1. What is Strategy
What is Strategy
Strategies are those planned actions leading
Strategies are those planned actions leading
toward attainment of your Vision and Mission
toward attainment of your Vision and Mission
Strategies are those actions that create barriers
Strategies are those actions that create barriers
to competitors, Customers, and Suppliers to
to competitors, Customers, and Suppliers to
preclude them from disrupting your position
preclude them from disrupting your position
and growth in a given market
and growth in a given market
2. What Makes A Good Strategy
What Makes A Good Strategy
Strategy should intentionally create sustaining
Strategy should intentionally create sustaining
“Virtuous Circles”
“Virtuous Circles”
Strategies are actionable ideas that carry an
Strategies are actionable ideas that carry an
organization toward its Mission and Vision
organization toward its Mission and Vision
Strategies should be simple easy to
Strategies should be simple easy to
communicate, measure and allow independent
communicate, measure and allow independent
actions on the part of all employees.
actions on the part of all employees.
3. What the Hell is a
What the Hell is a
“Virtuous Circle”
“Virtuous Circle”
"Virtuous Circle"
"Virtuous Circle" in
in
which actions trigger
which actions trigger
effects in a cycle that
effects in a cycle that
returns to and
returns to and
reinforces the original
reinforces the original
action.
action.
Customer buys more
You have more buying
power
Can force vendors prices down
Every Day Low Prices
What Co. is this?
4. Vision
Vision
Global Leader in Stop/Gauges
Global Leader in Stop/Gauges
and
and
Pusher Systems
Pusher Systems
What does this mean and what are
What does this mean and what are
reasonable metrics
reasonable metrics
8. Metrics
Metrics
Lowest cost over time
Lowest cost over time
Repeat Buyers
Repeat Buyers
Warranty costs / Maintenance cost
Warranty costs / Maintenance cost
Customer Satisfaction / Pain Index
Customer Satisfaction / Pain Index
Money Back Guarantee incidence.
Money Back Guarantee incidence.
How to questions
How to questions
The manual is an omission in Writing on the part of
The manual is an omission in Writing on the part of
the designer of his failures.
the designer of his failures.
Call rates by age of machine.
Call rates by age of machine.
9. Break Out Session
Break Out Session
What do you think our strategies are and what
What do you think our strategies are and what
should they be?
should they be?
10. Core Strategy: Financial
Core Strategy: Financial
Financial
Financial
High Margin
High Margin
More dollars to fund R&D and Marketing
More dollars to fund R&D and Marketing
Low cost producer
Low cost producer
Remain competitive
Remain competitive
No / Very Low Inventory
No / Very Low Inventory
Mistakes are not large
Mistakes are not large
Expansion does not require large capital expense
Expansion does not require large capital expense
Transparency in financials no mistakes easily hidden
Transparency in financials no mistakes easily hidden
Easier to have in stock what customers want
Easier to have in stock what customers want
11. Core Strategy: Financial cont.
Core Strategy: Financial cont.
Low credit risk
Low credit risk
“
“Choice” “credit worthy customers.
Choice” “credit worthy customers.
Competitors are left with lower credit risk customers
Competitors are left with lower credit risk customers
Costs more to expand
Costs more to expand
Down turn weaker players drop we increase market share.
Down turn weaker players drop we increase market share.
No Bank Borrowing
No Bank Borrowing
Operate business for long term
Operate business for long term
Lowers general accounting costs
Lowers general accounting costs
Keeps slack out of system so that you pay greater attention to cash
Keeps slack out of system so that you pay greater attention to cash
No interest expenses
No interest expenses
12. Core Strategy: Financial cont.
Core Strategy: Financial cont.
Able to expand without added dollars.
Able to expand without added dollars.
Due to the combination of the above we can grow at
Due to the combination of the above we can grow at
almost any rate based on internal cash flow.
almost any rate based on internal cash flow.
Pay Vendors on Time
Pay Vendors on Time
Creates loyalty, and a willingness by our vendors to be
Creates loyalty, and a willingness by our vendors to be
cooperative
cooperative
Influence our cost.
Influence our cost.
