StrataBridge is a boutique consulting firm that advises organizations on strategy, innovation, and operations to achieve sustainable growth. They help companies adapt their decision-making processes, like sales and operations planning (S&OP) and integrated business planning (IBP), to enable strategic flexibility in unpredictable environments. The webinar discusses balancing control and growth by thinking of decision-making as an "ecosystem" rather than a system, understanding trends driving opportunities, and using a mix of algorithms, heuristics, and exploration to create new value over time.

1. © StrataBridge 2014
WE
GROWTH

2. © StrataBridge 2014
Chris Turner
Co-Founder, StrataBridge
We are a Boutique Consulting Firm.
We advise fast-moving, brand-led organisations on strategy,
innovation, and operations.
We help organisations achieve sustainable growth in
unpredictable circumstances.
We’re specialists in joined-up decision-making – Sales and
Operations Planning (S&OP), Integrated Business Planning
(IBP) et al – as a means to delivering strategy.
We’ve worked with companies of all shapes
and sizes, from the UK to Europe, from
the Americas to Asia and from the
Middle East to Africa.
We help companies create their future.
Our ideas, processes and interactions are
designed to allow organisations to bridge the
gap between where they are and where
they want to be.
A (very) Brief Introduction

3. © StrataBridge 2014
So, what’s the BIG Idea, Question and
Opportunity?
A rapidly and
continually
changing context
is opening-up
increasing
opportunities for
growth against a
backdrop of
unprecedented
change and new
risks
Many (possibly
most?) organis-
ations decision-
making processes
(particularly
‘S&OP’, ‘IBP’
etc.) have been
designed on the
(often implicit)
assumption of
‘control’
How
do we adapt
routines
we’ve refined
for operational
efficiency to
enable similar
degrees of
strategic
flexibility?

4. © StrataBridge 2014
Some Structure and Thought-
Provokers…
Mindset trumps Process – Think
‘Eco-system’ not ‘system’…
What’s going-on out there (and with
you)? Big trends and growth drivers…
Adapting the decision-making ‘eco-
system’ – Both Control and Growth…

5. © StrataBridge 2014
Mindset trumps Process –
Think ‘Eco-system’ not
‘system’…
What’s going-on out there (and with
you)? Big trends and growth drivers…
Adapting the decision-making ‘eco-
system’ – Both Control and Growth…
Some Structure and Thought-
Provokers…

6. © StrataBridge 2014
Thinking about this webinar… and developing a
Growth Mindset
© StrataBridge 2014

7. © StrataBridge 2014
Results
‘Eco-System’
Design/Behaviour
Strategy
Thinking about this webinar… and developing a
Growth Mindset

8. © StrataBridge 2014
"Invention is by its very nature a disorderly
process," says current CEO George Buckley,
who has dialled back many of McNerney's
initiatives. "You can't put a Six Sigma process
into that area and say, well, I'm getting behind
on invention, so I'm going to schedule myself
for three good ideas on Wednesday and two
on Friday. That's not how creativity works.”
"You cannot create in that atmosphere of
confinement or sameness," Buckley says.
"Perhaps one of the mistakes that we made as
a company—it's one of the dangers of Six
Sigma—is that when you value sameness
more than you value creativity, I think you
potentially undermine the heart and soul of a
company like 3M.”
McNerney declined to comment for this story.
Control, Growth and ‘Culture’…

9. © StrataBridge 2014
Mindset trumps Process – Think
‘Eco-system’ not ‘system’…
What’s going-on out there (and with
you)? Big trends and growth
drivers…
Adapting the decision-making ‘eco-
system’ – Both Control and Growth…
Some Structure and Thought-
Provokers…

10. © StrataBridge 2014© StrataBridge 2014
How do you expect your companies growth
prospects to change over the coming year or two
compared to the last year or two?
• Significantly increase
• Moderately increase
• About the same
• Moderately decrease
• Significantly decrease
Understanding your context… your
opportunities and expectations for Growth…

