What Lies Ahead…

Mike Jacoutot, Founder & Managing Partner Butler Street February 3, 2015

The Whirlwind

Digital Darwinism

When Charles Darwin presented his theory of evolution in 1859, he described a world in which only the fittest survive, a

world in which species must constantly adapt to their changing environment or face extinction, a world in which

organisms must continue to grow in a profitable direction and develop new skills and traits or perish, a world in which life-forms must look around and learn with whom to cooperate

and with whom to compete, a world in which the surrounding conditions for life can, suddenly and drastically, improve or take a turn for the worse. Darwin even wrote that we are all

“bound by a complex web of relations.” Evan I Schwartz, Author, Digital Darwinism

Digital Darwinism

A world in which only the fittest survive…

Digital Darwinism

A world in which species must constantly adapt to their changing environment or face extinction…

What Do Customers Want?

1. __________________ 2. __________________ 3. __________________ 4. __________________

Understanding the Client’s Operating Reality

Being able to see problems and opportunities as they appear through the client’s eyes

Digital Darwinism

A world in which organisms must continue to grow in a profitable direction and develop new skills and traits or

perish…

Digital Darwinism

A world in which life-forms must look around and learn with

whom to cooperate and with whom to compete…

How Customers Segment Suppliers

LEVERAGE SIZE

SHOP MANAGE RISK

PARTNER

Difficulty of Substitution or Obtaining Alternatives

LOW HIGH

Cost or Strategic Importance of

Supplier’s Products and

Services

HIGH

SUPPLIER SEGMENTATION MATRIX

Transactional Sales

Consultative Sales

Enterprise Sales

Client Relationship Pyramid

Type of Relationship

Collaborative “Win/Win as One”

Cooperative “Give and Take”

Competitive “I Win, You Lose”

Role of Supplier

Strategic

Partner

Trusted

Advisor

Subordinate

Vendor

Client & Supplier

Client

Supplier

Client Supplier

Perseverance

“Being good is a stupid idea. The only thing that counts is whether you are getting better at a more rapid rate than

your principle competitors. It’s real simple…

if you are not doing more, better, faster than they are doing …more, better faster,

then you are getting less better, or more worse.”

Digital Darwinism

A world in which the surrounding conditions for life can, suddenly and drastically, improve or take a turn for the

worse…

Digital Darwinism

Darwin even wrote that we are all “bound by a complex web of relations.”

Mission, Vision, Values

Culture

Voice of the Employee

Deep review of the culture

Create & Communicate Meaning

Develop proper progressions to ensure the desired capability

Align recognition and rewards to drive behavior

Communicate and Recognize Performance Often

Strategy

Voice of the Customer

Deep Review of Competition

Establish Value Creation Vision

Design Structure to Enable the vision

Provide Capabilities, tools, and training to enable the vision

Establish and communicate KPIs required to enable the vision

Results and Cultural Brand

Aligning Strategy and Culture

Associate Engagement

Client Loyalty

Mission, Vision, Values

Culture

Voice of the Employee

Deep review of the culture

Create & Communicate Meaning

Develop proper progressions to ensure the desired capability

Align recognition and rewards to drive behavior

Communicate and Recognize Performance Often

Strategy

Voice of the Customer

Deep Review of Competition

Establish Value Creation Vision

Design Structure to Enable the vision

Provide Capabilities, tools, and training to enable the vision

Establish and communicate KPIs required to enable the vision

Results and Cultural Brand

Operationalizing Strategy

The Balanced Score Card

We Use the BSC to Articulate Cause & Effect Themes

The Vision

Objectives Measures Targets Initiatives Internal Perspective “To satisfy our

customers, and shareholders, in which internal business processes must we excel?"

Cycle Time

Quality

Productivity

Objectives Measures Targets Initiatives Learning Perspective

" To achieve our goals, how must our organization learn and innovate?”

Market Innovation

Continuous Learning

Intellectual Assets

Objectives Measures Targets Customer Perspective

Image

Service

Price/Cost

"To achieve our financial objectives, what customer needs must we serve?”

Initiatives

Objectives Measures Targets Financial Perspective

"To satisfy our shareholders, what financial objectives must we accomplish?”

Profit-ability Growth Share-holder Value

Initiatives

The Balanced Scorecard converts strategy into an integrated system of

objectives, measures, targets, and initiatives defined across four

business perspectives

Customer

Financial

Internal/Process

Learning and Growth

How Do You Measure Strategy?

Sample Balanced Scorecard Theme Objectives Measurements Targets Initiatives

Finance • Profitable Growth

• % Revenue Growth • EBITDA

• 40% CAGR • 12% EBITDA

• Complete acquisition & integrate by 12/16

Client • Client Acquisition, Retention and Expansion (ARE)

• ARE: o # of New Clients o % Clients Retained o % Clients purchasing products &

technology

• Customer Net Promoter Score

• ARE: o 4/qtr. o 99% o 38%

o 60%

• Train on Strategic Selling

(4/1) • Implement Key Account

Management/ X-Selling (1/31)

• Net Promoter Score Survey (quarterly)

Internal/ Process

• Increasing Productivity per Employee

• First-Time Call Resolution

• Gross Margin per Associate

• 80%

• $200K

• Standardize On-Boarding (1/31)

• Develop KPIs by position, review monthly (3/31)

Learning • Associate Engagement

• Succession Planning

• VOA Survey

• % Promotions from within

• 4.0

• 80%

• Administer VOA Survey (2/28)

• Complete Succession Planning by 4/1

Wrap-up and Review