"the alternative to saying no" linking strategy to investments
TRANSCRIPT
David Mann Constant Contact September 9, 2010 [email protected]
The Alternative to “Just Saying No”
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Bean counter Reporter Dislike Sales and Marketing Decisions in a black box Passive role in strategic
planning
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The Finance Role
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Partnership and team oriented
Accountability Sales and Marketing tied to
metrics Focus on critical information Value creator Sharing information
Constant Contact Challenges
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Agenda
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Linking Investments to Strategy
Keys to Success
Constant Contact Reality
Offices
San Fran Loveland
Waltham,
Bedford
Boca
$50
$87
$129
$0
$40
$80
$120
$160
$200
2007 2008 2009 2010E
50+%
Revenue ($Ms)
318
456
625
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010E
Headcount
Product Line
Email Marketing
(Sole Product)
Survey Product
Event Marketing
Product
Nutshell Mail
Acquired
2007 2008 2009 2010
IPO
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Many new people
Challenge to stay ahead of the curve
Tendency to add resources rather than focus on operational efficiency
Decision making by exec team not scalable
Increased complexity and emerging lack of alignment
Insufficient clarity for making resource tradeoffs
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Challenges of High Growth Companies
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Agenda
Constant Contact Challenges
Linking Investments to Strategy
Keys to Success
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An Alternative Approach
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Common framework for investment decisions & budgets linked to strategy
Resource tradeoffs and budgets are defined by company strategy Establish guardrails for resource tradeoffs Drive empowerment and accountability deeper into organization Enable faster and more effective decision making Encourages smart investment decisions
Finance is an invaluable partner helping the organization to make smart investment decisions
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The Framework
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know your final destination…
5 Years Roadmap to achieve vision Consider marketplace Account for competitive differentiation
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Where Are You Going?
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10 Years Future state of org Aspire to achieve Energize employees Consider company assets Address ‘mission’ to achieve vision
Can’t go somewhere unless you
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Translate into Tangible Goals
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1-3 years Foundation for near term investments
Metrics and KPIs Make it tangible
Forces organization alignment
Establishes accountability 9/10/10 12 David Mann – Constant
Contact
Establish Operating Plans
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Roadmap to achieve corporate objectives Addresses
Where are we now? Where do we want to go? How will we get there? How will we measure progress?
Key objectives Implementation plans Resources required Progress measurement guidelines Common organization framework
Output of operating plan
Balance investments to account for operational efficiency, scaling and growth
Provide forum for tradeoff discussion
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Leads into the Budget Process
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Establish designated check-ins
Review budgets and operating plan
Change, adapt plans and reforecast
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Accountability & Re-planning
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Executive “Buy In”
Constant communication to organization
Transparency
Common framework
Forum for tradeoff discussion
Finance team structured to lead and support implementation
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Implementation Requirements
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Agenda
Constant Contact Challenges
Linking Investments to Strategy
Keys to Success
Flexibility
Consider cultural norms
Phased in approach
Process for accountability
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Keys to Success
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Investments align with strategy
Decisions are faster and more flexible
Finance becomes key business partner
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Takeaways
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Feel free to email me at [email protected]