Keeps credit rating strong. Allows us more purchase
Keeps credit rating strong. Allows us more purchase
power,. Sends a strong message in the stability of the
power,. Sends a strong message in the stability of the
company
company
13. Core Strategy: Customer
Core Strategy: Customer
Simplicity:
Simplicity:
Easy to Buy
Easy to Buy
Easy to Install,
Easy to Install,
Easy to Teach,
Easy to Teach,
Easy to Use,
Easy to Use,
Easy to Maintain.
Easy to Maintain.
Reliable
Reliable
Standard product covers broad market.
Standard product covers broad market.
Open Platform for others to do custom apps.
Open Platform for others to do custom apps.
14. Core Strategy: Customer cont.
Core Strategy: Customer cont.
Innovative solutions that are safe to buy.
Innovative solutions that are safe to buy.
Accessible and responsive to new ideas
Accessible and responsive to new ideas
Right size solution / Enhanced ROI to end user
Right size solution / Enhanced ROI to end user
8 month paybacks or less. Easy to afford, low risk solution.
8 month paybacks or less. Easy to afford, low risk solution.
1 to 100 man shop Owner is close to production.
1 to 100 man shop Owner is close to production.
We are the easy safe choice “Nobody ever got fired for
We are the easy safe choice “Nobody ever got fired for
buying a TigerStop”
buying a TigerStop”
Time strapped does not have to think about this area.
Time strapped does not have to think about this area.
15. Core Strategy: Customer cont.
Core Strategy: Customer cont.
Complete Solutions with expandability /
Complete Solutions with expandability /
upgrade path
upgrade path
Easy access to sales information /Benefits.
Easy access to sales information /Benefits.
No hard pitches / knowledgeable solutions for
No hard pitches / knowledgeable solutions for
your problems.
your problems.
We want to see our customers succeed.
We want to see our customers succeed.
16. Core Strategy: Process
Core Strategy: Process
Process
Process
Really good at not making things.
Really good at not making things.
We do not manufacture parts, we assemble
We do not manufacture parts, we assemble
Exclusive dealer channel
Exclusive dealer channel
Builds dealer confidence
Builds dealer confidence
Margins make us integral core product
Margins make us integral core product
Pull Marketing
Pull Marketing
Build relationships emphasis on existing customers 55%+ of new
Build relationships emphasis on existing customers 55%+ of new
sales
sales
Lean
Lean
Lowest cost producer
Lowest cost producer
17. Core Strategy: Process cont.
Core Strategy: Process cont.
New Products
New Products
Using a defined process that looks at a totality of issues
Using a defined process that looks at a totality of issues
ROI (Return On Investment)
ROI (Return On Investment)
Market / Voice of the customers
Market / Voice of the customers
Core tech
Core tech
Lateral appl.
Lateral appl.
Focused on key product strategies.
Focused on key product strategies.
No exclusives in a given market
No exclusives in a given market
But some dealers earn a de-facto exclusive
But some dealers earn a de-facto exclusive
18. Core Strategy: Process cont.
Core Strategy: Process cont.
Intellectual property
Intellectual property
We patent actively to protect our markets.
We patent actively to protect our markets.
Fast shipping
Fast shipping
Better internal controls
Better internal controls
Harder for competitors to compete raises expectations
Harder for competitors to compete raises expectations
of customers
of customers
Pushes financials toward transparency
Pushes financials toward transparency
If we can not make the product simple enough for
If we can not make the product simple enough for
our customers we should not sell it.
our customers we should not sell it.
19. Core Strategy: Co Worker /
Core Strategy: Co Worker /
Learning
Learning
Technology
Technology
Provide the tools to get the job done
Provide the tools to get the job done
Patents
Patents
Competence
Competence
Hire smart people
Hire smart people
Required personal education programs / Subsidized
Required personal education programs / Subsidized
Visiting end use customers / Mobile showroom, trade
Visiting end use customers / Mobile showroom, trade
shows
shows
Defined process for hiring and training
Defined process for hiring and training
Looking out side of our industry for best practice
Looking out side of our industry for best practice
20. Core Strategy: Co Worker /
Core Strategy: Co Worker /
Learning cont.
