Possible Enterprise

1

• Session 7
• Possible Enterprise
• GBU/ SBU Strategies

2
Strategies Analysis Firm and GBU/SBU Strategies
for EVA and Growth

• Internal Business Environment
• Answer these questions and why?
• 1. Monetize Assets (Sell all or parts)
• 2. Optimize (Cash Cow)
• 3. Grow/Create more Market Share
• 4. Combination of above (be specific as to what
• businesses and/or product lines)

3
Enterprise Level and S.B.U. Action-Levers to
Create EVA and Growth - 1
I. Create New Pathways for Increasing Returns

• Market Services and Knowledge Products Create
  Value-added Price Tower or
• Minimally Secure Share or Price Extract
  Royalty/License Human Capital Revenue as
  Appropriate
• ? Proprietary Data Bases and Data Based
  Management for Operations, Regulatory Acceptance
• Compliance, Suppliers Performance to Value
  Chain, Customers Operations
• Disruptive Technologies for Industry Niche e.g,
  Nonstick Conveyance, Noninvasive
• Monitoring Process Control, On-line Quality
  Measurement, Applied Fluid Dynamics in
• Design, Shift Engineering Emphasis Capital
  from Reaction to Raw Materials and Logistics
• to Customer, in particular, Packaging and
  Storage, Remote Process Control, I-Situ Quality
• Control, Quality Bridges from Manufacturing
  to Customer Use
• Adaptation of Product Chemistry in Customers
  Operations
• Recoup Sunk RD Costs in Negotiated Transactions
• Transfer and Maintain Technical Competencies,
  Information / Communication / Learning
• Infrastructure for Channel Partners, and
  Financial Solutions in Credit Analysis and Credit
• Create Training Brokering Venture
• Leverage Internet Protocols for Industry Niche
  e.g., Go Direct for Small Customers with
• Improved Service Level and Credit Facility,
  Portal for Industry Niche, Virtual Value Web for
• RD, Logistics Optimization, Regulatory
  Compliance Monitoring, E-Commerce E-Credit
• Customer Intimacy Strategy RD/Technology
  Innovation, Precision Accuracy in Support
• of Data Mining Harvesting for Customer and
  Their Consumers, Shared Growth, Shared

4
Enterprise Level and S.B.U. Action-Levers to
Create EVA and Growth - 2
II. Optimize Against Diminishing Returns

• Rationalize Current Operations (Seamless
  Internal Value Chain for Marketing to RD to
• Manufacturing to Technology to Sales
  Customer Services to Logistics)
• Introduce Best Practices/High Performance Across
  Value Web (i.e., Internal Structure,
• Organization Cultural Flexibility/Responsiven
  ess/Creativity, Commercial Financial
• Architecture, Partnering Solutions, Customer
  Intimacy - Enterprise Teams)
• Supply and Demand Logistics Renovation e.g.,
  Automation, Robotics, Gravity-based
• Conveyance, Packaging, Toll Manufacturing,
  Integrated Manufacturing Logistics,
• SAP Adapted to Operations Customer Needs.
• Spread All Costs Over Larger Sales Volume
• Share Channel / Value Pipelines e.g, Consortia,
  Industry Lobby, Value-added
• Services Delivery through Channel Partners,
  i.e., Technical Training to Users,Life
• Cycle Management of Product Packaging,
  Credit Credit Networks to Capture Other
• Volume/High Value Purchases, Shared Channel
  Capital Projects Investment, Cross-
• Selling of Technology with Like Customer
  Bases)
• Consolidate Among Strategic Players (Must
  Emerge as Critical Mass and Be More
• than Combination)
• Roll-up Privately-held Firms (Must Emerge as
  Critical Mass and Be More than
• Combination)
• New user friendly, low cost software emerging in
  Fall, 2000 will possibly eliminate the

5
Enterprise Level and S.B.U. Action-Levers to
Create EVA and Growth - 3
III. Monetize Current Acquired Assets
Re-channel Capital to Priority Projects or
Reduce Risk

• Sell Utilities and Waste Operations for Old and
  New Manufacturing
• Sites
• Sell Under Performing Businesses
• Sell Nonaligned Businesses
• LBO or ESOP LBO Any of the Aforementioned
• Create JVs (in US, LLCs, LLPs) to Retain
  Equity Participation (Or
• Control) while Not Duplicating
• Levy Exposure yet Providing Risk Transfer to a
  Corporate Entity with
• Off the Books Financing of
• Assets - Leverage Good Credit with
  Entrepreneurial Partners
• Establish Toll Manufacturing Network
• Create Equipment and Talent Leasing
• Trade Assets Human Capital Talent for More
  Liquid Position

6
MEETING THE CHALLENGE OF
TOP 10 IDEAS FOR STIMULATING
GROWTH
7
But, No Matter What Else You Try Tip 1
GROWTH
SUCCESS FORMULA
THOUGHT ATTENTION TIME
RESOURCE COMMITMENT LEADERSHIP INTENSITY
Give Business Development
AT LEAST AS MUCH ...
As You Do Anything Else in Your Business Universe
MAKE IT A PART OF YOUR CULTURE AND YOUR BEING!!!
8
Necessary Element for Successful Growth Culture
Tip 2
.ALLOW. STAR GAZING
Or, Do It His Way You cant realize your dream
unless you have one to begin with. - Thomas A.
Edison
- Innovating - Experimenting - DREAMING
9
Outside Tools to Help
Tip 3
Many Aids Exist to Provide a Path, If You Wish
Type/ Segment Place/ Geography Time/ Occasion V
alue Variety Service Best Practice Transfer Pr
ocess Reengineering Smarts Organization Effectiv
eness People Capabilities Culture
Customer Growth
Contributed Value - Growth
VALUE CREATION
Value Per Customer Growth
Profitable Business Growth
Learning Rate
Productivity Growth
PRODUCTIVITY
Pace Of Execution
10
Seizing Opportunity
Tip 4
Whenever Possible
AQUIRE
They Have Output Capability
We Have
We Have Experience
They Have Distribution
SPEED
In a Fast Changing World
11
Where to Look for Opportunity (Geographic) Tip
5
GLOBAL
Get
They Have 2 - 3x Mkts
We Have Technology
They (at Least Some)Have Growth
We (Must Have Patience
PRESENCE
In An Ever Smaller World
12
Finding Opportunity (Close In)
Tip 6
DRUCKERS RULE
Successful Innovations Exploit Changes That
Have Already Happened.
DRUCKER FOLLOW ON
The Most Important Structural Trends Are Seen in
the Distribution of Consumers Disposable Income.
13
Where to Look for (Conceptual)
Tip 7
Make Change the Opportunity (Not the Problem)

• Demographic Changes
• Technological Changes
• Political Changes
• Competitive Changes
• Value/Taste Changes
• Cultural Changes

14
Practical, Proven Management Techniques for
Tip 8 Getting Broader Involvement in Growth

• Strategic Time Management
• - Plan Your Week
• Innovation Councils
• Establish a Separate Futures Budget
• ..And Of Course..
• Reward Forward Movement
• Stretch
• - Keep the Challenge Meaningful

15
Who Should Focus Your Business Development Tip
9 Efforts
Wrong (Old) Way Business Development Is
the Responsibility of the Strategic
Planning Department Right Way Business
Development Is Everyones Responsibilit
y!!!
16
Get the Proper Focus Tip 10
Dont Be Ashamed of Profits (a)
(a) ie., It Should Be the Focal Point for Why You
Need Business Expansion Activities