94
www.myCNI.com.my www.OOBEY.com STRATEGY FOCUSED PLANNING SYSTEM BEYOND TRADITIONAL BUDGETING Case Study, Concepts and Debatable Ideas Kenny Ong CNI Holdings Berhad

Strategy Focused Planning System Beyond Traditional Budgeting

Embed Size (px)

DESCRIPTION

ABF Financial Controllers Conference Strategy Foc used Planning System beyond Traditional Budgeting • What is strategy • What is a strategic plan • How to convert a strategic concept into an actionable plan with a realistic budget • Overview of the mechanism for developing a strategic budget

Citation preview

  • 1.STRATEGY FOCUSED PLANNING SYSTEM BEYOND TRADITIONAL BUDGETING Case Study, Concepts and Debatable IdeasKenny Ong CNI Holdings Berhad www.myCNI.com.mywww.OOBEY.com

2. Intro: CNI1. 20 years old 2. Core Business: MLM 3. Others: Contract Manufacturing, F&B Retail,Export/Trading, eCommerce, Shared Services 4. Malaysia, Singapore, Brunei, Indonesia, India,China, Hong Kong, Philippines, Italy, Taiwan,Oman, United States, Vietnam 5. Staff force: 500 6. Distributors: 200,000 7. Products: Consumer Goods and Services www.myCNI.com.my www.OOBEY.com 3. Introduction to Strategy www.myCNI.com.mywww.OOBEY.com 4. "The digital watch didn't come fromestablished watch companies, the calculatordidn't come from slide rule or adding machine companies, video games didn't come from board-game manufacturers Parker Bros or Mattel, the ballpoint pen didn't come fromfountain pen manufacturers, and Googledidn't come from the Yellow Pages" Bob Seidensticker, Futurehypewww.myCNI.com.my www.OOBEY.com 5. Whats wrong with Strategic Planning Today?Long-term PlansObjectivesStrategiesEnablersResources Also known as L.O.S.E.R. www.myCNI.com.mywww.OOBEY.com 6. Whats wrong with Strategic Planning Today? Biggest Threats often come from OUTSIDE your normal industry Planning from the base of an Existing organization vs. zero-based Traditional Analysis (e.g. SWOT) based only on known or existing assumptions or knowledge Spending too much time in market research and analysis Defining the company from a Product/Service perspective vs. Category vs. JTBD (e.g. Coca-cola) Wrong Benchmark already successful vs. what made them successful Implementing BSC and PMS to improve Business Model and Strategy New strategy, same peoplewww.myCNI.com.my www.OOBEY.com 7. Todays Agenda www.myCNI.com.mywww.OOBEY.com 8. Summary: Todays presentation 1. Business Model and Strategy2. Strategic Planning3. Budgeting and Resources www.myCNI.com.my www.OOBEY.com 9. 1. Business Model and StrategyHow to fail without trying www.myCNI.com.mywww.OOBEY.com 10. What is the Business Model? GoogleAir AsiaUSP Tata Nano MarketProfit ModelDiscipline www.myCNI.com.mywww.OOBEY.com 11. What is the Business Model?USP MarketProfit ModelDiscipline www.myCNI.com.mywww.OOBEY.com 12. Business Model: Profit ModelRevenueAssets CostCashMarginFlow www.myCNI.com.my www.OOBEY.com 13. Strategy + BSC Financial Revenue Cost Margin Cash Flow Asset Customers Internal ProcessLearning & Growth www.myCNI.com.mywww.OOBEY.com 14. What is the Business Model?USP MarketProfit ModelDiscipline www.myCNI.com.mywww.OOBEY.com 15. Intro: Market DisciplineProduct "They are the most innovative"Leadership "Constantly renewing and creative" "Always on the leading edge"Customer Operational Intimacy Excellence"Exactly what I need" "A great deal!" Customized productsExcellent/attractive price Personalized communicationsMinimal acquisition cost and "They're very responsive"hassle Preferential service and flexibilityLowest overall cost of Recommends what I needownership"I'm very loyal to them" "A no-hassles firm" Helps us to be a successConvenience and speed Reliable product and service www.myCNI.com.mywww.OOBEY.com 16. Strategy: Value DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 17. Strategy: Value DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 18. Strategy: Value DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 19. Strategy: Value DisciplinesOperational Product LeadershipCustomer Intimacy Excellence New, state of the Management by Competitive price art products or Fact services Error