11. © StrataBridge 2014
2009 2011 2012 2013 2014 20152010
10%
40%
50%
60%
30%
20%
How do you expect customer demand for your company’s products or services to
change, if at all, in the next six months?
Source: McKinsey Global Economic Conditions Snapshot Quarterly Survey April 2009 - June 2014
Increase
Stay the same
Decrease
Don’t know
47%
43%
9%
1%
Understanding the external context…

12. © StrataBridge 2014© StrataBridge 2014
60%Asia
14% Africa
11% Europe
8% North America
6% South America
0.5% Australia
A tipping balance:
Understanding the external context – Big
Trends pointing towards growth…

13. © StrataBridge 2014
2011 2030 2050
PPP
Rank
Country
GDP @ PPP
(2011 US$bn)
Country
Projected
GDP @
PPP
Country
Projected
GDP @
PPP
1 US 15,094 China 30,634 China 53,856
2 China 11,347 US 23,376 US 37,998
3 India 4,531 India 13,716 India 34,704
4 Japan 4,381 Japan 5,842 Brazil 8,825
5 Germany 3,221 Russia 5,308 Japan 8,065
6 Russia 3,031 Brazil 4,685 Russia 8,013
7 Brazil 2,305 Germany 4,118 Mexico 7,409
8 France 2,303 Mexico 3,662 Indonesia 6,346
9 UK 2,287 UK 3,499 Germany 5,822
10 Italy 1,979 France 3,427 France 5,714
11 Mexico 1,761 Indonesia 2,912 UK 5,598
12 Spain 1,512 Turkey 2,760 Turkey 5,032
13 South Korea 1,504 Italy 2,629 Nigeria 3,964
14 Canada 1,398 South Korea 2,454 Italy 3,867
15 Turkey 1,243 Spain 2,327 Spain 3,612
16 Indonesia 1,131 Canada 2,148 Canada 3,549
17 Australia 893 Saudi
Arabia
1,582 South Korea 3,545
18 Poland 813 Australia 1,535 Saudi
Arabia
3,090
19 Argentina 720 Poland 1,415 Vietnam 2,715
The World in 2050 – Actual and Projected top 20 economies based on GDP in PPP terms
Source:
World Bank – 2011 Actuals
PWC – 2030, 2050 Estimates
Understanding the external context – Big
Trends pointing towards growth…

14. © StrataBridge 2014
Disproportionate
& Sustainable
Growth
Growth Move Criteria:
• Favourable
demographics
• Macroeconomics
• Market ‘maturity’ –
where on the ‘curve’
• Channel dynamics
• Competitive
landscape/intensity
• Attractiveness vs.
Winability
Sources of Growth:
• Market Momentum – e.g.
Geographies/Categories/Segments with
high growth rates/potential (short-medium-
long term)
• Share Gain – e.g. win share from existing
competitors/block new competitors
• Grow Participation – e.g. expand
geographic/category participation
• Grow Total Market – e.g. innovation to grow
the total market and take the greater share
of growth
• Create options for future growth – e.g.
selective moves designed to create more
upside than downside for future growth
• M&A
Innovation Drivers and Intersections:
• Our Purpose, Proposition and Brands
• Consumer Trends, Insights and Unmet
Needs
• Technical evolution, development and
breakthroughs
• Shopper, market, trade, channel, competitor
landscape and evolution
Defining the ‘Strategic
Portfolio Role’:
• Disproportionate
Growth/Growth/Market
Entry/Maintain/Defend/Deem
phasise/Exit
• Exploit/Experiment/Explore
• Both Growth and Learning
Plotting the Routes to Growth –
e.g. Growing from the ‘Core’:
Implications across the Business:
• Connecting trends, insights and
innovation – Where to play? How to
Win? What do we need to do?
• Developing a ‘joined-up’ response
• Choices, trade-offs and
consequences – ‘optimisation of the
‘whole’
Developing your ‘Growth Map’ – Where to
Play? and How to Win?…

