Your own 8% Solution Resource Website is erp.cincom.com/PURLStepscan take to join the elite 8% of companies achieving sustained growth.

A Cincom Manufacturing Transformation GuidebookYour own 8% Solution Resource Website is erp.cincom.com/PURL

T H E N E X T A S C E N T

REALITY1

Most companies fall short of their peak.Of 1,780 Fortune 1000-sized companies researched, only143 achieved top and bottom line growth consistentlyover 12 or more years.* That’s just 8%!

Transformational growth and operational efficiency are a challenge to the aspirations of all senior managers.This is especially true of companies manufacturing advanced, highly engineered products where complexityis a way of life.

But 8% do it. Why not you?

*Conference Executive Board: Achieving Intelligent Growth, 2010

Y2

8 8?8%

WHO IS THE

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Hint: They’re not who you think they are.It’s common to think that the companies that are able toachieve sustainable growth are the companies that havebreakthrough product innovations time and again. That’snot always the case. Many companies are able to createand maintain growth by excelling and innovating in theircore management disciplines. In fact, focusing on core disciplines could be the less risky of the two strategies.Product innovation will always depend on the fickle consumer’s adoption. Continually striving for excellence enables you to maximize your potential every day. Whenyou do have a breakthrough product innovation you’llbe even farther ahead.

Studying this Elite 8%, we’ve identified four areas wherethey have created advantages not related to product innovation. These areas are ones that any company canemulate and implement every day.

1. Operational management

2. Cost and capital management

3. Customer experience

4. Revenue growth processes

4

ERY$$$$

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Not just another management guideThis is a guide to help you achieve the highest performancegoals in your industry. Your responses will take you along apath that is unique for your company. For additional copiesof this guide, go to http://erp.cincom.com/guide.

The freedom to prosperAfter you have completed this management guide wewould welcome the opportunity to assist you in achievingyour greatest aspirations. Contact Lou Washington directlyat lwashington@cincom.com or (513) 612-2218.

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Dis

POTENTIAL? POTENTIAL?

R E A L I T Y ReALiTY

Can you do better?

ROOM FORIMPROVEMENT?

IMPROVEMENTROOM

YourStory

covery

FOR ?

POTENTIAL?REALITY 7

The transformation begins.If you’re not achieving consistent growth, you are notalone. 92% of companies have struggled, especially recently. This last recession has left behind consumptionlevels that make selling complex products a challengefor even the best performers.

Now is the time for you and your team to transform yourcompany into the top 8%. One based on achieving thekind of operational efficiency you are truly, capable ofachieving; not held back by what appear to be insurmountable challenges.

A Transformation Process focuses every person in everydepartment on meeting customer expectations coupledwith company-wide efficiency and effectiveness.

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BUILDING STORYLINES

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Your business looks different when you view it as a story. The ups and downs that got you to this point are uniqueto your firm. But now you want more for your company, your employees and your customers—and yourself.

Draw your story.All great stories are a series of ups and downs. In the subsequent pages you’ll outline and then draw your story.Arrows above the line represent events that lifted you up. Those below pushed you down. Shorter lines are lessimportant than longer lines.

Even complexity can help you grow, assuming you learn the right lessons along the way.

Positive Event 1New Product LaunchDec. 2008

Negative Event 1Recession, Sept. 2008

Negative Event 3Sales VP left company,� Nov. 2010 Negative Event 2

Product RecallJan. 2011

Positive Event 3New Sales Process, Aug. 2011

Positive Event 3Expanded manufacturing facility, Mar. 2012

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WHAT’S GONE RIGHT?List the 5 positive events that have been most instrumental in achieving consistentsuccess and the date it began impacting your company. For example, Apple introduced the first iPad in April 2010. Most companies would consider this asuccessful event.

List them in order of most important to less important and note the date asaccurately as possible.

