6. The Times We Live In “ When there's such a big market move in such a short period of time, there's that element of surprise and confusion.” Teruhisa Ishikawa, Mizuho Investors Securities, Feb 2007 6
10. The Last 100 Years Steady State CHANGE Steady State Today’s Reality Head Waters: Always In Change Globalization, Capital, Technology 10
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12. What This All Means Clarity Around Who You Are And What Value You Bring To Your Stakeholders 12
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15. Reality Is 15 “ People resist it on every level in all sorts of ways and leaders can be the most change resistant of all.” - John Kotter, Harvard Business School “ Change is an emotional process.” - Garrison Wynn
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18. Case Study – Successful Change 18 From To Bugs / Weeds Products 15,000 Dealers Farmer As Hick Stand Alone Brands Customer Crops Agri-Centers MBA Farmers Combined Brands Keys To Change: Leadership had vision based on a desire to set the company and brand apart; operations/product management/ marcom collapsed silos; prevalent strategic thinking and planning; timing was everything – sized the moment; over communicated internal and external Results: 35% Market Share in Soybean and Corn markets, combined all ag products together, moved from number five to number two in industry in three years
19. Our Business Structure Is Still 1950’s 19 While Technology Has Changed Our Thinking Around Work Power Structures Are Still Turn Of The Century New Thinking Will Challenge All Status Quo Power Structures
20. Most Business Management Styles Are 20 Focused On The Path Of Least Resistance Or Destruction Of The Known New Thinking Requires More Brain Effort Vs. The Status Quo
24. Case Study – Successful Change 24 From To Nitrogen / Hydrogen One Of Many Industrial Marketing Raw Development Industry Segments MegaSys – Single Source Brand & Strategic Marketing Targeted Technologies Keys To Change: Leadership changes in key roles; realized growth would come from a market focus not just operational efficiency; clear goal to be global leader in gases and gas technologies; customers demanded more than just solid delivery Results: Number one gases company in the world, 25% growth in new markets, acquired number one competitor, steady returns, high level of employee satisfaction
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26. Strategic Idea Development 26 Clearly Supports Business Goals & Mission Strategic Relationships Timing/ Velocity Tools To Build Awareness, Understanding & Support Environment Prepared To Accept Change
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28. A Story About Ideas 28 “ confidently relied upon, but ends up being ineffective” The Maginot Line New Ideas Are Fleeting, Not About Perfection – The World Moves On
29. Why We Must Be Proactive, Strategic & Believe In What We Are Doing 29 We Must Define, Build and Drive New Business Thinking & Build Cultures Of Idea Acceptance! No One Asked For a Mini Van No One Understood The Value Of A FAX Machine Only One Guy Believed There Was A Market For Instant Copies Federal Express Model Failed Grad. School
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31. Remember A Single Change Cannot Fix All Problems 31 Kitty Hawk Theory Of Development They weren’t trying to get 300 people to Chicago and provide a warm meal in flight As you develop new ideas people will try and fix all the ills of the past with one attempt Keep it focused on your objectives of the effort
33. Keep In Mind As You Take The Development Path 33 Keep The End Objective Clear Prepare For Changes On The Journey
34. Idea Acceptance Culture 34 TRUST HIGH LEVEL CHAMPION (s) PROACTIVE SPIRIT DEDICATED RESOURCES Strategic Opportunities
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38. What Is The Foundation Of A Culture Of Ideas Common Goals Commitment To Mutual Gain Organizational Support Mutual Trust Open Communication 38 Strategic Relationships Internal/External
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41. Case Study – Successful Change 41 From To 100% Sales Focus Many Companies No Planning Limited Merch. Focus Product & Markets Single Customer Source Business & Strategic Planning New Product Every 3 Months Keys To Change: Market shift and loss of revenue forced new thinking; right leaders at the right time; processes in place to bring new ideas forward Results: Shift from a cash strapped model to a cash flush one, ability to recapture old and new customers (60% of growth from new customers), regained market leadership
42. Do Not Be Overwhelmed 42 How Do You Eat An Elephant? Start With The Tail
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45. Who Are Stakeholders? CCE Employees Parent Company Parent BB Joint Venture Partner Sentinel JV McGrath Subcontractors Vendors Shareholders Customers End users Communities JV Employees Joint Marketing Partners Construction Industry Associations University Interns Via Programs Taxpayers Alaskan Native Tribes Subcontractor Employees Competition Government Orgs: OSHA Family 45
46. Idea Blockers A Simple Model : What Is Your Influence? Wharton Business School, 2007 46 Focus: Critical Mass Not Consensus Do You Trust Them? Adversary Bedfellow Opponent Ally YES NO Yes No TRUST AGREEMENT ?
