SUP-607M J-Term 2014

Community Recovery: Rebuilding Disaster Damaged Communities in Chile

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Project Proposals

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Proposal detail – high level

Enterprise Name / Logo + Entrepreneur

Name

Financial

▪ High level profitability▪ Start up▪ 2 years▪ 5 years

▪ Break even timeline

Labor / Human Capital

▪ New jobs restored/added▪ Start up▪ 2 years▪ 5 years

▪ Other human capital benefits

Community / Environment

▪ Community benefits (supports schools, offers training, etc)

▪ Name of entrepreneur▪ History of the organization /

genesis of idea▪ Important cultural details, etc

Enterprise overview

▪ What is the main idea of the business / what will the business do?

*Footnote

Source: Source

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Financial projections

Revenues

COGS

Expenses (Admin)

Expenses (Other)

Total Expenses

EBIT

Taxes

Net Income

Operating Income

6 months Year 1 Year 3 Year 5

000s, Pesos Chilenos (CLP)

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Executive summary

Highest level takeaway about what was discovered as a result of this project and the general direction of the economic plan

1

General process, steps or phases of the plan (with timing)▪ Step 1▪ Step 2▪ Step 3

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Main financial considerations including capital outlay, projected impact, etc3

Additional key insights▪ Insight 1▪ Insight 2▪ Insight 3

4

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SWOT Analysis

*Footnote

Source: Source

Strengths▪ Text

Opportunities▪ Text

Weaknesses▪ Text

Threats▪ Text

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32% Export 1

16% Export 2

14% Export 3

14% Export 4

9% Export 5 5% Export 6

4% Export 7

3% Export 8

2% Export 9

1% Export 10

Economic Activity Breakdown (Snapshots of current economy in % terms)Percent

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Economic Activity Breakdown (Raw numbers over time)000s, Pesos Chilenos (CLP)

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Cause and Effect Diagram

Effect

Cause 1 Cause 2

Cause 3 Cause 4

Sub cause

Sub cause

Sub cause

Sub cause

Sub cause

Sub cause

Sub cause

Sub cause

Sub cause

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Sub cause

Sub cause

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Low

High

This type of slide helps to compare 3-5 categories that are components of a larger set

1 Footnote

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DescriptionCurrent performance

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Implication

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*Footnote

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000s, Pesos Chilenos (CLP)

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Situation, Action, Result using classic big arrows

Situation What we propose Impact

▪ x ▪ x▪ x

*Footnote

Source: Source

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This type of waterfall is helpful when you want to demonstrate changes or emphasize potential cost savings or increases (or decreases) to status quo

Recc 2Town revenue

after Recc 1

Recc 1Current Town

Revenue

Town Revenue with both

recommend-ations

*Footnote

Source: Source

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*Tourism

*Artisanship

*Professional Services

*Agriculture

*Fishing

**

**

**

41.52 *Total Town GDP

Commercial

Small Scale

This type of waterfall is helpful when you want to show how a large number breaks down into smaller components

*Footnote

Source: Source

000s, Pesos Chilenos (CLP)

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Details 1

Initial

zzyx

Boat chart / timeline

▪ X

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Details 2 ▪ X

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*Footnote

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Short term and Long term benefits or really an easy way to break apart a sum made up of two or more types of quantities

1 Assumptions2 Assumptions

Supplemental

▪ Manufacturing, engi-neering, and labor

▪ Jobs created to help build infrastructure necessary for new industry recommendation

173

24

315

16

Job type

Direct1

Jobs created at the facility

Indirect2 Jobs created upstream

Total3

Permanent

488

40

*Footnote

Source: Source

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Activity ▪ Midrange & Mainframe pilot leads learn approach by working closely with mentors

▪ 30 additional pilot leads receive boot camp training from newly trained entrepreneurs

▪ Central change agents support pilot leads independently using developed analysis tools

