Valve Manufacturers Association of America 75th Annual Meeting

October 3-5-2013 The Breakers Palm Beach, Florida

Profitable Top-Line Growth For Industrial Manufacturers

Thursday, October 3rd 3:00—4:30PM Ponce de Leon Ballroom 2 and 3

by

Dr. Jim Hlavacek jhlavacek@corpdevinst.com

Chairman and CEO The Corporate Development Institute, Inc.

Charlotte, North Carolina www.corpdevinst.com 800.322.3540 /704.366.9024

2

Welcome and Good Afternoon!

• Help celebrate VMA’s 75th Anniversary

• Number of our past and current clients are here

• Thank you to:

– Bill Sandler for the invitation

– VMA members for teleconference interviews

– Malena Malone and the VMA Staff

3

Dr. James D. Hlavacek

James D. Hlavacek has more than 35 years of industrial experience and is an internationally recognized executive

educator, businessman, and industrial strategy consultant. He has a unique combination of business experience,

practical publications, presentation skills, and academic credentials. Jim Hlavacek is the founder Managing Director of

Market Driven Management™ and founder, chairman and CEO of The Corporate Development Institute, Inc. based in

Charlotte, North Carolina.

Jim is a frequent speaker and workshop leader at national and global company meetings. He has authored five books including the

best-seller, Market Driven Management, co-authored with B. Charles Ames. His most recent book is Profitable Top-Line Growth for

Industrial Companies. He has written more than forty practical articles on technical marketing, new product development, distribution

policies and business development for high tech and industrial firms that have appeared in leading publications, including five in the

Harvard Business Review.

For twenty years, Dr. Hlavacek was the editor-in-chief of Industrial Marketing Management, the leading international journal of

industrial marketing published in New York and The Netherlands. He is a past vice president and director of the American Marketing

Association, was chairman of the marketing department at Case Western Reserve University and was formerly the director of The

Institute for Executive Education at Wake Forest University. In his earlier career, he was in technical service and sales with Hooker

Chemical, now called OxyChem. Dr. Hlavacek has conducted management development programs at many universities including

Columbia, Penn State, Stanford, Wisconsin, The London Business School, University of Chile and Tokyo University. He has received

numerous teaching awards from industrial and high-tech executives. He has developed and presented more than 1,500 in-house

executive programs to help make technical marketing and technology the entrepreneurial compass and growth vehicle for industrial

firms around the world. About half of his management development growth workshops are conducted outside of North America.

Jim Hlavacek was born in Hinsdale, Illinois. He received a BS degree in Chemistry from Southern Illinois University, an MBA in Industrial

Engineering from Louisiana Tech, and a PhD in Industrial Marketing from the University of Illinois -Urbana-Champaign. Jim is on the

Board of Directors of Nucor Steel, Mueller Systems, Xtek and Madison Electric. He has three adult children and resides with his wife in

Charlotte, North Carolina.

Contact Information:

Email: jhlavacek@corpdevinst.com

Phones: 704-366-9024/800-322-3540 Fax: 704-366-8933

Address: PO Box 470188, Charlotte, NC 28247-0188

Administrative Assistant: Donis Andrews – Email: dandrews@corpdevinst.com

4

Our Industrial Clients—Chemical Firms

5

Our Industrial Clients—Equipment Firms

6

Profitable Top-Line Growth for Industrial Companies

Today’s Topics:

1. VMA Telephone Needs Analysis – Challenges to Profitable Top-Line Growth

2. The Profitable Growth Diagnostic – Timken Example

3. Realities of Today’s Valve Markets

4. Four Common Company Growth Stages

5. Ten Steps and Best Practices to Create More Profitable Customer Value

7

Diverse VMA Membership

• Large, medium and smaller sized companies

• Market segments and applications served

• Wide product range – valves, actuators and controls

• Commodity, semi-specialty, and custom engineered products/smart solutions

• Public, private and private equity ownership

• Global, multinational and regional footprints

8

Needs Analysis: Telephone Interviews with VMA Members

• Cross-section of VMA members

• One hour teleconference interviews

• One question for each VMA member to think about before each teleconference was:

“What are some issues you and VMA members are facing that are challenging profitable top-line growth?”

