1. Copyright JPettit 1997 Strategic Services 1 A Systems Engineering Approach Presented at YOUR COMPANY By Jim Pettit 703-447-7755 Fax 703-689-0010 Growth & Strategy Workshop

2. Copyright JPettit 1997 Strategic Services 2  Helps grow the business  Provides Engineers & Staff with a business outlook  Provides insight to new business owners  Helps startup Companies scope out the business  Helps Companies in transition refocus

3. Copyright JPettit 1997 Strategic Services 3 Clarify Business Issues + Create growth strategies + Build an Action plan Overcome competition and increase market share

4. Copyright JPettit 1997 Strategic Services 4  Getting the Strategy for growth right  Understanding the Critical Business Issues –Understanding what’s needed for the strategy to work –Being excellent at those things that the strategy depends on  Focus (see slides Focus 1&2) –Staying in touch with daily details, like closing sales and operational efficiency Our Priorities for the Workshop

5. Copyright JPettit 1997 Strategic Services 5  Better understand the business  Understand Emerging Threats  Prepare for future actions  Meet emergencies  Determine future needs (CBI)  Define where we want to take the business  Craft business strategy  Create an Action Plan (Maneuvers)

6. Copyright JPettit 1997 Strategic Services 6  Microsoft bundling of software programs  The point is we want to start with a strategy that has profit potential  This example brings the “one stop shop” strategy to mind  Companies with a single product like a word processor or spreadsheet can’t complete  Inter operability achieved by MS  Price breaks given by MS

7. Copyright JPettit 1997 Strategic Services 7  Do something in an extraordinary way  Focus on the task of the business  Use technology to improve operations  Impact customers in a big way  Provide a compelling product or service  Create value for the customer Guiding Values For hitting home runs From Intel

8. Copyright JPettit 1997 Strategic Services 8  Does the customer have money?  Do they have a compelling need to buy from us?  Can we deliver a whole solution?  Is there serious competition preventing our penetration and success?  Can we grow the business from here?  Is image & positioning congruent From Text

9. Copyright JPettit 1997 Strategic Services 9 Focus-1  The Strategy (Our plan to grow in the market-the HOW)  Reducing complexity and confusion to clarity (creating clarity for business decisions)  Taking action to get results

10. Copyright JPettit 1997 Strategic Services 10 Give us our Daily Focus-2  Finding a market we can be great in  Marketing: Identifying and Creating Demand  Selling: Reaching Customers and Closing  Producing: Satisfying the Demand  Operating: At a Profit  Using Speed: For competitiveness and profit  Building an organization that understands and works to optimize the above

11. Copyright JPettit 1997 Strategic Services 11 Business Overview

12. Copyright JPettit 1997 Strategic Services 12 Business Simplified

13. Copyright JPettit 1997 Strategic Services 13 Offers Means  What do you have to sell?  How are you going to sell it ?

14. Copyright JPettit 1997 Strategic Services 14 Offer Simplified / Our differential advantage Faster Cheaper Better=Your differential advantage Where we want to be with our offers Compelling Need Strong Demand Impact Customers in big way Exclusivity First to Market (speed issue, but not too soon) Product Analysis FeaturesBenefitsValue to Customer Our Task Create Offers Superior to the Competition Better meet Customer Needs Better Understand Customer Needs Provide more value for Customers Create strong demand for our products

15. Copyright JPettit 1997 Strategic Services 15 Everything we do is to What makes an offer successful in your business? We will understand how your offer is positioned in the market

16. Copyright JPettit 1997 Strategic Services 16 Improving the Offer To be worked We have to make our offer (what we have to sell) better

17. Copyright JPettit 1997 Strategic Services 17 Mapping the business

18. Copyright JPettit 1997 Strategic Services 18  I need a visual representation of the business –Provides a framework to collect, understand and visualize business data –Helps to understand the big picture and growth path –Documents the thinking and approaches

19. Copyright JPettit 1997 Strategic Services 19 Clarify Business Issues + Create growth strategies + Build an Action plan Overcome competition and increase market share

20. Copyright JPettit 1997 Strategic Services 20  We will analyze –The business environment –The Competitive Advantages –Strategies for growth –Critical Business Issues supporting Strategies –Build an Action plan for Growth –And more  Review Case Studies (examples + yours)  Go through the process step by step  Map out your business

21. Copyright JPettit 1997 Strategic Services 21  The Method of synthesizing a strategy and action plan is illustrated by the examples of a –Hotel –Law Firm –Small manufacturing –D-Day Military example

22. Copyright JPettit 1997 Strategic Services 22 Examples of Business Mapping Follows

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27. Copyright JPettit 1997 Strategic Services 27  Fleshing out the Business Map Strategic Planning work sheet or road map  Working the Road Map  Building the Strategy and Action Plan  Understanding the Financial Structure –Examples –Direct, Indirect, Costs –Ratios etc.

