five strategy conversations every board should have

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Five Strategy Conversations Every Board Should Have Bob Frisch Managing Partner The Strategic Offsites Group Silicon Valley Chapter National Association of Corporate Directors Rock Center for Corporate Governance Stanford Law School January 17, 2013 v9

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Bob Frisch's Presentation at the Rock Center for Corporate Governance at Stanford Law School - Sponsored by the Silicon Valley Chapter of the National Association of Corporate Directors (NACD) - January, 2013

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Page 1: Five Strategy Conversations Every Board Should Have

Five Strategy Conversations Every Board Should Have Bob Frisch Managing Partner The Strategic Offsites Group

Silicon Valley Chapter National Association of Corporate Directors Rock Center for Corporate Governance Stanford Law School January 17, 2013 v9

Page 2: Five Strategy Conversations Every Board Should Have

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Directors Consider Strategy A Top Priority

Source: NACD Public Company Governance Survey 2012-2013 n=957

0% 2% 2% 2% 3% 3% 3% 4% 5% 5% 6%

10% 10%

14% 14% 15%

26% 30%

36% 42%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Corporate social responsibility Director compensation

Info. Management (ensuring directors receive right amount, type, format) Disclosure (transparency of financial and other info.)

Crisis oversight Director education and development

Board meeting processes (agenda, committees, etc.) Board culture (openness, respect, action orientation, CEO relations)

CEO evaluation Board leadership

Relations with shareholders Board and director evaluation

CEO compensation Board effectiveness

Financial oversight/internal controls Director recruitment/succession

Executive talent management and leadership development CEO succession

Risk oversight Corporate performance and valuation

Strategic planning and oversight

*Respondents were asked to select three topics of highest priority

Page 3: Five Strategy Conversations Every Board Should Have

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The Average Board Spends A Quarter of Its Time on Strategy

Source: McKinsey Global Survey 2008 n = 586

24% 24%

20%

17%

11%

0%

5%

10%

15%

20%

25%

30%

Strategy Execution Performance management

Core governance and compliance

Talent management

(i.e. development, analysis, and prioritizing

of strategies that maximize shareholder

value)

(i.e. prioritizing key initiatives against

strategy, approval of M&A transactions)

(i.e. development of metrics, incentives,

monitoring, tracking of performance)

(i.e. nominations, compensation, audit, disclosure, Sarbanes-

Oxley Act )

“Other”=4%

Page 4: Five Strategy Conversations Every Board Should Have

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A Quarter to a Third of Board Members Report Having ‘Limited or no Understanding’ of Critical Strategic Issues

Source: McKinsey Quarterly Survey 2006 n = 1,597

36%

21% 16% 14%

10%

50%

58% 58% 54% 55%

14%

22% 26%

32% 34%

0%

10%

20%

30%

40%

50%

60%

70%

Your company's financial position

Your company's current strategy

How value is created in your

company

Risks your company faces

Dynamics of your company's industries

Complete understanding Good understanding Limited or no understanding

Page 5: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 5

The Most Common Response is to Spend More Time on Strategy

Source: PWC Annual Corporate Directors Survey 2012

75% 68%

57% 59% 54%

35% 30%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Percent of directors indicating they would like to spend more ‘time and focus’ in the coming year than in the past

Page 6: Five Strategy Conversations Every Board Should Have

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SVNACD Members Also Report Wanting to Spend More Time on Strategy

Source: SVNACD Survey 2013 n=66

How satisfied are you with the amount of time your board spends on discussing strategy?

24%

45%

29%

0% 2% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

We don't spend nearly enough time discussing strategy.

We should spend a bit more time on

strategy than we do today.

We spend the right amount of time

discussing strategy.

We should spend a bit less time

discussing strategy.

We spend too much time discussing

strategy.

Page 7: Five Strategy Conversations Every Board Should Have

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This Morning is About Improving the Quality, not the Quantity, of Strategic Conversations

Source: SVNACD Survey 2013 n=66

How satisfied are you with the current quality of strategic conversations among members of your board?

2%

12%

50%

30%

6%

0%

10%

20%

30%

40%

50%

60%

We do not discuss strategy as a board.

We do not have the kind of strategy

conversations that we need to.

Our strategy conversations could

use some improvement.

I'm satisfied with the strategy

conversations we have today.

Our strategy conversations

represent a best practice among

boards.

