A study into the management research open to CEOs in their first 100 days AND application of several management models with case studies to help. Keynote presentation for memoQfest 2013.

1. Richard Brooks | memoQfest 2013 | Budapest
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100 days as CEO
The story so far…

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Over 4 million registered
companies in the UK* but very
little academic research to help
new CEOs.
* Office for National Statistics, 2012

4. Months
Changes
Gabarro, John J., 1983. The Dynamics of Taking Charge (p. ). Boston MA: Harvard Business School Press.

5. Taking
Hold
Stage
Immersion
Stage
Reshaping
Stage
Consolidation
Stage
Refinement
Stage
Time Since Succession
Gabarro, John J., 1983. The Dynamics of Taking Charge (p. 20). Boston MA: Harvard Business School Press.
Changes

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The bank has
the deeds to
MY house

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Manage the Money
 Good entrepreneurs know their numbers
inside out. “You can’t manage without the
data”.
 Learn your ratios, learn how to talk to
finance people.
 The timing and velocity of money will be
more important than anything else.
 Hire in great finance people. Don’t
use lawyers for business advice.

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Management topics
 Corporate Governance
 Management into Leadership
 Culture Web
 Change Management
 Innovation
 Metrics

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Corporate Governance

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“…it is a board’s
job to distinguish a
chief executive’s
legitimate worth
from what his ego
thinks he ought to
be paid …”
FT.com/Lex
15/03/2013

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Management into Leadership
Bennis, Warren, 1989. On Becoming a Leader. New York: Addison Wesley.
Bennis’ list of differences
• The manager administers; the leader innovates.
• The manager is a copy; the leader is an original.
• The manager maintains; the leader develops.
• The manager focuses on systems and structure; the leader
focuses on people.
• The manager relies on control; the leader inspires trust.
• The manager has a short-range view; the leader has a long-
range perspective.
• The manager asks how and when; the leader asks what and
why.
• The manager has his or her eye always on the bottom line; the
leader’s eye is on the horizon.
• The manager imitates; the leader originates.
• The manager accepts the status quo; the leader challenges it.
• The manager is the classic good soldier; the leader is his or her
own person.
• The manager does things right; the leader does the right thing.
You can’t lead people
until you understand
yourself. Use EQ not IQ.
“the task is to lead people.
And the goal is to make
productive the specific
strengths and knowledge
of every individual”
– Peter Drucker

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Leadership Equation
LQ = IQ + EQ + XQ

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Leadership Equation
LQ = IQ x EQ x XQPotential

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Culture Web
Stories
Organisational
Structures
Power
Structures
Symbols
Rituals &
Routines
Control
Systems
The
Paradigm
1. Analyse culture as it is now
2. Analyse culture as you want
it to be
3. Map the differences
between the two
4. Prioritise differences and
develop a plan to address
them
Which leads us into… >>>
Johnson, Gerry, 1992. Managing Strategic Change – Strategy, Culture and Action. Long Range Planning Vol 25, p28 to 36.
“Culture eats strategy for lunch”

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Change Management
Adapted from Kotter JP. “Why Transformation Efforts Fail”, Harvard Business Review (March April 1995) p 61.
7. Keep going
8. Anchor new ApproachesImplementing
& sustaining
the change
1. Increase Urgency
2. Build Guiding Teams
3. Get the Vision Right
Creating a
climate for
change
4. Communication for buy in
5. Enable Action/Empower Employees
6. Short term winsEngaging &
enabling the
organisation
Want to know
more?
Talk to Stefan

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Innovation
Osterwalder, Pigneur, Smith et al. “Business Model Generation”, Self Published, 2010.
The Business Model Canvas
Use it to model different scenarios in your business and disrupt your own
business model (before someone else does).

20. Customer Segments
Who is your customer?
What market segments are you providing a service/product for?

21. What value do we deliver to your clients? or To your client’s supply chain?
Is it based on > performance, brand, value, convenience, price…
Value Propositions

22. Channels to Market
How are you going to get your product/service to your clients?
Is it virtual? Or is it a physical product?
Are our channels integrated into our client’s supply chain?

23. Customer Relationships
For each segment… what's the relationship like?
Transactional, self-service, account/relationship managers, community.

24. Revenue Streams
For what value are our customers willing to pay for?
Per unit charge, hourly, subscription, licenses, leasing.
Price discrimination or fixed price.

25. Key Resources
What key resources do we need for the right hand side?
Are they human, intellectual, financial or physical.

26. Key Activities
The most important actions needed to make you business model work.
e.g. problem solving (for consultants).