9

VMA Members Teleconference Responses to the Question

Analyzing responses of challenges to profitable top-line growth:

• 28-30 different responses from the interviews

• Content analysis revealed six common thread areas

• Any one of the six common challenges could cause a VMA member to lose sleep

• Let’s look at the six VMA common thread challenges

10

Common Thread VMA Profitable Growth Challenges

1. Globalization and increased imports/exports

2. Users want more performance, safety and value

3. Smarter customers, distributors and integrators

4. Rapidly changing product and process technology

5. New requirements, materials and solutions

6. More industry and government regulations - - and currency fluctuations

Let’s now look at how to face these challenges…………….

11

Enablers of Globalization

1. English is the world language

2. Telephone

3. Jet aircraft

4. Barcodes

5. Shipping containers

6. Computers and IT

7. The Internet

The world is a global village!

12

Realities of Today’s Valve Markets

1. Smarter and more demanding regional and global customers – In terms of product performance, cost of ownership, better service and they resist price increases even if they are flourishing.

2. Cost of producing any product must trend downward – Over the long term it is essential to be a lower cost supplier or profit margins will erode.

3. Advancing technology is shortening product and process life cycles – Therefore increasing the risk of pay back on the product development and automation investments to simply keep pace.

4. Complacency with existing products and services – Understanding customers changing unmet product/service needs is too often met with no urgency, denial and failure to obsolete your existing products.

5. Lack of focus in R&D and sales – Failure to target narrow market applications to focus product development, application engineers and salespeople with the right skills, training and incentives inhibit protecting and growing market positions.

13

Realities of Today’s Valve Markets

6. Market maturity is a mind-set – Most so called “mature markets” and commodity products can be revived with demonstrably better new products and/or services. Product and process technological change doesn’t stop in slow growth markets; in fact it intensifies.

7. Compensation drives behavior – Show me how managers are paid and I’ll show you how they behave. Are they paid for profitable top-line growth or primarily for the bottom line?

8. Successful long term industrial companies learn about unmet needs in the entire value chain – Do you regularly elicit ideas directly from all members of the value chain with no proxies?

9. Commercial and technical people have been trained on how to conduct in-depth technical interviews – with OEMs, distributors, system integrators, end-users and other lead members in the value chain.

10. Successful long term companies are learning organizations –Knowledgeable employees working smarter and safer may be your only sustainable advantage. Are your training funds more vulnerable than a trade show budget?

14

Lessons from a World Class U.S. Manufacturer

• Replaced International Harvester as the leader with better products and superior dealer uptime service

• Mostly organic growth - - license/acquire small new technology for agriculture and construction business

• Dual emphasis on product and process innovation • Large equipment has more computing power than the

first space shuttle (GPS, software, and joy sticks) • CEO said their two greatest competitive advantages are:

1. To continually learn faster than our competition 2. To continually improve a great dealer partnership network

Deere’s Mission is “To continually improve the productivity, safety and uptime of our customer’s

equipment with a win3 value propositions.”

15

The Needed Transformation to Meet New Realities

1. Move from Inside-Out Thinking and Actions

2. To Outside-In Thinking and Actions

Let’s now identify the necessary cultural, mind-set and skill-set changes…………………….

16

How an Inside-Out Industrial Company Operates

• View their markets too broadly, classifying them by product types and sizes rather than by user requirements, applications and emerging and unmet needs.

• Their thinking and actions tend to be dominated by existing product and process features that are blindly assumed to provide an unquestionable competitive advantage.

• Most are not intimate enough with their customers across the value chain to tailor a product/service package that provides greater value.

• Many are too inward looking - - complacent, arrogant, bureaucratic and believe their own propaganda.

17

How an Inside-Out Industrial Company Operates

Continued:

• Often make sweeping generalizations about competitors, but don’t have the facts to make side-by-side comparisons of competitor features, performance, life cycle costs or market positions.

