One day client strategic planning conference

Welcome!

One Day Client Conference

7 February 2014

Agenda

9.00am – 11.15am Session 1: How to get your employees to think and act like business owners

11.15am – 11.30am Morning Tea

11.30am – 1.30pm Session 2: Driving Profit

1.30pm – 2.00pm Lunch

1.45pm – 2.00pm David Thomas (mid lunch break)

2.00pm – 2.45pm Phil Kearns

2.45pm – 3.00pm Afternoon Tea

3.00pm – 3.30pm Grant Abbott

3.30pm – 4.00pm Craig West

4pm – onwards Networking Opportunity - Drinks

IntroductionExercise

You have 30 seconds – Introduce your business!

Comparative Advantage

“Why should I do business with you and not your competitor?”

• Why us? - reasons = competitive advantages• Make it relevant – “Your profit depends upon it and your sales people rely on it”• The customer’s perspective is the only one that matters

Jaynie L. Smith, Smart Advantage Inc.Reference:

“…a company should concentrate solely upon their competitive advantages and nothing else.”

“… investments in competitive advantage are frequently the wisest investment a business can make.”

- Guerilla Marketing Excellence; Jay Conrad Levinson

Jaynie L. Smith, Smart Advantage Inc.Reference:

Comparative Advantages MUST be:

• Objective, not subjective• Quantifiable, not arbitrary• Not claimed by the competition• Not a given or a cliché • True, and provable• Past tense or fact

Jaynie L. Smith, Smart Advantage Inc.Reference:

Common Critical Flaws:

• Don’t have differentiators• Have them but don’t know them• Know them but don’t tell them• Don’t know what is relevant

= NO competitive advantage

Standard Expectations:On-time delivery, good responsiveness, quality, knowledgeable people, good customer service.

You don’t get a reward for doing these, but you may suffer if you don’t.

Jaynie L. Smith, Smart Advantage Inc.Reference:

Differentiators:Unique features that set you apart.

Results from how you sell rather than the product/service.

Competitive Advantages:Deliver a greater value proposition.

Effectively minimises price as an issue in the buying decision.

Relevant Selling

1. Key Reason for irrelevance: biased, inaccurate feedback.

2. Relevant selling depends on internal agreement. There is NONE.

3. Prospects buy for different reasons than existing customers.

4. Target markets / levels of customers require different sales and marketing messages.

Jaynie L. Smith, Smart Advantage Inc.Reference:

Free you from price based negotiation:

Relevant Selling

4. Internal investments must be based on what the customers’ value, not what the company thinks they value.

5. Fill in Operational Gaps to be relevant.

Jaynie L. Smith, Smart Advantage Inc.Reference:

Free you from price based negotiation:

Firstly, we need to find the answers to these points.

Then, A scoreboard can be used as a tool to measure and report key KPI’s.

How do we find the answers?

Market Research

Promotion of Relevant Comparative Advantages

Jayne L Smithhttp://smartadvantage.com/

Exercise

You have 30 seconds – Introduce your business!

This time, emphasise your comparative advantage.Assume you know the results of market research –

but be careful.

Comparative Advantage Example:

Largest

Exit Advisory Firm in

Australia

Coming soon!

2 x Winner

ESOP of the Year Award

Central Coast

• Employees are “seeing value in contributing to the company’s bottom line because they will share in the profit”.

2010 2012

• Observed an 18% hike in productivity.• “People are now saying ‘us’ instead of ‘me’”.

Session 1:How to get your employees to think

and act like business owners

Craig WestCEO – Succession Plus

Employee vs. Owner ?

Income vs. Equity

“The proper man understands equity,

the small man profits.”

Confucius

• Long-term gain

• Decisions timeframe is a key issue vs. time to make decisions

Ladder to Equity1. Income

2. Incentive – commission

3. Profit Share - % profits

4. ESOP – Equity

5. Control / Management

MorningTea

Accountable Teams

“Accountable teams/individuals take the necessary (different) actions to achieve the desired results that are not actually obtained.”

“A real issue is any issue, topic, behaviour, etc. that affects the team’s ability to achieve its goal.”

“A team is any group of individuals with a shared fate.”

Eric CoryellReference:

Accountable TeamsFunctional

1. Clear and fully accepted purpose

2. Measures that tell the team if that purpose is being achieved

3. Competent people and capable processes

4. Shared fate

Accountable

5. Deal with all real issues as a team

Ultimate Success

6. Individual commitment to each others success (We > 1)

Eric CoryellReference:

Fear of Separation

Team Performance Fear of Separation

Team Performance

Eric CoryellReference:

Cultures of accountability and purpose

The Physiological Contract

Don’t talk about my performance and I won’t talk

about yours.

Eric CoryellReference:

Time

Performance

Performance Gap

Eric CoryellReference:

Meeting Tactics

• Don’t ask why not – an excuse is the only answer

• No more questions – only statements

• No pronouns – for example, ‘our process’, ‘we need’.

3 reasons why people don’t get things done…

Do not know what to do – incapableDo not understand what is expectedDo not feel it is important enough

Exercise

• What am I going to use to start increasing the functionality and accountability of my team?

• What am I going to start / stop doing that will increase my (and the teams) effectiveness

• How do I tell whether the team is getting better or not?

Revise scoreboard if required.

Session 2:Driving Profit

Craig WestCEO – Succession Plus

Scoreboards

XYZ Pty Ltd Scoreboard Plan Forecast ActualSusan Existing Client Sales 700,000$ Calculation Existing % 93.33% #DIV/0! #DIV/0!Tom New Client Sales 50,000$ Calculation New % 6.67% #DIV/0! #DIV/0!Calculation Total Sales 750,000$ -$ -$ Alex Direct Labor 400,000$ Calculation Gross Margin 350,000$ -$ -$ Maury Overhead 250,000$ Calculation Profit Before Tax 100,000$ -$ -$

Maureen % Non-Owner Sales 80%Linda # of Qualified Leads 60Cydny Close Rate 35%Frank # of Active Clients 16Felix Billable Hour % 80%Tony Average Markup 57%Greg Average Collection Days 40Tonya Number of Open Positions 2Chad Customer Service Score 95%

ExerciseDesign your own scoreboard.

   Criteria Target Actual

 Expansion      

 Sales      

 Performance      

 Pricing      

• Focus on financial and non-financial KPIs

• Leading vs. lagging indicators

Lunch

China and Investment

David ThomasCEO – Think Global Consulting

Vanessa XingPartner – Think Global Consulting

Phil Kearns

Phil KearnsCEO – Centric Wealth

AfternoonTea

SMSF

Grant AbbottDirector – NowInfinity

Questions?1300 665 473

successionplus.com.au

Craig WestCEO

Level 3, 50 York StreetSydney NSW 2000

cwest@successionplus.com.au

Thank You!

One Day Client Conference

Please join us for networking drinks…