Building Business Value
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The document outlines a workshop sponsored by Fifth Third Bank focusing on building business value for stage 2 companies. It emphasizes the importance of management strategies, leadership direction, and customer engagement to drive revenue and improve marketing efforts. Key takeaways include thinking in terms of value rather than cost, appropriate customer segmentation, and the need for proactive sales and marketing planning.
Building Business Value
- 1. Building Business ValueStage 2 Education Series WorkshopSponsored by Fifth Third Bank November 9, 2010Dave Havilanddave@phimation.com734 717-4955Randy Albertrandy@phimation.com734 255-2747
- 2. Phimation – The Natural Force of Evolution2phi is the ratio of spiralsPhimation is the force that organizes systems for function and creativity
- 3. Phimation Strategy GroupStrategy development and strategic executionBusiness
- 4. Marketing
- 5. Operations
- 6. Innovation
- 7. FundingExperienceOperating leadership experience with Stage 0/1/2 businesses
- 8. Worked with about 4 dozen companies since 2001
- 9. On the Boards of 4 companies
- 10. Raised $30MM in private and public capital
- 11. Managed radical-improvement initiatives for dozens of companies© Phimation Strategy Group3
- 12. Table IntroductionsYour name and what business you’re inWhat caught your eye about this workshop and made you decide to come?If you had a magic wand and could change any one thing about your company, what would it be and why?What do you need out of this workshop to make it worthwhile for you?4
- 13. A Primer on Stage 2 management
- 14. Stage 3Stage 2Stage 1Stage 0Organizational Growth© Phimation Strategy Group5/3 S2ES Workshop6
- 15. Complexity Grows SignificantlyInterdependencies# of components(staff, customers, suppliers)© Phimation Strategy Group5/3 S2ES Workshop7
- 16. The Stage 2 Leadership Playbook8Stage 2 LeadershipDirectionManagementOwnershipFocus AttentionProvide the Right FrameDefine & Ensure Decision-MakingLead Creation of VisionManage OwnersDefine & Ensure CultureDefine & Ensure GovernanceEnsure Performance
- 17. Stage 1 Stage 2 Transition© Phimation Strategy Group5/3 S2ES Workshop9
- 18. Stage 1 Stage 2 Transition© Phimation Strategy Group5/3 S2ES Workshop10
- 19. ==Stage 1 Stage 2 Transition© Phimation Strategy Group5/3 S2ES Workshop11
- 20. Stage 1 Stage 2 Transition© Phimation Strategy Group5/3 S2ES Workshop12
- 21. Stage 1 Stage 2 Transition1.2.3.1.2.3.© Phimation Strategy Group5/3 S2ES Workshop13
- 22. Stage 1 Stage 2 Transition© Phimation Strategy Group5/3 S2ES Workshop14
- 23. Stage 1 Stage 2 TransitionAaAbbbBCccDdDdABCDbbbaaadddccc© Phimation Strategy Group5/3 S2ES Workshop15
- 24. Key TakeawaysThings are more complicatedYour job as a leader is to frame and focusROI is more important than costReacting in the moment is not good enoughThere are several things you should do:Lead your staff in creating a vision for the companyManage your investmentsGet better at serving customersClarify your priorities16
- 25. Table DiscussionWhat did we hear?What are our reactions?What questions do we have?17
- 27. The Revenue Generation Funnel191:ManyEducation1:1Listening & RespondingMarketingSales
- 28. The Customer Experience20ServicesProductIntangibles20% of customer focus80% of company focus80% of customer focus20% of company focus
- 30. Improved Sales Management Drives Results in Stage 222More value with each customerImproved customer dialogueMore value with all customersImproved resource allocationMore productivity in sales teamImproved structure & systems
- 31. Valuethat your customercreates (or avoids) using your solutionFocusing on Value23How much of this do you help to create?Costof your solutionHow much of this do you keep?
- 33. Playing in the Value Game25ChallengeNeedSolutionAssessmentWhen Value Is DeterminedWhen Many Sales Discussions Begin
- 34. Communicating with Customers26How does it work?What does it do?Why is this competitively better?Who will benefit from this?Where can this take us?Courtesy Jim Pancero Inc.www.pancero.com
- 35. Communicating with Customers27How does it work?What does it do?XWhy is this competitively better?Who will benefit from this?Where can this take us?Courtesy Jim Pancero Inc. www.pancero.com
- 36. Better Customers Yield Better Profits28GreatCustomerProfitabilityCustomerQuality / FitPoor
- 37. Better Customers Yield Better Profits29
- 38. Better Customers Yield Better Profits30
- 39. Finding the Right Buyers31ChallengeNeedSolutionAssessment“I know the problem well”CustomerPerceptionofComplexity&Value“I had no idea that was the problem”“Oh, that’s all there is to the problem?”