free, Easy to do reliable Risk takers business with Fast (on Meet volatile Have it your way customer needs demand) (customization) Fast concept-to- Simple Market segments counter of one Responsive Never satisfied - obsolete own and Proactive, Consistent competitors'flexible information for all products Relationship and Transactional Learningconsultative organizationselling 'Once and Done' Cross selling www.myCNI.com.my www.OOBEY.com 20. The McPlaybook*Make it easy to eatMake it easy to prepare 50% drive-thru High Turnover Meals held in one Tasks simple to learn hand & repeatMake it quickMake what customers want Fast Food Prowls market for new Tests new products products for Cooking Times Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007www.myCNI.com.mywww.OOBEY.com 21. Strategy: DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 22. Strategy: DisciplinesApple powerful Product Leadership products, premium(best product)pricing, limited range Still Doing well inHP well-balanced Acer super lean 2009 portfolio, mass cost structure, aggressive pricing customizationOperational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 23. What is the Business Model? GoogleAir AsiaUSP Tata Nano MarketProfit ModelDiscipline www.myCNI.com.mywww.OOBEY.com 24. Summary: Todays presentation 1. Business Model and Done Strategy2. Strategic Planning3. Budgeting and Resources www.myCNI.com.my www.OOBEY.com 25. 2. Strategic Planning Hope is not a strategy www.myCNI.com.my www.OOBEY.com 26. What is Strategic Planning? Variables: ResearchOutput: Growth Strategic Plans Risks StakeholdersPlanningPrioritiesKPIs Constraints SWOT Misc. www.myCNI.com.my www.OOBEY.com 27. What is your Goal?1. Cost Reduction 2. Growth 3. Both? www.myCNI.com.my www.OOBEY.com 28. Growth Strategy Double-Digit Growth, Michael Treacy 1.Base Retention1.New Business 1.Share GainGROWTH 1.Adjacent Market 1.Positioningwww.myCNI.com.my www.OOBEY.com 29. Growth Strategy Double-Digit Growth, Michael Treacy Increase switching costCustomize products1. Base Retention Preempt DefectionsBrand 1. New Business 1. Share Gain Neutralize Competitor GROWTHadvantages Superior ValuePromising Market? Buy market shareMake or Buy? 1. Adjacent Market1. Positioning Spot growth opportunities Organized search www.myCNI.com.mywww.OOBEY.com 30. How Markets determine Growth Strategies (1) Growth RateGrowth StrategyWhy?RateFast 1. Market Maintain market share in strategicPositioningsegments 2. Share Gain Prepare for market decline 3. Base Competitors focus too much onRetentiongetting new customersFlat 1. Base Lose customers slower thanRetentioncompetitors 2. Share Gain Create scale economics, squeeze(Acquisitions) costs www.myCNI.com.my www.OOBEY.com 31. How Markets determine Growth Strategies (2) Churn RateChurn StrategyWhy?RateLow 1. Share Gain Buying customer base is (Acquisitions) cheaper than own efforts2. Adjacent New products, old customers Marketsstrategy High1. Base Lose customers slower than Retentioncompetitors2. Share Gain Customers are always open to3. Adjacent the best value and offer Market Desperate to gain revenue www.myCNI.com.mywww.OOBEY.com 32. How Markets determine Growth Strategies (3)Example: XYZ SectorFast Growth, Market Positioning Low ChurnShare GainBase RetentionAdjacent Markets www.myCNI.com.my www.OOBEY.com 33. Side Notes on Cost Reduction StrategyCost Reduction 30%5% - -30% 80%Business OperationalModelUSP Finance, HR, ITProfit ModelSupply ChainMarket Discipline R&DInvest/Divest Sales & Marketingwww.myCNI.com.mywww.OOBEY.com 34. Business Situation vs. Focus UpturnFlatDownturn Fight ComplacencyInnovationSales Sharpen Edge Acquire Cash Flow Keep MomentumProfits ConquerBuild momentumChange mgmt Talent MgmtTop Talent focus Reduce FatInnovation/R&D Sales, Sales, Sales ContinuityEarly wins Increase attrition Everyone HappySlow Down HR Costswww.myCNI.com.mywww.OOBEY.com 35. Business Situation vs. Sales1. Optimize customers currentUpturnassets FlatDownturn 2. Offset customers costsFight ComplacencyInnovationSales 3. Focus market shareSharpen Edge Acquire 4. CEO and Sr. Mgmt in the fieldCash Flow 5. SellMomentumKeep