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Seven Drivers of Growth EY CPE Fair 8 December 2016

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Page 1: Seven Drivers of Growth - Ernst & Youngrsvp.ey.com/CSG3/2016/1611/1611-2123178/CPEFairSurvey/pdfs/Seve… · Page 3 The EY 7 Drivers of Growth in context There are two basic dimensions

Seven Drivers of Growth

EY CPE Fair8 December 2016

Page 2: Seven Drivers of Growth - Ernst & Youngrsvp.ey.com/CSG3/2016/1611/1611-2123178/CPEFairSurvey/pdfs/Seve… · Page 3 The EY 7 Drivers of Growth in context There are two basic dimensions
Page 3: Seven Drivers of Growth - Ernst & Youngrsvp.ey.com/CSG3/2016/1611/1611-2123178/CPEFairSurvey/pdfs/Seve… · Page 3 The EY 7 Drivers of Growth in context There are two basic dimensions

Page 3

The EY 7 Drivers of Growth in context

► There are two basic dimensions to a company’s growth agenda

Growth capabilities

framework

Where to compete

How to compete

Capabilities required

Management systems

Assessment of growth opportunities: customers, geographies, channels, products, categories etc. and options for growth: organic and inorganic

Assessment of organizational capacity, competencies, resources and processes required to support and sustain growth

Growth strategy framework

EY 7 Drivers of Growth | May 2015

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Page 4

Seven drivers to accelerate and sustain growth

EY 7 Drivers of Growth | May 2015

► Consider your growth agenda across all 7 drivers. Striking the right balance is key

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Page 5

CustomerKey considerations

From the outset, leading companies make customers their focal point. They know allabout their customers and they know that building customer loyalty goes hand-in-handwith long-term sustainable growth.

Products, markets and

channels

Sales and pricing

Marketing

Customer experience

EY 7 Drivers of Growth | May 2015

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Page 6

Questions leading executives ask as they accelerate growth. How do I…

…provide a

differentiated customer

experience by predicting

my customers’ needs

and delivering

personalized

value?

…build a brand that

resonates with my

customer base?

…ensuring innovative

and responsive digital

marketing is

integrated with

traditional methods?

...identify the needs of

customers in new

markets?

EY 7 Drivers of Growth | May 2015

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Page 7

Case studyA litmus test for a change in service

EY 7 Drivers of Growth | May 2015

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Page 8

People, behaviors and culture Key considerations

Any organization is only ever as good as the people working for it. To win the war for talent, leading businesses build an environment that values diversity and attracts and retains the right people to help grow their businesses.

Performance management

Innovation

Capability

Leadership

Rewards

EY 7 Drivers of Growth | May 2015

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Page 9

Questions leading executives ask as they accelerate growth. Is my…

…People Plan a

fundamental pillar of

my corporate

strategy?

…employer brand used

to attract, motivate and

retain high performers

and teams?

…team’s ability to

drive innovation tied

to performance-

managed rewards and

succession?

EY 7 Drivers of Growth | May 2015

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Page 10

Case studyBalancing growth and succession in a family business

EY 7 Drivers of Growth | May 2015

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Page 11

Digital, technology and analyticsKey considerations

For business leaders, information is power. It can help them make better, quicker, smarter decisions that improve business performance and manage risk. Digital

enterprise

Technology

Analytics

Security and privacy

Technology function

EY 7 Drivers of Growth | May 2015

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Page 12

Questions leading executives ask as they accelerate growth. Do I…

…understand how digital

technology has

changed my customers’

behavior?

…utilize new technologies

to enable real-time

analytics, which influence

decision-making across the

business?

…use the cloud to connect

the entire value chain,

delivering reduced costs

and exceptional client

service?

EY 7 Drivers of Growth | May 2015

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Page 13

Case studyUsing analytics to gain insight into customer preferences

EY 7 Drivers of Growth | May 2015

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Page 14

OperationsKey considerations

An organization’s operating model is the link between strategic intent and the organization’s ability to deliver on that intent. Having a clear approach that aligns operations with strategy will increase an organization’s ability toachieve success.

Operational excellence and

continuous improvement

Operations strategy

Operational resilience and sustainability

EY 7 Drivers of Growth | May 2015

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Page 15

Questions leading executives ask as they accelerate growth. Does my…

…business achieve operational

excellence through a

transparent, real-time and

integrated supply chain that

effectively anticipates and

responds to market

demand?

…business operations

enable flexible business

strategy and innovative

investment?