• Tend to be risk adverse and defensive of the status quo making them leery of anything that challenges their culture.

• Key functions, especially R&D, tend to operate independently, without being aligned to the requirements of target markets or applications.

• Marketing and sales programs revolve around aggressive efforts to get short term orders rather than understanding and solving customer problems and learning from lead users.

18

How an Outside-In Industrial Company Operates Around the 5 C’s

There is nothing magical about the way an outside-in or market driven company operates, but the contrasts between such a company and inside-out companies are dramatic.

1. All the thinking and actions of a market driven company begin with a complete understanding of the applications and requirements of specific Customer Groups, market segments or applications.

2. They study and document Competitor performance to determine relative strengths and weaknesses in each market niche or application.

3. They objectively compare their existing Capabilities with changing market requirements and are willing to make the changes necessary to serve attractive market segments while forgoing or withdrawing from others.

4. They constantly strive to improve their Costs and/or product performance so they can provide their target customers and owners with greater value.

5. They work together as Cross-Functional teams to ensure that all key activities, priorities, and decisions are synchronized to serve target markets or application needs.

19

Common Industrial Company Growth Stages

• Many organizations have a life cycle that follows these 4 Stages - - What happened to Westinghouse, GM, Kodak, Sears Roebuck and others?

• How do you get a drifting business unit in Stages 3 or 4 back to Stage 1 or 2?

Four Common Stages:

1. Entrepreneurial (Outside-In)

2. Rapid Growth Years

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

3. Slow or No Growth (Inside-Out)

4. Decline

20

Common Industrial Growth Stages 1. Entrepreneurial (Outside-In)

A. A technical founder sees a niche opportunity and focuses on it better than anyone else.

B. The organization is informal, technically disciplined, Spartan surroundings and everyone operates with a collaborative team spirit.

C. New ideas flow freely, nothing is sacred.

D. The immediate customer and downstream users are seen as the boss.

E. Everyone acts and responds with a passion and real sense of urgency.

21

A. More products are added, new markets and countries entered.

B. More investment in plants, equipment, fixed cost and overhead.

C. More structure, policies, controls and organizational levels added.

D. Mergers, acquisitions and cultural “integrations” occur.

E. Effective customer solutions and prompt service take a backseat to meeting sales quotas and getting products shipped on time.

F. Department isolation, more form filling and bureaucracy creeps in.

Common Industrial Growth Stages 2. Rapid Growth Years (Outside-In)

22

A. Volume objectives take priority to cover fixed costs.

B. Smaller growth opportunities are overlooked or disregarded; little or no customer or product passion.

C. Margins and market positions slip, become risk adverse.

D. Bureaucracy expands; response and cycle times slow.

E. Aggressive self-starters are not hired, leave, develop other interests and mediocrity is tolerated.

F. Operating units pursue reorganizations, head-count reductions, buy and sell businesses, but don’t address their root cause deficiencies.

Common Industrial Growth Stages 3. Slow or No Growth (Inside-Out)

23

A. Obsolete products, plants and technology.

B. Under-pricing to maintain sales, plant utilization and market share.

C. Mediocrity and demoralization permeate the entire organization.

D. Inadequate margins and declining productivity.

E. Financial engineering by management and the banks.

F. The vultures circle as “options” are explored.

Common Industrial Growth Stages 4. Decline (Inside-Out)

24

Relearning How to Organically Grow

• How do you take a company or business unit in the previous maturity or decline stages and rejuvenate it to become a profitable growth business?

• You can make a business look good in the short term, but you must generate profitable top-line growth or the business will go backwards.

• Great industrial companies don’t just buy, shrink and sell businesses - - they relentlessly build and improve the business from within to increase customer value and then shareholder value.

25

Relearning How to Organically Grow

“We have had little or insufficient top-line growth in our existing businesses over the past years. We are not as entrepreneurial as we once were, and there is a lack of urgency. Our people don’t think out of the box. We had two pricey consulting firms here. They sent in some young MBAs from fancy business schools, who told us some very similar things – raise prices, cut costs, reorganize, and, if that didn’t work, sell the business(es) and redeploy the assets. Some of our acquisitions over the past years have masked our lack of organic growth. A couple of the acquisitions that the consultants and investment bankers advised us to buy were disasters. These acquisitions took a lot of time and resources away from our core businesses. If the stock analysts understood our stagnant situation, our stock price would drop like a boat anchor.”

