How to be a great manager & CEO

1
How to be a badass
manager & CEO
Practical guide how to create value as a Manager and
CEO

2
If you want to become a great CEO you have to go through 3
stages
Personal productivity Effective manager Effective Director / CEO

3
Here I will discuss how to be a badass manager and a badass CEO

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There are 5 parts in this presentation
How to be a badass
manager
How to be a badass
CEO
How to understand
the business as a
badass CEO
How to improve the
business as a badass
CEO
How to make your
business strategically
sustainable

5
Thanks to this presentation you will
know how to become a great
manager and CEO

6
How to become a badass
manager & CEO
$190
$10
What you will see in this presentation is a part of my online course where you
can find cases studies, additional tips, tools that will help you become badass
manager & CEO
Click here to check my course

8
As mentioned the first step to become a badass CEO is to master the
personal productivity hacks. I will not cover them in this course
Personal productivity Effective manager Effective Director / CEO

9
Personal productivity hacks can be divided into 2 groups
Select (do the right
things)
Work faster

10
When it comes to doing the right things are few simple rules /
tools that you can use
80/20 rule
Go from general to
specific
Use simple math
Go for low hanging
fruit
Right down issue
trees
Use benchmarksSet priorities

11
Working faster requires you to do some changes in the way
you work
Create to-do lists Set SMART goals
Use the right tools
and master them
Remove bottlenecks
Talk and write in a
simple way
Create universal
structure for folders
Avoid emailsAvoid multitasking
Standardize
everything
Create templates and
modules
Avoid iterations
Guess and prepare
ahead

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For more details check my presentation on Productivity
Management consultant
productivity hacks
How to be lazy and still get things done
presentation

14
How to be a badass manager
– Introduction

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Specialist Manager
In this section I will show you how to transform from a efficient specialist
/ worker into a great manager

16
In this section I will use the example of a consulting firm to
show you in details how the change is done
Consulting Firm (B2B Services)

17
Business Analyst /
Consultant
Project Manager
In our example we will call the specialist / worker Business Analyst and in
the case of the Manager we will be talking about the Project Manager that
is responsible for delivering a project

18
Just as a reminder in consulting you are producing analyses and
presentations that help your customers improve their business
Presentations
Analyses

19
Introduction to team
efficiency

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Efficient team management boils down to 3 things: applying the individual hacks,
efficient cooperation and you refraining from working

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I will talk from the perspective of a manager of a team or project and we
will discuss some important points in this section
Why manager
should not
work?
Values
Profile of the
ideal consultant
Structure for
cooperation
Critical Chain
Managing the
team in practice
Identifying
bottlenecks
Collecting
knowledge

22
Why manager should not
work?

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Business Analyst
170 170 x # of BAs
 Deliver on deadline high quality of
analyses
 Make the team deliver on deadlines high
quality of analyses
 Manage relations and conflicts with the
customer
 Sell new projects
Project Manager
Your work as a Project Manager is totally different then the work of a
business analyst or consultant

24
A good project manager doesn’t work
directly. He manages people and
relations

25
This means that some things you should avoid doing
Create Slides
Perform Analyses
Gather Data
Sketches slides
Checks the presentation
Inspire / suggests analyses
Ask for data
Checks analyses and
suggest changes
Checks integrity of data
Avoid doing
Things you should
do instead

26
Introduction to creating
ideal team members

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If you want to do fast, efficiently good projects you have to have the right
kind of people. You can say that preparation starts with proper teaching

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You will achieve it only by defining and implementing 3 things
Values
Profile of the
ideal consultant
Structure for
cooperation

30
Consulting is a team work so you have to define what values you want your team to
follow. This is crucial as it will be something that will be the bases for the team
culture

31
Before you start defining specific values it is good to decide on 2
important issues
Specialist Generalists
You buy ready-
made people
You grow people

32
In the case of my teams I always try to instill the following values
Independent
Creates value
Support the team
Data driven
Smart lazy
Efficient
Despise politics

33
Profile of an ideal
consultant

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As we discuss previously you want to turn inexperienced graduates into
seasoned consultants. This gives you greater chances of success during
the project

35
You will achieve it only by defining and implementing 3 things
Tools Skills Areas of expertise
Sales Marketing Operations Finance
Current level
Target level
Problem
Solving
Sketching
Presentations
Interviewing Managing
People
Excel Power Point Access VBA

37
For your team to cooperate you have to create and teach them standards,
templates as well as turn into modules as much as possible your process
and end-products.
Standards Templates
Modules Tools

38
Why team members have
to constantly improve

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You should try to improve your team due to the so called to compounding
effect. It boils down to the fact that Even if the growth is small applied
over long period of time gives big end-results
= 2,6 x StartStart x (1+10%)^10

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In practice it means that it is similar to doubling your team
size

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How to teach your team
members

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The first step in teaching is to described the ideal profile of your team
member and then measure where each and one of them is
Create the ideal
profile
Measure the current
level
Prepare materials Set the pace
Set time for teaching
/ learning

43
As mentioned before you have to create the ideal profile and measure
everybody against it
Tools Skills Areas of expertise
Sales Marketing Operations Finance
Current level
Target level
Problem
Solving
Sketching
Presentations
Interviewing Managing
People
Excel Power Point Access VBA

44
The first step in teaching is to described the ideal profile of your team
member and then measure where each and one of them is
Create the ideal
profile
Measure the current
level
/ learning

45
Next step is to prepare the materials for teaching. In my case I went for
on-line courses not to waste my time on repeating the same things on and
on

46
We currently are somewhere half-way through to mapping all the things
that a business analyst and consultant has to master
35 50

47
Next step is to set the pace for each person. In this case we want to
calculate how much time he has to devote to learning to get to the ideal
level
Create the ideal
profile
Measure the current
level
/ learning

