When the Danaher Corporation announced in May 2015 that it would split into two separate enterprises in 2016, it seemed at first like a reversal of the company’s history. Danaher had built itself into a remarkably successful business over four decades by acquiring and integrating new companies into a unified whole, improving them through a group of distinctive management practices known as the Danaher Business System (DBS), then holding onto them. Although it’s sometimes compared to a private equity firm, Danaher is different — it buys and builds companies for the long term, not for rapid fix-up and sale. Divesting is not the Danaher modus operandi.
But from a strategic point of view, the split makes sense. Although these two new companies have a common heritage and management approach, their businesses are distinct enough from each other that they require different capabilities.
One new company, which will retain the Danaher name, will focus on science and technology businesses. Generally, these are enterprises with resilient business models, strong long-term growth, high gross margins, and significant business in aftermarket products, such as replacement parts and upgrades. The other company, Fortive Corporation, will be made up of what Danaher calls its “industrial growth” enterprises. These are industrial end-market businesses with slightly more cyclical markets, high operating margins, and strong cash flow. The split is intended to provide each company with its own focus and to increase capital deployment flexibility, thus providing more opportunities for growth in each company’s distinctive way.
BCG's 2014 Local Dynamos are formidable competitors, defeating foreign and local companies with a comprehensive understanding of their own backyards and a willingness to “go for it.” Global companies seeking to compete in these markets must emulate the characteristics of the Local Dynamos while emphasizing their core advantages as MNCs.
For further reading: https://www.bcgperspectives.com/content/articles/globalization_consumer_products_2014_bcg_local_dynamos_how_companies_emerging_markets_winning_home/.
Unlocking the data possibilities of Big Data presentation shared at the Big Data / Internet of Things Conference Board Conference June 25-26, 2015
http://www.pwc.com/us/en/analytics/big-data.jhtml
The tipping point for electrified vehicles is in sight, and a combination of hybrid and fully electric powertrains is expected to cut the global market share of pure internal combustion engines (ICEs) by about 50% by 2030.
BCG's 2014 Local Dynamos are formidable competitors, defeating foreign and local companies with a comprehensive understanding of their own backyards and a willingness to “go for it.” Global companies seeking to compete in these markets must emulate the characteristics of the Local Dynamos while emphasizing their core advantages as MNCs.
For further reading: https://www.bcgperspectives.com/content/articles/globalization_consumer_products_2014_bcg_local_dynamos_how_companies_emerging_markets_winning_home/.
Unlocking the data possibilities of Big Data presentation shared at the Big Data / Internet of Things Conference Board Conference June 25-26, 2015
http://www.pwc.com/us/en/analytics/big-data.jhtml
The tipping point for electrified vehicles is in sight, and a combination of hybrid and fully electric powertrains is expected to cut the global market share of pure internal combustion engines (ICEs) by about 50% by 2030.
Complete Business Frameworks Toolkit - Strategy, Marketing, Operations, Consu...Flevy.com Best Practices
Download this primer now from slideshare.
Full version here:
https://flevy.com/browse/business-document/complete-consulting-frameworks-toolkit-644
This is a very comprehensive document with over 350+ slides--covering 51 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any problem that can arise in your organization.
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
FULL LIST OF MANAGEMENT CONSULTING FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle ( Consumer Adoption Curve)
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Consumer Decision Journey ( McKinsey Consumer Decision Journey)
16. Core Competence Analysis
17. Cost Structure Analysis
18. Customer Experience
19. Customer Satisfaction Analysis
20. Customer Value Proposition
21. Fiaccabrino Selection Process
22. Financial Ratios Analysis
23. Gap Analysis
24. Industry Attractiveness & Business Strength Assessment
25. Key Purchase Criteria
26. Key Success Factors (KSF)
27. Market Sizing & Share
28. McKinsey 7-S
29. Net Present Value
30. PEST Analysis
31. Porter Competition Strategies
32. Porter's Five Forces
33. Portfolio Strategies
34. Price Elasticity
35. Product Life Cycle
36. Product Substitution
37. Relative Cost Positioning
38. Rogers' Five Factors
39. Scenario Techniques
40. Scoring Models
41. Segment Attractiveness
42. Segmentation & Targeting
43. Six Thinking Hats
44. Stakeholder Analysis
45. Strengths & Weaknesses Analysis
46. Structure-Conduct-Performance (SCP)
47. SWOT Analysis
48. SWOT Strategies
49. Treacy / Wiersema Market Positioning
50. Value Chain Analysis
51. Venkat Matrix
A data monetization framework from Accenture Interactive. Three questions your company should answer to start realizing revenue opportunities from your data.
Tech Adoption and Strategy for Innovation & Growthaccenture
Accenture presents the benefits of investing in technology at scale by discussing the importance of tech adoption and strategy through case studies. View more.
Shaping the Sustainable Organization | Accentureaccenture
Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.
PwC’s Trends in People Analytics report highlights our recently published 2015 PwC Saratoga US benchmark data, as well as the implications for people analytics functions and key trends for consideration.
Lifting the Barriers to Retail Innovation in ASEAN | A.T. KearneyKearney
Rising incomes and growing demand for consumer goods and services in ASEAN create rich opportunities for retailers in the region, which is especially significant as member nations join forces to become an economic powerhouse. Yet ASEAN retailers have been slow in terms of Innovation and as this market opens up, stepping up innovation is required to capitalize fully on the opportunities.
Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...Slideworks
A comprehensive, end-to-end strategy presentation template based on proven frameworks created by ex-McKinsey and BCG consultants.
277 PowerPoint slides organized in a complete storyline with best-practice slide-layouts, titles, and graphics
4 real-life full-length examples from Fortune500 companies so you can see how a strategy is presented in other organizations
Helpful checklist used in top-tier consulting firms
Excel model to support your strategy document.
Access full powerpoint at www.slideworks.io.
A reproduction of the official pitch deck template recommended by leading VC firm Sequoia Capital.
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the “fitness” of their capital allocation strategies and their alignment with operational performance goals by taking an outsider’s view of the business even when times are good — and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
EY's European Banking Barometer – 2015 identifies the views of 226 senior European bankers across 11 markets regarding their views of the macro-economic outlook and the impact they think it will have on the banking industry in 2015.
For further information visit: www.ey.com/ebb
Unleashing Competitiveness on the Cloud Continuum | Accentureaccenture
Accenture reports how the cloud continuum creates a seamless technology & capability foundation that meets business needs now and in the future. Read more.
A.T. Kearney Consolidation of the US Banking IndustryKearney
More and more banked consumers are migrating from small to large banks, flagging the accelerated consolidation of the retail banking industry in the years to come.
BUSINESS MANAGEMENT 1
BUSINESS MANAGEMENT 4
Business management
Pang sun
Business management
Why is Roche seeking to acquire Genentech?
