Uploaded byFreedom2Act ApS
Board Strategy Day
Freedom2Act offers a comprehensive strategy review process aimed at increasing profitability and assessing business health through SWOT analysis and operational risk evaluation. The company emphasizes that a significant portion of corporate value loss is due to strategic and operational risks, suggesting that firms need to improve their risk management and strategic planning practices. Founded in 2001, Freedom2Act has developed proven methodologies utilized by various corporations for risk identification, assessment, and opportunity qualification.
Board Strategy Day
- 1. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 1 Freedom2Act Finn Ritslev CEO and Founder fr@freedom2act.com 1x1 Board Strategy Day Freedom2Act
- 2. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 2 Freedom2Act Finn Ritslev CEO and Founder fr@freedom2act.com Board Strategy Day ■Guarantees increased profitability ■Perform a 360 degree business health check ■Shortcut to quick operational results ■Creates roadmap to the future ■Advanced SWOT analysis ■Consensus on a company’s “as-is” situation ■Overview of strategic opportunities ■Launch initiatives reducing exposure to non- financial risks
- 3. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 3 Freedom2Act A Few Facts… Ernst & Young ■61% largest value losses were due to strategic risks, and 33% to operational risks. Yet, focus is mostly on financial and hazard risks! Copenhagen Business School ■Half of 160 of the largest Danish corporations experienced major ”surprises” the preceding 5 years. McKinsey Quarterly ■30% probability that a company in the industry’s upper quarter will not be there in five years! Operational risks 33% Financial risks 6% Strategic risks 61% Hazards <1%
- 4. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 4 Freedom2Act Risks Have Many Sources Direct competitors Customers Substitute competitors Suppliers Budget competition Agents Board Management Organization Key Persons Rights Uninsurred Assets Owners Banks and lenders Hazards Mass media Season & weather Pressure groups Trends Interest level Exchange rates Infrastructure Environment Legislation Disputes Regulation of demand Regulation of competition Regulation of access to Input Goods Working environment Political factors Subsidies Business Area
- 5. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 5 Freedom2Act What a Difference a Few Hours Can Make Overview of businesses
- 6. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 6 Freedom2Act What a Difference a Day Can Make Overview of strategic opportunities and threats 30% Freedom to Act Low High Market Growth Rate 0% 10% 20% Inflation -7.5% Freight services in the Nordic region Tool for sales opportunity management Commercial Due Diligence GROW DISPOSE DEVELOP or DISPOSE MAINTAIN
- 7. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 7 Freedom2Act Better Understanding of the Company’s Business ■Multiple-choice Test ■Enforces shared answer ■Questions posted adapt to previous answers ■“Down-to-earth questions” ■“Very commercially minded” ■“Governed by reality rather than theory” Testimonials by Group President in global shipping, logistics and marine services provider
- 8. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 8 Freedom2Act Understanding of the Competitive Situation Customer compares the company’s solution with that from the strongest competitor The Customers' Unique Buying Points™ Totally Superior Much Better Slightly Better Similar Slightly Worse Much Worse Totally Inferior $ Value for Money ease of business $ systematic time to provide reliable results effort involved thoroughness references know-how about the industry Market Share Customer compares the company’s solution with that from the strongest substitute competitor
- 9. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 9 Freedom2Act Better Advise to the Company Create overview and and reduce losses from non-financial risks
- 10. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 10 Freedom2Act Risk Item Progress Management ■Overview ■Planning phase ■Implementation ■Quick identification of delays
- 11. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 11 Freedom2Act Freedom2Act Strategy Review™ “The road to achieve goals is paved with stones, some small, some large, some boulders ………….. ………..removing large “stones” increases the success rate!” Quick and efficient generation of a ”Roadmap” to the future Citation: Johan Mellin, Commercial Risk Manager, TeliaSonera
- 12. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 12 Freedom2Act Proven Technology Proven on more than a thousand businesses large and small in Northern Europe
- 13. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 13 Freedom2Act Selected References and Testimonials Johan Mellin, Commercial Risk Manager, TeliaSonera: “Fast and efficient generation of a ”Roadmap” to the future.“ SVP, International Fire Service, Falck : “Contains what is required to analyze a company and come to concrete actions.“ “The analysis is based upon internal knowledge.” “Provides a more strict business case.“ “Visibility on competences.“ “Rapid identification of problem areas.“ “Good to jumpstart integration processes.” “May affect multiplier from 6½ to 7.” Senior Director, Novozymes: “A tool that is very relevant in companies that do not master strategy processes.” “Extremely useful for commercial due diligence processes in acquisitions.“ “Quick and effective transfer of knowledge from the acquired company to purchaser.”
- 14. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 14 Freedom2Act Who are We? Freedom2Act ApS ■Founded 2001 ■Strategy reviews ■Risk identification and assessments ■Risk mitigation ■Sales opportunity qualification ■Portfolio segmentation Finn Ritslev, Founder and CEO ■M.ScEE, DTU, Denmark PED, IMD Business School, Switzerland ■Software development, project management, marketing and sales, business development, and strategic planning Partners ■Alameda Global Consulting Limited ■Bluecon ■IEAS International Executive Advisory Services GmbH ■IIB Executive Consultants
- 15. Copyright © 2008-2014Freedom2Act ApS. All rights reserved. 06OCT14 / 15 Freedom2Act Reach Us On … www.freedom2act.com if you want to know more
Editor's Notes
- #6 The Strategic Opportunity Map has been inspired by the GE/McKinsey matrix.The size of each circle represents the total value of the addressed market. The blue pie represents the Business Area’s market share. The red indicated the size of the hardest direct competitor while the brown corresponds to the hardest substitute competitor. The arrows indicate whether the business area is gaining or losing market share – no error indicates a “stable” market situation.Business areas in the green zone (upper right corner) are potential future ”stars” while those in the red/black zone (lower left corner) are likely to have major or even fatal future problems. The further away from the yellow zone a business area in the green zone, the more attractive it is relative to other business areas; and visa-versa for business areas placed in the red/black zone.
- #20 The Strategic Opportunity Map is more sophisticated the Boston Consulting Group’s BCG matrix. It’s similar to the GE/McKinsey matrix.The size of each circle represents the total value of the addressed market. The green pie represents the corresponding Business Area’s market share. The red indicated the size of the hardest direct competitor while the brown corresponds to the hardest substitute competitor. The arrows indicate whether the business area is gaining or losing market share – no error indicates a “stable” market situation.Business areas in the green zone (upper right corner) are potential future ”stars” while those in the red/black zone (lower left corner) are likely to have major or even fatal future problems. The further away from the yellow zone a business area in the green zone, the more attractive it is relative to other business areas; and visa-versa for business areas placed in the red/black zone.
- #22 The diagnosis is based upon the answers given during the fact-finding process and it identifies and assesses those factors, which controls and limits the business’ potential to develop. The report includes a comprehensive external and internal situation analysis and a SWOT analysis comprising 140 business-related factors in each analyzed business area complemented by intuitive and communicative graphics.The graph shows stakeholders and those external forces that influences the company or business area.Kind of arrows:A heavy red arrow pointing towards the center indicates a potentially fatal relationship.Arrows pointing towards the center correspond to forces that act against the development of the business area.Arrows pointing out from the center correspond to forces acting against the development of the other party.Arrows pointing both ways correspond to a competitive situation where the forces act either ways.Lines with a link in each end correspond to a mutual dependency of the parties. They gain from cooperation.Thickness of the line:A thin gray arrow corresponds to a relation that allows for great freedom to act.A thick arrow corresponds to a strong dependency.A very thick red inward pointing arrow corresponds to a fatal dependency.