The document discusses an alternative approach for companies to link investments to strategy through a common framework. It involves defining a long term vision and shorter term goals, developing operating plans aligned with objectives, and using this information to guide budgeting and resource allocation. The framework is meant to improve decision making, accountability, and ensure investments are focused on furthering the company's strategic direction. Implementation requires executive support, transparency, and an engaged finance team to lead the process.

1. The Alternative to “Just Saying No”
David Mann
Constant Contact
September 9, 2010
dmann@ConstantContact.com
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3. The Finance Role
 Partnership and team
 Bean counter oriented
 Reporter  Accountability
 Dislike Sales and Marketing  Sales and Marketing tied to
 Decisions in a black box metrics
 Passive role in strategic  Focus on critical information
planning  Value creator
 Sharing information
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4. Agenda
 Constant Contact Challenges
 Linking Investments to Strategy
 Keys to Success
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5. Constant Contact Reality
Revenue ($Ms) Product Line
$200
50+% Email
Event Nutshell
Marketing Survey
$160 (Sole Product
Marketing Mail
$129 Product Acquired
Product)
$120
$87
$80
$50
$40
2007 2008 2009 2010
$0
IPO
2007 2008 2009 2010E
Headcount Offices
800
700 625
600
456 Waltham
500
,
400 318 Loveland Bedford
San Fran
300
200
100
0
2007 2008 2009 2010E Boca
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6. Challenges of High Growth Companies
 Many new people
 Challenge to stay ahead of the curve
 Tendency to add resources rather than focus on
operational efficiency
 Decision making by exec team not scalable
 Increased complexity and emerging lack of alignment
 Insufficient clarity for making resource tradeoffs
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7. Agenda
 Constant Contact Challenges
 Linking Investments to Strategy
 Keys to Success
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8. An Alternative Approach
Common framework for investment
decisions & budgets linked to strategy
 Resource tradeoffs and budgets are defined by
company strategy
 Establish guardrails for resource tradeoffs
 Drive empowerment and accountability deeper
into organization
 Enable faster and more effective decision making
 Encourages smart investment decisions
Finance is an invaluable partner helping the organization to make
smart investment decisions
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9. The Framework
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10. Where Are You Going?
 10 Years  5 Years
 Future state of org  Roadmap to
achieve vision
 Aspire to achieve
 Consider marketplace
 Energize employees
 Account for competitive
 Consider company differentiation
assets
 Address ‘mission’ to
achieve vision
Can’t go somewhere unless you
know your final destination…
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11. Translate into Tangible Goals
 1-3 years
 Metrics and KPIs
 Foundation for near  Make it tangible
term investments
Forces organization alignment
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12. Establish Operating Plans
 Roadmap to achieve  Key objectives
corporate objectives  Implementation plans
 Addresses  Resources required
 Where are we now?
 Where do we want to go?  Progress measurement
 How will we get there? guidelines
 How will we measure
progress?  Common organization
framework
Establishes accountability
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13. Leads into the Budget Process
 Output of operating plan
 Balance investments to account for operational
efficiency, scaling and growth
 Provide forum for tradeoff
discussion
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14. Accountability & Re-planning
 Establish designated check-ins
 Review budgets and operating plan
 Change, adapt plans and reforecast
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15. Implementation Requirements
 Executive “Buy In”
 Constant communication to organization
 Transparency
 Common framework
 Forum for tradeoff discussion
 Finance team structured to lead and support
implementation
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16. Agenda
 Constant Contact Challenges
 Linking Investments to Strategy
 Keys to Success
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17. Keys to Success
 Flexibility
 Consider cultural norms
 Phased in approach
 Process for accountability
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18. Takeaways
 Investments align with strategy
 Decisions are faster and more flexible
 Finance becomes key business partner
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19. Feel free to email me at dmann@ConstantContact.com
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