Roche is a shareholder having 56% of the company, but they are looking forward to get the other 44% (Hughes, 2011). Roche owns the majority share of the company since 1990, and there has been a production of less innovative products that are supplied to the market year after years in the pharmaceutical field. The main reason for the merge is to ensure that they will utilize the economies of scale and come up with a more competitive innovative product in the market. The acquisition will increase synergy, reduce operating risks and ensure growth from the healthy competition.
What synergies could the combined company produce?
Due to the merge, the market will experience better innovative products that will produce competition to other pharmaceutical companies. On the other hand, the merger and acquisition would reduce the production cost as compared to the way they were performing individually hence increasing productivity and profitability of the company.
How would you quantify the potential synergies between the two companies to justify the valuation of Genentech?
Owing to the 100% ownership Genentech would be the largest biotechnology company in the world leading to proper utilization of the latest technology and market leaders (Hughes, 2011). The government and administration cost would reduce significantly enabling Genentech to create an affiliate contract extension enabling Roche to distribute the companies best selling drugs out of the American markets. The government cost includes tax reduction, and the administration cost is reduced managerial workforce regardless of the increased company size. Furthermore, the main risk for the full acquisition is that the old company cultures and family environment can be destroyed and new culture implemented which will affect the jobs, performance, and productivity. This can lead to some people losing their jobs and some having to work in a department that they were not used to. As mentioned earlier the acquisition will enable the company to have R &D projects and proper utilization of the technological tools in the market. Finally, this acquisition will provide the company with enough cash of approximately $9 billion which can be used to settle the debts made in the process of acquisition.
What should Franz Hummer do?
Mr. Hummer should review the strategic reason and possibilities of acquisition and the synergies expected from the deal and then provide the probable response to Genentech board in relation to the takeover bid. I think with the proper evaluation of the pros and cons associated with the acquisition now, and in the future, Hummer could forecast the positive impacts related to the deal (Hughes, ...
Complete Business Frameworks Toolkit - Strategy, Marketing, Operations, Consu...Flevy.com Best Practices
Download this primer now from slideshare.
Full version here:
https://flevy.com/browse/business-document/complete-consulting-frameworks-toolkit-644
This is a very comprehensive document with over 350+ slides--covering 51 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any problem that can arise in your organization.
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
FULL LIST OF MANAGEMENT CONSULTING FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle ( Consumer Adoption Curve)
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Consumer Decision Journey ( McKinsey Consumer Decision Journey)
16. Core Competence Analysis
17. Cost Structure Analysis
18. Customer Experience
19. Customer Satisfaction Analysis
20. Customer Value Proposition
21. Fiaccabrino Selection Process
22. Financial Ratios Analysis
23. Gap Analysis
24. Industry Attractiveness & Business Strength Assessment
25. Key Purchase Criteria
26. Key Success Factors (KSF)
27. Market Sizing & Share
28. McKinsey 7-S
29. Net Present Value
30. PEST Analysis
31. Porter Competition Strategies
32. Porter's Five Forces
33. Portfolio Strategies
34. Price Elasticity
35. Product Life Cycle
36. Product Substitution
37. Relative Cost Positioning
38. Rogers' Five Factors
39. Scenario Techniques
40. Scoring Models
41. Segment Attractiveness
42. Segmentation & Targeting
43. Six Thinking Hats
44. Stakeholder Analysis
45. Strengths & Weaknesses Analysis
46. Structure-Conduct-Performance (SCP)
47. SWOT Analysis
48. SWOT Strategies
49. Treacy / Wiersema Market Positioning
50. Value Chain Analysis
51. Venkat Matrix
A data monetization framework from Accenture Interactive. Three questions your company should answer to start realizing revenue opportunities from your data.
Tech Adoption and Strategy for Innovation & Growthaccenture
Accenture presents the benefits of investing in technology at scale by discussing the importance of tech adoption and strategy through case studies. View more.
Shaping the Sustainable Organization | Accentureaccenture
Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.
PwC’s Trends in People Analytics report highlights our recently published 2015 PwC Saratoga US benchmark data, as well as the implications for people analytics functions and key trends for consideration.
Lifting the Barriers to Retail Innovation in ASEAN | A.T. KearneyKearney
Rising incomes and growing demand for consumer goods and services in ASEAN create rich opportunities for retailers in the region, which is especially significant as member nations join forces to become an economic powerhouse. Yet ASEAN retailers have been slow in terms of Innovation and as this market opens up, stepping up innovation is required to capitalize fully on the opportunities.
Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...Slideworks
A comprehensive, end-to-end strategy presentation template based on proven frameworks created by ex-McKinsey and BCG consultants.
277 PowerPoint slides organized in a complete storyline with best-practice slide-layouts, titles, and graphics
4 real-life full-length examples from Fortune500 companies so you can see how a strategy is presented in other organizations
Helpful checklist used in top-tier consulting firms
Excel model to support your strategy document.
Access full powerpoint at www.slideworks.io.
A reproduction of the official pitch deck template recommended by leading VC firm Sequoia Capital.
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the “fitness” of their capital allocation strategies and their alignment with operational performance goals by taking an outsider’s view of the business even when times are good — and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
EY's European Banking Barometer – 2015 identifies the views of 226 senior European bankers across 11 markets regarding their views of the macro-economic outlook and the impact they think it will have on the banking industry in 2015.
For further information visit: www.ey.com/ebb
Unleashing Competitiveness on the Cloud Continuum | Accentureaccenture
Accenture reports how the cloud continuum creates a seamless technology & capability foundation that meets business needs now and in the future. Read more.
A.T. Kearney Consolidation of the US Banking IndustryKearney
More and more banked consumers are migrating from small to large banks, flagging the accelerated consolidation of the retail banking industry in the years to come.
BUSINESS MANAGEMENT 1
BUSINESS MANAGEMENT 4
Business management
Pang sun
Business management
Why is Roche seeking to acquire Genentech?
Roche is a shareholder having 56% of the company, but they are looking forward to get the other 44% (Hughes, 2011). Roche owns the majority share of the company since 1990, and there has been a production of less innovative products that are supplied to the market year after years in the pharmaceutical field. The main reason for the merge is to ensure that they will utilize the economies of scale and come up with a more competitive innovative product in the market. The acquisition will increase synergy, reduce operating risks and ensure growth from the healthy competition.
What synergies could the combined company produce?
Due to the merge, the market will experience better innovative products that will produce competition to other pharmaceutical companies. On the other hand, the merger and acquisition would reduce the production cost as compared to the way they were performing individually hence increasing productivity and profitability of the company.
How would you quantify the potential synergies between the two companies to justify the valuation of Genentech?