48
Below an example of how you can estimate the pace
What is the
difference between
the ideal and current
state
Till when I want him
to reach the ideal
state
How many hours of
trainings this entails
What is the required
pace?
 25 points  24 months  10 hours per training
(point of difference)
 0.5 hour per day

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Introduction to managing the
team efficiently

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Team member
170 170 x # of people
Manager
Just as a reminder when we talk about team efficiency we want to get as
much as possible value from the available time of the team

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I will start with something that is called the critical chain. Then I will talk
about managing the team in practice and other important issues
Why manager
should not
work?
Values
Profile of the
ideal consultant
Structure for
cooperation
Critical Chain
Managing the
team in practice
Identifying
bottlenecks
Collecting
knowledge

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Managing the team in
practice

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As mentioned previously I use 4 types of to-do list to control
people and projects
To be done
Managing me
Expecting from
others
Recurring items
Managing
personal team
Master list
Monika
Lidia
Michael
Lisa
Project done for
customers
Project A
Project B
Project C
Project D
Supervising
startups
Startup A
Startup B
Startup C
Startup D

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For simplicity let’s assume that there are 4 people and 2
projects. 2 people are from your team.
Managing the teams
Monika
Lidia
Michael
Lisa
Managing the projects
Project A
Project B
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Task 11
Task 12
Task 13
Task 14
Task 15
Task 16

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You have to assign the topics to specific people so it means double checking
through the to-do list of your team members and the to-do list of the
project
Managing the teams
Monika
Lidia
Michael
Lisa
Project A
Project B
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Task 11
Task 12
Task 13
Task 14
Task 15
Task 16
Managing the projects
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Task 11
Task 12
Task 13
Task 14
Task 15
Task 16

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This means that you have to make 2 types of update. You check your people (team
assign to you). You also have to check the projects you supervise (also team
members not reporting to you)
Check the teams assigned
to you
Check projects status – for
project you are managing
 Daily – 1-2 times a da for 15-30
minutes
 Weekly – 30 minutes updates

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There are some rules for that will make it easier for you to
manage both type of teams
Don’t penalize for not
meeting deadlines
Set aggressive deadlines
Create fast Minimal Viable
Version
Do as much as possible
using other people
Let the team members
make mistakes
Be lazy
Create the to-do list and
communicate it
Stick to the topic

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For every day you should set up a calendar with slots. Doing things
should not be your priority
Status Update
Doer time
Analyzing & Checking
 9:00-10:00
 10:00-11:00
Meetings (Projects / Teaching)
Meetings (Projects / Teaching)
Doer time
Status Update
 15:00-17:00
 17:00-18:00
 14:00-15:00
 11:00-14:00

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How to manage your team?
Example from managing a consulting project

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To manage you need 2 main tools that will help you keep track of the
project and the people
Presentation template
To-do list
Storage
Communication with the
team

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As said previously as PM your day will be mainly about meeting with
customer directors but you should spare some time for the team as
well
Status Update
Meetings with customer team
Analyzing & Checking
 9:30-10:00
 10:00-15:00
Status Update
 15:00-17:00
 17:00-18:00

63
There are some rules for that will make it easier for you to
manage your team
Daily updates with the
team
Weekly update with the
customer
Internal Deadlines very
aggressive
Get early buy-in
From the beginning create
end products
Transfer end-products to
the customer
Educate the customer how
to use the products
Double check integrity of
data

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Let’s have a look how a 7 week project should look when it comes to
execution
 Project Start
Task 1
 Additional Data Gathering
 Analysis and slides preparation
 Presentation of intermediate works
2 3 4 5 6 7
 Transfer and teaching
 End of the project
 Creating the product using critical
chain method
 Fine tuning
 Getting buy-in
 Overdelivering
 Selling new projects

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Introduction to identifying and
dealing with bottlenecks in teams

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Bottlenecks are dangerous as their hurt the efficiency of the whole
system. For you team to work smoothly you have to constantly
identify them and remove them

67
There are ways to handle the bottlenecks in most of the
teams
Make team members more
universal
Monitor people and
projects
Have buffers
Apply the critical chain
method
Use tools to help people in
bottlenecks

69
Every team or team members are creating interesting
materials during projects / activities
SMI

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As a company or a manager you should try to collect the
knowledge from them
SMI

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There are ways to support knowledge collections
Get the deliverables from
every project
Get the source data
Make the teams prepare
lesson learnt
Make the team members
create trainings
Rotate the people from the
teams
Go to some meetings to
assess the value
Make the teams create
instructions
Create tools that capture
the knowledge

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manager & CEO
$190
$10
For more check my online course were you will find additional tips, materials
that will help you make the transition to manager and later on CEO

74
Under the management of a badass CEO the business
consistently delivers extraordinary results in the long
run fast and efficiently

75

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 2-5x next player on the market
 Its results should be sustainable and repeatable
 No one-off effects
 It may mean doing short-term harmful things
 Achieve the result with 2x less resources
than the rest
 Use efficiently people, machines and
money
 No Politics

77
In this section we will talk about 5 topics that will serve as an
introduction and give you a flavor of how to manage the business
The role of the CEO
What you should do
and what you should
not do
Typical day of a
badass CEO
Personal team of a
badass CEO
Tips for a badass CEO

79
The badass CEO has 3 main things that he constantly tries to achieve. In
later sections I will show you how to do it in details
Understand the
business and the
customers
Improve & Grow the
business
Make it strategically
sustainable

80
What you should do and what you
should not do as a badass CEO

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As a CEO you have to decide what to do and what NOT to do. What you
do should have significant impact on EBITDA

82
The easiest way to approach your subject it to have some threshold value
that helps you decide should you be the one to deal with a certain subject
or not
 EBITDA of the business
 Time you spend as a CEO of the
business

