Strategy - Does It Matter?

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CHIEF EXECUTIVE BOARD

“STRATEGY – DOES IT MATTER?”

DAN HACKETTPRESIDENT/CEO

FRANK MILLER LUMBER

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WHY STRATEGY

• Clarity

• Forces Thinking Around The Bend

• Your People Need It And Want It

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WHAT IS STRATEGY AND WHY DOES IT MATTER?

•It is about Direction

•Justifies Spending and Hiring Decisions

•Easier to Manage than the Alternative

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STRATEGY DOESN’T HAVE TO BE COMPLICATED

•A napkin can work if it results in a choice

•Your team in agreement on a small goal beats everything

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STRATEGY MUST INVOLVE CHOICES

Better/Faster/Cheaper

OR

Strategic

WHO WON?

Walmart, Kmart, Target

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DRUCKER ASKS,“WHAT WILL YOU STOP DOING?”

•Power of No

•Who is NOT Your Customer

Building Your Business on NOby CEO Adam Landrum

Merge

October 21, 2011

To grow, you have to focus—

you have to learn to say NO

“Focusing is about

saying NO. And if you say no…you piss

off people .”

Vision & Strategy

Know What You Want

And How You’re Going to Get There

Saying NO is saying YES to something

else:

Being Great Culture Right Clients Long Term vs. Short Term Ideals Values

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CEBI MEMBER FAILURES

•Lack of Financial Understanding

•Market Leaves Them

The Bron-Shoe Company

Reinventing My Business

…because I HAD to!Bob Kaynes

President/CEO

We Were Dying!Sales ($mill)

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2004 2005 2006 2007 2008 2009 2010

We Were Dying!

Identify Strategy or TacticDo what Sam used to do: Silver Restoration CLINICS

Sam would set up accounts with jewelry stores in different cities in the southeastern US. He would arrange for them to run an ad in the newspaper saying the silver expert would be in town for just a day or two, so if you have any old or damaged silver, stop by and meet him.

He’d take the orders and payments…pay the store a percentage of the sales he generated, keep a piece for himself and send the silver to us for restoration.

OK…it worked. So now what?Decide which cities to target• Start with cities served by Southwest Airlines (less

costly to travel plus no baggage fees)• Reward new accounts for referrals who do Events• ID other larger cities

But like TW said…I can’t do it all by myself! So I have to hire some sales help!

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YOUR MARKET LEAVES YOU

•Silver Restoration

•Blockbuster

• Housing

₋ Cabinets

₋ Substitutes

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REALITY

VISION

GAP = STRATEGY

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WHERE IS YOUR HEAD?

YOSEMITE TOKYO

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REALITY₋ Strong Brand₋ Highest Capacity₋ ERP in Place

VISION… recognized globally as the premier provider of premium Hardwood products

GAP

FRANK MILLER STRATEGY

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Customers

•Increase Customer Yield

•Define Ideal Customer

FRANK MILLER GAP SUMMER 2011

People

•Reduce Turnover

•Reduce Health Care Spend by 4.5%

Process

•Greater Plan for Automation

•Better Define the Grade of Logs

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• Fix Your Weakness

• Increase Accountability

• Your Job is Outward-Facing

FINAL THOUGHTS

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MY PICTURE OF STRATEGY

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AND FINALLY………

DON’T TRY THIS AT HOME!