1. _____________________________________________ Date ___________

2. __________________________________________ Date ___________

3. _______________________________________ Date ___________

4. ____________________________________ Date ___________

5. _________________________________ Date ___________

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WHAT’S GONE WRONG?List 5 negative events that have been most detrimental to consistent success andthe date it began impacting your company. For instance, many companies wouldlist the last recession as beginning in September of 2008, while some companiesfelt the affects much earlier in December of 2007.

List them in order of most important to less important and note the date asaccurately as possible.

1. _____________________________________________ Date ___________

2. __________________________________________ Date ___________

3. _______________________________________ Date ___________

4. ____________________________________ Date ___________

5. _________________________________ Date ___________

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YOUR STORYLINEDraw your story below.

Use the events from pages 6 and 7 to draw your story. Use the associated line segmentlength and years to draw your story. Positive events should extend above the line,negative events below.

Use resources on a special website listed on front cover.

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YOUR STORYNow draw a line connecting the ends of your line segments on page 8. Do theycreate a timeline that is trending up? Or is your company’s story headed in thewrong direction? Is it headed toward your aspirations.

To learn the specific areas that will bring the biggest improvement to your story andhelp you reach your aspirations, read on.

Example:

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REACHING YOURASPIRATIONS On the next four pages rate how much you agree with the presented statementson a scale of 1-5. A 5 represents “strongly agree,” 1 “ strongly disagree. Giveneutral statements a score of 3.

Go with your gut; don’t agonize over the details. It shouldn’t take more that 10minutes to answer. At the bottom of each page add up your total score.

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RATE YOUR OPERATIONALSKILLS AND PROCESSES

___ We are innovation leaders.

___ We are a lean manufacturing business.

___ Within our industry we are the easiest company to do business with.

___ Leading companies in our industry follow the same best practices.

___ We can provide accurate quotes faster than any competitor.

___ We have each year’s operating budget in place on or before the start of fiscal year

___ Our business systems enable us to successfully operate lean manufacturing processes.

___ We never overinvest in G&A areas central to growth and achieving a competitive edge.

___ Avoiding risk is more important than capitalizing on market advantage

___ We have effective processes to root out inefficiencies and redundancies across functional lines.

___ The finance department makes final decisions on annual budgeting.

TOTAL ___

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RATE YOUR COST AND CAPITAL MANAGEMENT SKILLS AND PROCESSES

____ Our capital and technology budgets enhance our ability to compete.

____ It has been at least 10 years since we have had to change our enterprise technology system .

____ The recession has not impacted our ability to hire new talent .

____ We have offered retirement bonuses to improve long term margin improvement.

____ Field-fixes are rarely needed because our products do not meet customer expectations.

____ We spend less than the average time and money to comply with government regulations.

____ Our budget process is aligned with our business strategies.

____ We utilize a two-tier ERP strategy to improve enterprise agility.

____ Financial teams maintain involvement in key projects to better understand key success factors

TOTAL: ____

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RATE YOUR REVENUE GROWTH SKILLS AND PROCESSES

___ Customers like our selling process.

___ We have a comprehensive and well managed database to target best revenue opportunities.

___ Our sales teams rigorously follow a successful selling process.

___ Everyone in our company can deliver our elevator speech consistently.

___ Acquisitions have had a huge impact on our revenue growth.

___ We consistently grow revenue through product innovation.

___ Most of our sales representatives consistently make their annual quota.

___ Marketing and sales work collaboratively together.

___ Everyone in our company considers themselves to be part of the revenue-generating team.

___ Our brand positioning is considered a promise made to customers.

___ Marketing content is focused on customer issues instead of product features.

TOTAL: ___

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RATE YOUR CUSTOMER EXPERIENCE SKILLS AND PROCESSES

___ Our customers are loyal.

___ Our value to price ratio leads our industry.

___ We use research to understand customer preferences.

___ We have systems in place utilizing best practices to respond to customer complaints.

___ Our customer service is rated very high.

___ 90% of our customers refer us to their peers.

___ Our sales teams are an important resource for educating customers.

___ Our customer communications make a positive impact in the market and with our customers.

___ We monitor customer complaints in social media.

TOTAL: ___

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Your Score The Top 8%

Operational Service

Cost Management

Revenue Growth

Customer Skills

Turn back to Page 8 of thisguide and tally the totalnumber of statementsthat you have checkedfor each tag.Tally

Turn to the page with thelowest total first.

