
Market Driven Agenda Management: Focus
Market Driven Agenda Management is focused on three specific enablers of stronger performance over time: alignment, competencies/process and insight
1. Leadership Team and Board Alignment on Where to Play
and How to Win
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Key growth platforms and target markets
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Future resource deployment: restructuring/profit enhancement, growth, shareholders/debtholders
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Mix of organic vs. acquisitive growth
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Portfolio rationalization
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Goal setting
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‘Delivery Agenda
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‘Decision Agenda’
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Zero-based resource allocation
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Strategy deployment and performance management
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Ongoing Center-BU strategy dialogues
2. Continuous
Strategic and Performance Management Process
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Actionable segmentation
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Concentration of current performance and value creation
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Market structure, profit pools and headroom for growth
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Current competitive positioning and key drivers
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Customer needs and buying behavior
3. Market Driven Understanding of Current Performance and Potential
Linking Strategy, Capital Allocation and Value
Our approach enables a more informed discussion around the performance and value implications associated with alternative strategies, underlying priorities and investment paths
3 Year Valuation ($M)
Enterprise Value Creation Associated with Alternative Strategies and Capital Allocation Choices (Illustration)
Value
Goal
Current
Valuation
Baseline
Selective Rationalization
Portfolio Mix Optimization
Aggressive Organic
Growth
Organic Growth & New Platforms
Investment Platforms/
Strategy
Probability of Success
Re-Invest to Support Business As Is
More Aggressively Streamline and Rationalize Portfolio
Enrich the Mix of Market Participation Across Portfolio
Aggressively Invest Behind Share Gain Strategies in Target Markets
Aggressively Invest Behind Existing and New Markets
High
High
Med-High
Medium
Med-Low
3 Year EBITDA
Incremental Invested Capital
$40M
$50M
$70M
$60M
$80M
$20M
$10M
$50M
$100M
$400M
Multiple
5X
5X
6X
7X
8X
Agenda Management
Our approach builds management team ownership for a dual set of agendas that reflect the most critical ‘delivery’ and ‘decision’ priorities necessary to maximize value creation
Performance Upside
Strategic Plan
Baseline
Performance
Future Financial Performance
(Rev, Op Profit, EBITDA EP, Value)
‘Baseline’ reflects assumed future performance based on:
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Underlying market growth
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Holding share (unless otherwise noted) in existing market segments
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Expected impact of existing initiatives already underway (e.g., lean, restructuring, commercial activities, etc)
Delivery Agenda: high priority strategic initiatives that are ‘in the plan’:
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Clearly defined actions and resource requirements
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Typically nearer-term oriented
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Performance targets reflected in next year budget and multi-year plan
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Additive to the baseline (higher share and/or higher profitability)
"Near-Term
Delivery
Targets"
"Long-Term
Decision Gap"
Decision Agenda: high value at stake opportunities that represent upside to the plan
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Clear value creation potential but further investigation required
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Not yet incorporated in the plan
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Typically requires consideration of alternatives
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Translated to the Delivery Agenda when highest value alternative agreed and actions defined