Managing at the Speed of Change · 2013. 4. 5. · ©2013DonaldH.Turner "Thisdocumentisnottobeduplicated,reproduced,ordistributedwithoutpriorwrienconsentbyDonaldH.Turner Managing

© 2013 Donald H. Turner This document is not to be duplicated, reproduced, or distributed without prior wri=en consent by Donald H. Turner © 2013 Donald H. Turner This document is not to be duplicated, reproduced, or distributed without prior wri=en consent by Donald H. Turner

Managing at the Speed of Change

KETTERING EXECUTIVE NETWORK

5 Apr 2013 Holiday Inn Roswell

© 2013 Donald H. Turner This document is not to be duplicated, reproduced, or distributed without prior wri=en consent by Donald H. Turner

Business IS Change – there is nothing else

2

Change is not always fatal… …however, the failure to change is


TOPICS TO ADDRESS TODAY

￭  IntroducEon ￭ Understanding a Company ￭ Developing a Strategy ￭ ExecuEng a Strategy ￭ SeJng the Stage ￭ Day-‐to-‐Day Lessons Learned ￭ Summary and QuesEons

3


“If I have reached higher than others, it is because I have stood on the shoulders of giants”

This is one guy’s view on how to deal with a business world being overrun change

￭ Over the years, have been asked how I “do the Voodoo I do” relaEve to Company assessment, strategy, organizaEon, and management ▶  How to look at marketplaces, Customers, compe2tors, and companies? ▶  Methods developed over the years to assess, strategize, organize, and manage? ▶  How to handle lot of informaEon and lot of change

￭  Note, though I’ve been Principal Developer of these techniques… ￭ …they are based on years of working with many talented execuEves ￭ With privilege to work with so many outstanding execuEves I succumb to the wisdom of Isaac Newton, who said:


Key question is how did I get here? Well, been an interesting ride – so far… ￭ Sorry…I’m a Yankee!

▶  BSIA (Process Engineer w/ minors Finance / Sta2s2cs) – General Motors Ins2tute ▶  MBA – University of Michigan ▶  Graduate Engineering Thesis (Computer Simula2on) – University of Michigan ￭ A Third, A Third, and another Third

▶  Interna2onal Strategy for technology-‐intensive companies ●  Booz•Allen & Hamilton – Member of first technology strategy Team in the world ●  Have built mul2ple mul2-‐million dollar strategy prac2ces for KPMG, E&Y, bou2ques ●  Developer of VOGI® Strategy Development Methodology

▶  Corporate Management ●  Chief Strategy Officer and IPO architect for billion-‐dollar hardware and soYware company ●  Group President with $187 million responsibility for enhanced telecom company

▶  Serial CEO ●  CEO/CMO/GM for over ten early to emerging technology companies… ● …in markets ranging from hardware to soYware to Internet to biotech to consumer products

￭  If interested, complete profile at www.turnerworld.com

5


…Interesting ride – I’ve had a few jobs…

￭  President & Chief ExecuEve Officer, VELOXITI, Inc. (formerly Applied Systems Intelligence, Inc.) ￭  President, Computer Division, American Reliance, Inc. ￭  Chief ExecuEve Officer, Jimway, Inc. ￭  Chairman, President & Chief ExecuEve Officer, ARC SoluEons, Inc. ￭  Managing Partner, ExecuEve-‐in-‐Residence, Enhanced Advisors, LLC ￭  AcEng Mergers & AcquisiEon ExecuEve, CreateHope, Inc. ￭  President & Chief ExecuEve Officer, Pro-‐Tech SoluEons ￭  President & Chief ExecuEve Officer, nexvoice ￭  Managing Director, CMXsports ￭  Chief MarkeEng & Strategy Officer, CMXchange ￭  President, Emerging Enterprise SoluEons Business Group, Premiere Technologies, Inc. ￭  President, Delta Management Group ￭  Partner & Principal, Technology Strategy, SiGMA ConsulEng Inc. ￭  Vice President, Strategic Planning & MarkeEng, Chief Strategy Officer, Computervision Inc. ￭  PracEce Leader, Technology Strategy PracEce, KPMG Peat Marwick ￭  Co-‐PracEce Leader, Manufacturing Technology Strategy PracEce,Ernst & Young ￭  Eastern U.S. Managing Director, Computer SimulaEon & Engineering SoluEons, AutoSimulaEons ￭  Associate, Worldwide Technology Strategy & Management PracEce ,Booz-‐Allen & Hamilton ￭  Sojware Systems SimulaEon Engineer, F. Jos Lamb Machine Tool Company ￭  Manufacturing Process Engineer, General Motors, Chevrolet Motor Division

