?
• Importance of developing new products and distribution channels
• Positioning the firm for the future
These are just a few of the topics covered in our presentation. We would like to invite you to join the discussion and share your thoughts.
We are a Health & Wellness Holding Company (HWHC) vertically integrating health and wellness Companies & Products from farm to market. Focused on Nutraceutical products at the core, we integrate growing of known crop varieties rich in extractable proteins, lipids, and fibers. We process them into various isolated and refined products which are blended and mixed into 100's of nutraceutical brands. All are sold and marketed through multiple channels globally.”
The report PETRON MALAYSIA REFINING & MARKETING BERHADCompany Profile is a detailed document covered company’s Overview, History, SWOT Analysis, Products/Services, Facts, Financials, Key Executives, Competitors, Tech Intelligence, IT Outsourcing, IT Management, Recent Developments and Strategy Evaluation.
Avail Sample of the report for more information @
https://www.researchcosmos.com/request/petron-malaysia-refining-and-marketing-berhad-company-profile-overview-history-swot-analysis-pr/5068936
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
2. Special Note
Safe Harbor / Forward-Looking Statements
• This presentation contains forward-looking statements, including those about Thomson
Reuters outlook and prospects. Forward-looking statements are those which are not historical facts.
These and other statements that relate to future results and events are based on Thomson
Reuters current expectations.
• Our actual results in future periods may differ materially from those currently expected because of a
number of risks and uncertainties. The risks and uncertainties that we believe are material are outlined
in our disclosure filings and materials, which you can find on www.thomsonreuters.com. Please
consult these documents for a more complete understanding of these risks and uncertainties. We
disclaim any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be required by law. Our outlook is
provided for the purpose of providing information about current expectations for 2012. This information
may not be appropriate for other purposes.
2
3. Our Business
333
We are the world's leading source of intelligent information for businesses and
professionals, combining industry expertise with innovative technology to deliver critical
information to leading decision makers
TAX & ACCOUNTING: $1.1B
Checkpoint is used by all of the
top 100 U.S. accounting firms
HEALTHCARE & SCIENCE: $0.9B
Informing healthcare decisions
affecting over 150 million lives
Used by over 20 million
researchers worldwide
MEDIA: $0.3B
Reuters news and information
reaches one billion people daily
FINANCIAL: $7.1B
Provides financial applications
for over half a million
professionals globally
LEGAL: $3.7B
Westlaw is relied upon by 99%
of the National Law Journal's
top 250 U.S. law firms
MARKETS DIVISION: $7.4B PROFESSIONAL DIVISION: $5.6B
Note: Represents legacy structure, as of January 1, 2012
Thomson Reuters eliminated its Professional and Markets
Divisions and reorganized into four reportable segments:
Legal, Tax & Accounting, IP & Science and Financial & Risk
4. Competitive Advantage
444
Industry Leader
True Global
Presence
Combining deep employee expertise across our verticals with innovative
technology to deliver critical information to leading decision makers in the
financial, legal, tax and accounting, healthcare and science and media
markets, powered by the world's most trusted news organization
For Professionals,
By Professionals
Attractive Business
Model
• Over $10 billion in revenue
• The world’s leading source of intelligent information for businesses and
professionals
• Serving customers through offices in more than 300 cities in more
than 100 countries
• Revenue stream: 59% Americas, 30% EMEA, 11% Asia
• Subscription based
• 86% of portfolio recurring revenue
• Strong & consistent cash generation capabilities
5. Key Financial Principles
555
Drives shareholder value by providing:
• Optimal financial flexibility to
support business/strategic
objectives
• Ability to “stretch” if/when required
for the right opportunities
Drives shareholder value by:
• Deploying capital towards most
attractive opportunities
• Exiting underperforming and/or non-
strategic businesses
• Capital allocation linked to business
strategy & operating performance
• Portfolio Optimization
• Disciplined Acquisition
process
• Disciplined Capex
management process
Drives shareholder value through:
• Attractive and growing return of capital
to shareholders (dividends and stock
buybacks) balanced with re-investment
in the business (Capex & acquisitions)
• Target strong growth
• Capital intensity
• W/C management
#2
Focus on
free cash flow
• Target Net Debt / EBITDA
of 2.0x
• Access to capital markets
• Balance investments and
returns
#3
Support business
objectives with a
robust capital
strategy
#1
Invest to drive
long-term growth &
returns
6. Business Model
666
• Strong financial profiles
• Mission critical information
• Many professionals, highly
distributed
• Complex or risk-oriented
• Deep domain expertise
• Managing structured and
unstructured data
• Applying user context
• World-class technology
leadership
• Global / large communities
Attractive professional information market segments… …where we can deploy our core competencies
7. 7
STEP 2:
Measure our Performance
STEP 3:
Take Action
For each segment we
participate in, we ask:
• Is the sector large &
growing?