27. Key Partnerships
Who do you need as your key partners.
Used to optimise your business model, reduce risk or acquire resources.

28. Cost Structure
Describes all costs involved in operating a business model.
Is this business… cost driven, value driven, % of fixed and variable costs and are
there economies of scale/scope?

29. Customer
Segments
Value
Propositions
Channels
Customer
Relationships
Revenue
Streams
Cost
Structure
Key
Resources
Key
Activities
Key
Partnerships
The Business Model Canvas – An Example > International SEO

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Metrics/Measures
“The information appearing in the majority of
boardrooms remains predominantly financial in
nature. Without (additional) information on value-
creating activities management are flying blind –
when financials tell them there is a problem
management have already missed the optimal
point for taking appropriate corrective action.”
PriceWaterhouseCoopers – ValueReporting Review 2003.
Transparency in Corporate Reporting, p25.

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Pretium
Pretium = Price
Pretium = Value
The thinking in 10 B.C.
Price = Value
The problem in 2013 A.D.
Price ≠ Value
Of all the 7 Ps
Price has the
most immediate
effect on the
bottom line.

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When Value > Price
… 4G is “the
communications
equivalent of the
change the jet
engine made
over steam”
>>> Inability to monetise value creation
Olaf Swantee, CEO EE 3G
1GB
£31
4G
1GB
£26

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When Price > Value
>>> lack of understanding of an emotive
reaction to a small price change
Becky Williams M&S Apology

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Price & the Bottom Line
An imaginary P&L
Sales = £100k
Var Cost = £40k
Fixed Cost = £45k
Operating income = £15k
The effect on the bottom line
5% improvement in vol…
5% improvement in price…
5% improvement in fixed cost…
5% improvement in var cost…
Price =1, Volume = 100
33% increase
13% increase
13% increase
15% increase

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“the single most
important decision in
evaluating a business is
pricing power”
“if you’ve got the power
to raise prices without
losing business to a
competitor, you’ve got a
good business. And if you
have a prayer session
before raising the price
by 10% you have a
terrible business”

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Value Proposition
A customer proposition is the unique mix
of attributes that companies provide
through their products, interactions,
ethos and pricing to create loyalty and
satisfaction in targeted customer
segments.
It is the unique set of benefits a business
offers its target customers.
- P Kotler

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3 Parts to a Value Proposition
Impact – How will you help the customer
to succeed?
Capability – What you have and what you
can do for the customer.
Cost – What the customer must pay to
access the product/service.
- N Rackham

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3 Parts to a Value Proposition
IMPACT
The value that
you can/could
deliver to the
customer’s
business.
CAPABILITY
The things that
you can/could
add value to
the customer’s
business.
COST
The overall
price position
that the
customer will
have to pay to
use the value
proposition.
IMPACT and COST must balance

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Price up or costs down
Costs Down
• Machine Translation
• TMS
• Translation
memories
• Volume
• Off shore PMs
Prices Up
• Transcreation
• Consultancy
• Innovate your
pricing model
• DON’T commoditise
your own product
Finite
amount of
savings
possible
Only
limited by
your
creativity

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Pricing case study
• Popcorn. The butter costs more than the
corn and the paper bag/cup it comes in costs
more than both together.

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Brand
P&G paid $57 Billion for Gillette (in 2005) but they only acquired $6 Billion of
tangible assets*.
What does a brand give you?
• Better price
• Higher sales
• Lower prices
• Better terms
• More partners
• Better retention
• Lower salary expectations
• Better qualified candidates
• Higher PE ratio
• Lower volitilty
• Lower borrowing costs
*David Haigh, Brand Finance, Marketing Magazine, 1st April 2005.

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Managing your timeImportance
Urgency
The Importance Vs Urgency Matrix
HighLow
Low High
The first step is to list all the activities
and projects that you feel you have to
do. Try to include everything that takes
up your time at work, however
unimportant. (If you manage your time
using a To-Do List or Action Program,
you should have done this already.)
Next, on a scale of 1 to 5, assign
importance to each of the activities.
Remember, this is a measure of how
important the activity is in helping you
meet your goals and objectives. Try not
to worry about urgency at this stage.
Once you've assigned an importance
value to each activity, evaluate its
urgency. As you do this, plot each item
on the matrix according to the values
that you've given it.

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20%
40% 40%
Working time spent in each box
Weekend and
evenings

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49. Thank you!
Have an awesome memoQfest 2013
I hope you make lots of new friends.
Please tweet something profound
#memoQfest / @RichardMBrooks
Richard.Brooks@K-International.com