Enterprise strategy process that enables organisations to see, reach and sustain their greatest potential

1. Enabling Strategy Effectiveness Richard Sellwood, Managing Director richardsellwood@catalyze.co.uk Sept 2009

2. CatalyzeESP™- What is it? an ‘enterprise strategy process’ consisting of three integrated strategy building blocks: strategy formation strategy decision making (Corporate Portfolio Management) strategy execution A robust framework that enables an organisation to view its entire operation as a portfolio of investment options; creating a rich set, prioritising and then executing on them The technique is implemented by global and multinational corporations It is fully scalable; often an organisation’s overall portfolio contains many mini-portfolios Once captured an organisation’s portfolio can be assessed against multiple scenarios and optimised to gain the maximum value-for-money (VfM) Itis underpinned by our own leading decision making software tools HiView3 & Equity3

3. CatalyzeESP™- What does it do? Enables an organisation to understand the trade-off between short-term results and long-term drivers of sustainable shareholder value and confidently invest accordingly Uniquely enables an organisation to identify and value ‘intangible’* assets Incorporates a world-class Optimised ‘Corporate Portfolio Management’ (CPM) process that effectively aligns investment decisions with organisational objectives that has, on average, identified 30% more value Is designed to involve and engage stakeholders, leading to an altogether higher level of buy-in, alignment and a deeper commitment to deliver Has identified additional value greater than £1bn in a number of client projects *IP, Brand, Internal processes etc

4. CatalyzeESP™- What do we do? We work with executive teams to design, implement and embed ‘enterprise strategy processes’ that create deliverable strategic plans by: Involving and engaging key stakeholders, ‘Top-down’ and ‘Bottom-up’ Encouraging an ‘open’ approach to strategy formation Valuing and unlocking ‘intangibles’; bringing them into the game Maximising returns from existing resources using world-class corporate portfolio prioritisation and decision making Ensuring plans are delivered; through ongoing support and coaching The outcome of our approach achieves alignment, unlocks potential, increases competitive advantage and leads to enhanced sustainable shareholder/stakeholder value.

5. Catalyze Enterprise Strategy Process - CatalyzeESP™ © Catalyze 2009

6. Catalyze Enterprise Strategy Process - CatalyzeESP™ Highly Creative © Catalyze 2009

7. Catalyze Enterprise Strategy Process - CatalyzeESP™ Highly Creative Structured/Analytical © Catalyze 2009

8. CatalyzeESP™ - Strategy Formation Helps to set/underpin the strategic intent of the organisation Core Purpose, Core Values, Envisioned future, Aims and Objectives Provides a framework to enable the organisation to effectively collaborate on creating innovative options designed to deliver its objectives . It introduces an ‘open innovation’ approach, tapping into the collective wisdom and creativity of the wider organisation and external stakeholders Encourages unconstrained thinking, challenges the status quo and creates a process for strategy innovation Feeds the Strategic Decision Making process with a rich set of strategic investment options

9. CatalyzeESP™ - Strategy Decision Making Brings together all of the organisation’s investment options in common business case templates so that they can be compared, ranked and funds allocated to those with the greatest value-for-money Traditional methods of measuring value include NPV (Net Present Value), IRR (Internal Rate of return) and ROI (Return on Investment) – all financially focused! These methods imply that the only common measure available to compare and rank investment options is financial (£ or $ etc) However these methods pay scant regard to investment options that contain tremendous intangible value - sustainable value Amazingly 75-80% of a modern successful organisation’s value can be held in non-financial or ‘intangible’ assets therefore a purely financial focus can significantly undershoot an organisation’s future potential CatalyzeESP™enables investment options to be compared on the basis of total value, financial (tangible) and non-financial (intangible)

10. CatalyzeESP™ - Strategy Decision Making CatalyzeESP™Strategy Decision Making uses a world-class portfolio prioritisation process to prioritise the investment options Most organisations prioritise on value alone (opting for options with the largest value then the next largest and so on) whilst this is intuitively correct it is fundamentally flawed Research and extensive experience has shown that the correct way to prioritise is on a value to cost ratio (Value-for-Money (VfM)) and on average this identifies 30% additional value (this has been >£1bn in a number of projects) Including intangible assets (drivers of sustainable value) and prioritising on a value-for-money basis enhances sustainable shareholder value

11. CatalyzeESP™ - Strategy Execution Includes and engages wider stakeholders in the strategy process helping to create ‘deliverable & measurable plans’ Regular meetings to review plans and make adjustments Team coaching to ensure effective delivery of plans and to highlight potential barriers to success Measurement of forecast versus actual performance Alignment of rewards and recognition

12. CatalyzeESP™ - When is it relevant? The Catalyze Enterprise Strategy Process is relevant to many situations some of which are described below: Product or service rationalisation is required Existing strategic planning and budgeting processes are not delivering success Current budgeting and planning processes are penalising investments containing higher non-financial value Recognising what to stop doing to become more successful Management alignment to strategic direction is proving challenging There is a need to establish priorities Efficiency has driven out strategy innovation A rigorous, best practice approach to strategic planning is required Strategy renewal or business transformation is needed Shareholder value has been eroded Limited resources must be allocated most effectively Serious cost savings are required Short term pressures are penalising long term success The organisation wants to discover where value exists (and where it does not) Growth is required

13. CatalyzeESP™- Examples of success UK subsidiary of global manufacturer - transformed results (top & bottom line) growing revenue from $800m - $1.2bn in 18m Identified an additional $1.67bn of expected NPV, Major Pharmaceutical Identified £1bn of additional value in a major IT outsourcing project Helped UK MoD prioritise their £6.6bn Equipment Programme Portfolio Helped President of $780m subsidiary based in US build 5 year plan and achieve increase in funding Catapulted one product’s revenues from £300k to £30m in 12m

14. Contact us... E Mail: sales@catalyze.co.ukorrichardsellwood@catalyze.co.uk Tel: 01962 775923 Address: 1 The Old Dairy Bunstead Barns Poles Lane Hursley Hants SO21 2LL Web: www.catalyze.co.uk