• What is the short- and long-
term outlook for growth?
• Are there benefits or
efficiencies of scale?
• Do we have any natural
advantages that position us
for success?
How do we stack up?
• How does our financial
performance compare to
our competitors’?
• Are we gaining or losing
market share?
• Are our margins best in
class, average or below
average?
• What is our trajectory?
Proactively shift the
business
• Invest to add the right
capabilities (buy or
build)
• Transition away from or
evolve businesses that
no longer have the right
characteristics
• Example: Transition
from print to electronic
STEP 1:
Evaluate our Market Segments
Putting Growth & Returns into Practice
8. 8
Disciplined Approach
• Deliver a disciplined review of the growth & returns performance for share in
each segments
• Track the size and estimated future growth rates for the market segments we
participate in
• Identification of segments for further study
Revenue Growth
Margin
High
Low
HighLow
9. Business Growth vs Market Growth
Example: for discussion purposes only
9
$X.XB
Avg. Revenues
+1% Below Market Growth %
+1% Above Market Growth %
Key:
Market Growth Line
“Above Market Growth”
“Below Market Growth”
Segment Revenue Growth % is:
Market Growth % CAGR
Within 1% of Market Growth %
OrganicRevenueGrowth%CAGR
0%
5%
10%
15%
0% 5% 10% 15%
10. 10
Past Process
Strategic Plan Operating Plan
July
• Developed by Strategy Groups
and presented to the Board
• Analyze markets where we
compete
• Develop view of Thomson
Reuters in terms of markets
• Size in terms of relative market
share
• Growth vs market
• Internal view of company
Growth and profits in certain
markets
December
• Developed by Finance Groups
and delivered and delivered to
the Board
• Aggregate financials across
the company
• Develop view of the company in
terms of management
reporting
• Growth rates determined as
reasonable based primarily off
of past performance
• Analysis around growth,
revenue flow through and FCF
conversion
Strategy
Finance
12. 12
Proposed Changes
Key Shortcoming Proposed Solution
• Strategic rollup of businesses
based on Market segments
• No way to translate results in
market segments to results in
operating segments
• No way to use market growth as
key indicator of business growth
• Align Operating segments with
Market segments
• Or at least a way to reconcile
between the two
13. 13
Revised Process
Strategic Plan Operating Plan
• Partners with Finance in development of Strategic and Operating plans
• Agrees with Finance on agreed upon market/operating segments where we have revenues
• Provides short term and long term market growth in agreed upon segments
• Utilizes business growth as provided by Finance
• More grounded and robust analysis as market share revenues tie to Business forecasts
• Partners with Strategy in the development of Operating and Strategic plans
• Agrees with Strategy on agreed upon operating/market segments where we have revenues
• Provides short term and long term business growth in agreed upon segments
• Utilizes market growth as provided by Strategy
• More grounded and robust analysis as market growth projections are a leading indicator for
Business Growth
Strategy
Finance
July December
15. 15
Execution on Strategic Planning
Strategic Plan
InvestmentsOperating Plan
• High growth sectors
• Investment needs
• Acquisition assessment
• Large capex projects
• Consistency in Targets
• Market Growth –
leading indicator
16. 16
Insights
• Market growth is a leading indicator for operating segments long
term
• Short term variability depending on health of business vs market
• Can highlight consistent underperformance or overperformance
• Large investments are not always in the highest growth businesses
• Portfolio investing is more about largest returns
• Leveraging large profitable businesses (low growth) can have
larger rewards than investing in growth
• Forcing businesses to reconcile between market segments and
operating segments provides increased visibility
• Reduces flexibility around ‘soft’ targets
• Increased communication/visibility to hedges
Editor's Notes
Good morning. Thanks to everyone for attending. I gotta say that I have seen a lot of great presentations and looking forward to more today. Before I jump into the slides, let me give you a quick overview of what I am planning to share. I work for Thomson Reuters, in the corporate FP&A group supporting the annual planning process. And I am not sure how many folks are familiar with Thomson Reuters, so I will get into the details of some of the products we deliver. But what I am going to focus most of my time on is what I am going to call ‘our own innovations’ in planning. We have continually been looking for ways to validate our planning process. And when I say validate, what I am trying to get at is having some way to benchmark our plan and targets. A good way to accomplish this is through rolling forecasts, but we have struggled a bit in implementing rolling forecasts across the entire business. Some of our operating units have embraced these forecasts and put significant effort in maintaining them.. However other operating units don’t put the necessary effort into them (they don’t see the value). And so as we consolidate the plan, its impossible to get a comfort level with a consolidated rolling forecast if not everyone is on board with them. So, we have had to find other resources throughout the company, and we had to be a bit creative in ensuring Plans are genuine as presented to us. I’ll get into this further, we ended up relying on much of the data that goes into our strategic planning that helps validate our planning process and operating targets. A bonus to this was that in taking this approach we found a natural to link Strategic plans and operating plans. So that initiatives set out from strategic view are reflected in annual operating targets.