15. © StrataBridge 2014
Mindset trumps Process – Think
‘Eco-system’ not ‘system’…
What’s going-on out there (and with
you)? Big trends and growth drivers…
Adapting the decision-making ‘eco-
system’ – Both Control and Growth…
Some Structure and Thought-
Provokers…

16. © StrataBridge 2014
A Fundamental Conflict – The
Control ⇆ Growth Paradox…
The Pursuit of ‘Growth’
The creation of new value for customers and shareholders,
driving the need for new stuff – new products, new
services, new markets, new business models, etc. – by
definition, increasingly different from what we currently
do…
The Desire for ‘Control’
The focus on continuously tightening the grip on how we
do things today – driving predictability and productivity
by fine-tuning our knowledge of, and control over, our
existing business portfolio – products, customers,
channels, etc.

17. © StrataBridge 2014
The Hungry Beast and the Ugly Baby –
Protecting the New…
© Pixar Animation Studios
Originality is fragile, initially
awkward, unformed, vulnerable
and incomplete. New ideas are
‘ugly babies’ that need
nurturing in order to grow.
They have a hard time
coexisting with the ‘beast’; any
large group that needs to be fed
an uninterrupted and consistent
diet in order to function.
As a business becomes
successful an inordinate amount
of energy is directed toward
feeding the breast – protecting
what has worked so far. The
key to preventing this is
balance.
Ed Catmull
Co-founder Pixar and President Disney Animation
Studios
Creativity Inc.
“
”

18. © StrataBridge 2014
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

19. © StrataBridge 2014
Heuristic
Principles/
Rules of
Thumb
Algorithm
Repeatable/
Reliable/
Formulaic
0101001110110101001
Code
Repeatable/
Reliable/
Formulaic
Automated
‘Outsourcable’
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

20. © StrataBridge 2014
Algorithm
Repeatable/
Reliable/
Formulaic
Mystery
Hunches/
Questions/
Paradox
Heuristic
Principles/
Rules of
Thumb
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

21. © StrataBridge 2014
Mystery
Hunches/
Questions/
Paradox
Algorithm
Repeatable/
Reliable/
Formulaic
Heuristic
Principles/
Rules of
Thumb
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

22. © StrataBridge 2014
Heuristic
Principles/
Rules of
Thumb
Algorithm
Repeatable/
Reliable/
Formulaic
Mystery
Hunches/
Questions/
Paradox
Exploration ExploitationExperimentation
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

23. © StrataBridge 2014
Heuristic
Principles/
Rules of
Thumb
Algorithm
Repeatable/
Reliable/
Formulaic
Mystery
Hunches/
Questions/
Paradox
ExplorationExploitation Experimentation
Adapting our decision-making approach to
reflect our ‘uneven knowledge’ of the world

24. © StrataBridge 2014
Value
Time
Creating New Value – The Sigmoid Curve
Increasing the ‘area under the curve’
Lower
Investment
More Cash
Generated
Increased
Longevity
Later
Investment
Faster
Payback
Multiple Levers; Two
Dynamics:
• Magnitude
• Timing
(Levers and dynamics
are not mutually
exclusive)

25. © StrataBridge 2014
Development Growth Maturity Decline
Time
Value
Creating New Value – The Sigmoid Curve
Increasing the ‘area under the curve’

26. © StrataBridge 2014
Development Growth Maturity Decline
‘Known’
Precision/
Fine-tuning
Continuous
Improvement
Analyse
Assume
Probe
Time
Value
Creating New Value – The Sigmoid Curve
Increasing the ‘area under the curve’

27. © StrataBridge 2014
Development Growth Maturity Decline
‘Unknown’
Bets &
Options
Lead with
Hypothesis
Probe
Assume
Analyse
(Explore)
‘Knowing’
Learn-
by-Doing
‘Lead’
or ‘Lag’
Assume
Probe
Analyse
(Experiment)
‘Known’
Precision/
Fine-tuning
Continuous
Improvement
Analyse
Assume
Probe
(Exploit)
~ Ditto ~
‘Growth -1
’
+
How to
profitably exit
or jump to the
next curve?
Time
Value
Creating New Value – The Sigmoid Curve
Increasing the ‘area under the curve’

