the alta invitational resetting a company to the new normal
TRANSCRIPT
THE ALTA INVITATIONALTHE ALTA INVITATIONAL
Resetting A CompanyResetting A Company
To The New NormalTo The New Normal
2
The Equipment Finance EcosystemThe Equipment Finance Ecosystem
WHAT IS THE NEW NORMAL?WHAT IS THE NEW NORMAL?
EconomicActivity
IndustrialPolicy
Customers
EconomicStructure
LegislationReputation
ChannelPartners
Competition
RiskEnvironment Technology
Regulation
Sources CapitalAdequacy
ProductFeatures
Investors
PUBLICPOLICY
MARKET
EXTERNAL
Risk /Reward
CAPITAL
OPPORTUNITIES
3
THE NEW NORMAL – ARE WE TREATING IT AS NEW?
PREVIOUSNORMAL
NEWNORMAL
•DECISIONS ABOUT CUSTOMERS
•DECISIONS ABOUT VALUE TO BE ADDED
•DECISIONS ABOUT POLICIES and PROCESSES – USE OF TECHNOLOGY
•DECISIONS ABOUT ORGANIZATION / PERSONNEL
•DECISIONS OF SCOPE OF BUSINESS
TRANSITION
4
OR – ARE WE WAITINGTO GO BACK TO THE OLD NORMAL?
NEWNORMAL
PREVIOUSNORMAL
I liked the wayit was, please come back
5
Resetting My Company Resetting My Company to the New Normalto the New Normal
RESET DECISIONS
CUSTOMERSELECTION
VALUE TO BEPROVIDED
HOW DO WEMAKE MONEY
ORGANIZATIONADMINISTRATION
BUSINESS SCOPE
?
?
? ? ? ?
? ? ?
???
??
?
6
Genuine ChangeAre We Doing This
TODAY
TOMORROW
FUTURE
OBJECTIVE
FOCUS
PEOPLE
Extend and defendcore business
Build emergingbusinesses
Business maintenance
Bottom lineperformance
Create viableoptions
Top line growth –Capital efficiency
Future potential
Business builders Visionaries
9
DiscussDiscuss
Basic Growth Basic Growth Strategy QuestionStrategy Question
Is the Purpose Is the Purpose of a Company of a Company
to Create a to Create a Customer?Customer?
10
What are the most What are the most important “growth” words?important “growth” words?
1.
2.
3.
4.
5.
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Utopia – What You say is what your customer
needs, hears and
experiences
How You Build YourHow You Build YourValue Proposition?Value Proposition?
Customers & Competitors define Your
value proposition
Customer Perception of
Your Value Proposition
Your value proposition is
Unclear
Customer Perception of
Your Value Proposition
Value Proposition
GapValue Proposition
Assigned by Customer Base and/or
Competitors currently
Future State
Customer Alignment
Historical State
Transition State
12
What are the five most What are the five most important “value” words?important “value” words?
1.
2.
3.
4.
5.
13
Developing A growth StrategyDeveloping A growth Strategy
INNOVATIONINNOVATION-ProductProduct-ProcessProcess
EFFICIENCYEFFICIENCY-Low Cost
Provider
CUSTOMERCUSTOMERINTIMACYINTIMACY
-Service-Knowledge-Integration
Michael Porter’s Three Basic Michael Porter’s Three Basic Go To Market StrategiesGo To Market Strategies
Which Growth and Value Words Fit Which Strategy Best?
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Some of those “frequent” words!Some of those “frequent” words!• Value
– Unique– Service– Scale / Scope– Global– Customized– Integrated– Cost– Package / bundle– Flexibility– “state of art”– Knowledge– Risk Management
• Growth– Profit– Scale / Scope– Sustainability– Risk Tolerance– Organic– Opportunity– Demand– Personnel– Organization– Capabilities – Footprint– Select Sector– Premium– Strategic– Partnering
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Who is your value proposition for? What market? What segments?
The Components Of A Value PropositionThe Components Of A Value Proposition
TARGET
FRAME OF REFERENCE
BENEFITS
Required to gain acceptance from customers.