So let me jump into what our company does. Thomson Reuters generates approximately $13B in revenue a year. We provide intelligent information for professionals throughout the world. Now that is a tagline “intelligent information” and I am sure some marketing company was paid hansomely to come up with that. But let me give you a better sense for what we do… consider one of our key legal product lines, Westlaw. Westlaw provides information to attorney, mostly in the US. If we look back 20 years, (this is actually before we even owned Westlaw), the legal industry relied on published legal books for all of their work. These were caselaw books, and Westlaw was a leading publisher in this market. Flash-forward to today, we still publish a lot books, but attorneys are not waiting for their annual set of caselaw books to show up at the office. The industry (although slow) still moves at a more real time pace, and the content content/data/info is all provided in a searchabel database. So we don’t have to print as many books, and attorneys now pay for content that is real time and it is much easier to search a database then cram through a pile of books. And we also have wrap around tools that just make an attorney’s research job a bit easier. That is the sense of intelligent information, we provide information to professionals to make their jobs more efficient. And we do this in multiple professional industies besides the legal space. For those of you familiar with the company, historically Thomson was very strong with all the businesses on the right side of this slide (Legal info, Tax info and Science (IP) info). In 2008, Thomson purchased Reuters, combining top of the line financial information with the remaining core information businesses within Thomson. Most of you probably recognize Reuters through its international media arm, they are known worldwide similar to the BBC or Associated Press. But the reality is that this is only a very small piece of the total business. LOOK AT THE SLIDE.
As I discussed on the last slide, we provide information to professionals and I think I have covered that off. What I want to focus on here is the global nature of our business (~40% of revenues ourside US), which means from a planning perspective we deal with a number of currency issues. This is something we inherited when we purchased Reuters and we have had to come up to speed on planning by currency and providing guidance to properly hedge our currency exposures. But what makes life a bit easier for the finance staff around the company is the business model and the nature of contracts in this industry…. So almost 90% of revenue are recurring. That means that the biggest factor in determining revenues is renewal rates on our products. There is an additional 10% of revenues that are more unpredictable and new sales play a big role. But… for … the .. Most.. Part, revenues are fairly steady. For me, where I get to with such a big recurring base is that we tend to follow market trends. In other words, as market is increasing, we are typically going to see the benefits from that in our pricing and renewal rates. Said another way, we are not a niche player in most of our markets, our recurring base of revenue ensures the base tends to follow and/or set market trends. Its not a rule in every market, but in general we tend to be consistent with market.
Thomson Reuters has historically been managed on a portfolio basis. I think I mentioned earlier that we didn’t own our Westlaw product line 20 years ago… that’s true, it wasn’t acquired until the late 90’s. In fact, if you look back 40 years, some of our biggest assets were in oil wells in the north sea and even in the early 1990’s we were concentrated in 2 markets… newspapers and the travel industry. But over the past 15 years, we have been focused on the professional information business (and agacencies). And despite this focus, we are constantly re-evaluating our portfolio (its somehow in our nature). Our acquisition investment is sizeable in any given year (over a billion dollars in 2011). And we have never had a problem identifying businesses that no longer fit our long term strategy and shed those as needed (in 2011, we announced the sale of our Healthcare business). Despite strong revenue growth and multiple leading indicators for the markets, we made the tough decision to put Healthcare on the market, because it was the right thing to do for our company. Through constantly evaluating our portfolio of businesses, we rely upon these guiding principles. We probably over-analyze markets, but we feel it’s the #1 determinate of long term growth. As we invest, it is with a focus on long term returns, but that is not an isolated variable. Our investments have to be within our core capabilities (long term investing has to be met with long term scale) driving both top line growth and cash flow growth.