up the buyer chainProfits 6. Motivate troops Build momentumConquer 7. Add extra services 8. Control troop emotions MgmtChange mgmtTalentTop Talent focus 9. Specialized vs. general teams,Reduce Fat Innovation/R&DSales, Sales, Salesi.e. sell support services, sellContinuity Early winsequipment, existing customersIncrease attritionetc. (e.g. Xerox) Slow Down HR CostsEveryone Happywww.myCNI.com.my www.OOBEY.com 36. Strategy + BSC FinancialRevenueCost Margin Cash Flow Asset CustomersSatisfactionBaseShare GainPositioningAdjacentNewRetention Market BusinessInternal ProcessLearning & Growth www.myCNI.com.mywww.OOBEY.com 37. Strategy: Disciplines, Priorities, and KPIs Product Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 38. Strategy: Disciplines, Priorities, and KPIs Operational Product LeadershipCustomer Intimacy Excellence New, state of the Management by Competitive price art products or Fact services Error free, Easy to do reliable Risk takers business with Fast (on Meet volatile Have it your way customer needs demand) (customization) Fast concept-to- Simple Market segments counter of one Responsive Never satisfied - obsolete own and Proactive, Consistent competitors'flexible information for all products Relationship and Transactional Learningconsultative organizationselling 'Once and Done' Cross selling www.myCNI.com.my www.OOBEY.com 39. Strategy: Value Disciplines Operational Excellence Move know-how from top performingunits to others Benchmark against best in class Ensure operations training for allemployees Use disciplines like TQM for continuouslearning to reduce costs and improvequality www.myCNI.com.my www.OOBEY.com 40. Strategy: Value Disciplines Customer Intimacy Capture knowledge about customers Understand customer needs Empower front line employees Ensure that everyone knows thecustomer Make company knowledge available tocustomers www.myCNI.com.my www.OOBEY.com 41. Strategy: Value Disciplines Product Leadership Reduce time to market Commercialize new products fast Ensure that ideas flow Reuse what other parts of the companyhave already learned Ensure there are multiple sources offunding www.myCNI.com.mywww.OOBEY.com 42. Strategy: Value DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 43. Strategy: Value DisciplinesProduct Leadership (best product) Operational Excellence Customer Intimacy(low cost producer) (best total solution) www.myCNI.com.my Leaders, Michael Treacy & Fred Wiersema; 1995 Ref: The Discipline of Marketwww.OOBEY.com 44. Strategy + BSC FinancialRevenue Cost Margin Cash Flow Asset CustomersSatisfactionBaseShare GainPositioningAdjacent NewRetention MarketBusinessInternal ProcessInvestmentOperational Product CustomerStrategyExcellence Leadership IntimacyLearning & Growth www.myCNI.com.my www.OOBEY.com 45. Alignment: 4-Wheels ModelBusinessPerson StructureModel Strategic PlanningCultureLeadershipResourceswww.myCNI.com.mywww.OOBEY.com 46. Alignment: Framework Culture Focus point Alignment Quality Innovation & Differentiation Risk taking Performance Management Corporate obsession Decision makingwww.myCNI.com.mywww.OOBEY.com 47. Alignment: Framework Structure Org Structure Job Design C&B Policies & procedures Decision making Job fit Management Systems BSC and KPIs Decentralized & Empowerwww.myCNI.com.my www.OOBEY.com 48. Strategy: FrameworkLeadership Role modeling Vision/Mission/Philosophy Leadership Style Delegation & Empowerment C&B, Promotions Sense of Urgency Speak regularly about Performancewww.myCNI.com.mywww.OOBEY.com 49. Strategy: Framework RecognitionPerson Recruitment Training Profit sharing Values Motivation Self Efficacy Awareness Useful Competencies Career aspirations Attribution (control)www.myCNI.com.my www.OOBEY.com 50. Strategy: Framework EnablersResources Technology Equipment Funding Materials CAPEX Human OPEX IntellectualProperty Partners Propertywww.myCNI.com.my www.OOBEY.com 51. Alignment: 4-Wheels ModelBusinessPerson StructureModel Strategic PlanningCultureLeadershipResourceswww.myCNI.com.mywww.OOBEY.com 52. Each Discipline RequiresDifferent Priorities & ResourcesOrganization, jobs, skills Culture, values, Product