1. Warrior Management Using World Conquering Techniques to Achieve Business Dominance 2008 Virginia Engineers Conference September 18, 2008

2. Genghis Khan – Business Genius? Recognized as one of the most successful world conquerors (1162- 1227) Instituted practices, rules, and operational philosophies that are relevant today for business success How many of these warrior management principles do you actively use? What would be the impact to your business if you adopted the “way of the warrior”?

3. Presentation Topics The Warrior Management Principles The rationale of using each principle in the context of your business The benefits/downsides of implementation Are you an effective conqueror?

4. One Objective at a Time “Throughout his life Genghis Khan eliminated his opponents one by one. He never neglected to bear in mind the ever-changing balance of power with which he was regularly threatened.” “Genghis Khan, Conqueror of the World” Leo De Hartog

5. One Objective at a Time Strategic Plans focus on completing a myriad of objectives – most that never get accomplished

6. One Objective at a Time A 70% sales win rate is considered “exceptional”

7. One Objective at a Time Customers are captured but never fully leveraged – most businesses only realize 6% of their potential revenue Time $$$ Revenue Potential Capacity Actual Revenue

8. One Objective at a Time The majority of mergers and acquisitions fail to achieve any level of anticipated success

9. One Objective at a Time Resolution: Strategic plans should have no more than 3 objectives for any stated period Business development resources should only be consumed for opportunities that will yield a 100% win rate Customers should be “put on” a product/services continuum that seeks a destination – allows for a maximization of revenue Acquisitions occur for a single purpose – what is it?

10. Keep the Culture Strong “He took the standpoint that, if he wanted to remain in power, it was necessary to have available a central position on which his subordinates could fall back and from which radiated the essential unifying strength.” “Genghis Khan, Conqueror of the World” Leo De Hartog

11. Keep the Culture Strong Tele-working, independent contractors, and multiple office locations have diluted corporate culture

12. Keep the Culture Strong No employee or employer allegiance – no sense of belonging or recognition of a “larger” purpose

13. Keep the Culture Strong No “safe” spot for employees

14. Keep the Culture Strong It is all about short-term productivity

15. Keep the Culture Strong Resolution Define your business culture Eliminate the use of independent contractors – except for pure support functions Insist on face-to-face interaction with employees – providing them with an inviting environment What is the “value proposition” for your employees? Beyond a paycheck, why should they work for you?

16. Protect the Core “Other measures to which he gave particular attention were the protection of subsidiaries following a military unit with food and equipment, and the training of horses.” “Genghis Khan, Conqueror of the World” Leo De Hartog

17. Protect the Core Employee training, paying health care insurance premiums, and childcare reimbursement have been taken away in response to short-term profitable objectives

18. Protect the Core Cuts in marketing, research and development and competitive research limit effectiveness of sales staff

19. Protect the Core Organization operates at a competitive disadvantage

20. Protect the Core Resolution Protect the support functions that allow employees to focus on business productivity Fully equip your “teams” with effective information, up-to-date tools and supporting documentation Operate at a competitive plateau – not trying to make “do” with existing resources

21. Infinite Patience “ Moreover, he possessed the patience to bide his time” “Genghis Khan, Conqueror of the World” Leo De Hartog

22. Infinite Patience The dot.com era: a case study on a lack of patience

23. Infinite Patience The fallacy of the publicly traded markets that require businesses achieve growth every financial quarter

24. Infinite Patience While infinite patience is a business virtue, the inability to act when the conditions present themselves also results in negative consequences

25. Research Release RewardReinvest Review The Business Cycle Infinite Patience

26. Share the “Booty” “He was discovering what other leaders had found out before him, and others not yet born would learn – that the ready acceptance of the ruler by the ruled depends upon the degree of happiness which only an increasing scale of rewards can bring.” “Genghis Khan- The Rise, Authority and Decline of Mongol Power” Peter Brent

27. Share the “Booty” A caste system exists in American business where CEOs take a predominant share of corporate profits for compensation and limit the distribution for rank and file.

28. Share the “Booty” Not sharing the “booty” has a negative impact on employee retention and a desire to increase work/life balance

29. Share the “Booty” Long-term corporate growth is interrupted when CEOs (and other senior leaders) take an inordinate amount of profit for themselves.

30. Resolution: Create compensation structures that share greater proportions of the spoils Don’t limit upside compensation Let’s not kid ourselves – people work for the money Share the “Booty”

31. Adapt to the Environment “Chingis created nothing new. He only understood with true remarkable insight the meaning of the changes taking place among his people, speeded up those changes through his impetuous energy and genius, and gave them final form.” “Genghis Khan” Ralph Fox

32. Adapt to the Environment Businesses follow staid and predictable strategies and tactics – regardless of the situation.

33. Adapt to the Environment Try to re-use previous success tactics – silver bullet theory

34. Adapt to the Environment There are no such thing as “tried and true” business strategies

35. Adapt to the Environment Technology Organization Operations Environment Strategy

36. Single Language “Even before the time of Genghis Khan the Mongol tribes possessed a common law, which was unwritten and showed some variation among the existing tribes. As the overlordship of Genghis Khan extended, the need arose for laws applying to the whole empire and with it the need for a binding legal code.” “Genghis Khan, Conqueror of the World” Leo De Hartog

37. Single Language Strategy directives from the Board are mangled down to mid and lower level employees

38. Single Language People “hear” things based on their predisposition

39. Single Language CRM systems have a problem with definitions of customers – again causing problems with firms with dispersed sales forces

40. Single Language Resolution: Develop templates for certain sales and operational activities Eliminate “individual expression” at the operational level – recognize its value during strategic discussions Correct mis-interpretations immediately Don’t foster renegade practices – even if appear effective

41. Final Thoughts “Genghis Khan had set out to dominate the world; for all his understanding, even his wisdom, he never realized that it is not by warfare that one dominates vast populations, nor even by firmly benevolent administration – it is by ideas, by beliefs, by the tangibles of human communication.” “Genghis Khan – The Rise, Authority and Decline of Mongol Power” Peter Brent

42. Final Thoughts “In all his career one can feel for him the same mingled disgust and admiration one feels for the founders of great capitalist enterprises of the last century, men who also stopped at nothing, ruined their enemies gleefully, men who organized great empires also, empires of steel and power and publicly always preached caution, moderation and sobriety.” “Genghis Khan” Ralph Fox

43. Questions Thank you for your time! Brad Dawson, Managing Director BLDawson@LTVdynamics.com 703-753-2886