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Title: Business


1
Business Industry Fall 2004 ConferencePalm
Springs, CALeadership Forum Driving
Organizational Change Performance
Improvement Presented By
Susan M. Hinds, CPA, MBACEO President
Strategic
Management Harmony, LLC
2
Agenda
  • Background Introductions
  • Leadership Competency Model Elements
  • Breakout Sessions
  • Exercises
  • 2 Breaks
  • Lunch at Noon
  • Facilities Questions?

3
Meet Greet Session
  • Name
  • Company
  • Title
  • Learning Objectives
  • On a separate note card, 2 statements that are
    true and one that is untrue about you (save these
    for later)

4

Susans Experience
  • Leadership Experience 20 years
  • No. of Projects 145
  • No. of Mission Critical Projects 87 (60 of
    projects)
  • Project Types Strategy, Operations, HR,
    Finance, Infrastructure, IT, Value Chain
    Optimization
  • Degree of Risk Medium to High
  • Business Turnaround
  • Growth Expansion of Business
  • Kaizen Existing Process or Infrastructure
  • Breakthrough Thinking
  • Descriptions of Organizations where Leadership
    was Performed
  • Fortune 100, private publicly held, start-ups,
    non-profit, regulatory, professional
  • Industries Manufacturing (Automotive,
    Publishing, Toys), Banking, Consulting

5
The Employee Dilemma is Growing!!!
  • According to research performed by the working
    council for Chief Financial Officers, a growing
    concern exists with the skills gap with employees

Strategic Oriented
GAP
Transaction Oriented
6
Business Needs are Changing with Technology
Shift to Knowledge Worker Strategic Thinking

Decision-Making Support
Strategic Thinking Capability
Actual Results Of Decision
Human Capability
Decision-Making T/M Action
Transparency
Converted to Knowledge
Converted to Information
Raw Data
Demands are Real-Time
Time involved in Decision-Making Process
7
What Is the Key Issue???
  • As the North American market grows to fill in
    the holes, leadership talent, not technical
    skills will be crucial. Now is the time to
    develop that leadership talent.

Corporate Business Need
Knowledge
Strategic Leadership
Transaction Processing
Data
8
So What Does This Mean
  • The demographics of the world are changing. In
    the near future, many companies like yours will
    be challenged with finding leaders as the baby
    boomers retire internal growth needs exceed
    pipeline talent
  • The companies deemed successful in recruiting,
    will seek a diverse leadership team that is
    representative of the customer employee base
  • This will require new leadership skills that are
    focused on harmonic relationships, seeking
    understanding, collaboration consensus style

9
The Challenge is How to Transform?
TRADITIONAL
INNOVATIVE
  • Transaction Processing
  • Control Oriented Role
  • Technical Competence
  • Analytical Decision Support
  • Strategic Role
  • Soft Skills

10

What does this Notion of Manager vs. Leader mean?
TRANSACTIONAL
TRANSFORMING
Traditional manager who bosses people around and
tells them what to do
Transformational leader who is collaborative,
coaches and develops people to full potential
11
Managers Transformed to Leaders Utilizing Soft
Skill Development
-Self-Awareness -Stress Mgmt. -Accountability -Int
egrity
Interviews by the Corporate Executive Board
repeatedly emphasize the importance of soft
skill development
-Change Mgmt. -Motivation -Empathy -Service
Oriented
-Strategic Vision -Risk Mgmt. -Flexibility -Negoti
ations
Soft Skills
-Communication -Influencing -Conflict
Mgmt. -Collaboration
12
Leadership Competency Model
Focus on Soft Skills
Develops Future Leaders
13
Self-Assessment Survey
  • Rank yourself on a scale of 1-5 by Element
  • Submit the form to Neal
  • Neal will tally the results share team averages

14
Acting Strategically with Vision
Creating and communicating a compelling vision of
the future, and translating it into clear
strategies and specific priorities
15

It all Begins with a Vision
  • A vision statement answers the question- What is
    our business and what will it be?
  • Sets meaningful direction
  • Establishes a strong organizational identity

Mary Had a Little Lamb
Thomas Edison The Great Inventor
16

Then a Mission
  • A mission statement answers the question- Who we
    are, what we do, and where we are headed?
  • Prepares the company for the future
  • Establishes long-term direction
  • Indicates the companys intent to stake out a
    position

