Freedom2Act Strategy Review

Copyright © 2008-2020 Freedom2Act ApS. All rights reserved.
18MAR2020 / 1
Freedom2Act
Finn Ritslev
CEO and Founder
fr@freedom2act.com
3x2
Strategy Review
Freedom2Act

18MAR2020 / 2
Freedom2Act
Focus Areas
“As-is“
situation Latent
risk areas Reduce
vulnerability
Improve
effeciency
M&A
Company
Value
Commercial due diligence
Freedom2Act Strategy Review™
Board Strategy Day
Risk Mitigation Sales qualification
and planning
Improved
situation
Commercial
due diligence
Accelerate
the 100 days

18MAR2020 / 3
Freedom2Act
Recipes for Strategic Planning
Classical Approach
■ Where are we now?
■ Where should we be?
■ How do we get there?
With Freedom2Act
■ Where are we now?
■ Where should we be?
■ How do we get there?
■ What might prevent us from
getting there?
■ Reduce vulnerability
■ Increase your
Freedom to Act

18MAR2020 / 4
Freedom2Act
Finn Ritslev
CEO and Founder
fr@freedom2act.com
■ Guarantees increased profitability
■ Business health check
■ Shortcut to quick operational results
■ Overview of strategic opportunities
■ Lower losses from non-financial risks
■ Creates roadmap to the future
■ Higher Freedom to Act
… leads to increased profitability

18MAR2020 / 5
Freedom2Act
A Few Facts…
Ernst & Young
■ 61% largest value losses were due
to strategic risks, and
33% to operational risks.
Yet, focus is mostly on financial
and hazard risks!
Copenhagen Business School
■ Half of 160 of the largest Danish
corporations experienced major
”surprises” the preceding 5 years.
McKinsey Quarterly
■ 30% probability that a company in
the industry’s upper quarter will
not be there in five years!
Operational risks
33%
Financial risks
6%
Strategic risks
61%
Hazards
<1%

18MAR2020 / 6
Freedom2Act
Examples of non-financial vulnerabilities
■ The company has few large customers/contracts.
■ The company does not meet customer requirements to quality
and environment.
■ Customers see the competitor's products/services as a better
match to their Unique Buying Points™.
■ The company’s products are losing market share to suppliers with
an alternative solution.
■ A key employee can without problems resign and take customers
with him/her to a competitor.
■ Lessor's termination of the lease results in insurmountable costs.

18MAR2020 / 7
Freedom2Act
Risks May Originate from Many Sources
Direct competitors
Customers
Substitute competitors Suppliers
Budget competition Agents
Board
Management
Organization
Key Persons
Rights
Uninsurred Assets
Owners
Banks and lenders
Hazards
Mass media Season & weather
Pressure groups
Trends
Interest level
Exchange rates
Infrastructure
Environment
Legislation
Disputes
Regulation of
demand
Regulation of
competition
Regulation of
access to Input Goods
Working environment
Political factors
Subsidies
Business
Area

18MAR2020 / 8
Freedom2Act
The Problem
The chance of survival in war depends not only on the
strengths and sharpness of each warrior’s weapons
relative to those of his opponents, but equally well
upon the robustness of his armor.
An armor is no stronger than its weakest elements
and may lead to the warrior’s death or being seriously
hurt.
“Your ‘army’ consists of one or more business areas.”
“Each business area’s ‘armor’ consist of
149 business-related factors from market, resources,
government and other stakeholders.”

18MAR2020 / 9
Freedom2Act
The Goal
”A business’s strategy should reduce vulnerability
- internal as to the outside world -
thereby increasing its Freedom to Act.”
High Freedom to Act results in:
■ Increased ability to survive
■ The company survives shocks
■ No single factor from the surroundings may affect the
company seriously
■ Increased robustness against changes
■ Increased ability to growth
■ Always many alternatives
■ Increased profits
■ A strong bargaining negotiation position
■ The power to exit – “Good Bye”!

18MAR2020 / 10
Freedom2Act
Means and Method
Freedom2Act Commercial Analysis™ Tool
- is a means to quickly and efficiently identify strategic,
operational and financial areas of risk that may prevent
a company from realizing its vision and reaching its
long term financial goals.
- is a method to quickly and efficiently identify a
business’ critical areas of risk and to launch initiatives
aimed at eliminating these through a workshop with
the management team typically lasting three days.