83
If your company generates USD 24 M EBITDA and you spend on average
2 400 hours a year it means that every hour of your engagement should
generate on average USD 10 K
 USD 24 000 K
 2 4000 hours
= USD 10 K / hour

84
If this is not enough below some tips of things to do and NOT to do as a CEO
Manage current issues
directly
Manage directly big teams
or a whole area
Avoid doing
Things you should
do instead
Analyze things in person
Provide answers
Manage projects
React to (potential) crises
Manage your personal
team
Look for threats &
opportunities
Question what and how
you do things
Educate and spread your
values

85
Typical day of a badass CEO

86
For every day you should set up a calendar with slots. As you see you
concentrate on observing and having impact on the whole business
Read
Meetings with your team
 09:00 - 10:00
 10:00 - 12:30
Lunch
Managing by walking around
Meetings (Projects / Directors)
Talk to the owners / COO / VP
 16:00 - 17:00
 17:00 - 18:00
 14:00 - 16:00
 13:00 - 14:00
Meetings (Projects / Directors)
Managing by walking around 08:00 - 09:00
 12:30 - 13:00

87
4 out of 5 working days you should try to repeat this order. One day
should be solely devoted to understanding the customer and reading
Read
Lunch
Meetings (Projects /
Directors)
Talk to the owners / COO /
VP
Directors)
Read
Lunch
Directors)
VP
Directors)
Read
Lunch
Directors)
VP
Directors)
Read
Lunch
Directors)
VP
Directors)
Read
Meet / Observe
customers esp.
using your /
competitors
products
Monday Tuesday Wednesday Thursday Friday

88
If you stay more time in the same firm more and more time should
be devoted to thinking where to move the business strategically
Read
Lunch
Directors)
Thinking time
Directors)
Read
Lunch
Thinking time
VP
Directors)
Read
Lunch
Meet / Observe customers
Directors)
Thinking time
Directors)
Read
Meet / Observe
customers esp.
using your /
competitors
products
Monday Tuesday Wednesday Thursday Friday
Read
Thinking time

89
Personal team of badass
CEO

90
Your personal team will help you implement things you want to happen
fast. They will also help you search for potential to improve the business
Assistants
Business
Analysts
Project
Managers
Small Firm
Medium Firm
Big Firm
1-2
1 1-4 1
1-2 4-8 2-3

91
There are a lot of benefits of having such a personal team at
your service
You drastically increase
your efficiency
It helps you deal with the
bottlenecks in the firm
It helps you focus and
deliver fast value
Strategic reserve / Your
special forces
Instrumental to instill your
values
The team gets to different
levels of employees
The team helps you find
the lies that you are served
Helps you find and
implement the big things

93
Just to finish off this section a few tips that will help you at
your work as a badass CEO
Make your own coffee
Talk to different people on
different levels
Talk and observe the
customers
Be informal
Follow your own rules and
values
Avoid politics
Use your product
Respect other people’s
time
Use competition’s product

94
manager & CEO
$190
$10

95
How to understand the business
as a badass CEO

96
How to understand the business
as a badass CEO – Introduction

97
Understanding the business seems a pretty daunting task as everything
seems to change so fast. In this section I will show you how to make
sense of your business and customers

98
In this section I will talk about 5 ways to try to understand your business
Value Chain KPIs and main drivers
Business model in
Excel
Organizational Chart
How to compare
yourself with the
competition?
Other useful tips to
understand the
business

99
Value Chain – Introduction

100
Value chain helps you understand the connections between you and the
rest of the firms to see where you create and loose value. Use the value
chain to see the big picture happening in your industry
Transport and
Warehousing
Producer Retail Chain
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Producers of
raw materials
and
components

101
You can use the value chain to map all sort of things i.e. %EBITDA,….
10%
15%
5% 5%
12%
5% 5%
8%
Raw Material 1 Raw Material 2 Supplier 1 Supplier 2 Producer Transport Warehousing Retail Chain
% EBITDA
In percentage

102
… number of players or….
4
20
10 15
8
40
50
10
Number of players
In #

103
… assets ….
200
300
40 50
90
50
100
200
Assets involved
In millions of USD

104
… and total revenues per stage ….
1 000
500 200 300
1 500
20 30
2 500
Revenues per stage
In millions of USD

106
First let’s have a look at the overall value chain of FMCG
Transport and
Warehousing
FMCG producer Retail Chain
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Producers of
raw materials
and
components
Elements of value chain
that you want to take over

107
Going down the value chain / downstream usually means
getting closer to the customer
Transport and
Warehousing
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Producers of
raw materials
and
components

108
Going up / upstream means going closer to the source of
materials that you use
Transport and
Warehousing
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Producers of
raw materials
and
components

109
Value Chain – Fitness Club
Operator

110
Let’s see how this technique was applied by Benefit System – an operator
of Fitness Card that gives you access to different fitness clubs. It is partly
covered by employers

111
They have been constantly increasing the number of users…
614
744
865
2015 2016 2017
Number of active sports cards users in Poland
In thousands of people

112
…which helped them growth 2x revenues and almost 3x EBITDA in
4 years
320 383 452
581
742
2012 2013 2014 2015 2016
Revenue of Benefit Systems S.A.
In millions of PLN
40 38 55 70
119
2012 2013 2014 2015 2016
EBITDA of Benefit Systems S.A.
In millions of PLN

113
Let’s have a look at the Benefit System value chain…
Operator of the
fitness card
Fitness Clubs HR Managers
Developers
Landlords
Equipment
Producers
Others
Producers of
raw materials
and
components
Financing Fitness Clubs
where Benefit System is
present

114
Benefit System has managed to enter other elements of the
value chain
Operator of the
fitness card
Fitness Clubs HR Managers
Developers
Landlords
Equipment
Producers
Others
Producers of
raw materials
and
components
Financing Fitness Clubs
where Benefit System is
present