17

Then Action Based on Objectives

Objectives serves as yardsticks for tracking an
organizations performance and progress.
  • In Edisons Case
  • Jan 78 established the Edison Speaking
    Phonograph Co. sold his rights for 20
  • Oct 87 founded Edison Phonograph Co.
  • Market the New Phonograph
  • Shortly after in May 88 he introduced the
    Improved Phonograph
  • Followed by the Perfected Phonograph

18

DOCTOR JIM SAYS

Strategy is a process of profitably matching
your constrained internal resources with the
constantly changing external market forces
Dr. Jim Schrager
Clinical Professor of Entrepreneurship
Strategic Mgmt. University of Chicago
Graduate School of Business
19

STRATEGIC INTENT IS LIKE A MARATHON RUN IN
400-METER SPRINTS. NO ONE KNOWS WHAT THE
TERRAIN WILL LOOK LIKE AT MILE 26, SO THE ROLE
OF TOP MANAGEMENT IS TO FOCUS THE
ORGANIZATIONS ATTENTION ON THE GROUND TO BE
COVERED IN THE NEXT 400 METERS. .. GARY
HAMEL C.K. PRAHALAD

EXTERNAL ANALYSIS
STRATEGIC OPTIONS
STRATEGIC INTENT
INTERNAL ANALYSIS
STRATEGIC EXECUTION PLAN
20

Strategic Planning Model
EXTERNAL ANALYSIS (SWOT)
INTERNAL ANALYSIS (SWOT)

INDUSTRY FORCES
CORE COMPETENCY
COMPETITIVE ADVANTAGES
MARKET SEGMENTATION
COMPETITIVE POSITIONING
CORPORATE STRATEGY
FUNCTIONAL STRATEGY
ENVIRONMENT FACTORS
STRATEGIC PLANNING FOCUS
21

Strategy Framework
External
Internal
  • Distinctive
  • Competence
  • Capabilities
  • Financial
  • Managerial
  • Functional
  • Organizational
  • Reputation
  • History
  • Environmental
  • Conditions/Trends
  • Economic
  • Technical
  • Physical
  • Customer
  • Competition
  • Political/Social
  • National/Global
  • Suppliers

Consideration of all combinations

Evaluation to determine Best match- opportunity
resource capability
Choice of products Markets
  • Corporate Resources
  • Extending or
  • constraining opportunity
  • Identify strengths weaknesses
  • Programs for increasing
  • capability or kaizen
  • Opportunities
  • Risks
  • Identify
  • Investigate
  • Risk Assessment

22

Internal Analysis Identify Core Competency
HIGHER PROFITS
  • RESOURCES
  • FINANCIAL
  • MANPOWER
  • EQUIPMENT
  • SUPERIOR
  • COST
  • EFFICIENCY
  • QUALITY
  • INNOVATION
  • CUSTOMER
  • RESPONSIVE
  • HUMAN TALENT

LOW COST
CORE COMPENTENCY
DIFFERENTIATE
  • CAPABILITIES
  • CULTURE
  • STRUCTURE
  • CORE PROCESS

23

Developing Operations Strategies
Corporate Objectives
Requirements To Meet Competition
Functional Areas
Operations Quality Marketing Accounting
Finance Engineering IT Human Resources Other

Business Strategies
Business Plan
Strengths Weaknesses
Marketing Plan
Operations Objectives
Finance Plan
Production Plan
Operations Strategies
Other Plans
Long-Range Decisions- Product, Process, Facilities
-Positioning the Production System -
Technology Process Development -Focus
of Factories or Service Facilities - Resource
Allocation to Alternatives -Product/Service
Design and Development Facility Planning
Capacity, Location, Layout
24

Annual Strategy Overview
STRATEGY MANAGEMENT
CONT. IMPROVEMENT (BUSINESS FUNDAMENTALS)
BREAKTHROUGH (INNOVATION MGMT.)