6


…Interesting ride – I’ve worked a few projects and marketplaces

Worked mulEple funcEons:

￭ Strategy ￭ Business Development ￭ MarkeEng ￭ Finance ￭ Product Development ￭ Engineering & OperaEons ￭ Sales & Channel ￭ Customer Service

Worked mulEple markets:

￭ AutomoEve ￭ Aerospace ￭ Electronics ￭ Computer Hardware ￭ Computer Sojware ￭ Healthcare ￭ Devices ￭ Biotech

7

Bo=om line, I can’t hold a job – BUT great experience J


Hot Sync & VOGI®

Triage Stabilize Profits EBITDA Invest Grow In Turn-‐around

situaEons, extra steps are required

Turn-‐Aroun

d Over the years have developed some “methods” to deal with “fast change”

Assess Strategy Organize/ Deploy Manage

Strategy Framework VOGI®

Value-‐Chain Hot Sync

Growth Value Analysis

VOGI® Vision●ObjecIves ●Goals ●IniIaIves Strategy Development & ImplementaIon Methodology VOGI® is a registered trademark of Donald H. Turner




9 This document is not to be duplicated, reproduced, or distributed without prior wri=en consent by VELOXITI, Inc.


First, need to understand the Company – a “Value Chain” approach works well

Management

Custom

er Custom

er

Market Develop Sales Delivery Service

DMG VALUE CHAIN FRAMEWORK

©1987-‐2013 Delta Management Group

Technology People Finance & Metrics

Create Cycle Deliver Cycle


…Value Chain Analysis

Management

  PosiEoning   Branding   PromoEon   Packaging   Pricing   Public Rel   AdverEsing   Collateral   Strategic Deals

Custom

er Custom

er


  Architecture   Technology Suite   Processes   CE WOW

  Pipeline   Channel Mgt

  Quality   Response   ConEnuing

Improvement   CriEcal Mass   Economies of

Scale

  Customer Service   Customer Loyalty   ProacEve Support

  DirecEon   Process   Structure   Culture





Depending on the situation there is a logical sequence to understanding

Management

Custom

er Custom

er





#

#

“Normal” SituaEon

“Turnaround” SituaEon

1 2 1 3

2 1

1

1

4 5 3 3 3

2

1 1






Over the years have developed systematic way to develop “Strategy”