- 40. Scope and Complexity of Responsibility32755205555555555555555
- 41. Segmenting Your Customer Base33Top 20%Middle 40%ProfitBottom 40%
- 42. Segmenting Your Customer Base34Key Account Management1:1 ProgramsTop 20%Middle 40%ProfitAccount Management1:Many ProgramsBottom 40%Account Service
- 43. Stage 1 Sales Ecosystem35Your Company
- 44. Stage 2 Sales Ecosystem36Your CompanySales
- 45. Manage the complexity with a plan37Sales PlanWhat to DoHow to Do ItSituationObjectivesTacticsChannels / StaffingBudgetTimingCampaigns & InitiativesCustomer SegmentsSales Process
- 46. Key TakeawaysThink value, not costTalk about need, not solutionStart where your customers’ hearts and minds areFocus on great customersSegment your customer baseBe proactive with your best customersPlan your sales activities38
- 47. Table DiscussionHow does this fit with how you’re managing sales now?What are 1-2 things you could begin doing differently this afternoon to improve the way you manage sales?What do you need to do to follow up on this session?39
- 49. Your Marketing Activities41BrochuresTrade ShowsAdvertisingWeb siteSEO/SEMSocial Media
- 50. The Stages of a Decision42UnawareAwareInterestDesireCommitmentPurchaseMarketing1:ManySales1:1
- 51. The Marketing Plan43Marketing PlanWhat to DoHow to Do ItObjectivesTacticsStaffingBudgetTimingCampaigns & Initiatives
- 53. The Basic Strategy Components45Vision & GoalsBusinessStrategyResourcesValueMarketingStrategyMarketingPlanTargetsOfferingsPositioning
- 54. 46Marketing StrategyWhat to OfferHow to EngageHow to Do ItValueCommunicationSalesManagementOfferingsMarketing PlanWhat to DoHow to Do ItObjectivesTacticsStaffingBudgetTimingCampaigns & Initiatives
- 55. Your Value – Engaging The Hedgehog PrincipleThe fox does many things, but the hedgehog does one important thing.47PassionateaboutBestatHHEconomicengine
- 56. Key TakeawaysHandle the top of your funnel with 1:many activitiesPlan your activitiesOnly do activities that serve a clearly-defined objectiveClarify what you offer, how you engage prospects and customers, and how you handle marketing – before you start planning your activitiesUse the hedgehog principle to clarify your valueFor marketing to really be effective, you need to clarify your business strategy48
- 57. Case StudyWalk through marketing challenges with volunteer(s)49
- 58. Wrap up50
- 59. Additional Stage 2 ResourcesPhimation Products & ServicesStage 2 Owner’s ManualStage 2 Education SeriesStage 2 Coaching ProgramStage 2 Consulting51
- 60. Stage 2 Owner’s Manual - Uses52Leadership Guide
- 62. Business Improvement ToolStage 2 Owner’s Manual - Topics53Stage 2 Mindset
- 63. Managing Change
- 64. Leadership
- 66. Marketing
- 67. Sales
- 69. Hiring
- 70. Compensation
- 71. Innovation
- 72. Productivity
- 73. TrendsStage 2 Owner’s Manual - Contents~ 20 minute discussion of every topic totaling about 4 hours of DVD video54Over 200 pages of cheat sheets, key concept articles, annotated slides, assessment tools, and templatesFlash drive pen with ready-to-use electronic copies of allcheat sheets, slides, assessment tools and templates
- 74. 55
Editor's Notes
- #3: The ratio phishows up again and again in the natural worldPhi provides the structure that enables complex systemslike shells and solar systemsto sustain and growPhimation creates simple and adaptable structuresthat enable optimal performanceduring the complex and messy process of evolution
- #4: 45, 20, 15, 10, 10
- #8: Tactics -> Strategies; Activities -> Objectives/Results; Reactive -> Proactive
- #21: Talk about what marketing is – not stuff that looks good; Stevens story; you should be worried; 95% of firms; marketing is structuring the customer experience
- #23: Opportunity to manage to higher value with each customer by improving sales dialoguesOpportunity to increase value of “customer portfolio” by better allocating resourcesNeed to manage more, and more complex, customer relationships with improved systems and structure
- #26: At start of relationship, discussions are about need. 2 things can happen – transition to other sales people – don’t do need, or time passes and don’t align with new need
- #27: Engineers
- #31: Neuman
- #38: Measure, continue strategy/plan/research
- #47: Measure, continue strategy/plan/research
- #52: Increasingly targeted services, increasingly personal and personalized focusAll wrapped in the content represented in the S2OM