Owing to the 100% ownership Genentech would be the largest biotechnology company in the world leading to proper utilization of the latest technology and market leaders (Hughes, 2011). The government and administration cost would reduce significantly enabling Genentech to create an affiliate contract extension enabling Roche to distribute the companies best selling drugs out of the American markets. The government cost includes tax reduction, and the administration cost is reduced managerial workforce regardless of the increased company size. Furthermore, the main risk for the full acquisition is that the old company cultures and family environment can be destroyed and new culture implemented which will affect the jobs, performance, and productivity. This can lead to some people losing their jobs and some having to work in a department that they were not used to. As mentioned earlier the acquisition will enable the company to have R &D projects and proper utilization of the technological tools in the market. Finally, this acquisition will provide the company with enough cash of approximately $9 billion which can be used to settle the debts made in the process of acquisition.
What should Franz Hummer do?
Mr. Hummer should review the strategic reason and possibilities of acquisition and the synergies expected from the deal and then provide the probable response to Genentech board in relation to the takeover bid. I think with the proper evaluation of the pros and cons associated with the acquisition now, and in the future, Hummer could forecast the positive impacts related to the deal (Hughes, ...
Questions write in two postgrad level essays, each around 800 w.docxmakdul
Questions: write in two postgrad level essays, each around 800 words (must read this reading)
In 2013, Rita McGrath published an article in the Harvard Business Review arguing that ‘Sustainable competitive advantage is now the exception, not the rule. Transient advantage is the new normal.’
a) Drawing on relevant academic literature, explain what a sustainable competitive advantage is and how it might be created.
b) Using examples to illustrate your answer, evaluate Rita McGrath’s argument that ‘transient advantage is the new normal’.
The questions are asking for:
a) An explanation of sustainable competitive advantage, drawing on academic sources.
Show that you can explain the major approaches to competitive advantage (and how they are different from each other).
This question assesses your understanding of the literature, though you can provide examples to illustrate the strategy approaches.
b) An understanding of the limits of ‘sustainable competitive advantage’.
An ‘evaluation’ i.e. examine the issue and make an overall argument that is supported by evidence you present.
You need to acknowledge McGrath’s argument but your evaluation can also draw on other arguments and sources about short term vs long term advantages.
You need to use some examples to illustrate your argument. Think about which examples can be used and for what purpose.
Requirements:
Essay answers – introduction (how you are addressing the question; clear structure that develops a coherent argument; conclusion.
Academic i.e. drawing on some reading & using evidence
· An answer to the question (make sure you are clear about what is being asked)
· An argument – something informative, interesting and insightful to say
· Evidence of reading. Use citations; refer to what you have read – academic sources. E.g. FT, Rosenzweig
· Appropriate use of company examples
· Use company examples in a way that supports the argument. Use extended examples e.g. don’t just cite a company but explain how it is relevant to your argument. Be specific: use some empirical evidence e.g. don’t just talk about ‘sales trend’, provide some data
· Use a range of examples where appropriate; relevance of all examples needs to be explained.
· No need to provide a list of references or exact citations with page numbers (eg FT in January 2008 or Rosenzweig 2007 is fine)
Transient
Advantage - HBR.pdf
COMPETITIVE STRATEGY
Transient Advantage
by Rita Gunther McGrath
FROM THE JUNE 2013 ISSUE
S
PHOTOGRAPHY: COURTESY OF PACE GALLERY
ARTWORK: TARA DONOVAN, UNTITLED (STYROFOAM CUPS), 2008, STYROFOAM
CUPS AND GLUE, INSTALLATION DIMENSIONS VARIABLE
trategy is stuck. For too long the
business world has been obsessed with
the notion of building a sustainable
competitive advantage. That idea is at the core of
most strategy textbooks; it forms the basis of
Warren Buffett’s investment strategy; it’s central
to the success of companies on the “most
admired” lists. I’m not argu ...
Running Head BENCHMARK – CASE STUDY POTENTIAL RESOLUTIONS1BENC.docxtoddr4
Running Head: BENCHMARK – CASE STUDY POTENTIAL RESOLUTIONS 1
BENCHMARK – CASE STUDY POTENTIAL RESOLUTIONS 3
Benchmark - Case Study Potential Resolutions
In the current age of revolutionary change, an organization is as healthy as its sustainability prowess. Today’s company’s unlike past generations, operate in complicated and fast-paced regulated environment. There is an increased need to satisfy current stakeholders, safeguard future generations, and optimally use natural resources. It is in this breadth the Purple Cloud Company thirsts to speed up their product development, widen its market share, and seize new opportunities. The company’s sustainability strategy is acquisition and expansion as they aim to increase value above $100 million and increase the organizations stock price above $71.
Acquisition is a strategic measure implemented by the Purple Cloud Company as a corporate sustainability resolution. The company purchased ABC-Tech, and the acquisition allowed the parent company to intertwine its services with the acquired developed organization. The purchase yielded goodwill for the company’s stakeholders, provided a competitive edge, and reflected positively on the organizations financial bottom line. By acquiring ABC-Tech, which is a company that offers a simple technology platform, allows the organization to reduce customer support costs from $7,000 to $6,000, increase ABC-Tech revenue from $24 million to $48 million, increase revenue from $70 million to $100 million, and increases the profitability index from 17.2% to 18.7% market share, this will attract talent, and drive innovation. (Spears, 2012).
Additionally, the Purple Cloud organization should deploy an expansion strategy. This step will expand their market share, especially if the home market is saturated by their products. This is an inevitable venture given the prospect of it promoting access to new territories that will boost sales volume, allow diversification thus reducing risk exposure, facilitate access to better talent pools, build strong public relations, bring forth a competitive advantage, and most importantly provide opportunities for direct foreign investment.
Management Theories
Today’s organizations are comprised of individuals who manage the employee pool based on the science of humanistic approaches, which has evolved from the authoritarian mindset of the past generation. Purple Cloud has benefited from various visionary methods of operating sustainable companies commonly referred to as, management theories. A primary management theory is classical theory. The use of data and measurements allows the Purple Cloud management team to observe and evaluate business functions in numerical terms. The quantitative focus on the operations, and the production of services allows the company to achieve informed decision-making, and effective profitability.
Domestically, the company has a larger market share, and this motivates the organization to locate emerg.
or sustainability leaders, innovation is key to meeting human needs within planetary limits. They know that many existing business models are predicated on the assumption that natural and social capital are in virtually limitless supply, and that mispriced resources and other market distortions make some models more competitive than they would otherwise be.
Model Behavior: 20 Business Model Innovations for SustainabilitySustainable Brands
What is business model innovation? How does it impact sustainability? Which models are disrupting industries, beyond car sharing and distributed energy? This report produced by SustainAbility brings clarity to this oft-hyped space and identifies and analyzes 20 emerging business model innovations that are having a positive social or environmental impact.
