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Keith Gulledge & Ben CookConsultants—Acumen Learning, LLC
Manager Overview of
Building Business AcumenBuilding Business AcumenWorkshop
Day 1
welcomes you to
Building Business AcumenBuilding Business Acumen
““Seeing the Big Picture”Seeing the Big Picture”
July 23, 2013FACILITATED BY:
Keith Gulledge
Acumen Learning, LLCOrem, Utah
3
Measuring Measuring Performance:Performance:
5 Key Business 5 Key Business DriversDrivers
Statement of Cash Flows & Balance Sheet
Income Statement
(P&L)
Balance Sheet
5 Key Business Drivers5 Key Business Drivers
Can a company have Can a company have too much too much CashCash??
$$
$$ $$
$$
$$
PROFITPROFIT
1010
PROFITPROFIT
6
What This Class is NOT Primarily About…What This Class is NOT Primarily About…
1. Skill training.
2. Accounting.
3. Finance.
4. Management techniques.
What This Class IS About at Cigna…What This Class IS About at Cigna…
1. Seeing the Big Picture.
2. Leadership initiative.
3. Better decision-making.
4. Using 5-Driver knowledge for greater influence and results.
8
1. Know the measures important to senior executives, why they are important, and how you impact them
2. Understand 5 Key Drivers that all businesses focus on to succeed; how measured at Cigna & your influence on them
3. Better understand Cigna’s financial statements, how you impact them, and how you impact Cigna’s stock price
4. Enhance potential for increased credibility and influence by improving decision skills with tools & processes
5. Know how Cigna compares to your competitors—ID best practices, threats, weaknesses, opportunities
6. Understand basic business terms to better articulate company performance and teach others
7. Create an Action Plan to more positively impact Cigna’s desired results
Program Objectives: To BETTER…Program Objectives: To BETTER…
9
Business Acumen Topics
1. 5 Key Business Drivers & How to Measure and Impact
2. Cigna Revenue Sources & Cost Centers—Profitability
3. Participant Functional Dynamics—How Cigna Internal Customers Can Work More Effectively Together
4. Cigna Annual & Quarterly Reports—Executive Messaging
5. Cigna’s Financial Statements: P&L, Balance Sheet, Statement of Cash Flows—Analysis & How to Impact
6. Decision Process and Basic ROI Analysis for More Effective Decisions to Impact 5 Drivers
7. Competitor and Industry Review, Analysis, Key Learnings
8. External Factors & Stock Market Dynamics
9. Learning Dynamics Activities—Teach to Learn, etc.
Business Acumen TopicsBusiness Acumen Topics
10
MEASURING MEASURING PERFORMANCEPERFORMANCE
2121
11
1. Basic purpose & relationship to 5 Drivers
2. Governing equation
3. Key numbers, ratios and trends
4. Actions to impact results
For each statement…
Measuring 5-Driver PerformanceMeasuring 5-Driver Performance
20122012
2.98 B
2.35 B
29.12 B
2.48 B
8.5
1.62 B
28.8
33.2
22.2
16.6
5.61
5.6
VoteVote
13
What is the business term that refers to how well a company employs its Assets to make money?
13
1. Profit Margin
2. Asset Utilization
3. Cash Flow
4. Financial Leverage
5. Asset Strength
1. 2. 3. 4. 5.
6%
63%
19%
13%
0%
14
DECISION DECISION PROCESSPROCESS
15
Decision ProcessDecision Process
1ID Desired Results Stakeholder needs Problem & root causePrioritize gaps & results—set targets
Analyze ROI & Options
ST & LT impact Qualitative aspects Alternative solutions
3
Implement & Measure Process owner Involve key resources Measurement, metrics
5Make Decision
Who, how, when Responsibility Accountability
4
Use Data Gather & distributeAccurate, relevantTimely, user friendly
2
16
Decision Mini-Case AnalysisDecision Mini-Case Analysis
Assignments for Case Analysis
In your Small Groups, use the Decision Process to analyze the entire case, focusing you your assigned Stage in the Decision Process Model
After 15 min., report your analysis to the larger group
Use theUse theDecision Decision Process Process Analysis Analysis
WorksheetWorksheetp. 76 or 78p. 76 or 78
What Driver does Cigna’s Differentiated Value Proposition focus on?
Customer-Customer-
centricitycentricity
External Factors:External Factors:COMPETITORSCOMPETITORS
3939
19
Benchmarking Cigna’s CompetitorsBenchmarking Cigna’s Competitors
United Health WellPoint Aetna Humana
“Keep your friends close, and your enemies closer.”
— Sun Tzu
Stock Price vs. Competitors—1 yr.Stock Price vs. Competitors—1 yr.
21
ProfitProfit
Discuss in your group how you personally can enhance REVENUE, reduce EXPENSES, and increase PROFIT
Write down one or more specific actions you could take to impact PROFIT (improve Revenue, reduce Expense)
General areas to consider:
Expenses you can influence
Product value you can add
Employee satisfaction & reten.
Customer service & loyalty
Action JournalAction Journal
Discussion & Notes
GROUP GROUP DISCUSDISCUS
SIONSION
1111
22
Complete an Action Planning Action Planning FormForm for at least ONE initiative you’ve developed during this program.
23
1. 7 days: Teach the principals you’ve learned to someone you work with. Teach to influence.
2. 10 days: Discuss your Action Items with your manager. Follow through on your Action Items.
3. 14 days: Review your Notes and Participant Guide.
4. 30 days: Read “Seeing the Big Picture” if not completed.
5. Quarterly: 2- 4 hours. Continue to use the resources available to build your business acumen. Review Cigna and
competitor financials; use websites.
6. Ongoing: Teach others. Use Business Acumen in using the Decision Process. “What’s the impact on CASH, PROFIT, ASSETS, GROWTH and PEOPLE?”
Post-Course Action StepsPost-Course Action Steps
24
2. Participants will be asked to schedule a meeting with you:
Share their key learnings from the workshop Action Plan priorities and actions to be followed up Teaching their team key concepts learned
Your Questions & Comments
3. Your important guidance and support:
Feedback, suggestions on their Action Plan items—priorities Support, direction and guidance, especially with cross-
functional process and systems issues Assistance with resources required Help to free up their time for Action Plan items Continued communication, feedback, support from you
Your Needed Support as ManagerYour Needed Support as Manager
1. Prepare Participants for the class: Read the Book, more.