I don’t want to overstress this, but it all comes down to the markets we are in and our ability to be successful in those markets. To give you a sense for this, lets look at the case for our Healthcare business. Healthcare information is a hot market right now. There is a ton of buzz around terms like ‘electronic medical records’, ‘consumer driven healthcare’, ‘medicare efficiency’, etc. All of these rely on information in the healthcare market. Trends are great in this industry and it’s a core reason why so many Private Equity companies are hot on this space, as well as new strategic entrants…there are some big companies out there that are starting to signal efforts to get into this market. For all intents, this would be a market we should be double investing in. However, for us its more than just high growth markets, it also has to be a market we can leverage long term. And we made a good go at this market, but it just doesn’t fit our mold any longer. However, as we do look at target market, some interesting capabilities we have are providing content to corporate risk professionals. As Sarbanes Oxly has changed this market, and more global regulations are driving the need for more of this content and software.
So our methodology in flushing out target markets, we go through a lot of effort in sizing up each market we are in (or want to be in). And some may ask ...why go through all this trouble of breaking down our business into addressable market segments. This is how we evaluate our portfolio. First we look at the segments in general to see if those are the right market segments to be in. This is determined by relative size of market, competitive landscape, fragmentation, trends, etc. Then we ask how do we stack up in this market, are we a market leader, niche player, are we gaining share / losing share, etc. Then it is a matter of determining next steps... Opportunity to invest for growth (organic or acquisition investment), hold tight in certain markets, or if it is a market that is no longer attractive because of either market dynamics or our own position in that market, it might lead to a decision to exit that market.
Let me take you through a couple of the ways we display this graphically. So on this slide is the very basics in what we call growth and returns analysis. On the vertical axis is revenue growth, with the companies overall growth as the benchmark in the center. And on the horizontal axis is the measure of returns based on profit margin (again the companies overall margin serves as the benchmark). In other words, anything above the line is considered high growth vs low growth below the line and anything right of the center axis has higher profitability. What we are doing is isolating our segments into 4 quadrants. None of these quadrants are good or bad, its just defines these segments for us. And this doesn’t give us any answers...we no longer use terms like dogs, rising stars and cash cows, but dividing segments into these quadrants drives the first level of questions. Why do we have companies that are low growth / low margin... Are they dogs, are they in a tough market right now. Natural questions for the high growth / low profit businesses ... Can we make some small tack-on acquisitions that will easily drive scale and drive more profitability, Can we cut costs without impacting growth, etc.
On this slide is a look at how our own revenue growth stacks up to market. On the vertical axis is our own revenue growth and on the horizontal axis is the market growth. So anything above this dotted line grows faster than market and likewise anything below the line trails market growth. Again, these slices of data are not intended to draw any sort of conclusions. It is just another data point to ask another level of questions. I like to assess this view over time… so if I see a segment that is continually growing below market, it begs the question of why… no focus on the space, just poor products, too large for the space, etc. And its one thing to see a segment drop below this line temporarily, but its tough being committed to a segment that is continually down there. If we are growing less than market than over time we are losing significant market share. Likewise, if I see a segment that is continually beating market, I question the validity of that. Sure companies can have great years where they are outpacing competition… but for how long. And if we have been truly just outperforming, how long can we expect that to last.
So I think I have stressed our focus on markets and the regular work we complete in evaluating our portfolio of businesses. A majority of that work is part of regular analysis going into our strategic reviews. What we have struggled with is somehow connecting all of that rich content/market insight within our annual planning process. We have all put lip service into how our strategic plans point to long term goals and operating plans define short term execution towards those goals. But for us, there was a bit of a disconnect. For the most part, our Strategy organization owned the strategic reviews to the Board, and defined everything by market segment. What I am trying to illustrate in this slide is that our Strategy Organization was on a path to complete their review in July, and our Finance Organization was on a separate path to complete our review by December. And there was a bit of a mis-match...To give you a sense for this, consider how each group defines the addressable business. For the operating Plan, Finance relies on management reporting of operating segments to roll up an aggregate Plan. Management reporting is defined by Organizational Structure, leadership and product lines. For instance we could have management reporting around a key product line like WestLaw Online and a separate operating unit like Legal Briefs which each serve multiple markets (small law firms, large law firms, corporate law offices, etc). As each group rolls up revenue figures across the company, we are each doing so differently, and at different times of the year.