…business have full

visibility of all partner and

outsource activity,

managing this activity

through a central

strategy?

EY 7 Drivers of Growth | May 2015

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Page 16

Case studyA closer look at the supply chain

EY 7 Drivers of Growth | May 2015

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Page 17

Funding and financeKey considerations

All businesses need funds to grow. How a business manages its money, and new investors, will determine its course for the future.

Funding growth

Financial process and controls

Finance, people and organization

Data and technology

Stakeholder management

EY 7 Drivers of Growth | May 2015

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Page 18

Questions leading executives ask as they accelerate growth. Does my…

…growth funding

strategy support the

business strategy?

...structure provide an

optimal combination of

shared services,

outsourcing and local

capability to deliver

consistent services?

...finance function act as a

strategic business partner,

supporting decisions to

maximize return on

capital?

EY 7 Drivers of Growth | May 2015

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Page 19

Case studyAccelerating growth by enhancing key finance processes

EY 7 Drivers of Growth | May 2015

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Page 20

Transactions and alliancesKey considerations

Leading companies rarely evolve by organic growth alone. They seek successful partnerships and strategic acquisitions capable of enhancing their growth, competitiveness and profitability.

Transaction effectiveness

Partnerships and alliances

Transaction strategy and

planning

EY 7 Drivers of Growth | May 2015

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Page 21

Questions leading executives ask as they accelerate growth. Do I…

…have an effective

strategic plan for M&A

activities?…have a plan for

dealing with divestment

opportunities?

…use strategic alliances

and partnerships to source

innovation and drive

customer and shareholder

value?

EY 7 Drivers of Growth | May 2015

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Page 22

Case studyExpanding into new markets and improving operations

EY 7 Drivers of Growth | May 2015

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Page 23

RiskKey considerations

All the fundamental challenges a growing company faces, from recruiting the best people to managing finance, have an element of risk. Regardless of a company’s stage of growth, the ability to identify and manage risk stands out as a vital element of success.

Risk management

Stakeholder management

Policies, procedures and

compliance

EY 7 Drivers of Growth | May 2015

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Page 24

Questions leading executives ask as they accelerate growth. Is my…

…company proactively

communicating its risk

management program to

regulators and the public?

…risk strategy clearly

articulated and rigorously

applied to promote

decisions at all stages?

…enterprise-wide risk

management approach delivering

improved business

performance, better profits, well-

managed and secure growth and

efficient use of capital?

EY 7 Drivers of Growth | May 2015

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Page 25

Case studyThwarting risk by identifying the IT gaps

EY 7 Drivers of Growth | May 2015

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Page 26

A difference of opinion in the C-suite

3.04People, Behaviorand Culture

Digital, Tech and Analytics

Funding and Finance

Risk

Customer

Operations

Transactions and Alliances

2.89

2.87

2.81

2.74

2.73

2.51

3.96People, Behaviorand Culture

Operations

Digital, Tech and Analytics

Transactions and Alliances

Customer

Funding and Finance

Risk

3.59

3.01

2.85

3.30

3.72

3.56 1.055

0.98999

0.5683

0.041

0.1383

0.6968

0.9221

Risk

Digital, Tech andAnalytics

Customer

Transactions andAlliances

Operations

Funding and Finance

People, Behavior andCulture

Ra

nke

d b

y m

atu

rity

me

an

dif

fere

nce

Ra

nke

d b

y m

atu

rity

me

an

dif

fere

nce

Data sourced from EYGN client meetings uploaded since October 2014

CEO Other C-suite executives Difference

EY 7 Drivers of Growth | May 2015

1

2

3

4

5

6

7

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Page 27

Digital, Tech and Analytics

Risk

People, Behavior and Culture

Operations

Customer

Funding and Finance

Transactions and Alliances

4.00

3.67

4.00

3.58

2.67

2.50

4.50Operations

People , Behavior and Culture

Transactions and Alliances

Customer

Risk

Funding and Finance

Digital, Tech and Analytics

3.48

3.35

3.43

3.23

3.20

2.93

3.55

Variances by geography

People, Behavior and Culture

Digital, Tech and Analytics

Funding and Finance

Risk

Customer

Operations

Transactions and Alliances

3.77

3.46

3.58

3.09

2.79

2.65

3.92

Americas EMEIA Asia-Pacific

Data sourced from EYGN client meetings uploaded since October 2014

EY 7 Drivers of Growth | May 2015

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Page 28

Questions?

EY 7 Drivers of Growth | May 2015

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