norms Operationa Leadership Customer l Intimacy Information and systems Excellenc e Management systems www.myCNI.com.my www.OOBEY.com 53. Each Discipline Requires Different Priorities & Resources Operational ExcellenceOrganization, Central authority, low level of empowerment jobs, skills High skills at the core of the organization Disciplined Teamwork Culture, values, norms Process, product- driven Conformance, 'one size fits all' mindset Information and Integrated, low cost transaction systems systems The system is the process Management Command and control systems Quality management www.myCNI.com.my www.OOBEY.com 54. Each Discipline Requires Different Priorities & Resources Product Leadership Organization, jobs,Ad hoc, organic and cellular skills High skills abound in loose-knit structures Concept, future-driven Culture, values, Experimentation and 'out of the box' mindset normsPerson-to-person communications systemsTechnologies enabling cooperation Information and systemsRewarding individuals' innovative capacityRisk and exposure management Management Product Life Cycle profitability systemswww.myCNI.com.mywww.OOBEY.com 55. Each Discipline Requires Different Priorities & Resources Customer IntimacyOrganization, jobs, Empowerment close to point of customer skills contact High skills in the field and front-line Culture, values, norms Customer-driven Variation and 'have it your way' mindsetInformation and systems Strong customer databases, linking internaland external information Strong analytical tools Management systems Customer equity measures like life time value Satisfaction and share management www.myCNI.com.my Focus on Share of Wallet www.OOBEY.com 56. Strategy + BSC FinancialRevenue Cost Margin Cash FlowAsset CustomersSatisfactionBaseShare GainPositioningAdjacent NewRetention MarketBusinessInternal Process InvestmentOperational Product Customer StrategyExcellence Leadership IntimacyLearning & GrowthCompetenciesInformationMotivation, Systems empowerment, alignment www.myCNI.com.my www.OOBEY.com 57. Before we startWhich comes first? 2. Strategies -> KPI? 3. KPI -> Strategies? www.myCNI.com.my www.OOBEY.com 58. Before we startWhich comes first? Strategies -> KPI? KPI -> Strategies? already know our priorities, aware of all strategy options available creating something UNIQUE, INNOVATIVE and DISRUPTIVE e.g. Air Asia conducting a business Turnaround e.g. MASwww.myCNI.com.my www.OOBEY.com 59. Before we startWhich comes first? Strategies -> KPI? KPI -> Strategies? want to find out possible strategies, determine our priorities first thru selection of important KPIs; growing through normal business, not a Turnaround.www.myCNI.com.my www.OOBEY.com 60. Example: Selection of KPIs for BSCCustomer satisfactionWin rate (sales closed/sales contact)Customer loyalty Customer visits to the companyMarket share Hours spent with customersCustomer complaintsMarketing cost as a percentage of salesComplaints resolved on first contact Number of ads placedReturn rates Number of proposals madeResponse time per customer Brand recognitionrequest Response ratePrice relative to competitionNumber of trade shows attendedTotal cost to customer Sales volumeAverage duration of customer Share of target customer spendingrelationshipSales per channelCustomers lost Average customer sizeCustomer retention Customers per employeeCustomer acquisition rates Customer service expense per customerPercentage of revenue form new Customer profitabilitycustomers Frequency (number of salesNumber of customerstransactions)Annual sales per turnover www.myCNI.com.mywww.OOBEY.com 61. Wrong KPIs What is the moral of the story?www.myCNI.com.mywww.OOBEY.com 62. KPIs and BehaviorBefore: Handle Time Per Call Motivated Call Centre staff to transfer callers, getting rid of complainers, making them someone elses problem Callers at 45% chance of being transferred 7,000 customers each week suffered transfers 7 times or morewww.myCNI.com.my www.OOBEY.com 63. KPIs and BehaviorAfter: Minutes Per Resolution of aproblem Resolution in ONE CALL become the core goal Reduced probability of call transfers from 45% to 