Page 8: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

Two Dimensions of Strategy Conversations: Among the Board…

8

Page 9: Five Strategy Conversations Every Board Should Have

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…And Between the Board and the Management Team

9

Page 10: Five Strategy Conversations Every Board Should Have

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Directors are Less Satisfied With the Quality of Strategy Conversations With Management Than Among Themselves

Q3. How satisfied are you with the current quality of strategic conversations between the board and the management team?

5%

26%

36%

27%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

The board and the management team

do not discuss strategy together.

We discuss strategy with management, but we don't have

the kind of conversations that

we should.

The strategy conversations with the management

team are adequate, but could use some

improvement.

I'm satisfied with the strategic dialogue between the board

and the management team.

The strategy conversations

between our board and the

management team represent a best

practice. Source: SVNACD Survey 2013 n=66

Page 11: Five Strategy Conversations Every Board Should Have

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Five Strategy Conversations Every Board Should Have

• Are We Working at the Right Altitude? Are We Clear on The Board’s Role vs. Management When it Comes to Strategy?

• Are We Aligned Around An Aspiration?

• Are We Aligned Around the Walls and Fences That Bound the Business?

• Are We Getting the Information We Need To Do Our Job?

•  Is The Board Involved in Setting The Strategic Agenda?

11

Page 12: Five Strategy Conversations Every Board Should Have

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0%

9%

3%

8% 8% 8%

22%

14%

17%

12%

0%

9%

5%

9% 8%

6%

22%

18% 17%

6%

0%

5%

10%

15%

20%

25%

1 (Strongly Disagree)

10 (Strongly Agree)

My board's strategic conversations are focused and productive.

Strategic conversations between my board and the executive team are focused and productive.

12

These Five Conversations Help Set the Stage for Even More Focused and Productive Board Strategy Conversations

Source: SVNACD Survey 2013 n=65

2 3 5 4 7 8 6 9

Page 13: Five Strategy Conversations Every Board Should Have

ARE WE WORKING AT THE RIGHT ALTITUDE? ARE WE CLEAR ON THE BOARD’S ROLE VS. MANAGEMENT WHEN IT COMES TO STRATEGY?

Page 14: Five Strategy Conversations Every Board Should Have

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Are We Working at the Right Altitude?

14

Page 15: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

Are We Working at the Right Altitude?

15

Page 16: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

3%

11% 12%

5%

12%

6% 8%

18% 18%

6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1 (Strongly Disagree)

10 (Strongly Agree)

16

SVNACD Members Report a Wide Variation in Board Altitude

My board debates and decides on strategy together with the executive team, rather than simply reviewing plans developed by the executive team.

2 3 5 4 7 8 6 9

Source: SVNACD Survey 2013 n=65

Page 17: Five Strategy Conversations Every Board Should Have

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Different Boards Play Different Roles In the Strategy Process

Source: McKinsey Quarterly Survey 2006 n = 796

64%

52% 48%

37%

25%

6%

0%

10%

20%

30%

40%

50%

60%

70%

Approves final strategy

Challenges emerging strategy

Monitors performance

against strategy

Identifies key strategic issues

Helps develop strategy's content

Not involved

Which of the following roles does the board of directors (or equivalent) play in your company’s formal strategic-planning process?

Page 18: Five Strategy Conversations Every Board Should Have

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Is Our Board Working at the Right Altitude? From the NACD Point of View There’s no Single Right Answer…

18

“Boards should be constructively engaged with management to ensure the appropriate development, execution, monitoring and

modification of their companies’ strategies.

The nature and extent of the board’s involvement in strategy will depend on the particular circumstances of the company and the industry

or industries in which it is operating.”

Source: NACD Board - Letter to Congress recommending ten governance practices - May 3, 2002

Page 19: Five Strategy Conversations Every Board Should Have

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… Except That Each Board Needs To Be Explicit About Their Respective Roles

19

“Management and the board should jointly establish the process the company will use to develop its strategy, including an understanding of

the respective roles of management and the board”

Source: The Role of the Board in Corporate Strategy - 2006 Report of the NACD Blue Ribbon Commission

Page 20: Five Strategy Conversations Every Board Should Have

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At One Board Directors Had Very Different Views of Their Role

20

“Review” “Help to supplement

management expertise,

e.g. marketing”

“Scrub and vet”

“Help management

generate fresh

thinking”

How would you describe the board’s role in the strategy process vs. Andy and the management team?