Core Competency DefiniEon Unique

Capabili=es

Market Opportunity & Success Req’ts

Market Poten=al Market Risks

Risk Parameters

INTERN

AL

ANAL

YSIS

Current CapabiliEes

Served Markets Focus Resources

Board of Directors & Guidelines

Gap & Strategic ImplicaEons Priori=es

DMG STRATEGY FRAMEWORK ©1987 -‐ 2013 Delta Management Group

STRATEGIC DIRECTION

STRA

TEGY

DEVE

LOPM

ENT

Vision Mission Strategic Goals Objec=ves

Sales Process Channels Service Levels

Del’y Policy Channels Service Levels

Sales Strategy

Service Strategy

Product/ Service Strategy

Focus Applica=on Cost Structure

Market Strategy Product/Service Line

Target Segments Value Equa=ons 4 P’s

Delivery Strategy Focus Make/Buy Loca=on Scale vs. Flexibility

CompeEtor Analysis

Focus Resources Strength/Weakness Likely Moves & Trends

Technology & SoluEon Analysis

EXTERN

AL

ANAL

YSIS Market

Analysis

Size Growth Trends

Technology PlaZorm Product/Service Trends Subs=tutes

Customer Analysis

Order Win Criteria Order Sa=sfy Criteria Trends


…Strategy – Strategy Development

Core Competency DefiniEon


Market Poten=al Market Risks

INTERN

AL

ANAL

YSIS

Current CapabiliEes


Gap & Strategic ImplicaEons


STRATEGIC DIRECTION

STRA

TEGY

DEVE

LOPM

ENT

Sales Strategy

Service Strategy


Market Strategy

Delivery Strategy

CompeEtor Analysis

Focus Resources Strength/Weakness Likely Moves & Trends


EXTERN

AL

ANAL

YSIS Market

Analysis

Size Growth Trends

Technology PlaZorm Product/Service Trends Subs=tutes

Customer Analysis

Order Win Criteria Order Sa=sfy Criteria Trends


…Strategy – Internal Analysis

Core Competency DefiniEon Unique

Capabili=es


Risk Parameters

INTERN

AL

ANAL

YSIS

Current CapabiliEes

Served Markets Focus Resources


Gap & Strategic ImplicaEons Priori=es


STRATEGIC DIRECTION

STRA

TEGY

DEVE

LOPM

ENT

Vision Mission Strategic Goals Objec=ves

Sales Strategy

Service Strategy


Market Strategy

Delivery Strategy

CompeEtor Analysis


EXTERN

AL

ANAL

YSIS Market

Analysis Customer Analysis


…Strategy – Internal Analysis

Core Competency DefiniEon


INTERN

AL

ANAL

YSIS

Current CapabiliEes


Gap & Strategic ImplicaEons


STRATEGIC DIRECTION

STRA

TEGY

DEVE

LOPM

ENT

Sales Process Channels Service Levels

Del’y Policy Channels Service Levels

Sales Strategy

Service Strategy


Focus Applica=on Cost Structure

Market Strategy Product/Service Line

Target Segments Value Equa=ons 4 P’s

Delivery Strategy Focus Make/Buy Loca=on Scale vs. Flexibility

CompeEtor Analysis


EXTERN

AL

ANAL

YSIS Market

Analysis Customer Analysis






Proven approach to IMPLEMENTING strategy is the “VOGI®” approach ￭ Developed in 1987 – out of pure frustraEon… ￭ …from the short-‐falls of “strategy” processes of the day

▶  Brilliant strategic insight NOT driving strategic results ▶  NO linkage between “strategy” and “tac2cs” ▶  NO “defini2on of goodness” for strategic success ▶  NO linkage between strategy and budget ▶  INABILITY to easily summarize and communicate strategy ￭ Developed VOGI® based on several premises

▶  Strategy is a living and ongoing process – NOT an event ▶  Strategy must be linked to specific, ac2onable projects… ▶  …that show “strategic contribu2on” ▶  Everyone in company should be able to communicate strategy ▶  If successful, strategy can drive real improvement… ▶  …that can be managed and measured


VOGI® framework has six elements

Vision Mission

ObjecEve

IniEaEve

Values

ObjecEve

ObjecEve

ObjecEve

Goal

Goal

Goal

Goal

Goal

Goal

Goal

Goal

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

IniEaEve

Link “strategic vision” to specific corporate iniIaIve

“Strategy” “TacIcs”


Output is Strategy Implementation Gameplan…

ANALYSIS VOGI® TACTICAL DISCUSSION

ANALYSIS   What is the market   Who are the Customers   What is the Basis of compeEEon

  What are key assumpEons

1 VOGI®   Vision   Mission   Values   ObjecEves   Goals   IniEaEves

2 TACTICAL DISCUSSION   “Make it Happen” groundrules/process

  Planning calendar   Values   TacEcal Discussion   Le=er from CEO

3


VOGI® example – Targus Group International…

Our VisionOur vision is to be the global leader in delivering products that enhance mobile technology