When I arrive at headquarters to meet the CEO or top management leadership team the concerns usually sound like the following:

26

Summary of Moving From Inside-Out to Outside-In Thinking and Actions

Copyright 2013 by Market Driven Management and The Corporate Development Institute, Inc. ALL RIGHTS RESERVED. No part may be reproduced in any form or by any electronic or mechanical means without permission in writing from James D. Hlavacek at jhlavacek@corpdevinst.com

Broad Industries/ Channels

Inside-Out Planning & Responses

Current State Model • Push What We Like to Make and Sell

• Focus on Volume and Me-Too Solutions

• Target Markets and Customer Unmet Needs are

Not Embedded in All Functions of the Business

• Cost Plus Pricing—No Value-In-Use Pricing

Existing

Capabilities,

Technology

Products &

Solutions

OEM

Customers

& Distributors

Stated Needs

Your Company

Inside-Out Thinking (Current State)

Narrow Markets/

Applications

Outside-In Front-End Planning

Unmet

Ideas & Needs

in the

Value Chain VS.

Competitive

Offerings

Existing

and New

Capabilities,

Technologies,

Products and

Solutions

Future State Model • Narrow Focus on Target Applications/Customers

• Passionately Learn the Value Chain’s Stated &

Unarticulated Needs From User Field Interviews

• Design for Validated Important Unmet Needs

• Develop Sound Win/Win Value Propositions

1

2

Inside-Out Responses

Your Company

Outside-In Thinking (Future State)

27

Assessing Your Profitable Growth Capabilities

• It is important to assess each business unit’s capabilities for profitable top-line growth.

• In my book, Profitable Top-Line Growth for Industrial Companies, there is a 14 point growth diagnostic.

• This growth diagnostic was developed to determine whether a business unit has the right capabilities to accelerate profitable top-line growth.

• The 14 point rating scale has two extremes. The left side describes the worst case situations that represents growth creation liabilities. The right side addresses the ideal capabilities for accelerating profitable top-line growth and innovation.

28

Assessing Your Profitable Growth Capabilities

Growth Diagnostic in the Book (cont.)

• The growth diagnostic has been developed with managers from a wide range of industrial companies to pinpoint areas for improvement.

• The growth diagnostic identifies which of 14 factors inhibit achieving value creation and profitable growth.

• More importantly, the diagnostic helps establish a reference point that can track what progress has been made after in-house training programs.

29

Market Driven Profitable Growth Diagnostic

Using the Growth Diagnostic:

1. Helps focus corrective actions on 4 areas needing the most improvement

2. Helps develop the appropriate improvement programs in the 4 areas

See the following Timken Company example……

30

Four Areas For Improvement: #1 – Market/Customer Facts

– Intimate day in the life customer interviews are needed

– First learn about unmet needs of end-users and distributors as “hooks” before meeting with OEMs

– Have technical/commercial teams trained in observing, shadowing and traveling to end-users and other value chain members to discover stated and unarticulated customer needs

Market Driven Profitable Growth Diagnostic Example

31

Four Areas For Improvement:

#2 – Market Segmentation

– Need to define markets or applications, not industries

– Need to determine how our OEM customers’ segment

– Need to determine which competitors focus on which segments

– Need to learn about each segments value chain and then interview lead users across the value chain to the end-users (accept no proxies)

Market Driven Profitable Growth Diagnostic Example

32

Four Areas For Improvement:

#10 – New Products

– Need cross-functional new product teams with P&Ls

– Need more firm milestones/deadlines for all projects

– Need to think of features then benefits and resulting economic value customers receive

– Need metrics and incentives to reduce time to market

– Need to develop value propositions that document money saved or made within each segment’s value chain