N = 7

Page 21: Five Strategy Conversations Every Board Should Have

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At One Board We Worked With Directors Had Very Different Views of Their Role

21

“Review” “Help to supplement

management expertise,

e.g. marketing”

“Scrub and vet”

“Help management

generate fresh

thinking”

How would you describe the board’s role in the strategy process vs. Andy and the management team?

The problem isn’t that different boards do it differently. It’s when different members of a single board have a different view of the board’s role, or

when the board’s view differs from management.

Page 22: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

Coca Cola Enterprises Board Guidelines

22

“The Board will assess the Company’s business strategies, goals and objectives annually, to determine their effect on long-term shareowner

value, and to discuss with management the results of that assessment.”

Source: Coca Cola Enterprises Board Guidelines

Page 23: Five Strategy Conversations Every Board Should Have

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Our Firm’s Experience Is That ‘Increasing Time’ Alone Won’t Solve the Underlying Problems Caused by Lack of Role Clarity

Source: McKinsey Global Survey 2008

21%

8%

23%

39%

53%

40%

49%

43%

56%

49%

41% 45%

29%

49%

21%

12%

6%

14%

0%

10%

20%

30%

40%

50%

60%

Monitoring performance

against strategy

Developing short-term strategy

Approving key strategic initiatives

Evaluating options for

short-term and long-term strategies

Developing long-term strategy

Challenging existing strategy

Increase Hold Steady Decrease

Page 24: Five Strategy Conversations Every Board Should Have

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This McKinsey Framework We Saw Earlier is an Example of a Starting Point for a Discussion About Roles

Source: McKinsey Quarterly Survey 2006 n = 796

64%

52% 48%

37%

25%

6%

0%

10%

20%

30%

40%

50%

60%

70%

Approves final strategy

Challenges emerging strategy

Monitors performance

against strategy

Identifies key strategic issues

Helps develop strategy's content

Not involved

Which of the following roles does the board of directors (or equivalent) play in your company’s formal strategic-planning process?

Page 25: Five Strategy Conversations Every Board Should Have

ARE WE ALIGNED AROUND AN ASPIRATION?

Page 26: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

4

2

1 2 3 4 5

The Overall Level of Strategy Alignment Almost Always Bears At Least Some Degree of Improvement

26

How well do the following groups understand Company X’s overall strategy:

2

1

5

1 2 3 4 5

1 1

2 2

1 2 3 4 5

2

3

2

1 2 3 4 5

The Board

SVP Level Executives and Above Wall Street Analysts

Andy and the Executive Committee

n=6 n=7

n=8 n=6

Some newer Board members rated themselves lower than the overall Board”

Not at all Completely

Not at all Completely

Not at all Completely

Not at all Completely

Page 27: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 27

SVNACD Members Saw an Opportunity to Improve Their Boards’ Levels of Alignment

Source: SVNACD Survey 2013 n=66

How would you assess the level of alignment regarding a view of the company in three to five years…

5% 8%

20%

58%

11%

2%

17%

24%

52%

6%

0%

10%

20%

30%

40%

50%

60%

70%

Not at all aligned Somewhat aligned Completely aligned

...among your board?

...between members of the company's board and its executive team?

Page 28: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 28

The Starting Point of Strategic Alignment is Having a Common Aspiration

Sustained Organizational

Success

1. Aspiration “Our Board Members and

Management Team don’t have a strong shared view of what the corporation is trying to

accomplish or what we could become.”

2. Strategy “I’m dissatisfied with

our strategy’s ability to achieve our aspiration.”

4. Organization & Processes

“We may not have people or processes structured

appropriately to implement the strategy.”

3. Alignment “It seems like the organization

doesn't’t understand the strategy, doesn't’t support it,

or both.”

5. Resources “The organization may not have the resources, skills

or physical assets to implement the strategy and

achieve the aspirations.”

Page 29: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 29

Boards and Management Teams Typically Hold Too Broad Views of How To Define Success

Qualitative: •  Gone into new businesses •  Grown good businesses •  Become recognized as an industry leader •  Moved from a product approach to a solutions approach •  Met the needs of our customers seamlessly •  Be identified as a major INDUSTRY firm •  ‘Own’ MARKET A - become the dominant player in MARKET A •  Have a coordinated Company Y strategy •  Launched a successful NEW SEGMENT ENTRY

Quantitative: •  Double MEASURE OF SCALE to $2.6 trillion •  Enjoy a 20% unit cost advantage over competitors •  Number of new customers •  Market share vs. LARGEST COMPETITOR •  Margin 17-18% •  Retention

How do you think about success for Company Y? If we were meeting at the end of FY2017, and we were looking back at another tremendous 5-year run for Company Y, what would have happened?

