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Building for Growth Nick Marsh 19 th March 2013

Building for Growth

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Building for Growth. Nick Marsh 19 th March 2013. Introduction. Past Family manufacturing business Forte / Whitbread / Hilton Small to Medium Firms 2007 - Present Strategic Development Business West Coach team Exec Support. Mantra. If not you, then who? If not now, then when?. - PowerPoint PPT Presentation

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Page 1: Building for Growth

Building for Growth

Nick Marsh

19th March 2013

Page 2: Building for Growth

Introduction

• Past– Family manufacturing business– Forte / Whitbread / Hilton– Small to Medium Firms•2007 - Present•Strategic Development •Business West Coach team•Exec Support

Page 3: Building for Growth

Mantra...

If not you, then who?

If not now, then when?

Page 4: Building for Growth

1. Compete

• Where do you currently compete?

• On what basis do you compete?

Page 5: Building for Growth

Segment Customers By Value

* Defined by profit/margin/volume/sales - whatever is most useful

Cost to ServeLow High

‘Profit’* From Serving

High‘Discerning’ Customers

‘Easy Pickings’

‘Fillers’ ‘Pain in the Neck’

Keep Happy Get out if possible

Maintain as longas possible

Minimise effortbut keep hold of

Place customers into segments and determine how the firm needs to focus its efforts to serve them

Page 6: Building for Growth

2. Future-proof

• How and where can you build sustainable advantage and margin?

Page 7: Building for Growth

Strategic Positioning

Page 8: Building for Growth

Market Forces

Page 9: Building for Growth

Action:Invest /Grow

Action:Selectively

Invest

Action:Manage forSustainedRevenue

Action:Manage for

Cash / Withdraw

HighLow

High

Low

Market / Segment Attractiveness

• Size• Growth• Profitability• Competitive intensity

Business Strengths• Product range• Product suitability• Service quality• Price• Associated services• Reputation / Image

Market/Segment Analysis

Page 10: Building for Growth

3. Audit

Take an objective look...

• Internal

• External

Page 11: Building for Growth

Assessing the Team

• Competence: Level of technical / general experience

• Judgement: Evidence of effective decision making under pressure

• Energy: Bright or burned out?• Focus: Clear priorities or a grasshopper?• Relationships: Aligned with others or spiky?• Trust: Will commitments be honoured?

Page 12: Building for Growth

The Company / The Brand

• The value of your brand resides in the hearts and minds of your customers, employees and suppliers

• Your internal and external messaging must have a synergy of style and content

• The colours and symbols you choose can allow you to differentiate from your key competitors

• Your brand must deliver awareness, comfort / convenience / quality and loyalty

Page 13: Building for Growth

Brand Wheel

Page 14: Building for Growth

Pestle• A tool for understanding the industry situation as a whole and is often used in conjunction

with a SWOT.

• PESTLE: “Political, Economic, Sociological, Technological, Legal and Environmental” factors.

• Ask yourself, what are the:

– Key political factors likely to affect the industry? – Important economic factors? – Cultural aspects which are most important? – Technological innovations that are likely to occur? – Current and impending legislation that may affect the industry? – Environmental considerations?

Page 15: Building for Growth

4. Build

• What changes / developments must you undertake operationally, in behaviours and in communication?

Page 16: Building for Growth

Agree the Foundation for GrowthMission = Ultimate long term goal, aim or objective. ‘Constant Purpose’

“Space exploration for the advancement of science”

Vision = What something will look like; how you see the future & yourself in it. 1.“A man on the moon” 2. ‘A manned space station’ 3. ‘Mars….’

Strategy = How we will get there. “Develop superior technology that will take men to the moon”

Tactics = Sub-elements of the Strategy Implementation. These are changeable depending on how circumstances change.

“We will need wide tyres on the buggy in case the sand is deep”

Objectives = Milestones on the way to implementation. ‘Small Steps’

Page 17: Building for Growth

Defining the Value Proposition

What Needs?

What RelativePrice / Value?

What Customers?

• which products?• which features?• which service?

• what end users?• what channels?

• where do you sit in the market?

