1. 1
• Level 4 Consultant Presentation
Kevin Chenoweth
Day Nine Executive Presentation

2. About Me
2
• Hobbies
– Running - Basketball/Outdoors - Music
• Values
- What you see is what you get - Detail Oriented
Day Nine Executive Presentation

3. Organic vs. Inorganic Growth
Evaluation and Success Factors
3
Agenda
– Increasing Value through Organic Growth
– Organic Growth Framework
– Successful Organic Growth
– Increasing Value through Inorganic Growth
– Inorganic Growth Framework
– Successful Inorganic Growth
Day Nine Executive Presentation

4. Increasing Value through Organic Growth
The first is to extend and defend it core business. This is critical for near-term performance and, oftentimes, too
much of a focus. Successfully growing through requires very strong operational managers and leadership.
The second foundation is to build emerging businesses. The objective is to drive or invest in ventures that leverage
or replicate the existing business model and capabilities. Successful navigation requires entrepreneurial members
and business builders.
The final foundation focuses on creating viable options for future growth. This requires input from “visionaries”
and unconventional thinkers.
Companies must evaluate the industry and their competitive situation to comprehend the best path
to optimum growth.
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5. Organic Growth Framework
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Gillette experienced 4%
annual declines over 5 years
before a new CEO focused
on its core businesses.
1) Full company Involvement in
Strategy
2) Stayed Focused and saw “Big
Picture”
3) Instilled corporate Standards
4) Established Center of Excellence
for growth initiatives
5) Found growth markets and
distribution channels
Outcome: Return on
Capital rose from 20% to
30%
Source: Harvard Business Review “Creating an Organic Growth Machine”, 05/2012
Growth Challenge All companies are faced with the challenge of achieving
sustainable growth. A successful company must navigate across
3 growth platforms which involve both optimizing the existing
core business and creating new ones.
Traditional Strategy
Thinking
Focus and thinking of traditional growth strategy frameworks,
such as Porter’s Five Forces and the GE-McKinsey Matrix is
integral to this and it often takes place at the Executive level.
Modern Strategy
Thinking
Modern Growth Strategy occurs across all levels of a company.
Individuals will be implementing the strategy across industry
lines, market positioning, and resource identification.
Growth Strategy
Project
An approach to strategy development in which specific work
streams, activities, and deliverables are identified for each
phase of the project. This is the same approach to conducting a
growth strategy engagement used by many strategy consulting
firms.

6. Successful Organic Growth
1. An Elevator Pitch Model
“High growth companies have a simple, understandable business model that their employees
can understand and execute—none has a complex or sophisticated strategy.”
2. Instill a “Small Company Soul” into a “Big Company Body”
“High organic growth performers have a small-company soul housed in a big-company body.
A small company soul is entrepreneurial, with employees having ownership of the customer,
being held accountable for results, and sharing in the rewards of those results.”
3. Measure Everything
“One of the six keys to building a consistent high organic growth company is measurement—
of everything. The 22 companies on the organic growth index (OGI) list track a variety of metrics
—financial, operational, behavioral—to understand which areas of their business are not
performing as efficiently as possible, and then they take action to shore up those numbers.”
Source: THE ROAD TO ORGANIC GROWTH., Edward Hess
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7. Successful Organic Growth
6. Be an Execution and Technology Champion
“The high-organic companies generally do not have unique strategies, products, or services, nor are
they market-leading innovators. But they are execution champions—day after day, they have figured
out how to get consistent high-quality performance from their people. These companies use
technology to drive efficiencies across their value chain. To them, technology is not a service function;
it is an operational function.”
4. Build a People Pipeline
“All the high-growth companies have a high management and employee retention,
high employee loyalty, and high employee productivity as compared with their
competition. Employees in these companies ‘own’ their results and their careers,
and most even own part of the company. These companies’ management teams
are frequently home grown, with long company tenures.”
5. Leaders are Humble, Passionate, and Focused Operators
“Rather than being overly confident about their success, at high organic growth companies,
leaders are frequently paranoid about complacency, arrogance, and hubris. Although many
leaders are very wealthy, for the most part, you would not know this from their dress, their office,
their demeanor, their attitude, or any outward appearance. Few of the leaders, if any, take
credit themselves. There is a sincere respect for line workers, where many had begun their
careers.”
Source: THE ROAD TO ORGANIC GROWTH., Edward Hess
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8. Increasing Value through Inorganic Growth
1. Ready Distribution Channel
Existing channels and customers exist vs. New ones
2. Government Contracts/Tenders/Federal Regulation
Failure of Comcast/Time Warner merger
3. Labor Intensive vs. Capital Intensive Industry
Comparison of Hotels vs. Airlines
4. Speed to Market
Time to build capability vs. buy it (Intel VOIP Capability)
5. Access to competencies/teams/Intellectual
Property
Ability to grow internal IP vs. acquire IP (First Mover)
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Source: www.statista.com/statistics/Volume-of-mergers-and-acquisitions-worldwide

9. Inorganic Growth Framework
1. Right Partner: Identification of the best partner for your business and their risk
2. Valuation: Place an Emphasis on future performance which may not be corroborated to
historical trends
3. Management Control: Consider the Owner vs. Manager rights
4. Negotiation: How will negotiations occur and final decisions be made? Top Down or Bottom Up
5. Corporate Governance: What will the level of governance be? A perception of regular
Management Information System reporting and compliance may be seen as a hindrance rather than a
value addition
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10. Successful Inorganic Growth
1. Agree on future valuation on broad basis
2. Management Controls: Composition and key positions
3. Protection Clauses: Non-compete; Intellectual Property
4. Pre-emptive rights to purchase and its methodology
5. Advisory team with SME knowledge
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11. Pros and Cons of Growth Strategies
Organic Growth
Pros: Consistent Cultural Fit
Consistent Leadership
Consistent Direction and Strategy
Cons: Inability to be market leader or First Mover
Time to develop internal IP/Teams
Belief of Self Sufficiency
Inorganic Growth
Pros: Acquired Distribution channels
International Expansion
Expanded Infrastructure
Cons: Conflicting Value Sets
Management Retention
Illusion of value creation/Brand Management
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Day Nine Executive Presentation