Page 30: Five Strategy Conversations Every Board Should Have

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It’s Not That The Aspirations Are Wrong In Any Way - It’s That There Were Multiple ‘Most Important’ Goals Among 7 Directors

Grow Sales (5) •  “The only measure that matters to a retailer is revenue growth” •  Consistent sales growth and comp store growth •  “Generating organic growth = 3% comp store sales growth” •  “Boost sales per square foot across the chain (not just existing stores)” Grow Shareholder Value (4) •  “As a director I work for shareholders – market value is the #1 measure” •  “Total shareholder return in the top quartile of the industry group” •  “Provide shareholder value relative to macro environment“ Grow Profitability (4) •  “Get back to level of profitability of several years ago“ •  5 - 20% EPS growth Grow Number of Stores (3) •  Overall growth of stores •  “Expand presence through a new concept or acquisition”

How do you think about success for Company X? If we were meeting at the end of 2013, and you looked back at a successful 3-year period for the company, what would have been

accomplished? How would it be measured?

n=7 for the first, 6 for the second, 5 for the third success factor

Page 31: Five Strategy Conversations Every Board Should Have

ARE WE ALIGNED AROUND THE WALLS AND FENCES THAT BOUND THE BUSINESS?

Page 32: Five Strategy Conversations Every Board Should Have

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Walls and Fences - Defined

•  Walls are the boundaries around any business that are assumed to be immovable – so much so that executive don’t even bother to approach them

•  But by challenging these assumptions teams discover that the walls are sometimes actually fences – boundaries that can in fact be moved, opening up strategic space for the company to grow

Page 33: Five Strategy Conversations Every Board Should Have

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Walls and Fences – Company Z

1.  Operate in the U.S.

2.  Communications company

3.  Subscription-based revenue models

4.  Controlling group of shareholders

5.  Conservative, Investment Grade rating

6.  We would never take any actions that would challenge our core ethical and moral principles

7.  Expand by entering ‘near adjacent’ spaces – leverage what we know

8.  Buy and hold – would not buy a business and sell 4-5 years later

9.  Every deal justified on DCF – no ‘strategic’ investments

33

.

Page 34: Five Strategy Conversations Every Board Should Have

ARE WE GETTING THE INFORMATION WE NEED TO DO OUR JOB?

Page 35: Five Strategy Conversations Every Board Should Have

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There’s Generally Good Data Provided to Boards, But It Could Bear Improvement

Source: NACD Public Company Governance Survey 2012-2013 n=957

59%

34%

7% 1%

34%

43%

20%

4%

29%

42%

25%

5%

0%

10%

20%

30%

40%

50%

60%

70%

Excellent Good Satisfactory Below acceptable levels

Corporate performance Strategy Risk management

Page 36: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 36

Some Directors Report That Critical Elements of Data Are Missing

How well informed are you as a board member on the industry, competitive, market and strategic context of the company? Are you provided with the background you need to have a rigorous discussion of strategy?

2%

20%

29%

44%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Our board is not well informed on the

strategic context of the company.

We get some information, but there are critical elements we as a board don't know enough about.

The information we are provided is

adequate, but could be improved.

I'm satisfied that, as a board member, I am

provided with the information I need to

have a rigorous strategic

conversation.

The information I am provided with as a

board member represents a best

practice.

Source: SVNACD Survey 2013 n=66

Page 37: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential. 37

Better Access is Provided to Financial and Operational Information than Strategic or Industry Information

Source: McKinsey Global Survey 2008

85%

67% 61%

45%

12%

23% 20% 28%

3% 10%

19% 26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Financial information about company

Operational information about company

Strategic information relevant to company

(e.g. key performance indicators linked to

company's strategy)

Leading indicators on direction of industry,

sector, company

Good/optimal access Adequate access Insufficient/no access

Page 38: Five Strategy Conversations Every Board Should Have

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The Board Should Inventory the Information Provided Over the Past Year and Validate That It’s Adequate To Do Your Job

•  66% evaluate external benchmarks and data to independently corroborate management’s assumptions/assertions

•  53% consider alternative strategies to those presented by management

•  66% of directors are happy with the customer satisfaction research management provides

•  72% of directors are comfortable with information about employee values and satisfaction

•  A number of boards do not receive any information about either customer or employee satisfaction (20% and 16%, respectively)

•  21% of directors are dissatisfied with the information management provides on competitors’ initiatives and strategy

Source: PwC’s Annual Corporate Directors Survey 2012

Page 39: Five Strategy Conversations Every Board Should Have

IS THE BOARD INVOLVED IN SETTING THE STRATEGIC AGENDA?