Learning cont.
Culture
Culture
Leverage individual intellectual capital / high dollars per
Leverage individual intellectual capital / high dollars per
hour.
hour.
Ownership
Ownership
Fair play
Fair play
Cross departmental teams for processes / differences make
Cross departmental teams for processes / differences make
better decisions
better decisions
Can rapidly make changes and take well thought out risk
Can rapidly make changes and take well thought out risk
Limited Bureaucracy / Known strategy don’t have to ask.
Limited Bureaucracy / Known strategy don’t have to ask.
21. Core Strategy: Co Worker /
Core Strategy: Co Worker /
Learning cont.
Learning cont.
Willing to fight like a bunch of hungry chickens.
Willing to fight like a bunch of hungry chickens.
Constructive Conflict
Constructive Conflict
Lean
Lean
A culture that fosters knowledge sharing
A culture that fosters knowledge sharing
Results to Vision oriented Responsible /
Results to Vision oriented Responsible /
Ownership
Ownership
Align bonuses to personal and company
Align bonuses to personal and company
performance.
performance.
Change is a constant that is process driven.
Change is a constant that is process driven.
See “Principles”
See “Principles”
22. What are Our Top Level Strategies
What are Our Top Level Strategies
Simplicity
Simplicity
Value Leader / Largest installed base
Value Leader / Largest installed base
Common Technology Platform
Common Technology Platform
Open Platform
Open Platform
Pull Model for Marketing.
Pull Model for Marketing.
Customers 1 to 100 person Closely held.
Customers 1 to 100 person Closely held.
Standard Product with wide applications /No custom
Standard Product with wide applications /No custom
apps.
apps.
Brand
Brand
We are extremely good at NOT making things
We are extremely good at NOT making things
23. Software Criteria
Software Criteria
Simple to afford, Simple to install, Simple to
Simple to afford, Simple to install, Simple to
use, Simple to train, Simple to repair
use, Simple to train, Simple to repair
The Best value for Standard Applications
The Best value for Standard Applications
What defines a “Standard Application”?
What defines a “Standard Application”?
The low cost open platform for specialty
The low cost open platform for specialty
applications
applications
Are there industry standards and do we want to
Are there industry standards and do we want to
adhere?
adhere?
24. A well thought out strategy makes us
A well thought out strategy makes us
a formidable competitor!
a formidable competitor!
25. What’s our Five Year Plan to
What’s our Five Year Plan to
achieve all of this?
achieve all of this?
$30 million in Sales by 2010/27.5% Year Growth.
$30 million in Sales by 2010/27.5% Year Growth.
Profit% equal or greater.
Profit% equal or greater.
Cash to Cash Performance 10% Improved.
Cash to Cash Performance 10% Improved.
Value Proposition.
Value Proposition.
Simple.
Simple.
Understands Wants & Needs.
Understands Wants & Needs.
Innovation Process.
Innovation Process.
Continuous Improvement (Lean)
Continuous Improvement (Lean)
Perfect Customer Experience.
Perfect Customer Experience.
Employee Satisfaction.
Employee Satisfaction.
Information Access.
Information Access.
Education & Training.
Education & Training.
26. How will the Operations Group
How will the Operations Group
success be measured?
success be measured?
Products shipped complete and on-time.
Products shipped complete and on-time.
Low Total Cost of acquisition parts arriving
Low Total Cost of acquisition parts arriving
on-time.
on-time.
Continuous simplification of all products and
Continuous simplification of all products and
processes.
processes.
First and Second Level Objectives.
First and Second Level Objectives.
27. What reports will be used to
What reports will be used to
measure the Operations Group?
measure the Operations Group?
Leading Indicators: Production Schedule,
Leading Indicators: Production Schedule,
Operations status report, Kaizen Project Sheet.
Operations status report, Kaizen Project Sheet.
Lagging Indicators: Late Shipment report,
Lagging Indicators: Late Shipment report,
Cost Reduction on parts, Margin Report,
Cost Reduction on parts, Margin Report,
Completed Kaizen Project Report.
Completed Kaizen Project Report.
First and Second Level Reports.
First and Second Level Reports.