▪ Training material updated

▪ Operational handbooks created & 5-day boot camps run in region

▪ Six-Sigma training for high potential staff

Outcome ▪ Common language, processes and analyses adopted and training material prepared

▪ Productivity savings

▪ 32 pilots running in total

▪ Central change agent team work alongside McKinsey in supporting pilot leads

▪ Productivity savings of additional 61 FTEs

▪ Pilots being run by client team

▪ Pilot leads and initiative leads design regional roll-out with McKinsey support

▪ Actual savings of 95 FTEs to date

▪ 31 Green-belts trained for next round of pilots

▪ > 30 pilots launched in region

▪ Actual savings of 109 FTEs to date

Coaching technique

Learn by shadowing Learn by doingwith support

Learn by teaching others

Build on learning more broadly

Q1/Q2

Q2

Q3

Q4

Step process with detail

*Footnote

Source: Source

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Quotes alternate – Can be used for any type of quote

Major concerns are around timing … … and implementation of plans

“The entire global economy will slow down by between a half and two percent of growth, including in China and Europe”

– Dominique Strauss-Kahn, IMF

“The depth of the coming recession is difficult to gauge”

– World Bank

“The crisis has not been over and we have not necessarily gone through the worst part”

– Henrique Meirelles,Central Bank of Brazil

– Martin WolfChief economics commentator

Financial Times

“If I tell you if I know how long this will last, I would be lying”

– Shane Oliver, Chief economistAMP Capital Investors

“The best-case scenario for economists is a global recession that runs until the middle of next year. But…a ‘longer and deeper recession’ might stretch into 2010.”

*Footnote

Source: Source

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Horizontal flow 5

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000s, Pesos Chilenos (CLP)

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Exhibit title

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Unit of Measure

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Exhibit title

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Filter or screen series

Text Text

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Unit of Measure

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X should consider a few “bold moves” that could change the landscape for commercial opportunities

Bundle

Build systems for providers

Sell clinical data and/or insights

B

A

Risks involvedLow risk High risk

“Bold moves”

▪ Explore full-outsource models for international customers, including national health services (e.g., India, Saudi Arabia)

Considerations: Language or cultural barriers to translating X’s clinical standards, processes

▪ Commit to a plan to perfect the hospital operating system, with a self-perpetuating cycle of evidence-based support for all clinical processes

Considerations: May require full disclosure of X operating metrics and commitment to “openness”

▪ Develop and lead a clinical processes consortium that functions as a think-tank for creating outcomes-driven improvements to standard treatment protocols

Considerations: Low immediate revenue opportunity, but creates profile/relevance for X as a vendor

▪ Become a US laboratory for clinical protocols and standards, partnering with the US government to create new standards that shape pay-for-performance initiatives

Considerations: Low immediate revenue opportunity, but creates profile/relevance for X as a vendor

*Footnote

Source: Source

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This slide is great to demonstrate positives and negatives of an idea or recommendation, etc

▪ Create additional revenue and profit stream

▪ Build referral networks and options for strategic acquisitions

▪ Enhance X’s reputation as a pioneer in clinical excellence

▪ Provide incentives to improve internal performance and develop insights

▪ Connect X to other provider leaders who could share their insights

▪ Require a commitment to stay in the customer service business

▪ Not breakeven for 3-5 years

▪ Require significant effort to build the partnerships that are instrumental to success

▪ Create a need to attract external talent in specific areas of expertise

▪ Cause damage to X’s reputation in case of failure

*Footnote

Source: Source

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Issue tree

Optimize growth and profitability of XX’s livestock feed business

Optimize growth and profitability of XX’s livestock feed business

Customer / product researchCustomer / product research

Lower internal costsLower internal costs

Optimize distribution channelsOptimize distribution channels

Acquisitions1Acquisitions1

Divestitures1 / downsizeDivestitures1 / downsize

Joint venturesJoint ventures

Extract full value of current business

Extract full value of current business

Structurally reposition corporate portfolio

Structurally reposition corporate portfolio

Rely on organic trends for growth

Rely on organic trends for growth

Sales / marketingSales / marketing

Roll up industry through smaller acquisitionsRoll up industry through smaller acquisitions