Page 40: Five Strategy Conversations Every Board Should Have

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Boards Generally Don’t Set The Agenda of Strategic Topics in a Given Year

Who sets the agenda for the strategy-related topics the board discusses?

45%

21% 26%

6% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

The CEO The board as a whole in

consultation with the CEO

The non-executive chairman or lead

director in consultation with

the CEO

The board as a whole

The non-executive chairman or lead

director

Source: SVNACD Survey 2013 n=66

Page 41: Five Strategy Conversations Every Board Should Have

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Prior to the Meeting To Set Strategy Topics Board Members Completed an Interview and Subsequent Online Survey

41

\

Interview Subset of

Board Members

Collect Additional Written Input from Board Members

Aggregate and Synthesize

Interview Results and Written Input

Pre-meeting activities:

Key Outcomes:

•  18 potential board level strategy topics (beyond specific growth opportunities) •  15 specific potential growth opportunities •  11 walls and fences

Page 42: Five Strategy Conversations Every Board Should Have

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We Determined Which Strategy Topics (Beyond Specific Growth Opportunities) Will be Included on the Board’s 18-Month Agenda

42

The board kept 13 strategy topics from pre-offsite data gathering with slight modifications… 1. White space opportunity analysis

3. How should we define growth (i.e, profitable growth, not just growth)? 4. Can/how we improve operating margins in the XXX business? 5. Can/how we reverse the revenue decline and maintain profitability in the YYY business? 6. Why is our EBITDA multiple so low? 7. Will S-shares prove to be an effective acquisition tool as planned? 8. Can/how we strengthen our position versus national competitors in ZZZ?

9. What should we do about MARKET A and MARKET B? 10. How do make our business stronger (i.e. What if one or more big players attack our core markets)? 14. What is the long term role of the YYY business in our portfolio?

15. What is our management succession plan (especially at DIVISION A)?

16. Should we acquire 100% of QQQ? 18. How should Board members shape the strategy?

…. added two topics… 19. How can we accelerate our study/execution of what we decide to do?

20. How do we ensure the analysis is done in an objective fashion?

…. and deferred discussion on five individual topics. (2)

2. Analysis of growth opportunities within existing lines of business

11. How can we ensure that we delight our customers?

12. What are our options for improving our position with REGULATORY AUTHORITY and Congress?

13. What is required to ensure platform interoperability as technology moves quickly?

17. Should we change our corporate definition from “AAA” to “BBB”?

The board did a similar validation/edit of the potential growth

opportunities

Page 43: Five Strategy Conversations Every Board Should Have

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We Further Set Priorities For The Board Level Discussion Topics, and Identified Areas Where Further Analysis is Required

Req

uire

s fu

rthe

r an

alys

is

Rea

dy

to

disc

uss

Now Soon Later

43

Board-Level Discussion Topics (Priority vs. Readiness)

Legend: Board Level Discussion Topics

1. White space opportunity analysis 9. Market A and Market B 20. Ensure analysis is objective

3. Definition of growth 10. Make core business stronger

4. Operating margins in the XXX business? 14. Long term role of YYY in portfolio

5. Profitability in YYY 15. Management succession plan

6. EBITDA multiple 16. Acquire 100% of QQQ?

7. S-Shares as an acquisition tool 18. Board members shape strategy

8. Strengthen position vs. national players in ZZZ 19. Accelerate study/execution of what we decide to do

3 15 18 19

4

8

9

1

5

14 6 7

10 16

NOTE: Client data has been altered, as has positioning in the matrix, for confidentiality purposes

20

Page 44: Five Strategy Conversations Every Board Should Have

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For Some Top Priority Topics, The Board Identified Areas of Analysis to Inform the Discussions

44

Analysis Required / Other Notes

White space opportunity

analysis (1)

• Analysis of existing markets: - What are our top 15 markets? What is our market share? - Why are we strong in our top markets? - Who else competes in these markets? How do we compare?

• Analysis of white spaces (Businesses operations in which we do not currently compete): - Identify lines of business that would accelerate our ROC, revenue/EBITDA greater than on a

standalone basis

Analysis of the XXX business

(4, 8, 9)

• How/can we Improve operating margins in cXXX? What are our existing and potential markets (e.g. 6 specific urban markets)? Can we grow and achieve acceptable returns?