Let me use this slide to illustrate the point I was trying to make about rolling up figures differently. Lets assume the grey bars are operating units and the blue boxes are the markets that they serve. As the strategy group focuses on revenue in the markets we serve ... Click... They will pull the revenues for ... Click... Large law firms... Click... Small law firms... Click and corporate law offices. Meanwhile, for an operating Plan, we would focus on revenues from the operating segments.. Click. And here is where we ran into issues in aligning strategic plans with operating plans. Lets say in this situation, we identify Large Law firms as a growth market, where we will focus on organic investment as well as significant acquisition activity. From an operating Plan, we should expect higher growth, higher levels of investment spend, etc. However, because this activity is buried across multiple operating segments, it gets lost in the shuffle. And my only way of targeting/challenging an operating segment like Westlaw Online is to see how forecasts compare to historicals.
So great, we have a lot of rich data/content to help us look at our market segment, but how that translates into operating plans was a bit muddled. So for us, the key problem was a mis-match between our market segments and operating segments. And this might seem like a really easy answer for solving this great dilemma, but all you have to do align operating segments with market segments. In other words, instead of having a GM for Westlaw, we could have a GM for Large Law firms, that would sell all products into that customer set. This is much easier said than done, but over the past few years, Thomson Reuters has committed to improving customer strategy. To a point that some of our businesses have aligned according to customer segment. This is difficult and does take time, but we are moving in that direction. For all other segments, there has to be a reconcilement between revenue from market segments and revenue from operating segments.
As the finance group and strategy group become more aligned, we determined that consistency among all of our deliverables is extremely important. The analysis may be different (and even conclusions may be different), but core data supporting these deliverables had to be the same. So we agreed that anytime we collect the data, whether for strategic plan, operating plan or special project we have to see the breakout by operating segments and by market segments. From a finance perspective, the first thing we realized was that we now had a simple way to validate our operating Plan. For every segment submitted in the operating Plan, we had market growth figures that we could rely on for a benchmark. Instead of trying to judge historicals and ‘trajectory’ of a business, we had relative growth based on market of where we should expect our own businesses to come in. If some segments came in below market, we could easily turn back to the strategic plan to see if there was any explanation or simply challenge the business to grow closer to or at market. Likewise we could validate decisions from the strategic review. If a certain segment was highlighted for its potential and we had committed to investing in that business for further growth, then we better see that coming through in operating plans.
Now this is a lot of data floating around and it can take up massive spreadsheets. And so we formalized this process by utilized submissions in our planning system (we use cognos). Again, this takes coordination with the Strategy group, but the idea is that the finance side of the shop enters in all of the business data (this is our revenue in defined market segments). And Strategy owns the process for entering market growth data into the system. The result is a fairly tidy database that either team can utilize for planning purposes, but also for other one off-analysis. For instance, we regularly dive into this as we look at acquisitions. It gives us a quick snapshot to size up the market we putting more money into and our current position in that market. The nice part of this is we can also utilize the system to populate charts for us. Here in this example... By the way this is pure example, we sold the learning division about 5 years ago so I really am just making up number to illustrate this... But I have circled in blue the figures that would be pulled to pre-populate a market share chart. And the figures circled in red can pre-populate the chart we looked at earlier that compares our own growth vs market.
Where we are getting to on that this is no longer a once a year complicated exercise, but more fluid and on-going. Its also made us more connected, its less silo’s between strategy and finance and more cooperation in putting both the strategic plan and operating plan together.
So I will open it up for questions in a moment, but let me touch on some key insights. So not every company is going to have an already established growth & returns process to tap into. But market insights are out there and what we have found is that utilizing market info can go a long way in analyzing your operating plan. Looking at this slide, I think we have touched enough on point 1 and point 2. But what I found most interesting in our first run of pulling all this together is that it provides a lot of visibility into the businesses. Forcing the businesses to reconcile between operating segments and market segments and having access to market returns means that there is little room to hide anything. If I take a business managers perspective for a minute, if I am submitting my Plan, in order for me to put a hedge in any of my number, I would have to come off market growth... Or at least come off growth commitments I made in the strategic reviews. In other words, if I said in the strategic review that the post grad segment was going to grow at market at 5% and now 6 months later I want to put a hedge in my plan, I have come off those earlier statements with a lower growth rate. Now, this doesn’t stop hedging, but does make it much more transparent across the company.