Page 18: Building for Growth

Building Your Support Network

Technical Advisers• Provide analysis of

technologies, markets & strategies

Cultural Interpreters• Provide insight &

models to help you understand positive culture

Political Counsellors• Operate as a

sounding board to support & challenge you in decision making & implementing growth agenda

Page 19: Building for Growth

Positive Leadership Traits

Demanding but can be satisfied• Press staff to agree to realistic commitments & hold them to those

promises• Recognise effort to maintain motivation

Accessible but not too familiar

•Be approachable but preserve your authority•Do not make yourself available indiscriminately (time to reflect)

Decisive but judicious • Defer major decisions while you gather data• Seek input from relevant team members

Focused but flexible •Show capacity to consider multiple solutions•Focus on key issues, but be open to consultation

Motion without commotion

•Build momentum without overwhelming the team•Learn how far you can push, without pushing too far

Humane but able to make tough decisions

•Do what needs to be done , but preserve dignity & be seen as fair•Don’t procrastinate over difficult decisions

Page 20: Building for Growth

Drivers for Change•The firm cannot define vision or priority strategies•Resources are spread too thin•Staff are rewarded for fire-fighting not for building sustainable solutionsFocus•Staff exhibit broad variation in levels of performance•There are no consequences for inconsistency•There is a culture of excuses for non-performanceDiscipline•Internal benchmarks are used to measure performance•Improvements in products & services unfold incrementally•Employees are rewarded for stale performance not for testing boundariesInnovation•Team members compete to protect turf rather than achieve collective goals•Members are rewarded for achieving personal goals onlyTeamwork• Needs of internal & external customers are ignored• Complacency is King: We have time to respond…

Sense of Urgency

Page 21: Building for Growth

Performance Measures

• Relative market share• Average customer value• Share of customer wallet• Customer loyalty / retention• Cross purchase levels• Net promoter scores• Levels of revenue• Unit volumes

Page 22: Building for Growth

5. Communicate

• Internal...

• External...

Page 23: Building for Growth

Internal Marketing Wheel

Page 24: Building for Growth

Communicating Strategic Messages• Strategy involves everyone in the organisation, not just management

• The benefits of strategy are greatest when it is communicated widely in the organisation

• Communicate the strategy in a simple and vivid way. Describe the essence of the strategy (1 or 2 paras vs. 20 pages) - create symbols and keys to the strategy

•The basic strategy and value proposition must also be communicated to customers, channels, suppliers, and stakeholders

• Do not assume that subordinates understand the strategy or that they agree with it:- a series of open, two way discussions may be necessary to increase understanding and buy in

• Those who do not ultimately accept the strategy cannot have an ongoing role in the company

Page 25: Building for Growth

Take Time to Reflect

What do you feel?

•Excited. If not, why not•Confident. If not, what can you change•In control. If not, what needs to change

What is bothering you?•Who are you not connecting with, why•Are meetings well structured & useful •Of all you see & hear, what disturbs you the most

What has gone well or poorly?•Which interactions could have gone better, which went well•Which of your decisions has turned out well or not so well•Which missed opportunities should have been captured

Page 26: Building for Growth

Facetube…Linkedout…SplatterTechnology Marvel or

Communication Mayhem?

Page 27: Building for Growth

Harnessing New Technology

Why…because segments of your audience may be using social media channels to assist / inform their buying decisions. Or, they might be talking about your product or service

Why…because until you understand the opportunity, your customers may be moving away from you and your competitors leaving you behind

Page 28: Building for Growth

Recognition

• “Thank you” messages / handwritten notes• Flowers / Champagne• Social events / away days• Anniversaries• Sabbaticals• Spontaneous celebration of success• Birthday cards / day off

But….a simple verbal thank you is often enough

Page 29: Building for Growth

Summary: Critical Questions

The market• Which markets do we serve & what are the key issues• What do we have to do to be successful• Who are the most innovative / successful competitors• Are we setting the right goals, aligned to the external environment

The product / service

• How do we deliver a service that customers value & want to buy• What is our USP / proposition• What is the pricing & distribution strategy

The finances • Are we tracking invoicing & payments• How do we fund new opportunities• Where does the business create sustainable profit

The people • Do we have the right people in the right places to implement the strategies & address the issues

• Who are the people who make things happen. Who are the anchor draggers

The processes • Where can we develop operational efficiencies• How do people & departments work together• How are decisions made & implemented

Page 30: Building for Growth

Ongoing Support

• High Growth Coaching

• Growth Accelerator

• Resource Efficiency Programme

• UKTI: International Support

Page 31: Building for Growth

Closing Thought

Inspire...

Involve...

Engage...

Nick Marsh: 07876 595 272