Our MissionOur mission is to leverage innovative marketing and global distribution to deliver solutions that make mobile technology easier, more productive, and more enjoyable

Our Valuesn Integrity & honestyn Open timely communicationn Product Qualityn Speed n Innovationn Enjoy what we don Entrepreneurialn Teamworkn Accountabilityn Continual Improvementn Seek and embrace criticismn Lessons Learnedn Embrace change n Customer excellence

Superior Financial Health

Best-in-Class Marketing & Product

Best-in-Class Supply Chain Mgt

Process Mgt Excellence

Outstanding People

GoalsObjectives InitiativesF1: EBITDA > 13%

F2: Revenue > $370 million

F3: Liquidity Cash Balance > $20 million

S1: SCM Strategy Defined by April 02

S2: Product Design to Customer < 8 weeks

S3: Inventory Turns >8 times

S4: Unit Delivered Cost reduced by 5% in ‘02

M1: Market Strategy defined by April 02

M2: Market Info System by April 02

M3: “Concept to Product”Strategy by March 02

M4: Concept to Product Design < 6 weeks

M5: >1 “wow”Product/Year

P1: Process Improvement Plan by 22 Mar 02

P2: Establish Perf Mgt System by Mar 02

P3: Major BPI in each area or function 1 Jun 02

H1: People Inventory System by 1 May 02

H2: Define/Measure People QWL by 1 Apr 02

H3: Appraisal & Comp Plan by 1 May 02

F.1.1e Market & Margin ReportingF.1.2 Distribution Outsource AnalysisF.2.1e 20% ClubF.2.1u Million Dollar BabiesF.2.2 Corporate Advisory Panel (CAP)F.2.3 A Beautiful MindF.2.4 Corporate Direct Pilot InitiativeM.1.1e Realigning EMEA Marketing FunctionM.1.1u Develop Marketing StrategyM.2.1 Electronic Filing System InitiativeM.2.2 Deep 6M.3.1 The Three MusketeersM.4.1 Development Cut and Sew StrategyM.4.2 Global Sourcing ResourcesM.4.3 Competitor AnalysisM.4.4 New Product RequestM.4.5 New Product Proposal (NPP)M.4.6 Product DesignM.4.7 Follow the LeaderS.1.1e Building an Operational PlatformS.1.2 Supplier Report CardS.1.3 Develop Purchasing StrategyS.2.1 Contract NegotiationsS.3.1 Inventory Control StrategyS.3.2 Global Inventory VisibilityS.3.3 Direct Import Drop-ShipmentsS.3.4 Targus Forecast ToolS.3.5 Sales Forecasting & ProcurementS.4.1 Product Cost ReductionsS.4.2 Obtain Unit Cost ReductionS.4.3 Unit Cost Reduction/VES.4.4 Bidding ProcessP.1.1 Develop Customer Service StrategyP.1.2 Customer Service Order Proc SystemP.1.3 Improve Call Center Phone SystemP.1.4 Customer Inventory Allocation ProcessP.1.5 Customer Tools on Extranet/WebsiteP.1.6 Increase Number of EDI CustomersP.1.7 Automate LTL Freight ChargesP.1.8 Project "No More Guess"P.1.9 Int/Exte Customers RelationshipP.1.1 Improve Customer Returns ProcessP.2.1 Common Corp Reporting & CalendarP.2.2 Process Management TrainingP.3.1u Inter-Regional Functional SynergyP.3.1e Effective and Efficient ProcessesP.3.2 Automate Adapter Tip OrdersH.1.1u Human Resource Assets ManagementH.1.1e Square Pegs for Square HolesH.1.2 New Kid on the BlockH.1.3 Welcome to Targus!H.1.4 Name that Product!H.1.5 Mandatory TrainingH.1.6 Making a Manager Out of a ManagerH.1.7 Bringing the Targus World Together