For orange,turn to page 21

For green,turn to page 22

For blue,turn to page 23

For red,turn to page 24

If your totals are fairlyeven, don’t fret. There’splenty you can do toachieve the 8% solution for your company. Divide and conquer.

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OPERATIONAL SKILLS AND PROCESSESCompletely understanding your processes and how they impact riskand revenue enables your to make bold decisions to create growth.

Tata SteelUp until a little more than a decade ago, Tata Steel was anything but an innovative company.If they were known for anything, it was secure employment. Being an established steelcompany their processes were less than modern and their workforce huge. They alsotended to be continuously looking inward. But realizing that organic demand for steelin India would be slow, they knew they had to change to be competitive in the globalmarketplace. In the late 1990’s they began a major effort to re-engineer the company.The result was that they transformed from a non-descript national steel supplier into aglobally competitive, low-cost manufacturer of steel. Tata has used the financial strengthand low cost operations in found during the re-engineering process to move successfullyonto the global stage.

Checklist1. __ Build “customer-first mentality” in every department in your company.

2. __ Target precise market segments and learn their issues so your operations canbe developed around customer needs.

3. __ Be part of all significant marketplace conversations.

4. __ Be the easiest company with which to do business.

5. __ Reduce internal barriers to consistent profitable growth.

6. __ Align your business systems and technologies around efficiently serving customers.

7. __ Monitor monthly every factor impacting success and communicate resultsthroughout the business.

COST AND CAPITAL MANAGEMENTSKILLS AND PROCESSESGrowth companies continuously manage operating cost structures,avoiding “cost reduction emergencies” during downturns.

BASFBASF has achieved growth across a broad range of industries by clearly defining itscapabilities, targets, and goals. BASF states that ‘we earn a premium on our cost of capi-tal,’ ‘we help our customers to be more successful,’ ‘we form the best team in the in-dustry.’ This focus has enabled them to carefully consider and align all of theirprocesses, from manufacturing to waste management, creating efficient products andprocesses. The result is that BASF can quickly identify existing or potential areas of in-efficiency. It has led to the creation of integrated and co-located production sites ofchemicals that use the same basic materials. The result is superior material flow, improvedresource allocation and lower costs.

Checklist1. __ Identify areas of where costs overlap and could be combined.

2. __ Make sure that your enterprise system is up to speed to help you identify areasof inefficiency.

3. __ Look for process improvements that can provide annual margin improvementinstead of onetime actions such as early retirement. Bonuses. You can’t cut yourway to the top.

4. __ Make sure that your personnel and enterprise systems are up-to-speed with thelatest compliance regulations. .

5. __ Create a budget process that aligns with your business strategies.

6. __ While enterprise systems are great, make sure that your local operations have thetools they need to maintain agility. Consider a two-tier ERP strategy to improvecapabilities in this arena.

7. __ Create cross-functional teams (including finance )on key projects to ensure thatcritical success factors are understood and met.

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REVENUE GROWTH SKILLS AND PROCESSESStreamlining the sales process and everything it touches is critical to suc-cess. Additionally, look for existing revenue streams yet untapped.

Rolls-RoyceRoll-Royce is a name known globally for quality, both in the air and on the ground. Whatmany don’t realize however is how Rolls-Royce has been a leading business innovator inan area outside of what many people think of as their products. Rolls-Royce still develops,manufactures and sells engines, but how the customer pays has changed dramatically to aservice model. Instead of purchasing a Rolls-Royce “engines,” airlines now buy “power bythe hour.” In fact, today more than 50% of Rolls-Royce revenues and 70% of its profitscome from the TotalCare service business model.

