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1
CHIEF EXECUTIVE BOARD
“STRATEGY – DOES IT MATTER?”
DAN HACKETT
PRESIDENT/CEO
FRANK MILLER LUMBER
2
WHY STRATEGY
• Clarity
• Forces Thinking Around The Bend
• Your People Need It And Want It
3
WHAT IS STRATEGY AND WHY DOES IT MATTER?
•It is about Direction
•Justifies Spending and Hiring Decisions
•Easier to Manage than the Alternative
4
STRATEGY DOESN’T HAVE TO BE COMPLICATED
•A napkin can work if it results in a choice
•Your team in agreement on a small goal beats everything
5
STRATEGY MUST INVOLVE CHOICES
Better/Faster/Cheaper
OR
Strategic
WHO WON?
Walmart, Kmart, Target
6
DRUCKER ASKS,
“WHAT WILL YOU STOP DOING?”
•Power of No
•Who is NOT Your Customer
Building Your
Business on NO
by CEO Adam Landrum
Merge
October 21, 2011
To grow,
you have to focus—
you have to learn to say NO
“Focusing is
about
saying NO.
And if you
say no…you
piss off
people .”
Vision & Strategy
Know What You Want
And How You’re
Going to Get There
Saying NO
is saying YES
to something else:
 Being Great
 Culture
 Right Clients
 Long Term vs. Short Term
 Ideals
 Values
13
CEBI MEMBER FAILURES
•Lack of Financial Understanding
•Market Leaves Them
The Bron-Shoe Company
Reinventing My Business
…because I HAD to!
Bob Kaynes
President/CEO
We Were Dying!
Sales ($mill)
0
1
2
3
4
5
6
2004 2005 2006 2007 2008 2009 2010
We Were Dying!
Identify Strategy or Tactic
Do what Sam used to do: Silver Restoration CLINICS
Sam would set up accounts with
jewelry stores in different cities in the
southeastern US. He would arrange for
them to run an ad in the newspaper
saying the silver expert would be in
town for just a day or two, so if you have any old or damaged
silver, stop by and meet him.
He’d take the orders and payments…pay the store a percentage
of the sales he generated, keep a piece for himself and send the
silver to us for restoration.
OK…it worked. So now what?
Decide which cities to target
• Start with cities served by Southwest Airlines (less
costly to travel plus no baggage fees)
• Reward new accounts for referrals who do Events
• ID other larger cities
But like TW said…I can’t do it all by myself! So I have to
hire some sales help!
20
YOUR MARKET LEAVES YOU
•Silver Restoration
•Blockbuster
• Housing
₋ Cabinets
₋ Substitutes
21
REALITY
VISION
GAP = STRATEGY
22
WHERE IS YOUR HEAD?
YOSEMITE TOKYO
23
REALITY
₋ Strong Brand
₋ Highest Capacity
₋ ERP in Place
VISION
… recognized globally as the premier
provider of premium Hardwood products
GAP
FRANK MILLER STRATEGY
24
Customers
•Increase Customer Yield
•Define Ideal Customer
FRANK MILLER GAP SUMMER 2011
People
•Reduce Turnover
•Reduce Health Care Spend by 4.5%
Process
•Greater Plan for Automation
•Better Define the Grade of Logs
25
• Fix Your Weakness
• Increase Accountability
• Your Job is Outward-Facing
FINAL THOUGHTS
26
MY PICTURE OF STRATEGY
27
AND FINALLY………
DON’T TRY THIS AT HOME!

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Strategy - Does It Matter?