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50. 50 If there was a family motto for those wanting to impact change and ideas in their companies it would be: “ Assume Nothing” So You Want To Be A Change Agent
57. Strategic Relationship Breakdown 57 High High Medium Low Potential Benefits High High Medium Low Risk In Relationship Collaborative Accommodation Cooperation Conflict, Bargaining Nature Of The Relationship High Low Low Low Investments In The Relationship High High Low Low Trust High Medium Low Low Concern For Other Party Long term Long term Long Term Short term Time Horizon Strategic Relationship Limited Partnership Functional Relationship Transactional Exchange
58. Case Study – Successful Change 58 From To Buried Division 100% AMEX Single Product Order Taking Stand Alone Company Joint Venture Full Line Of Offering Solutions Consulting Keys To Change: Previous failed attempts over three years; flawed research; patent infringement; unsanctioned development efforts; shift in MasterCard leadership Results: Successfully launched within 3 months new 120 person company with 10,000 customers and over $400M in sales year one, now most successful stored value card provider in the industry with patented technology
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61. Tools: PICA Model Helps Clear Up Decision Making 61 Gaining Clarity Around Who Authority New Thinking Can Be Managed
62. Tools: Opportunity Lens Helps Clear Up What Is Critical 62 Gaining Clarity Around What Is Important To The Organization Reduces Stress Around “Being Cowboys” Spend Time With Key Management Building A Lens That New Thinking Will Be Filtered Through Do Not Make It Overwhelming – One Page Maximum Keep It Strategic
63. Tools: Touchstone Keeps Strategic In View 63 Gaining Direction Around What Is Of Strategic Importance Helps Guide New Thinking Efforts This allows for all the key strategic thinking and important elements to be in one place. Make it available to everyone in the company. Return to it as things are developed over time.
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65. Tools: Image To Convey Idea 65 A Picture Is Worth A Thousand Words People Think In Different Ways And Take Information IN In Many Different Ways Come Up With A Visual That Makes Them Stop And Think Reinforce The Underlying Thinking In Other Ways As Well
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71. Case Study – Failed Change 71 From To Nonprofit Mentality Limited Revenue Stream Unprofessional Order Taking Retail Environment Multi Streams & Offerings Well Organized Leader Solutions Consulting Drivers To Failure: Business model was not well understood; unskilled or committed resources; aggressive and premeditated attacks and employees not committed; change didn’t happen fast enough; lack of industry support Results: Business was shut down, assets sold off, all charities were taken care of but 200 people lost jobs and vision of a unique business was lost
72. Case Study – In Progress Change 72 From To Stealth Operational Only 100% Federal Single Offering - JOC Proactive Brand Marketing & Sales 50/50 Fed/ Non-Fed Performance-based Key To Change: Sold from private owner to public international corporation; shift in Federal marketplace loss of market share; requirement to grow business nationally Results To Date: Early indicators are positive, 50% of business now non-Federal and 20% in new offerings, successful launch of evolved branding, salesforce in place
73. Elements Of Successful Strategic Idea Development Focus A common vision for the relationship, with agreed strategies and activities Trust Open communication and disclosure of business drivers Performance Continuous improvement towards agreed targets People Clearly defined roles and responsibilities Proactive Anticipating business needs and providing creative solutions Profit at Risk Establishing real metrics to drive behavior for all involved 73
74. A Final Challenge To All Of You 74 MADE IT! Many live and guide their lives by fear of failure or fear of the unknown. Break this path and thinking – reach out and do what you have been thinking. Have a conversation with your boss, or a peer, or someone you respect, (even a perceived enemy) and talk about what could be. Do what scares you the most – you will learn a great deal more and grow as a person.
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77. Closing Quotes 77 “ And in an era when more and more work is done long distance by e-mail or by phone relationship building paradoxically, becomes more crucial than ever.” - Primal Leadership, p51 “ I’m a company of one. I have no team, no power; I share people with other projects. I can’t tell people what to do – but I can convince them by appealing to their agenda” - Primal Leadership, p52
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79. Thinking Differently: Attracting A Team To Drive Change Must Build Integrated Communities Of Cooperation & Collaboration Based On Trust Focused On A Bigger Picture Making Change Fun, Understood & Supported Constant White Water Change 79
80. Thank You For Your Time David Carrithers, VP Marketing Centennial Contractors 8500 Leesburg Pike Suite 500 Vienna, VA 22182 Office Phone: 703-287-3042 Cell: 707-484-3620 [email_address] www.CentennialNOW.com 80