18% www.myCNI.com.mywww.OOBEY.com 64. Sample: Other 1st Level KPIsacross industries Financial ServicesRetail Telecommunications Maximize ARPUUnderstand customer Anticipate and prevent churnMinimize Churn behavior related to customer despite compensationMutichannel customer conversion, acquisition, and Increase number of productsretentionper customerserviceSingle view of customer Turn call center informationMultichannel customer opportunity to up-sell andexperience cross-sellPersonalized customer Increase customerexperience satisfaction and loyalty HospitalityTravel & LeisureManufacturingPersonalized customerIncrease customer loyalty Single view of customersexperienceand preference across supply chainMaximize share of wallet Maximize customer revenue Zero-error order capturePlayer/customer loyaltyImprove service quality and Streamline opportunity toMultichannel customerefficiency cash processesservice Capture and close sales Leverage investment in ERPopportunitiesand backoffice systems www.myCNI.com.mywww.OOBEY.com 65. Sample KPIs for Each Discipline OperationalProduct Customer IntimacyExcellence Leadership Price Marketing Customer SelectionKnowledge Functionality Convenience Solutions Offered Zero Defects # of Successes Penetration Growth # of Failures Customer Data Learn from key Customer-success users focus Interdisciplinary teams Pipeline www.myCNI.com.my www.OOBEY.com 66. Summary: Todays presentation 1. Business Model and Done Strategy Done2. Strategic Planning3. Budgeting and Resources www.myCNI.com.my www.OOBEY.com 67. 3. Budgeting and Resources The art and science of allocating and aligning Resources to strategic plans www.myCNI.com.my www.OOBEY.com 68. Budgeting: Some thoughtsTwo major roles of Budgeting: Provide real-life CONSTRAINTS to strategic planning Provide RESOURCES to realize strategic plansWhy Constraints? 2. Over aggressive unrealistic planning, usually byMarketing/Sales need to be grounded to real life 3. Creative entrepreneurial thinking when resources arelimited 4. Enforce the need for Accountability i.e. ROI thinking forall Managerswww.myCNI.com.mywww.OOBEY.com 69. E3 Department BSCCustomer Perspective Marketing DepartmentGoals Strategies Targets CAPEX OPEXBaseRetentionShare GainBudgetingwww.myCNI.com.mywww.OOBEY.com 70. Alignment: 4-Wheels ModelBusinessPerson StructureModel Strategic PlanningCultureLeadershipResourceswww.myCNI.com.mywww.OOBEY.com 71. Strategy: Framework EnablersResources Technology Equipment Funding Materials CAPEX Human OPEX IntellectualProperty Partners Propertywww.myCNI.com.my www.OOBEY.com 72. Each Discipline RequiresDifferent Priorities & ResourcesOrganization, jobs, skills Culture, values, Product norms Operationa Leadership Customer l Intimacy Information and systems Excellenc e Management systems www.myCNI.com.my www.OOBEY.com 73. Each Discipline Requires Different Priorities & Resources Operational ExcellenceOrganization, Central authority, low level of empowerment jobs, skills High skills at the core of the organization Disciplined Teamwork Culture, values, norms Process, product- driven Conformance, 'one size fits all' mindset Information and Integrated, low cost transaction systems systems The system is the process Management Command and control systems Quality management www.myCNI.com.my www.OOBEY.com 74. Each Discipline Requires Different Priorities & Resources Product Leadership Organization, jobs,Ad hoc, organic and cellular skills High skills abound in loose-knit structures Concept, future-driven Culture, values, Experimentation and 'out of the box' mindset normsPerson-to-person communications systemsTechnologies enabling cooperation Information and systemsRewarding individuals' innovative capacityRisk and exposure management Management Product Life Cycle profitability systemswww.myCNI.com.mywww.OOBEY.com 75. Each Discipline Requires Different Priorities & Resources Customer IntimacyOrganization, jobs, Empowerment close to point of customer skills contact High skills in the field and front-line Culture, values, norms Customer-driven Variation and 'have it your way' mindsetInformation and systems