Begins to positively separate you from your competition.
Significant points of leverage with customers to get business.
com
pri
sed
o
f …
. .
Point of Entry
Point of Differenc
e
Point ofPreference
What competitive options are your target customer evaluating you against? Who are we competing against?
What’s in it for them? Why should they work with and buy from us?
16
The Equipment Finance EcosystemThe Equipment Finance Ecosystem
WHAT IS THE NEW NORMAL?WHAT IS THE NEW NORMAL?
EconomicActivity
IndustrialPolicy
Customers
EconomicStructure
LegislationReputation
ChannelPartners
Competition
RiskEnvironment Technology
Regulation
Sources CapitalAdequacy
ProductFeatures
Investors
PUBLICPOLICY
MARKET
EXTERNAL
Risk /Reward
CAPITAL
OPPORTUNITIES
THE ALTA INVITATIONALTHE ALTA INVITATIONAL
Resetting A CompanyResetting A Company
To The New NormalTo The New Normal
A SUMMARYA SUMMARY
18
New Normal – “New Normal – “Sound Bites”Sound Bites”
• The New Normal is the increased Pace of Change.
• A Challenging Time, not a Paradigm Shift.• There IS a New Normal with important new
conditions:– Less leverage / Capital adequacy.– Lower risk tolerance.– Changed customer behavior: Need replaces want!– Slow growth.– A sense of the future is less clear and change is
faster.
19
New Normal – “New Normal – “Sound Bites”Sound Bites”
• New Normal is what the market does.• This New Normal is that a lot happened all
at once.• The industry is at a “transformative” place
ending a 20 Year Old Normal of good times.
• Companies now have the opportunity and impetus to alter business models and change unsustainable practices.
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New Normal – “New Normal – “Drivers”Drivers”
• The New Normal is a flat economy with shifts of New Sectors and Old Sectors changing opportunities.
• Consolidation.
• Too much capacity.
• Specialization.
• Discipline.
• Strategic.
21
New Normal – “New Normal – “Drivers”Drivers”
• Realities of running a business, the entire package:– Strategic management– Customer selection– Attention to Value Proposition– Customer centric, focused on service and
solving needs– Risk management
22
New Normal – “New Normal – “Drivers”Drivers”
• Importance of scale and efficiency.
• Importance of deploying technology.
• Public Policy:– Financial Accounting– Financial Reform– State legislation related to practices
23
New Normal – “New Normal – “Customers”Customers”
• Importance of defining the customer.
• Company behavior, a reduced tendency to borrow.
• No more “single source” for customer borrowing.
• Customers see Equipment Finance Company as an outsource of risk.
24
Marketing MattersMarketing Matters
INNOVATIONINNOVATION-ProductProduct-ProcessProcess
EFFICIENCYEFFICIENCY-Low Cost
Provider
CUSTOMERCUSTOMERINTIMACYINTIMACY
-Service-Knowledge-Integration
Michael Porter’s Three Basic Michael Porter’s Three Basic Go To Market StrategiesGo To Market Strategies
25
- Which Strategy is easiest to implement?Which Strategy is easiest to implement?- Which Strategy is easiest to defend?- Which Strategy is easiest to defend?- Which Strategy is hardest to replicate?- Which Strategy is hardest to replicate?
INNOVATIONINNOVATION-ProductProduct-ProcessProcess
EFFICIENCYEFFICIENCY-Low Cost
Provider
CUSTOMERCUSTOMERINTIMACYINTIMACY
-Service-Knowledge-Integration
Michael Porter’s Three Basic Michael Porter’s Three Basic Go To Market StrategiesGo To Market Strategies
26
Genuine ChangeAre We Doing This
TODAY
TOMORROW
FUTURE
OBJECTIVE
FOCUS
PEOPLE
Extend and defendcore business
Build emergingbusinesses
Business maintenance
Bottom lineperformance
Create viableoptions
Top line growth –Capital efficiency
Future potential
Business builders Visionaries
WORK HERE