TEXO PROFESSIONAL DEVELOPMENT

Dallas

www.SMPSDallas.org

MARKETING & BUSINESS

DEVELOPMENT PLANS

Mike Wagner, CPSM June 17, 2014

Dallas

www.SMPSDallas.org

Dallas

www.SMPSDallas.org

MARKETING

• Every company has a marketing plan…

• Most of my competitors have a marketing plan…

• Market planning is complicated OR a waste of time…

• Market planning is just for the big guys…

• Marketing & Business Development are the same thing...

Time

Growth Plateaus

(20-30)

(80-120)

(300-500)

Recognize plateaus in firm growth.

They occur for a variety of reasons

and require different approaches to

overcome.

= $25M Annual Revenues

Ownership Transition

Finance Organization

Project DeliveryInformation Technology

Purpose

Business Model

MarketingHuman

Resources

Leadership

Development

The Business

Continuum

Balancing Market Planning

Vision (A word picture of the future 3-5 years out)

Mission/Purpose (What we are about/Why we exist)

Values (What guides us and “makes us tick”)

Goals (>1 year duration)

Objectives (< or = 1 year)

Strategies (What)

Tactics (How)

Actions (Who/When)

Cascade Effect of Strategic & Market Planning

Marketing Plan

Stra

teg

ic P

lan

Strategic Planning Process

Articulate Your “Core” Values

Stay away from “Mom and Apple Pie” values. They are implicit.

• Honesty

• Integrity

• Trustworthiness

• Hard work

• Commitment

Core values reflect “the way we do

things around here”.

APAI Core Values

• Provide high-quality services to our clients

• Strive to get the right people in the right seats on the bus

• Strong leadership

• Creativity and innovation

• Passion for our work

• Respect for each other

• Not tolerating non-performers

• Meeting commitments (in all things we do)

• Mentor and teach our core values

• Open, honest, frequent communication

• Having vision

Understand Your Business Model

PCP BCP

PCB BCB

• Primary/secondary practice focus

• Generally a niche based firm

• High “value”

• Not differentiated on price

• Generally high multiplier on DL

• Tend to be smaller firms

• Business focus ($$) may be present,

but is not a driver

• Quality is very high and part of value

proposition

• Primary focus is practice

• Secondary focus is business ($$)

• Generally has niche like qualities

• “Value proposition” is high

• Not solely differentiated on price

• Generally high multiplier on DL

• Business focus ($$) is present, but is

not the primary driver

• Primary/secondary focus is business

($$)

• Niche capabilities generally gone

• “Value proposition” is “cheapest”

• Differentiated solely on price

• Generally low multiplier on DL

• Tend to be larger, public firms

• Practice focus is not the driver

• Quality is “just enough”

• Primary focus is business ($$)

• Practice question is still asked, but is not

the driver

• Specialty possible, but generally not a

niche based firm

• Value differentiator still exists

• Price differentiation occurs

• Lower multipliers on DL

• Tend to be larger firms

APAI Current and Future Model

Define Your Future

Make the picture so real everyone can visualize it

• What markets will you serve?

• In what proportions?

• At what office locations?

• With how many people?

• How much revenue?

• How profitable?

• What is the ownership structure?

• Under what kind of leadership?

Define the Vision Financially

Financial Parameter FY 2008 FY 2009 FY 2010 25th %ile Median 75th %ile FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Total (Gross) Revenue $20,738 $21,489 $19,003 $15,959 $26,767 $23,794 $25,432 $27,154

Net Revenue $14,355 $14,790 $13,319 $12,133 $16,060 $15,466 $17,040 $18,736

Net/Gross Revenue Ratio 0.69 0.69 0.70 0.76 0.60 0.65 0.67 0.69

Target Direct Labor Multiplier 3.29 3.29 3.29 3.04 3.16 3.39 3.29 3.29 3.29 3.29 3.29

Achieved Direct Labor Multiplier 3.06 3.07 3.00 2.72 3.02 3.28 3.09 3.10 3.12 3.15 3.15

Labor OH Rate (% of D.L.) 70% 82% 92% 88% 61% 69% 67% 64%

Non-labor Overhead (excl. bonus) $5,000 $4,777 $4,920 $4,109 $5,388 $5,205 $5,680 $6,245

Non-labor OH Rate (% of D.L.) 106% 99% 111% 105% 104% 105% 105% 105%

Total OH Rate (before Incentive/Bonus) 176% 181% 203% 133.1% 149.1% 177.4% 193% 165% 174% 172% 169%

Operating Return on Overhead (ROO) 17% 15% -1% 0.0% 26.0% 53.0% 9% 27% 21% 25% 27%

Chargeability (Based on $ of Labor) 59.0% 55.0% 52.1% 54.1% 62.1% 65.2% 53.2% 62.0% 59.0% 60.0% 61.0%

Chargeability (Based on hours) 59.4% 56.0% 53.9% 54.8% 63.8% 61.2% 61.8% 62.8%

Net Payroll Multiplier (Revenue Factor) 1.80 1.69 1.56 1.54 1.71 2.14 1.64 1.92 1.84 1.89 1.92

Define the Vision Organizationally

General

Colonel A

Colonel B

Captain A

Sergeant A

Sergeant B

Private A Private B

Captain B

Captain C

Set Your Goal Horizon

At what point does your crystal ball get

too cloudy?

• 1 year?

• 3 years?

• 5 years?

• 10 years?

Trajectory of Goal Setting

Vision

Today Time

Inte

nsi

ty

Document & Communicate Goals

FOCUS AREA

GOAL TEAM

GOAL #

CHAMPION:

Objective #

Actions Details Person

Responsible Completion

Date Deliverable(s) Budget Status Comments

Action 1

Action 2

Action 3

Action 4

Action 5

Action 6

Action 7

Vision (A word picture of the future 3-5 years out)

Mission/Purpose (What we are about/Why we exist)

Values (What guides us and “makes us tick”)

Goals (>1 year duration)

Objectives (< or = 1 year)

Strategies (What)

Tactics (How)

Actions (Who/When)

Cascade Effect of Strategic & Market Planning

Marketing Plan

Stra

teg

ic P

lan

Market Planning

Goals (>1 year duration)

Objectives (< or = 1 year)

Strategies (What)

Tactics (How)

Actions (Who/When) Marketing Plan

EXTERNAL RESEARCH

& ANALYSIS

INTERNAL RESEARCH

& ANALYSIS

• The Great Game of Business, Jack Stack

• Speed of Trust, Stephen M. R. Covey

• Good to Great, Jim Collins

• Built to Last, Jim Collins

• The Five Dysfunctions of a Team, Patrick Lencioni

• It’s Our Ship, Michael Abrashoff

• It’s Your Ship, Michael Abrashoff

• Blink, Malcolm Gladwell

• Outliers; The Story of Success, Malcolm Gladwell

• Execution, Larry Bossidy & Rham Charan

• Confronting Reality, Larry Bossidy & Rham Charan

• A Whole New Mind, Daniel Pink

• Winning, Jack Welch

• First Break All the Rules, Marcus Buckingham

• Now Discover Your Strengths, Marcus Buckingham & Donald O. Clifton

• The One Thing You Need to Know, Marcus Buckingham

• The World is Flat, Thomas Freedman

• Hot, Flat & Crowded, Thomas Friedman

• The One Minute Manager, Kenneth Blanchard & Spencer Johnson

• Who Moved My Cheese?, Spencer Johnson

• Getting Things Done, David Allen

• How to Get Your Point Across in 30 Seconds – or Less, Milo O. Frank

• Conscious Business; How to Build Value through Values, Fred Kofman

Suggested Readings