COMPANY WIDE PROCESS REDESIGN SOLVING CHRONIC
PROBLEMS
ISOLATED PROCESS IMPROVEMENTS SOLVING FUNCTIONAL
PROBLEMS
  • TRANSLATE LONG-TERM VISION
  • INTO STRATEGIC PRIORITY
  • RESOURCE ALLOCATION
  • PROJECT PLAN/LEADER
  • TRACK PROGRESS ADJUST
  • IDENTIFY CUSTOMER NEEDS
  • BENCHMARK COMPETITION
  • MAP KEY PROCESSES
  • CONTROL IMPROVE
  • STANDARDIZE TO HOLD GAINS

DRAMATICALLY IMPROVE IN RELATION TO INDUSTRY
IMPROVE IN RELATION TO STANDARD PRACTICE
25

Breakout Exercise

1) Identify one Breakthrough Idea and one
Continuous Improvement idea for your company 2)
Distinguish the difference between the two 3)
Discuss the difference between breakthrough vs.
continuous improvement with your table
26
Driving Results - Orientation Performance
Setting and pursuing aggressive goals,
demonstrating a strong commitment to
organizational success, and marshalling resources
to accomplish projects.
27

Setting and Pursuing Your Goals

STUDY THE SITUATION

CONTINUOUS IMPROVEMENT
FOCUS
PARTICIPATION
LINKAGE
MEANS AND MEASURES
28

How To Improve Organizational Success?Focused
Continuous Improvement
CLARIFY VISION
LINKED TO CORPORATE VISION

SELECT THE VITAL FEW BREAKTHOUGHS
BU MID-TERM PLAN 3 KEY OBJECTIVES CONCENTRATED EFF
ORT
DEPLOY OBJECTIVES IN ALIGNMENT
ANNUAL PLANNING CYCLE CAPABILITY FOCUS
PLAN
DO
  • EVALUATE
  • PERFORMANCE
  • 90 DAY REPORTS
  • ADJUST PLANS

PROJECT PLANS KPIs VISUAL BOARD
ACT
CHECK
29


How to Link Results to Incentives
LINKED MANAGEMENT SYSTEMS CREATE A LEARING
ORGANIZATION
STRATEGIC INTENT

RELIABLE EXECUTION
ACHIEVE CONSENSUS INTERDEPARTMENTAL LINKAGES,
PROCESS FOCUS FINANCIALS/ COST REDUCTIONS
CRITICAL TO SUCCESS
PLANNED RESULTS
6 MO. PERF REVIEWS BONUSES LINKED TO ACHIEVING
PLANNED RESULTS
LINKED TO INCENTIVES
30


IF YOU DONT KEEP DOING IT BETTER YOUR
COMPETITION WILL


31
How do I Marshall the Resources?

Its Simple- Make Them Believers
  • Make sure they can clearly visualize the goal
  • Give them the skills, resources, and tools to
    achieve success
  • Deliver valuable rewards along the journey

32
SKILLS OBSERVATION EXCERISE

33
Exemplifying Customer Service
Focusing on the customer as the first priority,
striving to meet and exceed expectations and
requirements of internal and external customers,
and doing what is best for all stakeholders.
34
Federal Express Secret WeaponIs it Man or
Machine?

35
Customer First Mindset

Rule One There are no barriers between employees
in the organization the customer
Rule Two Customers provide critical information
which drives product innovation, quality issues,
and perceived service levels
Rule Three Remember your front line employees
keep them happy and they will keep your customers
happy
36
External Customer Orientation Reverse RD at
Dow Chemical
Instead of developing products and hoping
customers love them, Dow starts with what the
customer actually wants and works backwards.
IDENTIFY Take insights identify unmet industry
needs by existing mix
DEVELOP Collaborative development
process allows to fine tune the prototype
COMMERCIALIZE Industry leaders given first
mover advantage access to
co-developed new products
LISTEN Gathers industry leaders and probes for
insights into fiber needs
CHOOSE The most lucrative
options stop pursuing lower value
options
37
Internal Customer Orientation 360 Feedback Loop

Subordinates
Customers
Suppliers
Employee Input
Boss
Peers
Departments
38


Exercise


Communication Skill Test
39
Exercise Instructions
  • Pair off in twos
  • One person will give the instructions and one
    person will receive the instructions
  • Set chairs back to back for exercise
  • Round One Only instructor can speak
  • Switch Roles
  • Round Two Both can speak ask questions
  • Switch Roles
  • Round Three Sit face-to-face and both can speak

40

CUSTOMER SERVICE MUST BE BREATHING IN EVERY
EMPLOYEE
UNKNOWN

41
Collaborating and Influencing
Persuading other people to accept a point of
view, adopt a specific agenda, or take a course
of action through building consensus and
cooperation across various stakeholders.
42