Market Driven Profitable Growth Diagnostic

Example

33

Four Areas For Improvement: #13 – Cross-Functional Planning

– Need more profit centers and accountability

– Need business plans (not just a marketing plan) for the most attractive segments/applications and growth opportunities

– Need cross-functionally developed business plans

– Need better technical/commercial close coupling in developing the front-end business case - - no hand offs

Market Driven Profitable Growth Diagnostic

Example

34

TIMKEN

J. W. Griffith WORLDWIDE LEADER IN BEARINGS AND STEEL

President and Chief Operating Officer

March 6, 2009

Dr. James D. Hlavacek

Managing Director

Market Driven Management

2116 Sutton Springs Road

Charlotte, North Carolina 28226

Dear Jim:

Great to hear from you and to see your continued interest in The Timken Company. As you can see, the work done

while you were here has spawned a revolution that will truly create a new company.

I am flattered by your interest in the quote and am pleased to have it in your book. The quote is fine "as is" other

than one apparent typo, which is corrected on the attached copy.

I will pass along your letter and information on the sessions to my business leaders for them to follow up as

appropriate.

Sincerely,

Jim

cmb/2009jwg.doc

Attachment

THE TIMKEN COMPANY 1835 Dueber Avenue, S.W. Telephone: (330) 471-6399 Canton, Ohio 44706-2798 U.S.A. Facsimile: (330) 471-4041

Result of the Growth Diagnostic Workshops

35

Going Beyond the Growth Diagnostic

• Once you have improved four of the 14 diagnostic areas, as Timken did, you must continually bring more value to customers to accelerate profitable top-line growth.

• There are 10 proven steps and “how to” best practices to continually create more value for industrial customers.

• Let’s now examine each of these 10 steps and best practices to accelerate profitable top-line growth…..

36

Ten Steps in The Industrial Value Creation Process

Step 1: Technical/commercial teams must define narrow market

segments/applications and identify lead companies and information rich

contacts. – including end-users, dealers, system integrators and OEMs throughout each value chain. Then observe and interview users at their workplaces to discover and validate stated , unarticulated and emerging unmet needs for a front-end business case.

Best Practices: A. Define narrow and attractive market segment/applications for focusing

B. Identify the value chain users in each narrow market/segment application

C. Get beyond the often vague voice of the customer (VOC), improve job outcomes

D. Get immersed in the end-users’ workplaces, value chain and their OEM’s operations

E. Learn the application’s language/lingo and job place pains

F. Job shadow and interview users in their workplaces, not in a conference room

G. Identify and verify stated and unarticulated important unmet needs

37

Step 2: Collaborate internally and externally to design proprietary

solutions with a business strategy, IP and a sound front-end business case – Each new feature/benefit that was identified and validated. Features that don’t provide value should be dropped - - e.g. that customers don’t need or won’t pay for.

Best Practices:

A. Identify important New Features Then Benefits and Resulting Economic Value

B. Collaborate internally within your Company to develop better solutions

C. Collaborate externally with suppliers, and 3rd parties to develop better solutions

D. Develop and protect proprietary trade secrets, patents and especially trademarks

E. Paper patents or “patents that matter” at John Deere

F. Understand the importance of filing, maintenance and enforcement of IP for patents, brands and especially for trademarks

Ten Steps in The Industrial Value Creation Process

38

Step 3: Use prototypes/samples and side-by-side lab and field trial

comparisons to document – with data, how much better each new feature/benefit is in percentages versus the existing Best Known Solution (BKS).

Best Practices:

A. Agree to the best BKS and the economic value it provides customers

B. Develop prototypes or samples to test new features with customers

C. Conduct accelerated laboratory tests and manage field trials with customers

D. Document how your new solution is better on each feature than the BKS

E. The best new product wrongly applied is usually a “failure” - - be at the field trials

Ten Steps in The Industrial Value Creation Process

39

Step 4: Convert the feature/benefit using value calculators – Convert percentages to money made and/or saved; reduced downtime costs, life cycle costs, increased performance, longer product life, less maintenance, better ROI, more sales and profit generated and/or productivity improvements from your new solution as understood by your value chain members.