Checklist1. __ Make sure that your selling process reflects how your customers actually want to buy.

2. __ Leverage your big data to create a comprehensive database and target yourbest revenue opportunities.

3. __ Create a system to monitor, evaluate and improve your selling process.

4. __ Create an elevator speech that everyone can deliver consistently.

5. __ Carefully evaluate Acquisitions to determine what impact they will really haveon revenue growth and how to bring everyone up to speed quickly.

6. __ Create an efficient sales training program that scales to maximize feet on the street..

7. __ Look for opportunities to enable marketing and sales to meet and work collabora-tively.

8. __ Deliver a top-down mandate to emphasize the importance that everyone in thecompany considers themselves part of the revenue-generating team.

9. __ Make sure that your brand promise is a promise to customers.

10. __ Create marketing content focused on customer issues, not product features.

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CUSTOMER EXPERIENCE SKILLS AND PROCESSESHow you sell can be as important as what you sell.

Bharti Enterprises – AirtelThere are few areas more challenging from a technological and cost standpoint thantelecommunications in countries such as India and Africa. There is a dire need for services,yet consumers are necessarily extremely price conscious. Bharti came up with a uniqueplan when they realized that to sell at the lowest price in the world they’d have to have thelowest cost in the world. The things that Bharti believe they do better than anyone elserevolve around customers, brand and people management. They shifted activities not inthat core strength to specialist firms in long-term partnership arrangements. This newlow cost business model has enabled them to ‘bring the benefits of mobile telephonyto millions and millions of lower middle class and poor consumers around the worldand a business culture in line with their brand strategy.

Checklist1. __ Build “customer-first mentality” in every department in your company.

2. __ Target precise market segments and learn their issues so your operations canbe developed around customer needs.

3. __ Be part of all significant marketplace conversations.

4. __ Be the easiest company with which to do business.

5. __ Reduce internal barriers to consistent profitable growth.

6. __ Align your business systems and technologies around efficiently serving customers.

7. __ Monitor monthly every factor impacting success and communicate resultsthroughout the business.

CINCOM TRANSFORMATIONSGKN Aerospace Charts Its Course to Operational Excellence With Cincom

Phase I: Cincom’s Enterprise Management• Successful implementation for its St. Louis headquarters in just four and a half months

• 40% reduction in application integration costs

• No disruption to business with products being shipped on the go-live date

• Record sales in first month

• Project payback in three months

• 50% reduction in Total Cost of Ownership (TCO) of enterprise system

Phase II: Cincom’s Enterprise Management with Project Sentinel• $25 million reduction in inventory investment in the first six months

• 42% increase in inventory turns

• 38% reduction in cycle time (planned)

• Improved electronic collaboration with key customers

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Serving the needs of complex manufacturers.For 43 years, Cincom Systems has been helping discretemanufacturers like you to achieve transformationalsuccess. Our understanding of the issues facing discretemanufacturers is so deep, in fact, that Microsoft has recently designated Cincom as one of 15 GlobalIndependent Software Vendor Partners and the onlyone serving complex manufacturing.

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Pulling AheadAfter you have completed this management guide wewould welcome the opportunity to assist you in achievingyour greatest aspirations. Contact Lou Washington directly at lwashington@cincom.com or (513) 612-2218.

THE POWER OF TRANSFORMATION

Cincom, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc. All other trademarks belong to their respective companies.

© 2012 Cincom Systems, Inc.FORM CMUS1204047 09/13Printed in U.S.A. All Rights Reserved

World Headquarters • Cincinnati, OH USA US 1-800-2CINCOM (1-800-224-6266) • International 1-513-612-2769 Fax 1-513-612-2000 • E-mail info@cincom.com • www.cincom.com