SOURCE: Used with permission of Targus Group Interna2onal


…Targus…



…VOGI® example - Quovadx

￭ Public company (NASDAQ) at risk of delisEng ￭ Strategy framework used to assess company strategic opEons ￭ VOGI® used to drive all “turnaround” acEviEes… ￭ …integrated with company intranet with top management visibility







Set expectations, groundrules, and operating mode early – e.g., “thoughts on how I work”… ￭ My primary focus is on “Quality” revenue growth

▶  “Quality” revenue is predictable, profitable, and repeatable… ▶  …and based on defensible compe22ve advantages ▶  AXIOM: Revenue growth “buys 2me” and excuses “other sins” ￭ Believe “Quality” revenue growth requires process excellence

▶  AXIOM: Complexity of a solu2on is inversely propor2onal to it actually being used – I believe in the KIESSOTWIY philosophy

￭ Appreciate “issue du jour” but am always looking to understand “root cause” – so we can fix the process ￭ Have a duality mindset

▶  Always thinking about FUTURE poten2al or implica2on… ▶  …while also iden2fying things that can go wrong NOW ￭ Generally have a reason for EVERYTHING

▶  If you don’t understand, please ask… ▶  …recognizing that some2mes I will not be able to tell you


…thoughts on how I work

￭ Please know I am passionate… ￭ …have been told I’m intense… ￭ …however, I don’t get ra=led – you won’t hear me swear or yell… ￭ …so don’t take calmness as indicator of indifference

"You can handle anything if you think you can. Just keep your cool and your sense of humor."


Not a micromanager – that said…

￭ Recovering engineer – you have my apology ahead of Eme ￭  I DO NOT micromanage your efforts ￭ However, I DO micromanage your deliverables

▶  Long hours are appreciated – we’ll discuss – but… ▶  …can’t grow on effort… ▶  …only on accomplishments – commitment is internal contract ￭ Keep track of EVERY deliverable and when due

▶  Won’t pester you for progress… ▶  …unless you ask, if you need help PLEASE ask for it ▶  When due and haven’t received – I WILL ASK


Some further thoughts on how I work – things that “bother” me… ￭ Bitching – criEcism without a be=er idea ￭ Babbling – give me “Cliff’s Note” version – I’ll ask if I want, need, or am curious about more detail ￭ Backstabbing – we are a Team made up of imperfect people – we can all benefit from criEcism but only: ▶  If ini2ally done one-‐on-‐one “to our face” ▶  Publically can cri2cize the ideal – but NOT the person ▶  If not resolu2on then you can involve me ￭ Branding – copy language, templates, formats – they are meant to establish once, use many – not vice versa – we will use templates ￭ BOBE (i.e., “Being Overrun By Emails”) – please use email eEque=e in labeling and distribuEng – details forthcoming ￭ Bewilderment (i.e., actually “Surprises” but needed another “B” word for literary integrity) – don’t like to be caught unprepared


…and things that REALLY bother me

￭ Making a mistake, not asking for help, and having it effect Customer ￭ Making a mistake and not fixing the root cause

▶  We all make mistakes… ▶  …but there is a special place in Hell for those who make same one twice ￭ Lack of process

▶  Can’t fix bad performance without a process, period ▶  Can’t repeat good performance without a process, period ▶  Think Twice, Decide Once – hip-‐shoo2ng only works in the movies

￭ Complacency – a “No Decision” is by definiEon a decision ▶  There is also another place in Hell reserved for those that… ▶  …in 2me of conflict refused to make a decision, take a side ▶  When I put you in a posi2on I – by defini2on – support your decisions…we will rou2nely do post-‐decision “lessons learned” as part of development process


Introduce early the “Rules of Engagement”

￭ ROE #1 -‐ Rights And ObligaEons

￭ ROE #2 -‐ OperaEng Groundrules

￭ ROE #3 – What We Owe Each Other


First rule of engagement involves how we will conduct ourselves

Violation of rights = Team doesn’t want you on it Violation of obligations = you don’t want to be on Team