Building Collaboration via the Social Mapping
Process

Social Mapping is a process used to facilitate
the complex and collaborative efforts required by
large, high-profile initiatives.
Planning
43

Social Mapping Planning Process Summary
Step 6 Marry resources to key constituents

Step 5 Resource Assessment
Step 4 Identification of key contacts within
each constituency
Step 3 Assign weights to key constituents
based on their relative power to influence
Step 2 Identify vested interests of each subgroup
Step 1 Create a picture model capturing
high-level key constituents mapped to the Project
Objective
44

Building Collaboration via the Social Mapping
Process

Implementation- Social Mapping
This phase focuses on sales negotiation skills
The goal is to gain buy-in from constituents
This process requires many meetings
Remember People support what they help create!!!
45

Exercise

Social Mapping
46

Social Mapping Exercise
Step 1 Think of a project that requires support
from a large, diverse set of key constituents

Step 2 Determine the Core of the Project (this
will be your center- all key constituents are
mapped to it)
Step 3 Create a social map with key constituents
identified first and then the sub-groups by type
Step 4 Put on flipchart including project name
and brief purpose statement (if possible)
Time Allotment 15 minutes to create
15 minutes to share
47

Interactive Discussion- Exercise

Wow- Social Mapping Works!!!
Social Mapping Sharing
48
Developing People
Fostering the learning and development of other
people with the appropriate level of needs
analysis, coaching and other support. Keyword is
engagement which is mandatory for the employees
growth.
49
Team Member Development Model
Performance Management How am I doing in my
current job and what do I need to do to
accomplish objectives?
Professional Development How do I get to the next
level in my job?
Linked
Career Development How do I strengthen my skills
and build my experience to position me for the
future career paths?
50
Performance Gap Assessment Development

PROFESSIONAL CAREER DEVELOPMENT
Current Gap Assessment
Tip Self-trust is the first secret of success
.Ralph
Waldo Emerson
51

Leadership Development Committee
Purpose To provide opportunities to develop and
strengthen leadership skills in an inclusive
environment

Key Activities
Mentoring Programs
  • University Panel Discussions
  • Local (NKU, UC)
  • Regional (MSU, IU, PU)
  • National (Harvard, Chicago, Wharton, Babson)
  • External Speaking Engagements

Leadership Lunch Learn Series
LED Up Close Personal Series
52

Leadership Lunch Learn Series

A seminar series that focuses on Leadership
Challenges, both professional personal, in the
Automotive Industry Value Chain.
53

Lead Educate Develop

Business Leaders Up Close Personal Series
54

Lead Educate Develop

The Leadership, Educate, and Develop (LED)
program will also be a series where team members
can get up close and personal with the
Leadership Team. Our leaders will share real
life challenges in a relaxed atmosphere as it
relates to the Leadership Competency Attributes
and a little about their personal life. This will
also be profiled in the Monthly Newsletter
55

Lead Educate Develop


Biography
Sam Heltman Biography
56

IT IS ONLY AS WE DEVELOP OTHERS THAT WE
PERMANENTLY SUCCEED H.
FIRESTONE

57
Leading Change Management Adaptability
Maintaining effectiveness in a new and changing
environment seeking new challenges, learning
opportunities, and feedback to gain insight from
experiences.
58

Elements of Change Management

People
Management
People
Knowledge
Technology
Process
Tip Understand your culture first.
59
Four Types of Corporate Culture
Fons Trompenaarss Model
INCUBATOR Entrepreneurial
GUIDED MISSLE Collaborative
EIFFEL TOWER Bureaucratic
FAMILY Nurturing
60
GE Way Change Effort/Payoff

JEWELS
HIGH-HARDS
high
PAYOFF
DROP
LOW HANGING FRUIT
low
easy
hard
EFFORT
Source The GE Way Fieldbook
61

Organizational Integration Framework

Shared Knowledge Base
Collective Bonds of Performance
OPERATIONAL INTEGRATION
Standardized Technological Infrastructure
Common Purpose Identity
Source MIT Sloan Review
62