28. © StrataBridge 2014© StrataBridge 2012
Consistency
Standardisation
Proceduralisatio
n
Change
Innovation
Experimentation
Learning, Competitive
Advantage & Results
fuelled by…
Efficiency
Productivity
Agility
Adaptability
Hierarchical
and
Centralised
Flat,
Networked and
Distributed
Performance Beliefs…
Organisational Construct
and Location of Power…
Analytical Exercise
Fixed
Destination/Direct
Route
Systemic Intervention
Overarching
Direction/Course
Correction
Mechanical
Formulaic
Wanting
Answers
Organic
Dialogue-based
Asking
Questions
Data-driven
Numbers based
Insight-driven
Assumptions based
??1+2=3
Approach to Strategy…
Decision-making
Routines…
Supporting
Information Focus…
Process (People are there
to ‘enact the process’)
People (Process
provides ‘enough
structure’)
Obedience
Compliance
Competence
Creativity
Stretch
Passion
Automate the
Processes
Enable the
People
Results Driven
Through…
Talent Hired For…
Technology used to…
C
o
n
t
r
o
l
G
ro
wt
h
More Volatile
More Uncertain
New ‘Rules’
Volatile
Uncertain
Changing ‘Rules’
External Environment - Competitor, Customer, Consumer
Landscape & Behaviour - & Macro Trends
Stable
Predictable
Consistent ‘Rules’
Volatile
Uncertain
Changing ‘Rules’
External Environment - Competitor, Customer, Consumer
Landscape & Behaviour - & Macro Trends
Decision-
making
Contexts
Mindsets and
Characteristics

29. © StrataBridge 2014© StrataBridge 2012© StrataBridge 2014
C
o
n
t
r
o
l
G
ro
wt
h
Striking the ‘Right Balance’?
In general, how would you rank your
organisational DNA on the 'Control-Growth
Spectrum’?
1 2 3 4 5
More 'Control’ More 'Growth’
About right
What do you need to strike the right
balance to deliver your strategy and
desired business results?

30. © StrataBridge 2014
So, what’s the BIG Idea, Question and
Opportunity?
A rapidly and
continually
changing context
is opening-up
increasing
opportunities for
growth against a
backdrop of
unprecedented
change and new
risks
Many (possibly
most?) organis-
ations decision-
making processes
(particularly
‘S&OP’, ‘IBP’
etc.) have been
designed on the
(often implicit)
assumption of
‘control’
How
do we adapt
routines
we’ve refined
for operational
efficiency to
enable similar
degrees of
strategic
flexibility?

31. © StrataBridge 2014
Chris Turner
mobile: +44 7802 252 003
e-mail: chris.turner@stratabridge.com
web: www.stratabridge.com
… and over to Ed

32. 32© 2014 Steelwedge Software, Inc..
Single Line of Sight: Plan, Perform, Profit
Steelwedge Agility Webinar Series
Revenue Growth or Cost Control
July 15, 2014

33. 33© 2014 Steelwedge Software, Inc. Confidential.
“ Steelwedge has grown into
the market's leading S&OP
solution in the cloud. ”
Rating: Positive
 Global market share leader
 Offices: USA, Europe, Japan & India
 Founded in 2000, 50%+ year over year growth
 Global organization focused on global delivery
 Cloud Based Integrated Business planning platform
 100% cloud-based for rapid deployment & value realization
Steelwedge: The S&OP Company

34. 34© 2014 Steelwedge Software, Inc..
Pre-ESOP
Ground Reality: Trying It With Spreadsheets
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Consolidation,
Review,
Overrides
Data
Collection,
Reconciliation
Consensus
Process ESOP
Operations
Marketing
Sales
Finance
Manual
Complex
Security Risk
Not Scalable
What’s going on? Big Trend Visibility?
Systems Landscape
Exploring opportunities?
Decision-making eco-system?