Strong customer databases, linking internaland external information Strong analytical tools Management systems Customer equity measures like life time value Satisfaction and share management www.myCNI.com.my Focus on Share of Wallet www.OOBEY.com 76. Managing Gaps between actual and planned budgets 1. Budgeting vs. Priorities 2. Basic Budgeting policies 3. Activity Grid to determine budget priorities 4. Budgeting for Investments based on the BCGMatrix principles www.myCNI.com.mywww.OOBEY.com 77. Budgeting vs. PrioritiesPriority = Time + Money www.myCNI.com.my www.OOBEY.com 78. Budgeting vs. PrioritiesExample: Business Situation vs. R&D PrioritiesUpturnFlatDownturn Fight ComplacencyInnovation Sales Sharpen Edge AcquireCash Flow Keep MomentumProfits ConquerBuild momentum NPD Cycle Time Focused on Improve Top 15%Breakthrough Improve Edgerevenue-generatingJV, In-source, Out-products Extensions source Counter Competitor R&D, SalesEliminate bottom 20% www.myCNI.com.mywww.OOBEY.com 79. Basic Budgeting policies Flexibility to switch between line items Reserve Funds Loans/External Funding www.myCNI.com.my www.OOBEY.com 80. Activity Grid to determine budget priorities Increase () Create (+) What are features/ What are features/ activities/services to activities/services to increase?introduce?Reduce () Eliminate (-) What are features/ What are features/ activities/services to activities/services to reduce?eliminate? 1. Manage conflicts where limited resources should go 2. Solve problem of compounding activities & resourceswww.myCNI.com.my www.OOBEY.com 81. Budgeting for Investments based on the BCG Matrix principles MarketPotential Business Performance www.myCNI.com.mywww.OOBEY.com 82. Budgeting in a Downturn www.myCNI.com.mywww.OOBEY.com 83. Budgeting in a Downturn www.myCNI.com.mywww.OOBEY.com 84. Budgeting in a Downturn www.myCNI.com.mywww.OOBEY.com 85. Budgeting in a Downturn www.myCNI.com.mywww.OOBEY.com 86. Budgeting in a Downturn1. StratEx 2. CoREx www.myCNI.com.mywww.OOBEY.com 87. End NotesTying it all up www.myCNI.com.my www.OOBEY.com 88. Business Situation vs. Post- Downturn PossibilitiesDeflation Inflation StagflationStrong supply of Huge amount of Combination of Source goods and weakmoney being slow growth anddemandpumpedsurging inflation CPI CPI Misery Index, = Unemployment + Indicator Real estate Commodity Inflation Rates values prices Savings rateGovernment debtas a % of GDP Investment Short-term Pegged toConservative Technologyinflation High-qualityCommoditiesgrowthwww.myCNI.com.myBusinessweek, 22nd June 2009, Pick Your Poison www.OOBEY.com 89. 10 Questions for CFOs post recovery 1. Recovery shape? 1. Financial resources 2. Restructured for upturn?enough? 2. Buying talent, 3. Supply Chain marketing, R&D?flexible? 3. New risks? 4. Acquisition targets?4. How to sell recovery 5. Restart alliances? plan to investors? 6. Divestunderperformingbusinesses? McKinsey & Company, May 2009, Whats Next www.myCNI.com.my - 10 Questions for CFOs www.OOBEY.com 90. Review processes1. Result Planning schedule inc. BSC, Budget 2. Quarterly Performance Appraisals 3. Sales performance reviews 4. Non-sales performance reviews 5. Annual Appraisals 6. Specialized KPI committees 7. CAR, PAR, SCAR KPI improvements 8. Internal Audit & MSD process problems 9. HRM & TND people problems www.myCNI.com.my www.OOBEY.com 91. Problems, problems and more problems 1. No serious budget to tackle key risks 2. Too much optimism or pessimism 3. Innovation vs. Results vs. Baseline 4. Investment Portfolio Management 5. Top down vs. Bottom up 6. Good to have vs. Need to have 7. Line Manager not thinking like Investors 8. Too focused on KPI and BSC 9. Budget allocation seen as popularity vote 10. Public Listing -> pressure for short-term budgets and results vs. long-term innovation www.myCNI.com.mywww.OOBEY.com 92. Problems, problems and more problems www.myCNI.com.my www.OOBEY.com 93. Alignment: 4-Wheels ModelBusinessPerson StructureModel Strategic PlanningCultureLeadershipResourceswww.myCNI.com.mywww.OOBEY.com 94. Thank You.soft copy of slides: www.totallyunrelatedrandomanddebatable.blogspot.com