115
The most heavily involved Benefit System is in the top fitness
clubs via capital investments
Vertical integration Horizontal Integration
# of gyms Share in
basic
capital
33%44
30%9
27%17
Share in
basic
capital
48%
20%1

116
How you create value
internally?

117
Let’s have a look at the value creation in the Fashion Retailer
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Get & open new stores
Create new store formats
Maintain / Renovate stores
Recruit & Train

118
Let’s have a look at the value creation in a consulting firm
Get the money
Produce the
product /
service
Make customer
aware of your
product & brand
Acquire a
customer & sell
him a product
Deliver /
Implement the
product
Recruit & Train
R&D new products
Building knowledge base

119
Let’s have a look at the value creation in a plywood producer
Get the
money
Produce &
repair veneer
Acquire a
customer &
sell him a
product
Get the
wood
Produce
plywood
Recruit & Train
R&D new products
Maintain machines and build new ones
Ship the
products to
customers

120
How you can use the value
creation map?

121
Let’s have a look one more time at the value creation at the
Fashion Retailer firm
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train

122
We can use it to map resources that we have allocated. We
can i.e. show number of people
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train
30
1500
10
30
10002004020
10

123
…or to map shares in total personal costs, or….
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train
2%
51%
1%
2%
29%10%3%1%
1%

124
…to map their share in total costs
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train
5%
36%
2%
1%
5%4%44%1%
1%

125
KPIs and main drivers –
Introduction

126
To understand and analyze business you have to identify the drivers / KPIs
that a key for specific business and translate it into a model in Excel
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development

127
Imagine that you have to estimate typical family spending's. You can take
into account countless number of factors…..

128
…or you can limit yourself to the most important ones i.e. number of kids,
size of house, main repetitive spending like food.

129
To measure the selected factors you have to use some sort of KPIs
Spending per 1
person per month
per category
# of people in
average family
Average size of the
house in sq. m
Average rent per
sq. m

130
In the next lectures I will show you how to define and use
KPIs and business drivers
How to improve the results of
the Cinema

131
KPIs and main drivers
example – Cinema business

132
Imagine that you were responsible for managing the cinema. What KPIs
metrics you would look at to see whether you are doing a good job?

133
Let’s see what KPIs you should look at
# sold tickets
Average revenue
per Ticket
Total revenue Total Costs
x
Total margin
-
Average price per
ticket
Average additional
purchase per ticket
Total capacity in
tickets
% Utilization
Rent
People
# of People
Average wages
+
+
x
x

134
KPIs and main drivers
example – Retailer

135
The retail business model is driven by some basic KPIs
# Transactions
Average Value
Transaction
Total store revenue Total store costs
x
Store EBITDA
Average Value
Transaction of basic
purchase
Average Value
Transaction of
additional purchase
# of Visitors % Conversion
Rent
People
# of People
Average wages
+
x
x
Others
+
# of sq. m
Fee per sq. m x
% Gross Margin
Gross Margin generated
by the store
x -

136
Business model in Excel –
Introduction

137
Another great tool to understand the business you are managing is
to have your team build a business model in Excel
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development

138
Example of business model
in Excel – E-commerce

139
Before we go to Excel let’s talk about the logic we used to
build the e-commerce Excel model
 Conversion rate
Visits
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
 ATV
 Cost of traffic
 Cost of logistics
 Transaction fees
 Fixed Costs
 % Gross
Margin

140
Example of business model in Excel
– Restaurant – Basic model

141
Let’s have a look at the simple model
 Number of meals per
day
 Number of days
Restaurant
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
 ATV - average
 Cost of marketing
 Franchising Fee
 Other Variable costs
 Fixed Costs
 % Gross
Margin
 % Food
ratio

142
In the part about the using store checks for location analysis
we were
Passing by
Engaged / stopping
Leaving
Taking away
In store

143
Before we go to Excel let’s talk about the logic we used to
build the Excel model
 Conversion rate to
consumption at the
restaurant
 Conversion rate into
takeaways
Visits
# of
transactions
Revenues
Gross
Margin
Net Margin
Operating
Profit
 ATV for both
subgroups
 Cost of marketing
 Franchising Fee
 Other Variable costs
 Fixed Costs
 % Gross
Margin
 % Food
ratio

144
Organizational Chart –
Introduction

145
Partner
Executive
Director
Director
Project
Manager
BA Senior BA
Assistant BA
Project
Manager
BA BA BA
Director
Project
Manager
BA BA
Project
Manager
BA BA BA
Organizational structure shows you how the firm is organized.
Below example for a consulting firm

146
It is crucial to look at the organizational structure to
understand the business for number of reasons
You can spot conflicts
You can spot inefficiencies
Easy to identify bottlenecks
Organizational structure
defines how you run business
You can see what to change to
achieve positive domino effect
You can see the big picture
You can map how the
information flows
One of the tools to set
priorities

147
Check my online course to see 2 cases studies that will help
you understand and use this tool in practice
Cosmetics producer (FMCG) Consulting Firm (B2B Services)

148
Organizational Chart – FMCG
Example

149
Below you can see the organizational structure of cosmetics producer
Sales Director 1
CEO
Regional Directors
Brand A
5
Regional Directors
Brand B
5
Sales Force Brand A 30
Sales Force Brand B 30
Marketing Director 1
Brand Manager A 1
Brand Manager B 1
Marketing
Specialists A
10
Marketing
Specialists B
15
R&D Director 1
R&D Specialists 8
Operations 1
Finance & IT 15
HR 10
Investor Relations 3
Admin 5
Sales Planning 3
Customer Service 20

150
Below you can see the organizational structure of cosmetics producer
Sales 1
CEO
Marketing 1 R&D 1 COO 1
Production Director 1 Logistics Director 1 Purchasing Director 1
Production
Employees
150
Maintenance
Employees
50
Production
Planning
7
Warehouse
Employees
60
Coordination
Center
8
Buyers 15
Purchasing
Planning
7

