Building for Growth

1. Building for Growth Nick Marsh 19th March 2013

2. Introduction • Past • Family manufacturing business • Forte / Whitbread / Hilton • Small to Medium Firms • 2007 - Present • Strategic Development • Business West Coach team • Exec Support

3. Mantra... If not you, then who? If not now, then when?

4. 1. Compete • Where do you currently compete? • On what basis do you compete?

5. Segment Customers By Value High ‘Discerning’ Customers ‘Easy Pickings’ Place customers into segments and determine how the firm needs to focus its efforts to serve them Maintain as long as possible Minimise effort but keep hold of ‘Profit’* From Serving ‘Fillers’ ‘Pain in the Neck’ Keep Happy Get out if possible Low High Cost to Serve * Defined by profit/margin/volume/sales - whatever is most useful

6. 2. Future-proof • How and where can you build sustainable advantage and margin?

7. Strategic Positioning

8. Market Forces

9. Market/Segment Analysis Action: SelectivelyInvest Action: Invest / Grow Market / Segment Attractiveness High • Size • Growth • Profitability • Competitive intensity Action: Manage for Sustained Revenue Action: Manage forCash / Withdraw Low Low High • Product range • Product suitability • Service quality • Price • Associated services • Reputation / Image Business Strengths

10. 3. Audit Take an objective look... • Internal • External

11. Assessing the Team • Competence: Level of technical / general experience • Judgement: Evidence of effective decision making under pressure • Energy: Bright or burned out? • Focus: Clear priorities or a grasshopper? • Relationships: Aligned with others or spiky? • Trust: Will commitments be honoured?

12. The Company / The Brand The value of your brand resides in the hearts and minds of your customers, employees and suppliers Your internal and external messaging must have a synergy of style and content The colours and symbols you choose can allow you to differentiate from your key competitors Your brand must deliver awareness, comfort / convenience / quality and loyalty

13. Brand Wheel

14. Pestle • A tool for understanding the industry situation as a whole and is often used in conjunction with a SWOT. • PESTLE: “Political, Economic, Sociological, Technological, Legal and Environmental” factors. • Ask yourself, what are the: • Key political factors likely to affect the industry? • Important economic factors? • Cultural aspects which are most important? • Technological innovations that are likely to occur? • Current and impending legislation that may affect the industry? • Environmental considerations?

15. 4. Build • What changes / developments must you undertake operationally, in behaviours and in communication?

16. Agree the Foundation for Growth Mission = Ultimate long term goal, aim or objective. ‘Constant Purpose’ “Space exploration for the advancement of science” Vision = What something will look like; how you see the future & yourself in it. 1.“A man on the moon” 2. ‘A manned space station’ 3. ‘Mars….’ Strategy = How we will get there. “Develop superior technology that will take men to the moon” Tactics = Sub-elements of the Strategy Implementation. These are changeable depending on how circumstances change. “We will need wide tyres on the buggy in case the sand is deep” Objectives = Milestones on the way to implementation. ‘Small Steps’

17. Defining the Value Proposition What Needs? What Customers? • which products? • which features? • which service? • what end users? • what channels? What Relative Price / Value? • where do you sit in the market?

18. Building Your Support Network

19. Positive Leadership Traits

20. Drivers for Change

21. Performance Measures • Relative market share • Average customer value • Share of customer wallet • Customer loyalty / retention • Cross purchase levels • Net promoter scores • Levels of revenue • Unit volumes

22. 5. Communicate • Internal... • External...

23. Internal Marketing Wheel

24. Communicating Strategic Messages • Strategy involves everyone in the organisation, not just management • The benefits of strategy are greatest when it is communicated widely in the organisation • Communicate the strategy in a simple and vivid way. Describe the essence of the strategy • (1 or 2 paras vs. 20 pages) - create symbols and keys to the strategy • The basic strategy and value proposition must also be communicated to customers, channels, suppliers, and stakeholders • Do not assumethat subordinates understand the strategy or that they agree with it: • - a series of open, two way discussions may be necessary to increase understanding and buy in • Those who do not ultimately accept the strategy cannot have an ongoing role in the company

25. Take Time to Reflect

26. Facetube…Linkedout…SplatterTechnology Marvel or Communication Mayhem?

27. Harnessing New Technology Why…because segments of your audience may be using social media channels to assist / inform their buying decisions. Or, they might be talking about your product or service Why…because until you understand the opportunity, your customers may be moving away from you and your competitors leaving you behind

28. Recognition • “Thank you” messages / handwritten notes • Flowers / Champagne • Social events / away days • Anniversaries • Sabbaticals • Spontaneous celebration of success • Birthday cards / day off But….a simple verbal thank you is often enough

29. Summary: Critical Questions

30. Ongoing Support • High Growth Coaching • Growth Accelerator • Resource Efficiency Programme • UKTI: International Support

31. Closing Thought Inspire... Involve... Engage... Nick Marsh: 07876 595 272