STAT Part 3: Failure at CTO (anonymized) mindful action without performance o...David Denyer
This article is the third of a five-article series on the Strategic Tensions Model for Organizational Resilience. The Strategic Tensions Assessment Tool (STAT) is an online Organizational Resilience survey. In this series of articles, I will discuss each of the four approaches to Organizational Resilience (preventative control, mindful action, performance optimization, and adaptive innovation).
Week 6 - Assignment Rate Methods of HR and Technology Practices f.docxhelzerpatrina
Week 6 - Assignment: Rate Methods of HR and Technology Practices for Developing Sustainable Innovation
Assignment
Top of Form
Due December 8 at 11:59 PM
Bottom of Form
For this week’s assignment, you will create a video presentation by using the Kaltura CaptureSpace tool located in NCUOne. To access the video capturing tool, follow the tutorial found in your Books and Resources for this Week.
For this assignment, you are asked to read the story about Progressive Insurance (Megson & Hammer, 2004) as a foundation for your presentation. Your task is to act like a business reporter covering a story for a business news network. You are expected to provide a summary of the human resource, technology, and process improvement efforts explained by Megson and Hammer, and then, provide a grade of A-F on the company performance. You are expected to give a grade on each of the summary elements and then an overall grade of the company’s performance. Your news story and grading should be no more than 5 minutes. You are expected to submit a transcript of your video. Feel free to be creative with your video as this is your news story to tell. Please keep in mind that while you are not expected to note your sources in your video presentation, you are expected to cite them in your transcript. You should reference at least 4 resources for this assignment using sources from the Library.
Length: Your video should be no more than 5 minutes.
References: You may reference any of the other resources provided in your reading this week.
Your video presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Reference
Megson, L., & Hammer, M. (2004). Deep change: How operational innovation can transform your company. Harvard Business Review, 82(7/8), 182–183.
Week 6
Print
Leading and Managing Sustainable Innovation
Perhaps there is no important rule in business than understanding that there is no one-size-fits-all approach to creating innovation. Even if you can create a spark of innovation, there is no guarantee that it can be maintained if there is no culture to maintain it. Simply stated, organizational leaders have to build an environment where innovation can occur and where it can be maintained. For innovation to happen, many conditions must be met. However, the conditions are not formulas for perfect innovations but simple elements that a manager must mix in the proper proportions for their respective organization. These elements include, but are not limited to, employees being encouraged to participate in process improvement; managers being willing to allow for failures with innovation; and finally, risk management must occur and must become socially ingrained. Keep in mind this is not risk avoidance; it is risk management of the inherent risks of seeking to be an innova ...
Slides from a recent speech in front of 1500 people on:
- Why business model innovation is important
- What a business model is
- How to design and implement innovative business models using a design thinking approach.
Many cases illustrate how to do it in practice.
An Conghui, president of Zhejiang Geely Holding Group and CEO of Geely Auto Group, explains the future of flying cars and the value of an international brand.
For Greg Lehmkuhl, president and CEO of Lineage Logistics, temperature-controlled supply chains for perishables are one of the world’s next great platforms.
As more and more companies in a range of industries adopt machine learning and more advanced AI algorithms, the ability to provide understandable explanations for different stakeholders becomes critical. If people don’t know why an AI system made a decision, they may not trust the outcome.
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 are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
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1. strategy+business
REPRINT 16109
ISSUE 82 SPRING 2016
MODERATED BY GEORGE ROTH AND ART KLEINER
AN S+B ROUNDTABLE
Danaher’s Instruments
of Change
Highly focused and diversified, this industrial company
grows through acquisition, customer-facing innovation,
and continuous improvement.
4. strategy+businessissue82
3
George L. Roth
groth@mit.edu
is a research associate at
the MIT Sloan School of
Management and a visiting
associate professor of
management at the University
of New Hampshire. He is a
coauthor, with Anthony
DiBella, of Systemic Change
Management: Five Capabilities
for Improving Enterprises
(Palgrave Macmillan, 2015).
Art Kleiner
kleiner_art@
strategy-business.com
is editor-in-chief of
strategy+business.
W
hen the Danaher Corpora-
tion announced in May 2015
that it would split into two
separate enterprises in 2016,
it seemed at first like a reversal
of the company’s history. Danaher had built itself into
a remarkably successful business over four decades by
acquiring and integrating new companies into a unified
whole, improving them through a group of distinctive
management practices known as the Danaher Business
System (DBS), then holding onto them. Although it’s
sometimes compared to a private equity firm, Danaher
is different — it buys and builds companies for the long
term, not for rapid fix-up and sale. Divesting is not the
Danaher modus operandi.
But from a strategic point of view, the split makes
sense. Although these two new companies have a com-
mon heritage and management approach, their busi-
nesses are distinct enough from each other that they
require different capabilities.
One new company, which will retain the Danaher
name, will focus on science and technology businesses.
Generally, these are enterprises with resilient business
models, strong long-term growth, high gross margins,
and significant business in aftermarket products, such
as replacement parts and upgrades. The other company,
Fortive Corporation, will be made up of what Dana-
her calls its “industrial growth” enterprises. These are
industrial end-market businesses with slightly more
cyclical markets, high operating margins, and strong
cash flow. The split is intended to provide each com-
pany with its own focus and to increase capital deploy-
ment flexibility, thus providing more opportunities for
growth in each company’s distinctive way.
Distinctive capabilities have been central to Dana-
her’s success since the mid-1980s, when Mitchell Rales
and Steven Rales, two brothers who owned a commer-
cial real estate business, discovered they had a knack for
buying and turning around ailing manufacturing com-
panies. Over the years, the company had evolved from
a highly leveraged startup to a profitable family of ven-
tures with a market capitalization of more than US$40
billion in 2013. The Raleses, who had named Danaher
after a Montana creek where they often fished, had in-
vested heavily in the management skills of the people
who ran it and its member firms. They and the oth-
er company leaders had developed a unique approach
they called the Danaher Business System. This inten-
sive continuous improvement program, derived from
the Japanese quality movement, was augmented with
homegrown approaches to innovation, commercializa-
tion, and leadership development that involved every
level of management and were led directly by the com-
pany’s successive CEOs.
