1 Cloyses Partners, LLC Managing the Defining Moment

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Cloyses Partners, LLC

Managing the Defining Moment

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Core Message…

• Our experience is that there are only Our experience is that there are only 3-5 critical imperatives that really 3-5 critical imperatives that really matter.matter.

• A company that has “multiple A company that has “multiple conflicting priorities” cannot succeed!conflicting priorities” cannot succeed!

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Competition For Focus and Alignment

A Typical Day A Typical Day

at the Officeat the Office

Cash Cash ManagementManagement

Lender ManagementLender Management

Labor CostsLabor Costs

VendorsVendors

Driving RevenueDriving Revenue

Corporate Corporate InfightingInfighting

Financing Financing ChallengesChallenges

Product and Service Product and Service Validation and Validation and ObsolescenceObsolescence

Limited or No Limited or No Pricing PowerPricing Power

Unhappy and Unhappy and Increasingly Increasingly Demanding Demanding CustomersCustomers

Union Union DemandsDemands

Avoidance of Avoidance of Negative PublicityNegative Publicity

Legal and Legal and Regulatory IssuesRegulatory Issues

Quality Control Quality Control and Maintenanceand Maintenance

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1. Triumph of Unforgiving Markets1. Triumph of Unforgiving Markets

Signs of the Times – Survey Says…

Globalization is causing Globalization is causing unprecedented competitive unprecedented competitive

pressure. If you are waiting for the pressure. If you are waiting for the economy to recover, you may not be economy to recover, you may not be around. Get used to short product around. Get used to short product cycles, unrelenting cost pressures, cycles, unrelenting cost pressures,

and uncertaintyand uncertainty

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2. Information Overload2. Information Overload


Less and less time, to evaluate more information than has ever been

available.

Loss of focus on “What’s really important”.

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3. Lack of Single Source Accountability3. Lack of Single Source Accountability


Who really owns the initiative for your Performance Critical

activities?

If more than one person is “accountable”, it’s likely no one is.

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4. Manager/Employee Entitlement4. Manager/Employee Entitlement


“I Deserve a Bonus/Raise/Promotion!”

(…regardless of the company’s performance).”

“Everyone Else is Getting Theirs”

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5. Alignment and Focus5. Alignment and Focus


If you list 3 imperatives for the next 6-9 months, would your staff all be

working toward them?

Probably Not.

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Early Warning Signs

• The organization lacks alignmentThe organization lacks alignment

• Lack of accountability for resultsLack of accountability for results

• Spending is increasing while financial results Spending is increasing while financial results are mediocre or worseare mediocre or worse

• Layers of management, layers of spending, Layers of management, layers of spending, elongated approval processelongated approval process

• Sales may be increasing but the A/R collection Sales may be increasing but the A/R collection cycle is increasing and cash flow is decreasingcycle is increasing and cash flow is decreasing

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What should be done?

Step back and understand how important the alignment Step back and understand how important the alignment issue is. Get your organization in alignment with a issue is. Get your organization in alignment with a clear understanding of the imperatives. Get rid of clear understanding of the imperatives. Get rid of multiple conflicting priorities.multiple conflicting priorities.

Realize that at the end of the day someone has to have Realize that at the end of the day someone has to have that “single source accountability”. If more than one that “single source accountability”. If more than one person is responsible then typically no one is.person is responsible then typically no one is.

Spend money where the expenditure creates Spend money where the expenditure creates productivity, focus on the imperatives.productivity, focus on the imperatives.

Decide what “victory” looks like and communicate it Decide what “victory” looks like and communicate it throughout the organization.throughout the organization.

Documents

1 Cloyses Partners, LLC Managing the Defining Moment