35. 35© 2014 Steelwedge Software, Inc..
Change Your Reality; Drive S&OP Adoption & Values
Time
L1
L2
L3
L4
Q1 Q2 Q3
Step Change
Maturity &
Performance
Avoid Process
Failure
Q4
Value
Accelerated
Time to Value
“Companies can have a hard time getting past basic levels of S&OP without
technologies like Steelwedge to support the process”
-Tim Payne
VP Supply Chain Analysis, Gartner

36. 36© 2014 Steelwedge Software, Inc..
Best Practice S&OP
Aligns People, Process & Systems
“We continue to look at S&OP as an
aspect of business that
needs terrific improvement…
It’s hard to argue this shouldn’t be a
central piece of management software”
–Rob Kugel, Ventana Research

37. 37© 2014 Steelwedge Software, Inc..
S&OP Success with Steelwedge
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Single Cross-Functional
Planning Environment
Automated Planning Prep
Interactive planning for:
• All S&OP Stakeholders
• Plan Review
• Opportunity/Risk
• Upside/Downside
• Planning Overrides
• Assumptions
• Scenarios
• Consensus Process
• Pre-S&OP
• Executive S&OP
• Audit Trail
Systems Landscape
Product / Sub-Family
Customer
Revenue
Product / Family
Territory / Region
Revenue
Product / Family
Promotions
Revenue
Product / Family
Region
Units & Revenue
Product
Stock Locations
Units and Inventory
Family / Series
Territory / Region
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Product
Production Site
Units and Capacity
Family / Series / BU
Geo
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Planning TermsStakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Cross-functional
Planning
Environment

38. 38© 2014 Steelwedge Software, Inc. Confidential.
Managing the Translation between Functions
Sales, Marketing,
Product Management,
Demand Planning
Demand
Inventory, Production,
Procurement and
Allocations
Supply
Profit & Loss,
Balance Sheet
Finance
Executive
Dashboards
Executive

39. 39© 2014 Steelwedge Software, Inc. Confidential.
Planning
Dashboard
Steelwedge Enterprise
Enabled Excel
Slice of view
(hierarchy)
Time series of
key figures
Planning data
for review and
updates
Planning Views Combine Planning, Analytics in Familiar UI
Capture institutional
knowledge /
assumptions

40. 40© 2014 Steelwedge Software, Inc..
Return on Investment is Substantial and Sequential
50-70% Reduction
15-30% Improvement
20%-25% Reduction
25% Reduction in
Stock-outs
1-2% Lift in Revenue
3-5% Margin Increase
Time
$5M to $10M in Committed Savings per $1B in Revenue (avg. over all customers)

41. 41© 2014 Steelwedge Software, Inc..
Steelwedge is a strong leader in S&OP and IBP
“Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes
with inputs from multiple ERP and APS technologies.”
Lora Cecere
Founder and CEO, Supply Chain Insights
“Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has
proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global
deployments.”
Tim Payne
Research Vice President, Supply Chain Research Group, GARTNER
Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors
that were notable in portfolio strategy and portfolio benefits delivered.”
Simon Ellis
Supply Chain Practice Director, IDC

42. 42© 2014 Steelwedge Software, Inc. Confidential.
Crawl – Walk – Run Approach
• Key to success is incremental value
• Crawl: plan ahead with end in site
• Walk: implement single solution
• Run: measure, improve, expand
• Sprint: align, integrate, monitor
• Start with quick win as phase 1 & foundation
• Expand the roll-out adding value as you go

43. 43© 2014 Steelwedge Software, Inc. Confidential.
Why Steelwedge?
• Cross-functional, Collaborative Planning Solution
• Flexible, Scalable and Easy to Use
• Accelerated Time to Value
• Market’s Leading Cloud-based S&OP Solution
• 100% S&OP Focus & Best Practices
• Leverages Existing Investment in Systems