28. Copyright JPettit 1997 Strategic Services 28 Worksheet

29. Copyright JPettit 1997 Strategic Services 29 Worksheets  Competitive Advantage & Strategic Components  Industry Drivers and Trends  Critical Business Issues  Key Factors for Success (why the other guy is successful)  Maneuvers and Action Plan

30. Copyright JPettit 1997 Strategic Services 30 Positioning (mind share etc.)  How is you company and products positioned?  How is the company viewed? –Upscale, Middle, low cost bare bones  This issue is introduced because a degree of congruence between the product offering and image is necessary. (will explain)

31. Copyright JPettit 1997 Strategic Services 31 Industry Drivers and Trends List Your Industry Drivers and Trends

32. Copyright JPettit 1997 Strategic Services 32 Key Factors for Success  Location Industry Key Factors

33. Copyright JPettit 1997 Strategic Services 33 What does the customer Want The Target  Understanding the customers wants and needs

34. Copyright JPettit 1997 Strategic Services 34 Competitive Advantage Work Sheet List Your Business Competitive Advantage

35. Copyright JPettit 1997 Strategic Services 35 Strategic Components  What you have to build the strategy  faster, cheaper, better distribution, brand etc.

36. Copyright JPettit 1997 Strategic Services 36  You  Them Competitive Comparison

37. Copyright JPettit 1997 Strategic Services 37 The Strategy  Build the Strategy

38. Copyright JPettit 1997 Strategic Services 38 Positioning (mind share etc.)  How are we positioned?  Customers perceptions of the firm?

39. Copyright JPettit 1997 Strategic Services 39 Critical Business Issues Follow We will develop your critical business issues These are the things you must be successful at. Things that your strategy depends on. Like developing a software capability, finding a sales Representative, making an acquisition, building Production capability etc.

40. Copyright JPettit 1997 Strategic Services 40 Critical Business Issues a very important issue Things that must happen for the Strategy to Work

41. Copyright JPettit 1997 Strategic Services 41 Action Plan + Schedule  Action  When

42. Copyright JPettit 1997 Strategic Services 42 After Action Review  What Happened?  Why did it happen?  How do we increase strength and decrease weakness?  How will we do it “the next time”?

43. Copyright JPettit 1997 Strategic Services 43 Financial Structure

44. Copyright JPettit 1997 Strategic Services 44 Financial Structure  Identify all Costs  Segregate costs into Direct and Indirect  Look at Ratios  Look at ways to reduce expenses  Review Tables on Financial Analysis

45. Copyright JPettit 1997 Strategic Services 45 Return on Investment Return on Assets  ROA= Return/Sales x Sales/Assets  ROA= 5% X 10

46. Copyright JPettit 1997 Strategic Services 46 Financial Analysis

47. Copyright JPettit 1997 Strategic Services 47 Financial Analysis

48. Copyright JPettit 1997 Strategic Services 48  Rate your business using the attached report card  We will discuss in detail  What needs to be fixed?  What are we going to fix?

49. Copyright JPettit 1997 Strategic Services 49 Business Report Card Excel object click to work

50. Copyright JPettit 1997 Strategic Services 50 Execution The question is, can you execute? That’s what differentiates One company from another. Larry Bossidy CEO AlliedSignal

51. Copyright JPettit 1997 Strategic Services 51 Execution: Give us Daily Success at Marketing: Identifying and Creating Demand Selling: Reaching Customers and Closing Producing: Satisfying the Demand Operating: At a Profit Using Speed: For competitiveness and profit Building an organization that understands and works to optimize the above

52. Copyright JPettit 1997 Strategic Services 52 Can this business, product, or service compete? Are we focusing on the right things? Do we have a reasonable competitive advantage? Are we playing in a strong market? Is there a compelling need for the products & services? What are the critical business issues? Do we have a workable plan to move ahead? Are we on plan? Do we have the resources to execute? What can we do better? What are the next steps? Is our story sound enough to attract money? Workshop Issues We map out the Business Architecture