Best Practices: A. Convert each feature/benefit from percentages to the cost savings and to the

added sales revenue customers receive

B. Reduced downtime is often a huge customer cost or savings

C. Calculate the total economic savings in the immediate and long term

D. All value assigned must be validated throughout the entire value chain

Ten Steps in The Industrial Value Creation Process

40

Step 5: Widely communicate the total value users receive for

internal and external launches – in a documented superior value proposition, technical papers, application and job stories, testimonials, literature, training workshops, websites, distributor training and trade shows.

Best Practices: A. Develop job stories in each application that documents the added value

B. Develop testimonials and reference sites as additional sales tools

C. Internally launch the new solutions with sales, technical service and distributors

D. Leverage favorable ‘word of mouth’ references

E. Websites are needed in the more common languages

F. Externally launch new products as if they were perishable fruit

Ten Steps in The Industrial Value Creation Process

41

Step 6: Value pricing and value-in-use selling – and share the economic

gains with each appropriate value chain party, including your company’s higher gross margins. Best Practices:

A. Share the added value with appropriate parties in the value chain – Win3

B. Capture a higher selling price for your higher value solution

C. Don’t leave money on the table when pricing demonstrably better new products

D. Implement value-in-use pricing for better new products, not cost-plus pricing

E. Do your sales, technical or application people have the right skills, tools, and data to manage field trials and document the value-in-use?

Ten Steps in The Industrial Value Creation Process

42

Step 6: Value Pricing and Value Selling (cont.)

Cost-Plus Pricing VS. Value Based Pricing

Develop New

Products

Know Your Costs

Set Prices

Target Market

Segments(?)

Value Received?

Narrowly Defined Target

Segment’s Important

Unmet Needs

Develop Demonstrably

Better Proprietary Solutions

Documented Value

Propositions for

End-Users, OEMs

and/or Each Value Chain

Group

Know Your Costs

Value Price to

End-Users & OEMs and/or Each

Value Chain Group

1. Cost-Plus Pricing (Inside-Out)

2. Value Based Pricing (Outside-In)

+

43

Step 7: Communicate the documented total value to value chain

members and multiple buying influences – including technical, operations, maintenance, operators, sales, marketing and P&L managers before procurement people.

Best Practices: A. Identify customer adopters who are 1) technology enthusiasts, 2) early visionaries,

3) practical majority and 4) skeptical late laggards

B. Demonstrate and communicate the total value received to the buying influences

C. Be cautious when communicating total value to procurement managers

D. Develop internal sponsors for adopting the added value new solution

E. Get initial sample orders, commitments or firm purchase orders

F. Migrate customers to higher value solutions

Ten Steps in The Industrial Value Creation Process

44

Step 8: Great companies treasure “long accident free periods” and

realize that improved safety sells new products – Safer product design and operator training must be coupled - -go from safe, safer to safest in your industry. Safety drivers include Ralph Nader’s book, “Unsafe at Any Speed”, Tylenol product recalls, 3 Mile Island, Chernobyl/Japan, Gulf Coast/Deepwater Horizon, BP/Texas City, and recent cruise ship accidents, all significantly raised the bar for safety.

Best Practices: A. Two best practice safety driven companies – Volvo and DuPont B. Move to elimination and prevention in product design and safety training C. Benchmark with countries/states that have the toughest safety and environmental

regulations; Germany, Australia, California D.Benchmark with industries/products with severe safety demands - - e.g. lift trucks,

cranes, aerospace, hospitals and medical manufacturers E. Peer group pressure helps – widely publicize internally, monkey on the back, and BOD F. CEO or Chairman recognition awards are needed G.Safety must me a strong part of your culture, not just a theme or slogan

Ten Steps in The Industrial Value Creation Process

45

Step 9: Attracting and retaining the right people – Some companies pay

lip service to how important employees are - - their actions often show otherwise. Great industrial companies invest a lot of time attracting, coaching and challenging high performers and spend little on head hunters.