151
Organizational Chart –
example of a consulting firm

152
Partner
Director
Project
Manager
BA A
Project
Manager
A BA BA
Director
Project
Manager
BA BA
Project
Manager
A BA BA
Consulting companies operate using pretty flat structure…..
Market Research Department
Visual Department
Knowledge Base Department

153
Partner
Director
Project
Manager
Project
Manager
Director
Project
Manager
Project
Manager
Some of them even the Business Analyst and Associate keep
in a pool without fixed assignment to specific director or PM
Market Research Department
Visual Department
Knowledge Base Department
Business Analyst and Associate Pool

154
Partner
Executive
Director
Director
Project
Manager
BA Senior BA
Assistant BA
Project
Manager
BA BA BA
Director
Project
Manager
BA BA
Project
Manager
BA BA BA
Obviously bigger company tend to overcomplicate the
structure

155
What is the role of business analyst?
Business
Analyst
Associate
Senior
Associate (PM)
Director Partner
Consulting companies
McKinsey
Business
Analyst
Senior Business
Analyst
Associate
Senior
Associate (PM)
Engagement
Manager
Associate
Principal
PrincipalDirector

157
I recommend in comparing yourself to competition to use 7 ways to
achieve it
Typical day of the
customer and where
the product exists
NPS Radar graph Snake graph

158
Let’s have a look at the typical day of the customer
Typical day of the
customer and where
the product exists

159
 6-7 AM
Home: wake up, washing
up, dressing up, breakfast
 7-8 AM
Transport : going to the
university (by bus, train, tram
or subway)
 8 AM-2 PM
University: classes at the
university
 2-5 PM
Cafe: meeting with
friends from the
university;
determine what needs to
be done in projects and
dividing responsibilities
 5-6 PM
Transport: homecoming
 6-8 PM
Home: free time,
relaxing at home
 8-11 PM
Home: doing homework,
projects
Typical day

160
TT W S S
T F S S
T TM W F
TW F S S
T W FT S S
M T
M W
T F S S
M
What When How long Why
Babysitter
Dance
Driving licence
Travel
Student group
Party
M
SS
T
F
TM W
 2, 3 times a
month
 once a week
 10-12 times a
month
 once a quarter
 once a week
 once every two
weeks
 money
 health and fun
 Personal
development
 relax
 learn, experience, fun
 fun
Additional activities

161
fitness cafe billboard newspapers
subway bulletin board at the
university
club
Perfect place for students advertising

162
Let’s move to NPS
Typical day of the
customer and where
the product exists

163
One of the ways to see how the customer values your product or brand
is to look at the NPS. Below an examples of NPS of 3 companies
19%
3%
18%
6%
19%
34%
34%
44%
34%
38%
47%
63%
38%
60%
44%
Total
You
Competitor 1
Competitor 2
Competitor 3
Detractors Passives Promoters
25%
xx%
54%
20%
60%
28%
NPS

164
It is good to look at the NPS for subgroups / segments
By products
By customer group (spending,
age, behavior, etc.)
By markets
By sales / distribution channel

165
Let’s move to radar graph
Typical day of the
customer and where
the product exists

166
One of the ways to compare yourself to competitors is to use the radar
(pentagram) graph. Below example
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
Price
Quality
ServiceDesign
Convenience
Ideal Competitor 1 Competitor 2 You
Evaluation of players by customers

167
Let’s move to snake graph
Typical day of the
customer and where
the product exists

168
The snake graphs helps you understand how and where different you
are in the eyes of the customer
High Low
0
1
2
3
4
5
6
Used to the shop Wide range cross
categories
Affordable cheap
products
Clear display of
products
Offers advertised
brands
Convenient location Loyalty program Value for money Accessible dressing
rooms
Competitor 1 Competitor 2 You
Importance of the criteria according to customers
Performance of players according to customers by criteria

169
How to compare yourself with
the competition – Introduction

170
I recommend in comparing yourself to competition to use 7 ways to
achieve it
Value Chain Value creation map KPIs and main drivers
Comparison metrics
Business model in
Excel
Customer Point of
view

172
I recommend in comparing yourself to competition to use 5 dimensions
Size
Profitability
Pace of growth
Cash
generation
Debt level
 Revenues, market share, quantity sold
 % EBITDA, % EBIT, ROA
 Growth of revenues, growth of quantity sold, opened new stores
 Cash to EBITDA ratio, Cash position, Net Debt
 Debt to EBITDA ratio

173
Other useful tips to understand
the business

174
Just to finish off this section a few tips that will help you
understand your business
Talk and observe the
customers
Use your product
Use competition’s product
See what happened on
more advanced markets
See what happened in
more advanced industries
Look at wide pool of
potential substitutes
Spend once a week 1-4
hours on customer service
Look at complimentary
products
Travel to other countries
Read esp. science & science
fiction

175
manager & CEO
$190
$10

176
How to improve the business as
a badass CEO

177
How to improve the business as a
badass CEO – Introduction

178
As a CEO you want to grow and improve your business. In this section I will talk about
ways how to create the drive for constant improvement in the organization

179
In this section I will show you how you can find areas for improvements and
we will have a glimpse at how to instill improvements in the organization
How to map areas for
improvements
How to set priorities
for improvements?
How to deliver blitz
improvements
Useful techniques for
small improvements
Keep it simple How to 10x results?
Why proper culture
matters for
improvements?
How to create proper
culture

180
Mapping the areas for
improvements – Introduction

181
Tom find potential area for improvements you can use 7 sources
Value Chain Value creation map KPIs and main drivers
Comparison metrics
Business model in
Excel
Customer Value Map

