The 7 strategies of Best Managed companies

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The 7 strategies of Best Managed companies

Implementing the right strategies, at the right time can make a difference. A big difference.

As Canada’s economy delivered 3% growth, our Best Managed companies grew by double digits – with profit growth rates far outpacing revenue growth rates.

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What defines a Best Managed company?

Best Managed companies come in all shapes and sizes. But they share a few key traits:

• They adapt quickly to changing conditions• They invest in their own competitiveness – no matter what• They never lose sight of their core business and value

Moreover, they applied to the program, earning the mark of excellence for Canadian owned and managed companies.

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Best Managed – making the right decisions

How do you build a Best Managed company?

Let’s look at 7 strategies that Canada’s Best Managed Companies take, regardless of size, industry or region.

LASER FOCUSED1

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Best Managed companies are laser focused on what sets them apart. They can tell you precisely who they are and why they’re in business – in very few words.

Best Managed companies identify their single strongest feature. Then specialize around it.

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LASER FOCUSED (CON’T)

Rather than spreading their resources across many good offerings, Best Managed companies focus on first providing one great offering.

It may take time to develop and refine a value proposition – for instance, to become the go-to company for a specific product or service.

But that sharpened focus can quickly turn into a compelling advantage.

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Two billion people use social networks. Are you one of them?

Digital engagement is fast shifting from fringe to mainstream, making today’s customers more informed and better equipped with the latest technology.

Best Managed companies leverage social media as a powerful brand-building tool to provide customers with an interactive experience. In the process, they’re capturing important information about what matters to their customers.

GET SOCIAL2 2

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The enterprise gets more social.

Best Managed companies engage their employees through internal social media, using conversations to help employees connect to the company’s overall mission and goals.

GET SOCIAL (CON’T)

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Becoming better, faster and stronger – Best Managed companies spend money to make money.

Best Managed companies spend on key infrastructure: Enterprise resource planning (ERP) and client relationship management (CRM) systems.

Doing so makes them more competitive as they attract new customers and leverage their existing customer base.

INVEST IN PEOPLE, PROCESS AND TECHNOLOGY3

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Silver linings abound.

Infrastructure doesn’t have to be a big cost. As cloud solutions mature, some organizations are moving ERP and CRM processes to the cloud, transforming an up-front cost to a scalable service fee.

INVEST IN PEOPLE, PROCESS AND TECHNOLOGY (CON’T)

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Analytics is transforming all aspects of business, from optimizing supply chains to preventing workplace accidents. Best Managed companies are taking steps to understand the power that deep data dives and data analytics can provide.

And big data can mean big money – industry-wide, companies that use data analytics are 26% more profitable than their competitors.

4 DIVE DEEP INTO BIG DATA

26%

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Size doesn’t matter.

With declining costs, data analytics is being adopted by mid-sized companies to level the playing field.

Whether it’s intelligent pricing, financial performance management, predictive project risk, or workforce analytics, even small datasets can help companies focus resources on the most important business problems.

A little data goes a long way – for companies large, medium and small.

DIVE DEEP INTO BIG DATA (CON’T)

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See how you would measure up to global competitors…

Quality, delivery time, customer service and efficiency – Best Managed companies use fact-based analytics and benchmarking to know where they truly stand against their competitors.

5BENCHMARK AGAINST THE WORLD’S BEST

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…to transform your business at home.

Companies that compare themselves against global benchmarks operate to a higher standard.

They also gain exposure to new technologies and business practices to raise their game. Wherever they operate.

BENCHMARK AGAINST THE WORLD’S BEST (CON’T)

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Over the past few years M&A has returned as a driver of growth. But the landscape has changed and Best Managed companies have become more strategic in their approach.

6 BULK UP FOR THE BIG LEAGUES

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Best Managed companies are becoming more aggressive about the size and complexity of deals as they look for companies that complement their core. This allows them to develop economies of scale, deepen talent pools, and build strategies to compete with larger enterprises.

For many companies, bulking up is a key step in expanding beyond Canadian borders.

BULK UP FOR THE BIG LEAGUES (CON’T)

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You can’t avoid risk…

A crisis could be around the corner.

Cyber attacks and other business threats are occurring at an alarming rate. What would happen if a top supplier broke a contract? Or your IT system was taken down?

…but you can face risk by managing it.

7 MANAGE RISK – BEFORE CRISIS STRIKES

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Best Managed companies are not risk averse, but risk aware. Tackling larger, more complex projects often means assuming more:

The time to develop a risk management strategy is before a crisis strikes. Doing so can mitigate the duration, scale and reputational risk of crises.

Best Managed companies emphasize risk management strategies as part of their agenda.

MANAGE RISK – BEFORE CRISIS STRIKES (CON’T)

• Contract risk• Brand risk

• Political risk• Environmental risk

• Financial risk

7 strategies for success: A Best Managed primer

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7 strategies for success: A Best Managed primer

Canada’s Best Managed Companies are:

• Laser focused• Getting social • Investing in people, process and technology

• Diving deep into big data• Benchmarking against the world’s best• Bulking up for the big leagues• Managing risk before crisis strikes

Let’s talk

bestmanagedcompanies@deloitte.ca

To learn more about Canada’s Best Managed Companies and how to become one, contact us at:

Professional coaching throughout the process makes applying to become a Best Managed company a benefit in itself.

Let’s talk about your strategies for success.

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