At strategy+business, we have covered Danaher’s
prowess with acquisitions (see “The Capabilities Premi-
um in M&A,” by Gerald Adolph, Cesare Mainardi, and
J. Neely, s+b, Feb. 22, 2012, and “Deals That Win,” by
J. Neely, John Jullens, and Joerg Krings, s+b, July 14,
2015), but it wasn’t until we researched the book Strategy
That Works (see “Creating a Strategy That Works,” by
Paul Leinwand and Cesare Mainardi, s+b, Spring 2016)
that we realized how far Danaher’s capabilities have taken
the company. The executive interviews in this roundtable
were conducted in 2012 and rechecked and updated for
this article. They show how an enterprise that organizes
itself around what it does best can generate a long-term
track record of consistent success.
featurestrategy&leadership
3
5. featurestitleofthearticle
4
Original Systems
DAN COMAS: The founders, Steve and Mitch Rales, start-
ed out in the 1980s with a real estate company. They
bought some poorly run manufacturing companies,
and discovered they could rebuild them and run them
profitably. It was a better business than real estate. Be-
tween 1985 and 1990, their little company went from
almost nothing to a market cap of about $400 million.
GEORGE KOENIGSAECKER: The Danaher Business System
was born in 1986, when I was the president of the Ja-
cobs Manufacturing Company in Bloomfield, Conn.
“Jake Brake” was a formerly family-owned business that
made brakes for diesel trucks. In 1984, the company
had merged with Chicago Pneumatic, a maker of power
tools and industrial equipment, which Danaher subse-
quently bought.
Jake Brake was profitable, but it was ready to col-
lapse because it was abusive to its customers, who be-
gan to look for alternatives. I had been convinced of the
power of the lean approach ever since I had worked with
a Japanese–U.S. joint venture several years before. So I
started to adopt that approach as a laboratory for change.
In early 1988, I learned that Yoshiki Iwata and
Chihiro Nakao, two Toyota Production System sensei
who had been handpicked disciples of its chief architect,
Taiichi Ohno, were teaching at the University of Hart-
ford. I took them to dinner and asked if their consult-
ing company, Shingijutsu, could help us. Before saying
yes, they demanded to see the plant, right away. There
was a lot of anti-Japanese sentiment then, especially in
the United Auto Workers, our union. So when I arrived
at 11 p.m. with two Japanese guys, it got the attention
of everyone on the night shift.
Danaher’s Identity Profile
With headquarters in Washington, D.C., Danaher is a group of compa-
nies that produce instrumentation and solutions for a broad range of
end markets, including healthcare diagnostics, life science research,
industrial manufacturing, maintenance, and service. With a global
workforce of 71,000, it had revenues of $19.9 billion in 2014. Since 1980,
its annualized returns to shareholders have been three times as high
as those of the Standard & Poor’s Industrials Index. A split into two en-
terprises, Danaher and Fortive, is planned for the second half of 2016.
Value proposition: As a “company that builds companies,” this
consolidator adds value through M&A and operational excellence. Its
member companies are B2B category leaders, consistently offering
high-quality products and solutions to professional, medical,
industrial, and commercial customers.
Capabilities System
• Acquisition and integration: Danaher succeeds by acquiring and
integrating companies that will thrive within its culture and with its
capabilities system.
• Leadership development: Through this capability, the company
engages people in learning sophisticated management practices.
• Intensive continuous improvement (the Danaher Business System):
This capability drives operational improvement of quality, service, reli-
ability, and cost, generating above-market growth and profitability.
• Scientific and technical innovation: Danaher’s innovation capability
enables product development that meets the evolving needs of its
diverse customer base.
• Portfolio of products and services: Danaher has more than
40 businesses spanning five segments: industrial (Kollmorgen,
Videojet); test and measurement instruments (Fluke, Tektronix);
dental (Kavo, Kerr); life sciences and diagnostics (Beckman Coulter,
Radiometer); and environmental (Hach, Gilbarco Veeder-Root).
—Adapted from Strategy That Works: How Winning Companies Close the
Strategy-to-Execution Gap
CapableCompany:
Danaher
Distinctive capabilities have
been central to Danaher’s
success since the mid-1980s.
featurestrategy&leadership
4
6. strategy+businessissue82
5
As we walked around, Iwata made little jabs:
“It’s a big warehouse. Where is your factory?” We
were obviously buried in work-in-process. He said it
was the worst factory he’d ever seen: “You should
be fired immediately.” Finally, we got to our most
important cell. “Would you like to fix it now?”
he asked.
The machine layout was backward. We’d set it
up clockwise. If we changed it to counterclock-
wise, each worker would use his right arm, which is
3 percent stronger on average. That would get us a 3
percent productivity gain. But we would have to move
all the machines.
We worked until 5 a.m. redesigning the cell. This
event launched a total transformation of our produc-
tion system. We started working with Shingijutsu for
a week every month. There’s magic in that weeklong
cycle. It’s long enough to study, make changes, and get
the change semi-established. Things began to move at
a blistering pace.
Danaher bought Chicago Pneumatic in a hostile
takeover around the same time. As the new owners,
Steve and Mitch Rales came up to see what we were
doing. We thought they would kill our new approach.
But their lack of an operations background turned out
to be a godsend. If they’d been conventional manu-
facturing guys, it wouldn’t have made sense to them.
But fortunately, they knew nothing about manufactur-
ing, and it seemed logical — plus we were delivering
strong productivity numbers. They asked us to make
a presentation at Danaher’s first-ever corporate meet-
ing, later that year. Soon after that, we had established
these practices as the beginning of the Danaher Busi-
ness System.
JIM LICO: That Jake Brake plant is still a Danaher sub-
sidiary. It has a huge market share, great customer satis-
faction, and a high level of quality. Its example showed
us the power of lean production in turning a business
around — and in funding acquisitions by generat-
ing cash from operations. Probably every senior leader
at Danaher can tell the story of saving the Jake Brake
plant. It’s passed down from one generation of leaders to
the next; it helps us learn why we are who we are.
STEVE SIMMS: As we grew the company through acqui-
sitions, we rolled out the Danaher Business System to
each new piece. We set up kaizen [continuous improve-
ment] sessions and policy deployment [PD] reviews for
every business. [PD reviews, also called hoshin meet-
ings, are in-depth structured sessions used to assess
progress toward previously agreed-upon goals.] We
encouraged team members at every level of the com-
pany to take responsibility for specific pieces. Whether
you’re in a strategic plan review, an operating review, or
a growth initiative, or walking the plant floor, all the
questions and challenging come back to some aspect of
“How do we get better?”
This isn’t something we would just talk about be-
fore an analyst conference or board meeting. People
at Danaher talk about it every single day. It leads to
great, rich discussions everywhere, including parts
of the business outside the factory. You go to people
down in payables for a day sales outstanding [DSO]
number, and they say they don’t have it. You can push
back, suggesting they use some of the DBS [Danaher
Business System] tools or conduct a PD review, and
you figure out something together. That’s how busi-
ness is supposed to work.
CapableCompany:
Danaher
Dan Comas
is an executive
vice president
and the chief
financial officer
of the Danaher
Corporation.
