Professional Documents
Culture Documents
John N. Doggett, JD, MBA Global Management, Entrepreneurship and Sustainability & Energy McCombs School of Business Senior Research Fellow, IC2 Institute University of Texas at Austin john.doggett@mccombs.utexas.edu August 2, 2010
The Secret Is . . .
Act Like Its Your Company Act Like Its Your Money Act Like Its Your Reputation Act Like Time is Running Out Act Like This Is Your Only Chance Ask Hard Questions
Understanding The Business What Business Are We In? Who Are Our Customers? What Are They Buying? Who Are Our Competitors? How Do We Make Money? How Does $ Go Through Our Company?
Once you Define the Problem, then develop an Action Plan that says:
What We Must Do and When we must Take Action, How Much Money Our Solution Will Cost, Where we will find this Money,
ANALYTICAL TOOLS
Issues
Questions to be answered or topics explored
Hypotheses
Speculative assertions to be tested and revised
Issue 1
Question 1Ac Hypotheses 1B Question 1Ca Hypotheses 1C Question 1Cb Question 1Cc
Deloitte Consulting - 1999
Techniques - Storyboards
Storyboards
A storyboard outlines individual pages in an evolving report. First iterations document what you know and project what you need to learn Include place holder headlines for each hypothesis
Data needs identified here
Storyboards, cont.
The market is large The market is growing Profitability varies by state No significant new entrants have appeared in three years
A Complete Diagnosis
Locates and Measures the Opportunity for Improvement Pinpoints the Cause of the Problem Establishes the Requirements for a Sound Recommendation Identifies the Key Controllable Variables Is M.E.C.E. (Mutually Exclusive and Collectively Exhaustive)
McKinsey & Company - 1982
TIME
. . . SHOULD WE DO? . . . CAN IT BE DONE? . . . WILL IT HELP? . . . HAS TO DO IT? . . . WILL RESULTS SHOW?
McKinsey & Company - 1982
Is there a problem?
DEFINE
ISOLATE
EXPLAIN
RESOLVE
ASSESS
ANTICIPATE
Is There a Problem?
Profit Contribution $
Contribution Rate
Volume
Selling Price
Segment Volume
NonDiscretionary
Segment Share
Channel
Account/ Customer
Region
Consumer Type
LEVEL 1
Positional
Availability
Awareness
Trial
Repurchase
Target Market
Product Specs
Region
Benefit
Price
Brand Name
Account/ Customer
Selling Terms
LEVEL 2
Positional
Availability
Awareness
Trial
Repurchase
Target Market
Product Specs
Region
Benefit
Price
Brand Name
Account/ Customer
Selling Terms
Selling Mission
Coverage
Frequency
Porters 5-Forces
What Is Strategy?
Strategy is an Integrated Set of Actions Aimed At Securing A Sustainable, Advantageous Competitive Position For Your Firm The Goal of a Competitive Strategy is to Provide More Value for Your Customers Than Your Competitors Defining Value is the Hardest Part
Value Defined
Value = Benefit - Price Benefit = Attributes that are desirable to Your Firms customers Price = Total Costs to the Customer Superior Perceived Value = Customer Believes Product Gives Net Value More Positive Than Alternatives
Customers
Asset Utilization
Cost
Asset Utilization
Competition
Source: McKinsey & Company - 1982
Your Firm
Value Is Defined By The Customer Your Job Is To Understand Its Customers So Well That You Can Show Them A Value Proposition That Sells Your Product Any Analysis That Doesnt Start With Your Customer, Then Look At Your Competitors, And End With Your Customer, Will Kill You
Source: McKinsey & Company - 1982
Strategy Determines The Skills You Need Skills Determine the Appropriate
Structure Staff Systems, and Style Required
Shared Values are the Glue That Help Determine What Goals Your People Pursue
Source: McKinsey & Company - 1982
PRESENTATION SUGGESTION
Assertion 1
Assertion 2
Assertion 3
Evidence
Evidence
Evidence
Fact
Fact
Fact
Fact
Fact
Fact
Question
This is your Call to Take Action where you show the scope of your presentation and engage your audience.
Facts
Hard facts and data Common knowledge Sources for facts
Next Steps
Tell them exactly next steps they should take to implement your answer.
Answering Questions
Answer them immediately. People ask questions because they are:
Confused, Excited, Frustrated or Inspired
Once you are sure you have answered their question, go back to where you were in your presentation and continue unless you have covered that point adequately.
When in Doubt