Best Practices: A. Lifelong employment at one employer may be a thing of the past

B. The rapid job hopping problem in Asia and elsewhere

C. Most industrial companies do not have enough qualified people to fill open positions

D. Organizations that are not growing have fewer challenging positions

E. Conduct better exit interviews and wide sharing of results

F. The rotten apple problem – a wrong hire – your worst and best options

G. Good people leave because of the wrong boss – not the whole company

H. Nine to five clock watchers wait – high performing talent does not wait

Ten Steps in The Industrial Value Creation Process

46

Step 10: Create a learning organization to sustain profitable growth – Learning includes cultural change, new mind sets, skill sets, better safety, speaking up, and objectively learning from new product development mistakes. What is your training/learning budget in good and slower times? Top-down leadership styles and command and control organizations have difficulty with the more bottoms up culture required in today’s knowledge organizations. John Deere’s mission to learn faster than competitors as a competitive advantage is progressive, but requires an open, honest and more bottom-up culture. Employee ignorance is always an option - and the highest cost.

Best Practices: A. Top and general management must be passionate about training and learning as a

way to sustain high performance and remove the bad old ways. B. Top and general management must participate in the needs analysis and open the

company to an outside-in search for the best training practices from many fast changing industries - - software, electronics and medical.

C. Top and general management must be continually involved in training to attract, mentor, retain and challenge the best people.

D. Eight tailored practical training workshops that we provide across the globe for industrial companies who are or desire to be learning organizations.

Ten Steps in The Industrial Value Creation Process

47

Our Popular In-House Workshops and Speaking Topics

1. How Industrial Project Teams Become Market Driven

2. The Art of Technical Customer Interviews for the Front-End Business Case: Discovering Stated and Unstated Important Needs

3. What Sound Marketing Should Be in an Industrial Company

4. Technical Marketing for Engineers

5. Working Better with Industrial Distributor Partners

6. Objectively Learning From Your New Product Mistakes

7. Value Pricing and Value Selling for Industrial Firms

8. Launching new Industrial Products as if They Were Perishable Fruit

Most workshops are 2 ½ days, conducted by Dr. Jim Hlavacek, and all are offered with a satisfaction money back guarantee.

48

Our Process for High Impact Growth Workshops and Learning

Introductory Visit

Step 1: Needs Analysis

Step 2: Team Preparation

Step 3: 3 Day Workshop

• Dr. Jim Hlavacek signs a non-disclosure agreement with your company (NDA)

• Dr. Hlavacek initially meets with senior executives—the leadership team, CEO, COO, CTO, division GMs, marketing and technical managers to describe the process and benefits

• Only investment for clients is Dr. Hlavacek’s travel expenses for the introductory visit

• No hand-offs from Dr. Hlavacek

• Dr. Jim Hlavacek conducts face-to-face interviews with GMs, business unit leaders and technical/ commercial managers

• Dr. Hlavacek selects needed modules and prereading materials

• Dr. Hlavacek presents the proposed in-house workshop to the leadership team for a go or no go

• Company growth target areas are identified and the corresponding cross-functional teams are selected for the pilot workshop

• The company selects a leader for each target project or growth opportunity

• Workshop prereadings are distributed to the workshop participants five weeks before the 3 day workshop

• Dr. Hlavacek conducts the satisfaction guaranteed in-house workshop

• First draft of a new product front-end business case for a new product or growth opportunity is presented by each team to top management at the end of the workshop

• Recommended follow-up dates with each project team including:

– Joint end-user (customer’s customers) distributors and OEM value chain lead customer interviews

– Project team reviews

Copyright 2013 by Market Driven Management and The Corporate Development Institute, Inc. ALL RIGHTS RESERVED. No part may be reproduced in any form or by any electronic or mechanical means without permission in writing from James D. Hlavacek.

49

In Summary:

• Continually provide more value to customers to accelerate Profitable Top-Line Growth!

• Let’s Celebrate the VMA’s 75th Anniversary!

• Thank You!

• Any Questions?

www.corpdevinst.com Phones: 800.322.3540 or 704.366.9024