Thomas P. Joyce Jr.
is the president
and CEO of
Danaher.
Bill King
is the senior
vice president
of strategic
development at
Danaher.
PARTICIPANTS
featurestrategy&leadership
5
7. featurestitleofthearticle
6
COMAS: In 1989, the Rales brothers hired George Sher-
man to become CEO. George was the chief operating
officer — the number two guy — at Black & Decker,
a much larger company at the time. Steve and Mitch,
who can be very persuasive, must have convinced him
that there would be a better future here.
SIMMS: The culture evolved from the top. With George
Sherman there was no confusion; DBS was the only
way to run the business. George was as conversant and
skilled in the tools as anybody I’ve ever met. He was
succeeded as CEO in 2001 by Larry Culp, who further
reinforced our practice. Larry posted notes for all staff
on the company’s intranet every day. We’d call it blog-
ging today. He’d write about that day’s kaizens. Some-
thing like, “It’s 9:00 at night and Simms is supposed to
be meeting me, but he’s not here because his team is still
in the plant moving equipment.” The excitement and
constant attention became part of the culture. Senior
managers were actually rated every year on their profi-
ciency with the DBS tools.
Once a year we gathered for the Danaher Leader-
ship Conference — a series of 40 or 50 presentations
over three days highlighting best practices for the top
100 to 150 leaders at the operating companies. One
example could be a story about how the water quality
platform has captured customer insights for accelerated
product development.
Another could be, “We finally learned to do policy
deployment right after 15 years.” Each presentation ex-
plained a problem, the root cause, the countermeasures
taken to solve it, what [the people involved would] do
differently in retrospect, and what they’d advise you to
do — with an email address and phone number. “Call
me, and we’ll talk about some ideas and people to help
get you started.”
Building Capabilities
HENK VAN DUIJNHOVEN: We generally start teaching the
Danaher Business System through classroom work and
then move to actually applying this improvement at
gemba [where the work is done: for example, the manu-
facturing floor, R&D, the lab, or on sales calls]. When
people participate in the implementation of tools, that
is as good a learning experience as you can have. We tie
together culture, capability building, and people devel-
opment this way.
LICO: The top 25 executives at Danaher, including the
CEO, all teach two or more weeks per year. In those
sessions, they don’t just teach; they create an environ-
ment where leaders can talk about the challenges of
their business. We have had kaizens with the CEO on
teams, in factories, and on the shop floor.
SIMMS: All senior executives regularly teach the tools
where they are certified. Before I retired, I was a black
belt with some of these tools, which meant I had a com-
mitment to lead others to use them and be evaluated on
the results. I often taught at companies in other parts
of Danaher that didn’t report directly to me. It would
signal a high level of importance when I spent a week
facilitating a team that wasn’t even in my group.
We always tried to incorporate new things into DBS
to have it grow and change as the portfolio changed.
Lots of companies use the DBS tools as individual tech-
niques. Danaher makes the tools part and parcel of the
culture. When I was recruited to Danaher from Black &
Kevin Klau
is president of
Hach Lange, and
a former vice
president of human
resources at
Danaher.
George
Koenigsaecker
is a former Danaher
senior executive
and a developer
of the original
Danaher Business
System. He is now
the owner of Lean
Investment.
Jim Lico
is an executive
vice president
of Danaher, and
the designated
president and
CEO of Fortive
Corporation, the
new company that
will spin off from
Danaher in 2016.
Chris McMahon
is a retired vice
president of
finance at Danaher.
Henk Van
Duijnhoven
is a retired senior
vice president,
formerly of
Danaher’s dental
businesses.
Steve Simms
(not pictured)
is a retired
executive vice
president of
Danaher.
featurestrategy&leadership
6
8. strategy+businessissue82
7
Decker, I immediately recognized that the culture was
unique and very powerful. My effectiveness and leverage
were far greater than anything I had seen elsewhere.
The senior management is quite good at calling
out “fake DBS.” It might be pretty charts in three di-
mensions and perfect colors. Or a cell diagram present-
ed by someone who can’t walk you through it when
you ask them to. Danaher has a fact-based culture. As
long as you have the facts or are willing to get them,
you’re safe. If you’re touting pabulum, that’s an unsafe
place to be.
CHRIS MCMAHON: The company doesn’t get distracted
by fads, like Six Sigma or management by objectives.
We’ve kept a very consistent long-term approach and
method. We just roll up our sleeves and do it. We know
we will fail a hundred times before we get it right. But
with businesses that have demonstrated this discipline
around core processes and tenets, slow and steady wins
the race. That has helped Danaher focus on long-term
growth, long-term margin expansion, and maintaining
a great cash flow record over many years.
LICO: We have been learning how to extend DBS to a
larger and larger scale for more than a decade. In 2003,
when I was running the DBS office, Mitch Rales asked
me how I was going to teach DBS to 24,000 people
in the next three or four years. I said, “We only have
24,000 people in the company.” Mitch said, “Yeah, but
we’re going to double in size in the next three or four
years and that’s our task.”
As we get larger, we want each operating company
thinking about how to scale DBS in its own way — as
opposed to somebody at corporate deciding. We’ve also
become more codified than we were in the early days.
We do more formal training and leadership develop-
ment.
VAN DUIJNHOVEN: Often new tools emerge from discus-
sions of the Danaher leadership team, which is the top
20 leaders, most of whom operate companies in the Dan-
aher system. This group gets together several times a
year. When we develop a new approach — for example,
a lead-generation tool for Web marketing — there’s not
some committee that does it; we all become students.
We quickly pick up everything we can from one anoth-
er; then we make sure that it works in our environment.
We typically implement a new tool by experiment-
ing with it at a Danaher company that is already rea-
sonably good, trying to take it to the next level. Then
we take what we learn to a few other companies. Of-
ten within 12 months, we’ve gone to all the operating
companies to demonstrate the tool. Not every operat-
ing company has to implement every tool; they choose
the tools that will enable them to achieve their strategic
goals, fix quality issues, or improve delivery or other
operating company objectives. Product life-cycle man-
agement fits companies that have an active product
pipeline, but it might not be important for one of our
businesses like ChemTreat, which provides solutions for
industrial cooling problems.
THOMAS JOYCE: A process orientation is fundamental to
DBS. The tools we use may not always be easy, but they
must be repeatable, sustainable, teachable, and simple.
SIMMS: In the early 2000s, [then CEO] Larry Culp
asked if I’d be willing to lead a team to identify oppor-
“We’ve kept a very consistent
long-term approach.We just
roll up our sleeves and do it.
We know we will fail a hundred
times before we get it right.”
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tunities for organic growth, beyond what we already
had. This came from an analysis that correlated organic
growth and superior shareholder value. We looked at
different ways of thinking about product development
and innovation inside and outside the company. We
talked about advanced skills in sales, and pricing as a
strategic weapon.