• How/can we strengthen our position versus national players in YYY? • What is the growth strategy for the XXX business? What is the role of MARKET A and

MARKET B? - How much have we invested to date? What are the projected future investment requirements?

What are the related tax costs? - What are the potential scenarios for (minimum) 5 year operating results? - What are the costs of transfer (including impact on other parts of the Company)? - What are our strategic options and associated economic projections (e.g., How strong would a

turnaround have to be in MARKET A or MARKET B to justify leaving our “recoverable” capital in these markets)?

Topics to be Considered Now

Page 45: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

Five Strategy Conversations Every Board Should Have

• Are We Working at the Right Altitude? Are We Clear on The Board’s Role vs. Management’s When it Comes to Strategy?

• Are We Aligned Around An Aspiration?

• Are We Aligned Around the Walls and Fences That Bound the Business?

• Are We Getting the Information We Need To Do Our Job?

•  Is The Board Involved in Setting The Strategic Agenda?

45

Page 46: Five Strategy Conversations Every Board Should Have

BACKGROUND

Page 47: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

•  A Boutique strategy consulting firm founded in 2002

o  We work around the globe with CEOs, senior executive teams and boards across industries on their most important strategic issues and opportunities

•  We specialize in the design and facilitation of strategy processes and discussions to help executive teams make better decisions and convert those decisions to measureable actions

•  Through our thought leadership, SOG offers new ways of approaching strategy processes and decision making

•  We do not work for direct competitors

•  We operate from a single office in Boston with a seven-person team

Strategic Offsites Group at a Glance

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©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

How We Serve Our Clients

•  Whether engaged for a single meeting or a multiyear change initiative, our role is to help design and manage critical strategic discussions

•  The common denominator underlying our work is expertly facilitated and prepared workshops and processes designed to achieve organizational, executive and board alignment

•  Beginning with setting clear objectives, we help clients maintain a balance of process, content, and conversation to ensure that strategies gain and hold momentum

•  We collect and synthesize relevant data that inform objectives and frameworks to drive management teams to actionable outcomes

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Page 49: Five Strategy Conversations Every Board Should Have

©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

For More Information

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Bob Frisch Managing Partner Strategic Offsites Group [email protected] www.StrategicOffsites.com +1 617 266-8711 @OffsitesGuy

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©2013 The Strategic Offsites Group®, Inc. All rights reserved. Proprietary and Confidential.

Bob Frisch, Managing Partner, Strategic Offsites Group For the past 31 years, Bob has worked with executive teams on their most vital strategic and organizational challenges, both as a consultant and a corporate executive. He is considered one of the world’s leading strategic facilitators, having conducted executive offsites in fifteen countries with companies ranging from Fortune 10 multinationals to German mittelstand family businesses. Bob’s work has been featured in publications ranging from the Wall Street Journal to the Johannesburg Business Report, and he is the author of three Harvard Business Review articles: Off-Sites That Work, When Teams Can’t Decide and Who Really Makes The Big Decisions in Your Company?. When Teams Can’t Decide was recently named one of HBR’s ‘10 Must Read Articles on Teams’. Bob’s first book, Who’s In The Room? How Great Leaders Structure and Manage the Teams Around Them, was published by Jossey-Bass/Wiley in January 2012 and is now in distribution in 12 countries. Bob is a frequent keynote speaker has been a guest lecturer at Harvard, Yale, the University of Chicago, Northwestern, Stanford and Brandeis. Before founding Strategic Offsites, Bob was a Managing Partner of Accenture, where he helped create the Organization and Change Strategy practice. Bob joined Accenture from Cap Gemini Sogeti, where he created the firm’s global capability in corporate vision and growth and led the Strategy practice for the Americas. He began his career at the Boston Consulting Group, where he helped found the Los Angeles office. Bob’s executive roles began when he went to work for a client, running planning and business development for The Dial Corporation. Bob went on to become the youngest Division President of this Fortune 500 company. A decade later, he took another leave from consulting to head corporate strategy for Sears, Roebuck and Co. Bob is a magna cum laude graduate of Tufts University and earned his MBA at the Yale School of Management. Bob lives in Newton Centre, Massachusetts with his wife Iris and their four children. Dangerous Company, a best-selling book on the consulting industry, says of Bob: "He has been there, small company and big, strategy and operations. He has lived much of his professional life on the road or in the corridors of power of huge institutions. In the game of business, he is equipped to be the perfect coach."

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