...I have the right to… ...i have the obligation to…understand direction and action seek to understandraise issues and concerns offer solutionsparticipate in debate support the team decisionmake mistakes use good judgementask for help provide helprespect show respect

As an ASI Team Member…


Second Rule of Engagement involves how we will manage ourselves ￭ Our focus:

▶  Ourselves -‐ we are the difference – develop/manage people assets ▶  Customers -‐ they are only reason we exist, period ▶  Numbers -‐ it’s how we score and how we keep score ▶  Deliverables -‐ on 2me and right, a commitment is a contract ●  Know your internal Customers – if you can’t sa2sfy them… ● …what chance do you have of sa2sfying external Customers

▶  Responsibility -‐ respect “go to” person for info and decisions ●  Every func2onal lead can have ideas cri2cized… ● …however, every func2onal lead has eventual responsibility for that func2on

￭ How we will manage: ▶  Manage to process that allows us to… ▶  …deliver – simply working lot of hours is MMITIBSW ▶  Manage by numbers ▶  Rou2nize the rou2ne (i.e., read “process” and “tools”)… ▶  …allowing quality 2me for important stuff – crea2ng opportuni2es


Third Rule of Engagement involves what we owe each other ￭ CEO owes each of you:

▶  Direc2on and priori2es ▶  Informa2on and communica2on to understand direc2on/priori2es ▶  “Defini2on of Goodness” ▶  Resources to achieve “Goodness” ▶  Appropriate rewards when “Goodness” is achieved

￭ You owe the CEO: ▶  Performance -‐ numbers and deliverables ▶  Compliance with rules of engagement

￭ We owe it to ourselves: ▶  Learn and grow ▶  Have fun ▶  Conduct ourselves in a manner that we are proud of






Need way to keep strategic focus while “moving the ball forward” daily – enter “Hot Sync”

36

￭  0-‐Management ￭  1-‐MarkeEng ￭  2-‐Development ￭  3-‐Sales ￭  4-‐OperaEons ￭  5-‐Customer Experience ￭  6-‐Finance ￭  7-‐Legal ￭  8-‐Strategy ￭  9-‐Mergers & AcquisiEons

￭  Strategic PrioriEes ￭  Last Week Deliverables ￭  This Week Deliverables ￭  Outstanding Issues


…Practice Management…Filing

￭ When walking into an organizaEon I expect to be “drinking from the fire hose” ▶  Almost immediately hundreds of reports… ▶  …hundreds of emails ￭ Success is parEally funcEon of ability to process informaEon ▶  The bener organized… ▶  …the easier to find… ▶  …and actually use ￭ Have used standard filing system – electronically and “dead tree” – for 25 years ￭ Yes, I even use standard naming system – won’t go into it… ￭ …probably already think I have a “problem”

“I must either create a system or be enslaved by another man's” ~ William Blake






In Summary

￭ During my “interesEng ride of a career” have had to deal with a lot of organizaEons in various states ￭ My task has always been to “make good things happen FAST” ￭ Have learned a few things along the way based on both successes and a lot of painful lessons learned (ED: “mistakes”) ￭ These experiences are the basis for techniques developed to deal with SPEED and CHANGE ￭  I hope this has been informaEve and maybe even a bit helpful

39

Assess$ Strategy$ Organize/$Deploy$ Manage$

Strategy(Framework(VOGI®(

Value5Chain(Hot(Sync(

Turn5Aroun

d(Growth(

Hot(Sync(&(VOGI®((

Value(Analysis(

Triage$ Stabilize$ Profits$EBITDA$ Invest$ Grow$

Thank You Don Turner 678.361.3313 [email protected] [email protected]

Documents

Managing at the Speed of Change · 2013. 4. 5. · ©2013DonaldH.Turner "Thisdocumentisnottobeduplicated,reproduced,ordistributedwithoutpriorwrienconsentbyDonaldH.Turner Managing