Weather the Storm or Dance in the Rain

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Weather the Storm or Dance in the Rain
Topics

• Get real or get out
• Be different or die
• Turn difference into

November 11, 2009
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Not everyone felt the storm the same way
3
Jobless recovery?
No Net New Jobs for the Next Four or Five Years?
Waterfall effect
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Cheap holidays in the US?
Equipment cost vs US competition
Canadian dollar bottomed out at 61.79 cents US on
Jan. 21, 2002
5
Shrinking markets?
?
6
Print volume no longer on steroids!
MS
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Time to get real
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Do people on steroids have purple eyes?
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How do you decide?
JUMP Matrix
External Situation (Market/growth drivers)
Internal Situation (Capabilities and competencies)
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Getting out
Which excuses have you heard?

• Dont know how to retire
• Buyers offer is too low
• Next year will be better
• Shareholders cant agree
• Hope the kids will buy

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BE DIFFERENT OR DIE
A dozen ways to be different
Dip and tip
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1. Link tools to customer wants
Role of Multichannel Shopping
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1. How tolink tools to customer wants
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1. How tolink tools to customer wants
37.4
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2. Understand the new competitors
Dog eat dog world
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2. How to understand the new competitors
Sell impact not cost!
Cost
High
Low
High
Impact
Low
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3. Understand the market place
Books
Business Cards
Letter
High
Impact
Marketing Collateral
Greeting cards
Low
Cost
Low
High
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3. How to ... understand the market
Every print has a digital solution
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4. Do it faster cheaper
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4. How to do it faster cheaper
Self serve interface
Untouched by human hands
High volume with limited options
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5. Find a way to change specialize
Commercial printer
Security printer
Lottery products and services
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5. How to change specialize
IBM example The big change to Global Tech
Services ( outsourcing)

• Time and champions
• People are the brand
• Align services to fit the customer
• Stick to core strength
• Build alliances - you cannot do it all yourself
• Change and adapt quickly - No annual plans

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6. Help your customer without cutting price
Dust off the inventory
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6. How to help your customer
Dust off the inventory
20 of marketing collateral obsolete Value save
customer
35 duplicated distributionValue eliminate and
save customer
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7. Build your money tree
Get more cash than you need
MS
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7. How to find the new money

• Lenders to the printing industry hit hard
  CIT and GE but BDC now expanding as well as ABLs

BEWARE SPECIAL LOANS OFFICERS!!
Get to know these guys long before you need them
MS
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8. Big is no guarantee

• Are these some of your customers?

MS
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8. How to guarantee getting paid
C. I. A.
Cash in advance
C.Y.A.
MS
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9. Manage the bumps JUMPS
How do you adapt quickly?
MS
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9. How to manage the bumps JUMPS
13 week cash flow helps!
Forces you to really understand the operational
as well as financial side of the business

• Invoicing cycles
• Through put times
• Inventory levels (WIP raw)
• Collection procedures
• Scheduling
• Debt mgt
• Supplier payment terms

MS
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10. Manage the numbers
External Financial Statements ( Focus on
consistency)
High
Internal Management Reporting (Focus on slice
and dice)
Accuracy
Low
Low
High
Usefulness
MS
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10. How to manage the numbers - slice and dice
You give more discounts than you ever imagined
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11. Manage profitability leaks
Supplier to the European Printing Industry (
Revenue 400million)
of Total Company Profits
1990
2006
Smallest 10 of customers
Largest 10 of customers
Largest 10 of customers
Smallest 10 of customers
of Company Profit by Customer Decile ( each
decile 10 of customer base)
Source Profitable Customers by Charles Wilson
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11. How tomanage profitability leaks
Identify the needy customers
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12. PIA ratio studies non financial measures
Look at some of the biggest winners of our day
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12. How to measure it it moves
Change
Critical Success Factors
Strategic Focus
Theme/ Direction
Benchmarks/Milestones
Today
In 3 yrs
gt95 gt80

• Customer does order entry
• Submit content straight to processing

5 5
Self serve
gt70 lt15

• Order entry to invoicing
• Employee wages as sales

5 25
No hands
Process
lt2 lt10

• Re-dos
• Paper

10 20
Reduce waste
Eliminate needy customers
gt10 lt 4days

• Improve ebidta / sales
• Turnaround time

5 2 wks
Best ways to be different
Margins
gt35 gt50

• Average gross margin
• More premium business

25 10
Focus on impact
gt80 gt80

• Limited competition
• High barriers to entry

5 5
New market niche
50 50

• New customers
• Repeat business

30 70
Find volume
Specialize
lt30 days lt10 days

• Aging of receivables
• Inventory

65 days 40 days
Cashflow
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Guess the Price
TURN DIFFERENCE INTO
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1. Most expensive sandwich?
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1. Most expensive sandwich
100 (197 USD) von Essen Platinum Club
Sandwich
Clivedens Waldo Restaurant in Berkshire
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2. Most expensive magazine?

Clue one issue produced
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2. Most expensive magazine

Kohl 10,000 for one issue The United Arab
Emirates only womens lifestyle and fashion
magazine targeted at expatriate Asian women.
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3. Most expensive hair cut?
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3. Most expensive hair cut
16,300London UKHairdresser Stuart Phillips
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4. Most expensive dessert?
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4. Most expensive dessert
25,000 Frozen Haute Chocolate New
YorkSerendipity 3
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5. Most expensive bikini?
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5. Most expensive bikini
30 million
Molly Sims wore this diamond-studded swimwear for
Sports Illustrateds infamous Swimsuit Edition in
2006.
The bikini and necklace is made up of 150 carats
of flawless diamonds.
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How close were you?
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Weather the Storm

• Get going or get out
• Mine your difference
• Turn your difference into GOLD

?
Dance in the Rain
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What are you going to do?
Life isnt about waiting for the storm to pass
Its about learning to dance in the rain