We looked for companies that were best in class; we
sent a team of people to Procter & Gamble. It’s a radi-
cally different company, but its concepts on innovation
stretched our thought process and led us to do a num-
ber of things differently. We went to Starbucks several
times to look at customer management. We talked to
experts on pricing and pricing analysis.
We customized what we learned to fit the Dan-
aher culture. Then we piloted the resulting organic
growth tools with targeted Danaher companies where
we thought we had the greatest opportunity and capac-
ity. Finally, we rolled it out across Danaher, by asking
every business to talk through a simple matrix of strat-
egies and growth tools. “If we’re going to be success-
ful in organic growth, which tools are going to get us
there? How do you build the internal muscle to be able
to eventually lead that process yourself?”
Meaningful Metrics
COMAS: We hear the same thing from everybody who
joins the company: Danaher is incredibly metric-orient-
ed. We measure everything on a real-time basis — al-
ways monthly, often weekly, sometimes daily, and even
hourly when you get down to a cell in a factory.
MCMAHON: In 2006, we stepped back and realized that
we had 150 key performance indicators. We were driv-
ing ourselves crazy with all these metrics and data. We
decided to narrow it to just the most important metrics.
Those are our eight core value drivers. We had to do
this if we wanted to scale up.
JOYCE: The first four core value drivers are core growth,
operating margin expansion, working capital returns,
and return on invested capital. Those are the four
shareholder-facing financial metrics.
The next two are customer-facing metrics. On-time
delivery is measured against when the customer wanted
us to deliver something (even if that is yesterday). Exter-
nal quality is a broad measure of every dimension of a
customer experience.
There are two associate-facing metrics. The inter-
nal fill rate is the percentage of managerial positions we
fill with internal candidates. Retention is the last metric.
Every Danaher business uses those eight metrics to an-
swer the question: Are we winning?
In each business, we have a disciplined cadence
of monthly operating reviews: eight-hour face-to-face
meetings with a standing agenda and 20 monthly ob-
jectives for each business. The operating review is al-
ways held at the local business, not in Danaher’s head-
quarters in Washington. It’s very data-driven. We focus
on things that are not going well and what we’re going
to do to improve them.
But the response to metrics is as important as the
numbers. If an operating review shows green on all
20 monthly objectives, we know we probably have an
issue. The objectives weren’t tough enough. And if
they’re red on 10 out of 20, the way the team responds
matters. You don’t want them to view it as OK, but you
don’t want them demoralized, either. You want them to
CapableCompany:
Danaher
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rise to the challenge, adopt stretch objectives, and seek
to improve.
You can walk up to a visual board on the shop floor
in any Danaher business, and the metrics have the same
labels: safety, quality, delivery, cost, and inventory. You
can look at progress against clear targets — monthly,
weekly, and daily cell-level targets. With that kind of
visibility and transparency in performance, it’s easy to
call it the way you see it. You can start a discussion by
saying, “Based on the data, we’re not making progress.”
We try to remember this is about winning in the
eyes of our customer and against the competition in the
market. People want to win because winning is fun.
SIMMS: In our strategic planning, we come back to two
questions. “What game are we trying to play? How are
we going to win within that space?” Everyone is expect-
ed to be able to answer those two questions in relatively
simple terms.
A Superior M&A Capability
COMAS: Our approach to finding acquisition targets was
20 years in the making. It started when we decided we
would not wait for Goldman Sachs to call us with their
prospects. Instead, we did our own up-front research
into prospective markets and started to build funnels of
names of companies to buy and industries to enter.
VAN DUIJNHOVEN: Other companies try to make one per-
fect bet. That’s a risky way of letting senior executives
with no experience sit on a lot of cash. Instead, we con-
tinue to explore many acquisitions and bring a signifi-
cant number to fruition. When you acquire frequently
enough, you learn what to do and what not to do. You
develop skill at assessment and integration, and you
learn to hold these assets over a longer time than might
happen in private equity.
Our main criterion: Through this acquisition, can
we ultimately become one of the market leaders in that
industry? That typically requires that we pick up one of
the stronger brands or assets within that industry, and
that we generate at least as much value as, if not more
value than, the current owners do.
BILL KING: Often, when you do one deal, everybody
thinks you’re not going to do another, so competitors
come in thinking they have an advantage. On the con-
trary, we look for complementary companies to buy
before we make an offer. When we bought Beckman
Coulter in 2011, we were already aware that we wanted
to buy Blue Ocean Biomedical, a cytometry firm that
could reinvigorate Beckman’s hematology business. We
snatched it up within six months of closing on Beckman.
JOYCE: We have a very disciplined M&A process. It
starts with having a clear sense of what markets we find
attractive. We look for large global markets with good
growth profiles and generally low cyclicality. We also
look for the ability to develop sustainable competitive
advantage through a brand and intellectual property.
We also look, obviously, for good profitability and low
capital intensity. If we don’t like the market, we don’t
bother looking at specific companies.
COMAS: We find that businesses with more branded
products, especially those used by professionals, are
inherently more profitable. Their products have more
pricing power. They are also often poorly managed
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from a cost perspective. They’re making money from
their technology and brand, but manufacturing, supply
chain, and the back office are afterthoughts. We some-
times have to explain to analysts why these companies,
which might have a 50 percent gross margin, are at-
tractive. It’s easier to improve their performance than it
would be to improve a very well-managed manufacturer
of industrial products that has a 25 percent gross mar-
gin. It sounds counterintuitive until you think about it.
MCMAHON: We do 12 to 14 deals a year and turn down
10 times that, so we’re doing 150 due diligences a year
all over the world. We do extensive due diligence on
each one. Our pre-acquisition investigations, especially
on the finance side, are designed to dig up, expose, and
share every bit of risk, making sure we all know what
we’re getting ourselves into. If something looks scary,
let’s make sure we sit around the table and figure it out
or walk away. We try to be patient and not to get emo-
tionally tied to any particular investment.
JOYCE: Larry Culp, my predecessor as CEO, could tell
you stories about how long he cultivated Kathryn and
Clifford Hach before acquiring the company they
founded, the Hach Company, in 1999. It would make
you wonder why we didn’t give up a lot sooner, but the
model has proved successful. You’d have to go back to
our earliest days to find a hostile takeover.
COMAS: We might say to a company leader, “You don’t
know us, but we’re interested in this space, and one
day, if you think of selling your business, please talk to
us. We have a long-term point of view and would like
to stay in touch over time.” That’s proven to be a very
powerful tool. At any point we’re probably cultivating
200 companies that aren’t for sale today. We’ve culti-
vated some companies for 10 years. When they’re ready
to sell, they’ll often come to us because they know we’re
interested and they understand how we operate.