Acquire larger competitors to reduce overcapacityAcquire larger competitors to reduce overcapacity

Sell capacity to competitor or remove it completelySell capacity to competitor or remove it completely

Exit industryExit industry

Upstream integration with pharmas / growersUpstream integration with pharmas / growers

Integration with competitors Integration with competitors

*Footnote

Source: Source

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Disaggregating total into 3 parts then disagg one of the 3 parts further. Move left bar chart further left then right click on grey area -> edit points

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*

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Percent of CM most at risk by service line

19% of total contribution margin is provided by physicians who are 65 and older. Of that 19%, 45% comes from Vascular medicine – which is the service line most at risk due to physician retirement

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* Total contribution$ Millions

X

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Percent of total contribution by age of attending physician, <2008>Area of interest

*Footnote

Source: Source

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2x2 matrix example : Risk vs Reward

High

Low

High Low

Reward

Risk

Big bets Slam dunks 1

(Special cases 2) “No regrets” moves

Key questions:▪ How will competitors react? How will customers react?▪ To what extent does the scenario align with internal capabilities?▪ What degree of control will LOL have in the scenario? ▪ How much of the outcome will be determined by external forces?

Key questions:▪ How much profit could be

generated?▪ When would LOL realize the

benefits of the scenario?▪ What moves could maximize

the value?

*Footnote

Source: Source

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From -> to

From

▪ Standalone, off the rack products

▪ One size fits all approach

▪ Narrow cost, opportunisticsales approach

▪ Separate Operations/IT

▪ Short-term DA

Margin mindset

To

▪ Bundled, simplified products

▪ Segmented approach

▪ Broadcast, performance oriented sales approach

▪ Integrated Operations/IT

▪ Long-term partnership

Value mindset

*Footnote

Source: Source

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4 examples

Examples of best practices or cases from other institutions

▪ x

▪ x

▪ x

AA

BB

CC

▪ xDD

*Footnote

Source: Source

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4 stages of growth

Requires no conscious

thought

Requires practice

Requires a point of

choice

Requires incident

leading to insight

Realization

▪ Owned as normal, natural and effortless

▪ I can do it but I need to think about it

▪ Aware of what I have to learn, but don't know how to do it

▪ Don't know what I don't know/have to learn

Transitional experiences

▪ Pleasure▪ Ease▪ Satisfaction

▪ Skill building▪ Nurturing by

others▪ Courage and

humility▪ Persistence▪ Aha

moment/ confusion

▪ Realization▪ Shift in root

perspective

Assisting others

▪ Celebrate and acknowledge goal

▪ Help embrace the adventure of the next growth opportunity

▪ Identify opportunities for practice and refinement

▪ Encourage and support▪ Offer options, tips and hints

if wavering

▪ Explore options; enable choice and ownership

▪ Connect with resources and support (e.g., role models)

▪ Encourage solution-focused exploration to overcome obstacles▪ Offer feedback and insights without attachment

▪ Use catalysing questions to encourage self-discovery

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What we need and don’t need

12% airport fees on total rent cost (fuel and taxes not included)

8% rail fees on total rent cost (fuel and taxes not included)

Refueling – cost

Opportunities for growth must include Opportunities must not include

Air-conditioned and auto radio in all the car

No customer responsibility in case of vehicle damages

CDW insurance

TP insurance

No fire shore leave

No damages shore leave

No theft shore leave

Passengers insurance

"One way" in all Italian airports and main Italian cities (with no extra cost)

Define automobile costs

Options

*Footnote

Source: Source

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Gantt Chart

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Pillars slide- Used to show the main ideas that support a plan or underlie an idea of some kind – the bottom two bars represent a foundation

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Weighing scales – could be used for pros and cons or costs and benefits, etc

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3 BY 3 MATRIX

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4 BY 3 MATRIX

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MAPS