Versatile Leadership Concepts
FORCEFUL LEADERSHIP
ENABLING LEADERSHIP

VICE VIRTUE VICE VIRTUE
Dominant- eclipsing subordinates Takes Charge Empowers subordinates, able to delegate Abdicates responsibility for oversight
Doesnt hear others opinions Takes stand articulate clearly Listens to others opinions ideas Takes no clear stands
Insensitive Makes tough calls including sensitive issues Compassionate responsive to others needs Overly accomodating
Rigid, demoralizing Holds others accountable Understanding Doesnt hold others accountable
Source MIT Sloan Review, Kaplan Kaiser
63

Versatile Leadership Concepts

STRATEGIC LEADERSHIP
OPERATIONAL LEADERSHIP


VICE VIRTUE VICE VIRTUE
Looks down the road too much Focused on setting long-term strategy Focused on getting short-term results Myopic, has tunnel vision
Hopelessly conceptual Thinks broadly focused on big picture Knows the specifics of how things work Bogged down in detail
Too ambitious Expansive aggressive about growth Respects the limits of the organizations capacity Too conservative and limiting
Source MIT Sloan Review, Kaplan Kaiser
64

How Managers Can Improve???

Strengthen
65

SKILLS OBSERVATION EXCERISE

66
Building Teams
Leading a team by taking action to increase
motivation across the group understanding the
role and interrelationships of all partners.
67
What is a Team?
Webster Dictionary Defined A group of people
working together in a coordinated effort
  • 2 or more persons
  • Has a specific performance objective or a
    recognizable goal to be attained
  • Coordination of activity among the members of
    the team is required to achieve the goal or
    objective

68
Characteristics of Successful Teams
  • Clear, elevating goal
  • Results-driven structure
  • Competent team members
  • Unified commitment
  • Collaborative climate
  • Standards of excellence
  • External support and recognition
  • Principled leadership

69
What is a High Performing Team?
A HPT has a high level of trust, effective
leadership, and a shared sense of commitment that
leads to superior results
  • Outperforms all reasonable expectations,and has
    fun in the process
  • Distinguished by degree of commitment
  • Members help others to achieve both personal and
    professional goals
  • Shared leadership

70
High Performing Team Processes
Standard Setting
Envisioning
Summarizing
Synthesizing
Initiating
Seeking/Giving Information
Seeking/Giving Opinion
Testing for Consensus
71
High Performing Team Processes
Standard Setting
  • Describing Criteria
  • Standards methods for group functioning
  • Evaluation
  • Decision-making

72
High Performing Team Processes
Envisioning
  • Describing the results of team efforts
  • Keeping a goal in sight
  • Determining steps to reach the goal

73
High Performing Team Processes
Initiating
  • Defining the issues
  • Offering ideas
  • Proposing alternatives
  • Suggesting solutions

74
High Performing Team Processes
Seeking/Giving Information
  • Asking for or giving facts
  • Gathering evidence
  • Looking for data
  • Relating relevant ideas and experience

75
High Performing Team Processes
Seeking/Giving Opinion
  • Checking out how others feel
  • Seeking clarification of values or ideas
  • Offering viewpoints
  • Describing feelings

76
High Performing Team Processes
Synthesizing
  • Connecting or combining member ideas
  • Pulling together discussion content
  • Highlighting key points

77
High Performing Team Processes
Summarizing
  • Paraphrasing comments
  • Helping team reach conclusions throughout
  • Consolidating final conclusions feedback

78
High Performing Team Processes
Testing For Consensus
  • Checking for opinions
  • Summarizing areas of agreement
  • Focus team to resolve issues move on
  • Consensus does not mean total agreement!!

79
Characteristics of High Performing Teams
  • Share a common purpose/goal
  • Build relationships for trust respect
  • Balance task process
  • Plan before acting
  • Involve members in clear problem-solving
    decision-making procedures
  • Respect understand others diversity
  • Value synergism and interdependence
  • Emphasize and support team goals (even if you do
    not completely agreeno sabotaging)

80
Characteristics of High Performing Teams
  • Reward individual performance that supports the
    team
  • Communicate effectively
  • Practice effective dialogue instead of debate
  • Identify resolve group conflicts
  • Vary levels and intensity of work
  • Provide a balance between work and home
  • Critique the way they work as a team, regularly
    and consistently
  • Practice continuous improvement