182
Mapping is just the beginning that enables you to generate potential ideals
for improvements. This later on should be turned into action plans
Value Chain
Value
creation map
KPIs and main
drivers
Comparison
metrics
Business
model in Excel
Organizationa
l Chart
Customer
Value Map

183
improvements – Value Chain

184
The first source of potential improvements is looking at the value chain.
Below the value chain of consumer goods producer
Transport and
Warehousing
Producer Retail Chain
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Producers of
raw materials
and
components

185
If we look at % EBITDA and the # of players by value chain stages it looks that there
is a room to negotiate better conditons with supplier 2. It may also suggest that
there is something unique they do that can be implemeneted at your stage
10% 15%
5%
20%
12%
5% 5% 8%
% EBITDA
In percentage
4
20
10 15
5
40
50
10
Number of main players
In # of firms

186
improvements – Value Creation

187
Let’s have a look one more time at the value creation at the
Fashion Retailer firm
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train

188
We can use it to map resources that we have allocated. We
can i.e. show number of people
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train
30
1500
10
30
10002004020
10

189
…to map their share in total costs
Selling the
products in the
stores / website
Shipping the
products to the
stores
Develop &
design products
Sourcing /
Purchasing
Products
Putting the
products on the
shelves
Recruit & Train
5%
36%
2%
1%
5%4%44%1%
1%

190
Mapping the areas for improvements
– Organizational Chart

191
Let’s go back to the organizational chart for cosmetics producer
Sales 94
CEO
Marketing 27 R&D 9 Operations 301
Finance & IT 15
HR 10
Admin 5

192
If you want to use it to map potential area for improvements try to
determine level of competence and required changes
Sales 94
CEO
Marketing 27 R&D 9 Operations 301
Finance & IT 15
HR 10
Admin 5
World class
Improvements needed
Drastic changes required

193
Development level
Number of people
Big
small
If you want to use it to map potential area for improvements try to
determine level of competence and required changes
Sales
Marketing
R&D
Operations
Finance & IT
HRInvestor Relations
Admin

194
Development level
Number of people
Big
Small
 Those departments are underdeveloped
 Due to their size require fast and drastic actions
1
 Drastic changes needed
 Low impact on the whole organization due to the
low number of people
3
 Potential small improvements in those area can
have a big impact
2
OK
It is a good idea to map this on a matrix that will define your priorities
 Potential pool of talents

195
– KPIs & main drivers

196
Below examples of KPIs that you can use to spot the potential for
improvements in Retail
Average
Transaction Value
Items per
transaction
Traffic growth
% Conversion
Average Selling
Price
Sales per sq. m
Margin per sq. m
Inventory in Days
of Sales
Sell-through in 1st
price
KPIs Dimension against which you can analyze
Change in time
By cohorts
By markets /
countries
By different
managers

197
You can analyze a retail chain by following cohorts / segments
Vintage (which year it was open)
Format type
Format evolution phases
Location
Type of city
Type of traffic
Others

198
– Comparison Metrics

199
Just as a reminder you have 5 main areas around which you can
compare yourself with competitors
Size
Profitability
Pace of growth
Cash
generation
Debt level
 Revenues, market share, quantity sold
 % EBITDA, % EBIT, ROA
 Growth of revenues, growth of quantity sold, opened new stores
 Cash to EBITDA ratio, Cash position, Net Debt

200
Let’s assume that you are a Retailer and you have 2 competitors. Let’s
see what the comparison will tell us
Size
Profitability
Pace of growth
Cash
generation
Debt level
 Revenues
 % EBITDA
 # of new stores
 Cash to EBITDA
ratio,
 Inventory in DOS
You Competitor 1 Competitor 2
 USD 2 000 M
 8%
 30
 50%
 140
 5.5
 USD 1 000 M
 15%
 10
 55%
 90
 1
 USD 3 000 M
 12%
 100
 40%
 120
 2

201
How to set priorities for
improvements?

202
First let’s look at the process of deciding which improvements
to make
Generate Ideas
Rank & Select a few
ideas
Set-up teams to
implement the ideas
Supervise the teams
Once the
improvement is
achieved pick next
one
 Have meetings with
different groups and
show them the areas
for potential
improvements
 Generate ideas to
improve those area
with the groups
 For every idea for
improvements
allocate sufficient
resource (people and
money)
 In each and one of
them there should be
a person from your
personal team
 Every idea should
have a supervisor it
does not have to be
you
 Meet every 2 weeks
with the team and
the supervisor to see
where you are with
implementations
 Separately, do a
meeting with your
man in the project
every week
 Use your personal
team to evaluate the
ideas and prepare
ranking of those idea
(potential, required
resources, time
required to
implement them)
 Meet with your Board
and pick limited
number of ideas for
implementation
 Always look at the
bottlenecks. They will
define how many and
which project you can
handle
 Do only a limited
number of ideas at
the same time
 Once the
improvements is
finished pick next one
from the list

203
As you can see you also have to set-up the pace at which you
want to produce improvements
Generate Ideas
Rank & Select a few
ideas
Set-up teams to
implement the ideas
Supervise the teams
Once the
improvement is
achieved pick next
one
200 150 4 4 4

204
Resources needed
Impact
SmallBig
High
Low
 Things with big impact that
require little work
1
 Easy but with low impact
3
 Things with big impact yet
expensive, time consuming
2
No
Once you know how many improvements you can do at the same time you
have to decide which ones. For this I recommend the low hanging fruit
frameworks

205
How to deliver blitz
improvements

206
In order to deliver fast improvements it is good to follow
some rules
Focus
Decision making on the team
level
2 pizza team rule
Keep more people than you
need
Decentralize supervision
80/20 rule
Put sufficient resources
Good enough now is better
than perfect tomorrow
Build-in flexibility in your
firm
Build the firm for speed and
create sense of urgency

