todd s. greenberg, president tsg advisors, llc [email protected]
TRANSCRIPT
Going Out of Your Mind to Create ValueTodd S. Greenberg, PresidentTSG Advisors, LLC [email protected]
Why Value?
If…“To the market, every business has an
intrinsic value determined by performance.”
Then…“Business performance is the ultimate driver
of economic return and value.”
Value & Enhancement…
Value is the ability of companies to consistently grow cash flows by increasing revenues and improving returns on capital.
Enhancement is the net positive impact of leadership and organization practices on revenue growth and improved returns.
You May Be Here…
The Challenge(s)…
“The task of leaders is to get their people from where they are to where they have not
been.” Henry Kissinger
”the genius of and…” Jack Welch
Leadership + Mindset
Journey to Value…
LEADERSHIP MINDSET/VISION
TEAM
ALIGN
OFFERING
TRANSLATE
ENGAGE
PARTNER
Leadership (In)Tangibles…
Market & strategic clarity Organization alignment
Data useFinancial understanding
Mindset & intent
Business Performance
What is Mindset?
Mindset
Behavior
Formative
Manifest
Autopilot
Mindset in Action…• Brain defaults to easiest…
Is sufficient data in hand?
• Law of overconfidence…Is my assumption accurate?
• Prediction by matching…Is the past still relevant?
• Planning fallacy…Is my forecast reasonable?
TOOLS: ANALYSIS + EXECUTION
Single Financial Period…
Metric 2010
Net Revenue $13,451,040
COGS $9,550,238
COGS % 71%
Gross Profit $3,900,802
Gross Profit% 29%
SG&A $3,362,760
SG&A% 25%
Operating Income $538,042
Operating Income% 4%
Financial Trends…Metric 2010 2011 2012 Trend
Net Revenue $13,451,040 Plateau
COGS $9,550,238 Increase
Gross Profit $3,900,802 Decrease
SG&A $3,362,760 Increase
Operating Income
$538,042 Decrease
Organization Practices…
ValueEnhancement
Drivers
MarketsCustomersProducts
Growth Engine
Technology +Innovation
Structure +Processes
PeopleCulture
OperationalEfficiency
Strategic Clarity +Plan Execution
Non-Financial Value Driver Data…
People
Culture
Customer
Operations
Markets
Strategy
Innovation
Growth Engine
0
5
Execution Funnel…
Low
Valu
e I
mp
act
Hig
h V
alu
e I
mp
act
Low Organization Urgency High Organization Urgency
Value Game Changers
Monitor
Disregard Investigate
Manage the Execution Gap…
Lead Indicators
Optimal Launch
Actual Launch
Time
Response time* is key to value preservation and enhancement.
*Launch as close to changes in Lead Indicators as possible.
Final Thoughts…
• Leadership is (r) evolutionary• Know your mindset and stretch it• Vision gets the ball rolling• Alignment + Translation + Engagement keep
it in play• Data = financial + non-financial elements • Execution = focus + urgency +
accountability
TSG Advisors
• TSG Advisors, LLC collaborates with business owners to improve economic returns and build value in their companies.
• For more information contact:
Todd S. Greenberg, President @ 617.922.2128 [email protected] www.tsgadvisorsllc.com
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