81
Leader Role in High Performing Team
Improving communications between team members
Improving communication between teams
Improving coordination facilitation
Developing decision-making
Enabling conflict resolution
Strengthening collaboration
Building team commitment
82
Benefits of High Performing Teams
  • According to experts, ½ of all US employees will
    be working on teams. Why?
  • Impressive gains in quality productivity
  • Improved customer service
  • Improve the information flow across business
    boundaries
  • Heighten respect for diversity
  • Strengthen employee morale commitment
  • Foster a multi-skilled environment
  • Encourage more risk-taking
  • Increases profitability

83
A total commitment is paramount to reaching the
ultimate in performance.
.Tom Flores
NFL Coach
84
Interactive Discussion
CHALLENGES
85
Supporting Trust Accountability
Maintaining high standards of personal integrity,
credibility, and consistency following through
on commitment and maintaining direct and truthful
communication.
86
Breakout Exercise
  • The Dilemma

87
The Dilemma Involves the potential merger of
your company with a former business associate.
The total cash payout is 20 million. Your
company is in need of cash as it has been
experiencing liquidity issues.
  • RULES
  • No collaboration with other team
  • CEO makes final decision based on team input
  • 5 minutes to decide
  • Final answer non-negotiable

10

PARTNER
30
10
-10
ORACLE
HOSTILE TAKEOVER
0
-10
0
30
HOSTILE TAKEOVER
PARTNER
PEOPLESOFT
88
TEAM DISCUSSIONS
  • How did you arrive at your decision?
  • Did the CEO take the teams decision?
  • If not, what impact did that have on the team?
  • Either way, what impact did the decision have on
    Trust?

89
Managing Risk
Measuring, controlling, and hedging risk in an
effort to translate risk into business and
organizational objectives.
90
The Chaos Trap RiskSource Competing on the Edge

Warning Signals
Excitement Innovative Products Services
Creativity
Source of Chaos
Rule-breaking Culture Random Communications Loo
se
Focus on being innovative creative
  • Confusion
  • Late products
  • Unrealized strategy
  • Lost market or
  • technical position

Business Implications This is a big fun
experiment, but the catch is we need results
91

The Bureaucratic Trap RiskSource Competing on
the Edge


Warning Signals
Process control Efficiency
Source of Bureaucracy
Rule-following Culture Processes
rigid structure Channeled communication
Focus on structure process
  • Loss of flexibility
  • Stunted innovation
  • Wrong products
  • Predictable strategy

Business Implications We produce things
consumers dont want- very quickly
92

The Lockstep Trap RiskSource Competing on the
Edge



Warning Signals
Synergies
Source of Lockstep
Sky-box perspective Collaboration on
everything All businesses the same
Focus on coordination synergies
  • Middle mgr turmoil
  • Rigid response to
  • changes
  • Indistinct strategies
  • Lost competencies

Business Implications We make everyone happy and
achieve suboptimal results
93


The Star Trap RiskSource Competing on the Edge



Warning Signals
Good fit with Markets Strong Motivation
Source of Star Trap
No one in charge Random Collaboration Every
business is a star
Focus on adapting to unique market demands
  • Duplication
  • Lost Opportunities
  • Uncoordinated
  • strategy
  • - Fiefdoms

Business Implications Incredible duplication of
effort- everyones recreating the wheel
94

SKILLS OBSERVATION EXCERISE


95
Leadership Development Risk
POINT TWO The demographics of the USA is changing
dramatically employers will struggle to find
leaders
POINT ONE It is essential the workforce look and
think like the customer- in all ethnic, gender,
racial, and behavioral aspects
By 2040, an estimated 70 American workers will
be minorities!
96

Its not the critic who counts, not the one who
points out how the strong man stumbled or how the
doer of deeds might have done them better. The
credit belongs to the man who is actually in the
arena whose face is marred with the sweat and
dust and blood who strives valiantly who errs
and comes up short again and again who knows the
great enthusiasms, the great devotions and spends
himself in a worthy cause and who, at best knows
the triumph of high achievement and who at worst,
if he fails, at least fails while daring greatly
so that his place shall never be with those cold
and timid souls who know neither victory nor
defeat.

Theodore Roosevelt and the Rough Riders on San
Juan Hill
97
Contact Information Susan M. Hinds CEO
President, Strategic Management Harmony,
LLC susanhinds_at_seidata.com
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