207
Going back to our example it would mean that we would work
on 4 things at any given moment
Generate Ideas
Rank & Select a few
ideas
Set-up teams to
implement the ideas
Supervise the teams
Once the
improvement is
achieved pick next
one
200 150 4 4 4
 For every idea put no
more than 6 people.
 A person cannot be
on more than 2
projects at the same
time
 You give them a sum
of money they spend
at their own
discretion
 Every team member
spends at least 30%
on the project
 1-2 person should be
devoted 100% of their
time to the project
 Every team is
supervised by only 1
Board Member
 Once the goal is
achieved the team
gets a new project or
is disbanded and
becomes part of
other teams

208
manager & CEO
$190
$10

209
Useful techniques for small
improvements

210
There are plenty of tools & techniques that will help you achieve constant
improvements. Below some of the most useful ones
Lean Manufacturing Theory of constraints
Process analyses &
improvements
Lean Startup & Lean
Analytics
A/B Testing Automation
Software Productivity Hacks

211
Essential Lean Manufacturing
for Management Consultants
Practical guide how to cut costs
presentation
For more check my presentation

212
Management Consulting Tools,
Techniques and Frameworks
A practical guide
presentation

213
How to become world class
analyst
A practical guide
presentation

215
You should also make your team and the whole firm be open to ways to 10x
your results. This requires totally different approach than just looking form
small improvements
Make the
improvements 10x
faster or 10x more
Expand 10x faster
Transform into much
bigger market
Disrupt Yourself Blue Ocean Strategy

216
Why proper culture matters for
improvements?

217
This funny thing called culture is actually very important if you
want to constantly improve the firm
You cannot have procedures for
everything
You are not almighty and
omnipresent
A strong culture is durable
Culture unleashes the potential
of the whole organization
It will help you use 100% of the
potential in your people
People will rotate less
Common culture unifies the
firm
It is a magnet that will help you
attract the best

218
How to create proper culture

219
Creating and maintaining the proper culture requires from you actions on
3 levels
Define Values
Create profiles of
the ideal
employees
Create structure
for cooperation
Allocate time to
teaching
Teach
Rotate people in
the firm
Provide
opportunities for
cross department
work
Assimilate the
new people
Control the flow of
the new people

220
manager & CEO
$190
$10

221
How to make your business
strategically sustainable

222
How to make your business strategically
sustainable –Introduction

223
As said in the previous section as a CEO you want to find ways to create the drive for
constant improvement in the organization

224
However, in the long-run this may be not sufficient. You have to make your business
sustainable also in the long run. This is what we will explore in this section

225
Balanced Scorecard
SWOT
Blue Ocean
Competitive Advantage
McKinsey 7S Matrix
BCG Matrix
Porter’s 5 forces
Porter’s 5 forces Value Chain
M&A
Lean Manufacturing
Canva Model
Lean Startup
Working Capital Optimization
Low Cost Model
Revenue streams
Value Driver Tree
Business Model
Financial Model
3Cs
The GE-McKinsey Nine-Box
Matrix
The three horizons of growth
The strategic control
map
Jobs to be done
Customer journey
KPIs
Lean Analytics
Industry cost curveStrategic groups
Lean Canva
Lean Analytics
Performance
Improvement

226
Do what you do
but better
Expand TransformGo niche Disrupt yourself

227
Do what you do
but better
Expand TransformGo niche
Penetrate
existing
markets /
products
Target new
customers
with existing
products
Enter new
markets for
existing
products
New
products
within old
categories
New
products
expanding
brand
Go up /
down the
value chain
Capitalize on
business
assets
M&A
Improve
processes
Pricing
Cross-selling
Up-selling
Sell non-
core assets
Operational
Excellence
Optimize
Working
Capital
Renegotiate
the deals
Review
what and
why you buy
Upstream
niche
Low cost
player
Blue Ocean
Change the
business
model
Build add-on
business
Build
entirely new
businesses
Disrupt yourself
Change the
business
model
Intrapre-
neurship
M&A
potential
competitors
Copy
competitors
that may
disrupt you
Sell some
business
units

228
Do what you but better – Overview

229
In business you have to make a lot of important decisions
Quite often you are satisfied with the size of the business but you still want to somehow
improve your business. You want to do the same things you are already doing but better

230
Do what you do
but better

231
Do what you do
but better
Improve
processes
Pricing
Cross-selling
Up-selling
Sell non-
core assets
Operational
Excellence
Optimize
Working
Capital
Renegotiate
the deals
Review
what and
why you buy
Disrupt yourself

232
Check my online course to see 2 cases studies that will show you how to
use this tool in practice
Operational Excellence - Low
cost carriers
Sell non-core assets - cosmetics
producer

234
In business you have to make a lot of important decisions
At some point what you have may not be enough. You will be tempted to develop, scale,
expand your business

235
Do what you do
but better

236
Do what you do
but better
Penetrate
existing
markets /
products
Target new
customers
with existing
products
Enter new
markets for
existing
products
New
products
within old
categories
New
products
expanding
brand
Go up /
down the
value chain
Capitalize on
business
assets
M&A
Disrupt yourself

237
Check my online course to see 2 cases studies that will show you
how to use this tool in practice
Expansion of fashion retailer
into new countries
Going up and down the value
chain – Fitness & Zara

239
Do what you do
but better

240
Do what you do
but better
Upstream
niche
Low cost
player
Blue Ocean
Disrupt yourself

241
Going niche is a strategy that you can follow for 2 main
reasons
Move to a more defendable position
where you have a better competitive
advantage
Create an insurance just in case your
current business model will collapse

242
If you consider going niche you have 3 options on the table
Go up with the price
Low-cost player
Blue ocean

243
This strategy can help you fight incumbent mainstream players. There are
too big to go up with the price and too invested in current set-up to lower
the price
Growth rate
Price level
Mainstream player
High
Low
0
Luxury
player
Low cost
players