During due diligence, we assess their potential with
the same metrics we use in our daily business. “Here’s
this company’s profitability today; where do we think
we can get it in three years? What are the five or six
building blocks to get there?” We look at it from the
perspective of the factory, people, go-to-market invest-
ments, and new products.
We publicly announce the return metric we want to
see within a stated time period, and how we think we’re
going to get there. When we started doing this, at least
one banker warned us against it; it might tie our hands
on a potential deal. But it’s worked the other way. In-
vestors are comfortable with this approach. They under-
stand that once the bidding on a deal gets up to a level
where we no longer can hit our return, we move on.
We also assess whether management will buy into
the Danaher Business System. We have passed when we
felt we could not work with the management team. On
average, we probably change two or three of the 10 top
roles in a new acquisition. Often we replace the CFO,
because we’re very metric-oriented, and we want some-
one in place there who understands the Danaher metrics.
JOYCE: For each acquired company, we establish a tar-
get of having a strategic plan in place within 100 days
of the closing of the transaction. That process creates
alignment, and allows us to quickly establish and recon-
firm the financial targets from our due diligence. Due
diligence only goes so far, and we need the company
CapableCompany:
Danaher
“Our main M&A criterion:
Through this acquisition,
can we ultimately become
one of the market leaders
in that industry?”
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management teams to play an integral role in defining a
path for their future, in concert with us.
LICO: We ask all the companies why they do what they
do. People quickly understand that we’re not trying to
change everything. We’re really trying to help the busi-
ness be better. A famous phrase we use at Danaher is
“don’t let perfect get in the way of better.”
We bought Beckman Instruments because we
wanted the Beckman Coulter brand of biomedical
laboratory instruments. We were very aware of what
it had taken to build the strength of that brand over
100 years. We knew if we tried to change everything,
we would trash the culture of Beckman and lose the
brand continuity. We tried to preserve what was great
about that business at the same time we brought in
aspects of Danaher that added value. Beckman is suc-
cessful today because its leadership and the associates
embraced DBS.
As we buy companies, we learn new things. The
dental businesses had great sales management prac-
tices that were new to us. When we acquired Fluke and
Hach, we learned better product management. When
we bought Tektronix and some of the life sciences
businesses, we learned more about technology devel-
opment, advanced R&D, and software development.
And those learnings were incorporated into all Danaher
businesses. One of the most important things we can
say about DBS is that it improves and changes as our
portfolio changes.
The Soul of a Company
COMAS: We devote a lot of attention to the people we
hire — both in recruiting them and in helping them be
successful here. For many years we have worked with a
group of psychologists to develop a custom assessment
for Danaher executives, covering both talent and cul-
tural fit. You do not come into the organization at mid-
level or above without completing it.
We look for people who are aggressive, smart,
metric-oriented, OK with failure, nonpolitical, and not
defensive. We want someone who is capable of saying,
in a meeting with the CEO, “Hey, we underperformed
this quarter. These are the three reasons we underper-
formed, and this is what we’re going to do differently to
change that.”
SIMMS: Often, the critical factor when you consider hir-
ing an executive at Danaher is whether he or she can
buy into the culture of process development and con-
tinuous improvement. For example, there might be a
sales leader or manufacturing executive who has grown
up in a culture of delivering his commitments through
brute force or other “heroics” at the end of the quarter.
At the end of the day, though, he didn’t leave a strong
organization in place. That approach may be successful
in some companies, but not at Danaher. Our goal is
to hire, develop, and retain strong leaders who can cre-
ate and continuously improve the necessary processes
to achieve our goals and the expectations — without
the need for brute force. That’s what creates competi-
tive advantage.
KEVIN KLAU: We throw key new hires into immersion.
For 60 to 90 days, they don’t do their job. They are
challenged with understanding the culture, experienc-
ing Danaher in a variety of ways. It lets them build
their internal network. It helps them understand what
CapableCompany:
Danaher
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“good” looks like, and where different businesses and
organizations are on their growth journeys. Then we
drop them in their chairs better positioned to ask the
right questions to drive performance in their function,
with a better understanding about DBS, what makes
this culture unique, and where to go internally to lever-
age best practices.
JOYCE: We also have an immersion process for acquisi-
tions, aimed at the many leaders who join us that way.
But when we acquire a new business, we can’t take the
entire leadership team out of their jobs for weeks. In-
stead, we conduct immersion over a longer period of
time. It may take a year or two.
We put the leadership team through a three-day
training that covers all the basics of DBS. It provides an
orientation to the tools. We give them kaizen experienc-
es; they go to operating reviews at other businesses. We
send Danaher experts into that business for an eight-
hour operating review every month.
We look for a specific opportunity for performance
improvement, often one that the team in the business
has identified, that they have been dying to knock over
for a long time. We organize our first weeklong kaizen
around it, bringing together the senior team of the in-
coming business and some DBS leadership. We demon-
strate the power of DBS tools and the fun that comes
from knocking over a big problem in short order. And
they start to turn the corner.
LICO: We have the soul of a small company. We still re-
member the day when we all pitched in to ship product
on Fridays if the warehouse was full, or we took a tech
support call even if we were top executives. Although
those days are long gone, we remember and long to keep
that culture while learning and evolving in ways appro-
priate for our future.
COMAS: A lot of the leaders here like to be part of some-
thing special. We are sometimes compared to private
equity firms because we are so acquisitive. We bristle at
that a little, because this is not how we are wired. We
rarely sell businesses. Sure, we want to monetize what
we bought, just as much as private equity does, but we
do it in a very different way. We aren’t passionate about
selling the business. We’re passionate about building
the business. +
Reprint No. 16109
Resources
Bill Fischer, Umberto Lago, and Fang Liu, “The Haier Road to Growth,”
s+b, Apr. 27, 2015: The Chinese appliance maker continually reinvents
itself and expands around the world.
Paul Leinwand and Cesare Mainardi, with Art Kleiner, Strategy That
Works: How Winning Companies Close the Strategy-to-Execution Gap
(Harvard Business Review Press, 2016): Danaher was one of 14 compa-
nies studied that succeeded through the way they built and used distinc-
tive capabilities.
J. Neely, John Jullens, and Joerg Krings, “Deals That Win,” s+b, July 14,
2015: Why Danaher and other capabilities-driven serial acquirers do so
well at M&A.
Thomas A. Stewart, “CEMEX’s Strategic Mix,” s+b, Apr. 13, 2015:
Another company that distinguishes itself through the things it does
consistently well.
More thought leadership on this topic:
strategy-business.com/strategy_and_leadership
“We have the soul of a small
company.We still remember
when we all pitched in to
ship product on Fridays if
the warehouse was full.”
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