18MAR2020 / 11
Freedom2Act
What a Difference a Few Hours Can Make
Overview of businesses

18MAR2020 / 12
Freedom2Act
Business Model Canvas

18MAR2020 / 13
Freedom2Act
What a Difference Three Days Can Make
Overview of strategic opportunities and threats
30%
Freedom to Act
Low High
Market Growth Rate
0%
10%
20%
Inflation
-7.5%
Freight services in the Nordic region
Tool for sales opportunity
management
Commercial Due Diligence
GROW
DISPOSE
DEVELOP
or DISPOSE
MAINTAIN

18MAR2020 / 14
Freedom2Act
Better Understanding of the Business
■ Multiple-choice Test
■ Enforces shared answer
■ Questions posted adapt
to previous answers
■ “Down-to-earth
questions”
■ “Very commercially
minded”
■ “Governed by reality
rather than theory”
Testimonials by Group President in global shipping, logistics and marine services provider

18MAR2020 / 15
Freedom2Act
Better Understanding of the Competitive Situation
Customer compares the company’s solution
with that from the strongest competitor
The Customers' Unique Buying Points™
Totally
Superior
Much Better
Slightly
Better
Similar
Slightly
Worse
Much
Worse
Totally
Inferior
$
Value for Money ease of business
$
systematic time to provide
reliable results
effort involved thoroughness references know-how about
the industry
Market Share
Customer compares the company’s
solution with that from the
strongest substitute competitor

18MAR2020 / 16
Freedom2Act
Quick Launch of Improvement Initiatives
Create overview and reduce losses from non-financial risks

18MAR2020 / 17
Freedom2Act
Risk Item Progress Management
■ Overview
■ Planning phase
■ Implementation
■ Quick
identification of
delays

18MAR2020 / 18
Freedom2Act
“The road to achieve goals is paved
with stones, some small, some large,
some boulders ………
………...removing large “stones”
increases the success rate!”
”Quick and efficient generation of a ‘Roadmap’ to the future”
Citation: Johan Mellin, Commercial Risk Manager, TeliaSonera

18MAR2020 / 19
Freedom2Act
Typical Uses of Freedom2Act Strategy Review™
■ Team Building
■ Shared view on ”as-is” situation
■ Alignment behind mitigation initiatives
■ Strategic Planning
■ Situation analysis, SWOT analysis and risk assessment
■ Action and implementation plan
■ Facilitate agreement in management group on strategic goals and means
■ Sales and Marketing
■ Identification of homogeneous market segments
■ Assessment of competitiveness
■ Identification of the customer’s Unique Buying Points™

18MAR2020 / 20
Freedom2Act
Typical Uses of Freedom2Act Strategy Review™
■ Succession and M&A Processes
■ Commercial Due Diligence
■ May affect earnings multiplier by ½-1, e.g. from 6x to 6½-7x
■ Fast transfer of know-how regarding important business areas
■ Acceleration of the 100 days after a take-over
■ Identification and mitigation of critical risks
■ Board Meetings
■ Template for strategic workshop
■ Quick overview of a company
■ Enterprise Risk Management
■ Risk assessment and mitigation

18MAR2020 / 21
Freedom2Act
Proven Technology
Proven on more than a thousand businesses
large and small
in
Northern Europe

18MAR2020 / 22
Freedom2Act
Selected References and Testimonials
Johan Mellin, Commercial Risk Manager, TeliaSonera:
“Fast and efficient generation of a ”Roadmap” to the future.“
SVP, International Fire Service, Falck :
“Contains what is required to analyze a company and
come to concrete actions.“
“The analysis is based upon internal knowledge.”
“Provides a more strict business case.“
“Visibility on competences.“
“Rapid identification of problem areas.“
“Good to jumpstart integration processes.”
“May affect multiplier from 6½ to 7.”
Senior Director, Novozymes:
“A tool that is very relevant in companies that do not
master strategy processes.”
“Extremely useful for commercial due diligence processes
in acquisitions.“
“Quick and effective transfer of knowledge from the
acquired company to purchaser.”

18MAR2020 / 23
Freedom2Act
Who are We?
Freedom2Act ApS
■ Founded 2001
■ Strategy reviews
■ Risk identification and assessments
■ Risk mitigation
■ Portfolio segmentation
Finn Ritslev, Founder and CEO
■ M.ScEE, DTU, Denmark
PED, IMD Business School, Switzerland
■ Software development,
project management,
marketing and sales,
business development, and
strategic planning
Partners
■ Bluecon
■ IIB Executive Consultants

18MAR2020 / 24
Freedom2Act
Please send an e-mail to
freedom2act.com
if you want to know more

Freedom2Act Strategy Review

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