244
In the next lectures I will show you 3 examples of using the Blue
Ocean Strategy
Starbucks
Citizen M
Zappos

246
We have seen many businesses transforming drastically their
business model. It resembles the transformation of a caterpillar
into a butterfly

247
Do what you do
but better

248
Do what you do
but better
Change the
business
model
Build add-on
business
Build
entirely new
businesses
Disrupt yourself
Sell some
business
units

249
My dear, here we must run as fast as we can,
just to stay in place. And if you wish to go
anywhere you must run twice as fast as that.
Alice in the Wonderland

250
A very good examples is Amazon that has drastically
transformed its business
Online book store
Online store for
many categories
Content provider in
all forms
Online marketplace
for many categories
Integrated content
producer and
provider
Online & offline
marketplace
Vertically integrated
FMCG producer and a
full marketplace

251
In the next few lectures I will show you the transformation of
the Netflix business model
Key
Partners
Key
activities
Key
resources
Relationshi
ps
Channels
Value
proposition
Customer
segments
Cost Structure Revenue structure
Netflix business model
transformation

252
If you build an add-on business it means that you do not replace elements
of the business model but rather add. Below the usual suspects – where
most likely you would play with go add a new business
Customer segment
Revenue structure
Channels
Value Proposition – Product
Key Partners esp. suppliers
Totally different business model

253
Disrupt yourself – Overview

254
Do what you do
but better

255
If you have a nice cash generating business you are unfortunately running
the risk of being disrupted by some new comer operating in different
business model
Taxi / Cabs
Combustion
car producers
 Mailing the DVD
 No late fees
 Streaming
 Better value proposition
 Lower Price
 No friction in usage
 Totally new design from a scratch
 Value proposition pretty close to the existing
solutions
 Emotional value appealing to certain segments
 Self-driving feature
 Software that helps you constantly improve the
product
 Infrastructure that supports electric cars
How the businesses were disrupted?

256
You can immune yourself against disruption by….disrupting yourself. This
however may have dire consequences
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

257
In short term you may be loosing a lot of money
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

258
Once you find the new business model you not only gain what you have
lost…..
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

259
… but you also start taking more and more market share from competitors
that did not adjust to new business model
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

260
Do what you do
but better
Change the
business
model
Intrapre-
neurship
M&A
potential
competitors
Copy
competitors
that may
disrupt you

261
In the next lectures I will show you 3 examples firms that were
intentionally disrupting themselves
M&A - Altassian
M&A - Adobe
Copying competitors – Lufthansa

262
Which strategic direction you should
chose?

263
Do what you do
but better

264
Do what you do
but better
Penetrate
existing
markets /
products
Target new
customers
with existing
products
Enter new
markets for
existing
products
New
products
within old
categories
New
products
expanding
brand
Go up /
down the
value chain
Capitalize on
business
assets
M&A
Improve
processes
Pricing
Cross-selling
Up-selling
Sell non-
core assets
Operational
Excellence
Optimize
Working
Capital
Renegotiate
the deals
Review
what and
why you buy
Upstream
niche
Low cost
player
Blue Ocean
Change the
business
model
Build add-on
business
Build
entirely new
businesses
Disrupt yourself
Change the
business
model
Intrapre-
neurship
M&A
potential
competitors
Copy
competitors
that may
disrupt you
Sell some
business
units

265
manager & CEO
$190
$10

266
Badass
Consultants
Blog
Subscribe to our channels:

267
Strategy for Management
Consultants & Business Analysts
Practical Guide
presentation
For more information on Strategy check also my other presentation

268
FMCG for Management
Consultants & Business Analysts
Practical Guide
presentation
Check also my other presentations

269
Supply Chain for Management
Consultants
Practical Guide
presentation
For more information on Supply Chain check also my other presentation

270
Essential Excel for Business
Analysts and Consultants
A practical guide
presentation

271
Top 10 courses that every
Management Consultant should
take
My super objective view
presentation

272
Top 25 books that every
Management Consultant should
read
My super objective view
presentation

273
Management Consulting Tools,
Techniques and Frameworks
A practical guide
presentation

274
How to manage a consulting
project?
A practical guide
presentation

275
Business modeling of offline
businesses in Excel
A practical guide
presentation

276
Supply Chain for Management
Consultants
Practical Guide
presentation

277
Sales Analysis for Business
Analysts and Consultants
A practical guide
presentation

278
Retail for Business Analysts and
Management Consultants
A practical guide
presentation

279
productivity hacks
presentation

280
Market research
Practical guide for startups and entrepreneurs
presentation

281
5 examples of business /
financial models in Excel
Practical guide how to check whether the business makes
sense
presentation

282
Essential Lean Manufacturing
for Management Consultants
Practical guide how to cut costs
presentation

283
What is an issue tree and how
to use it?
Practical guide with examples
presentation

284
Excel shortcuts for Management
Consultants and Business
Analysts
Practical guide how to work fast in Excel
presentation

285
Financial Modeling for Business
Analysts and Management
Consultants
Step by step guide
presentation

286
Management Consulting
Presentations
Practical guide how to prepare a great presentation
presentation

287
How to get into consulting
Practical guide how to pass the case part
presentation

288
How to become world class
analyst
A practical guide
presentation

289
Management Consulting
Presentations
Practical guide how to prepare a great presentation
presentation

290
Production for Management
Consultants
Practical guide
presentation

291
Business models
Practical guide for startups and entrepreneurs
presentation

292
How to create management
consulting presentations?
A practical guide
presentation

293
productivity hacks
presentation

294
Start and run consulting
company
A practical guide
presentation

295
How to open a successful
restaurant
A practical guide
presentation

296
On-line Business Models
A practical guide
presentation

297
MVP – how to test your
business idea without building
the product
A practical guide
presentation

How to be a great manager & CEO

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